Okinawa Financial Group, Inc. (7350) AI Stock Analysis

• Market Cap: ¥80.04B
• Dividend Yield: 3.2%
• Average Volume (3M): 46.70K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 1.02
• Revenue Growth: 8.97%
• EPS Growth: 36.69%
• Country: JP
• Employees: 1,537
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 120.10
• Shares Outstanding: 23,016,563
• 10 Day Avg. Volume: 40,830
• 30 Day Avg. Volume: 46,696
• PEG Ratio: 0.25
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.98
• P/FCF Ratio: 5.38
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: ¥4,258.00 ▲(17.14% Upside)

Okinawa Financial Group's strong financial performance and attractive valuation are the primary drivers of its score. The company's profitability and revenue growth are robust, supported by a solid balance sheet and improved cash flow management. The stock's technical indicators suggest a positive trend, although the lack of earnings call data and corporate events limits additional insights. Overall, the stock presents a compelling investment opportunity with room for growth.

Okinawa Financial Group, Inc. Business Overview & Revenue Model

Company Description

Okinawa Financial Group,Inc. provides various financial services. The company offers banking, general leasing, credit card, securities, guarantee, agency, and debt management and collection services. It also provides financial and economic survey and research, business management consultation services, etc.; sales channel development support services; and computer related services. The company was founded in 1956 and is headquartered in Naha, Japan.

How the Company Makes Money

Okinawa Financial Group generates revenue through several key streams. Primarily, it earns income from interest on loans and mortgages provided to customers, which constitutes a significant portion of its banking operations. Additionally, the company generates fees from various financial services, including asset management and investment advisory services. Insurance products also contribute to revenue through premiums collected from policyholders. Furthermore, the group engages in securities trading, earning commissions and service fees from brokerage activities. Strategic partnerships with local businesses and governmental entities enhance its service offerings and customer base, further driving revenue growth.

Okinawa Financial Group, Inc. Financial Statement Overview

Summary

Okinawa Financial Group demonstrates strong profitability and revenue growth, supported by a robust gross profit margin and improving net profit margin. The balance sheet reflects moderate leverage and a stable equity base, though the low equity ratio could pose risks. Cash flow management has improved, with positive free cash flow in 2025, but historical volatility suggests caution. Overall, the company is on a positive financial trajectory with areas for improvement in operational efficiency and cash flow stability.

Income Statement

Okinawa Financial Group shows strong profitability with a consistent gross profit margin above 95% over the years. The net profit margin improved significantly from 12.3% in 2024 to 14.2% in 2025, indicating enhanced efficiency. Revenue growth has been positive, with a notable increase of 9.8% from 2024 to 2025, showcasing a solid upward trajectory. However, EBIT margin slightly declined from 17.4% in 2024 to 15.3% in 2025, which may indicate rising operational costs.

Balance Sheet

The company maintains a healthy equity position with an equity ratio of 5.2% in 2025, reflecting a stable asset base. The debt-to-equity ratio is 0.65, indicating moderate leverage, which is manageable. Return on equity improved from 4.0% in 2024 to 5.2% in 2025, suggesting better utilization of equity. However, the relatively low equity ratio indicates potential vulnerability to financial fluctuations.

Cash Flow

Free cash flow turned positive in 2025, reaching ¥22.08 billion, a significant improvement from negative figures in previous years, indicating better cash management. The operating cash flow to net income ratio is 2.17, highlighting strong cash generation relative to earnings. However, the volatility in cash flows, with substantial negative operating cash flow in 2024, suggests potential risks in cash flow stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	57.53B	54.88B	51.41B	50.47B	46.71B	50.10B
Gross Profit	57.20B	54.88B	51.41B	50.47B	47.67B	50.10B
EBITDA	10.48B	14.13B	11.12B	10.56B	10.09B	10.04B
Net Income	8.80B	7.94B	6.26B	5.83B	5.01B	5.21B
Balance Sheet
Total Assets	3.02T	2.98T	2.93T	2.88T	2.86T	2.67T
Cash, Cash Equivalents and Short-Term Investments	0.00	349.39B	439.56B	510.74B	590.65B	455.12B
Total Debt	98.58B	99.84B	94.55B	161.03B	222.29B	161.75B
Total Liabilities	2.87T	2.83T	2.78T	2.72T	2.70T	2.51T
Stockholders Equity	156.96B	153.51B	156.92B	153.66B	159.39B	160.74B
Cash Flow
Free Cash Flow	0.00	10.18B	-44.16B	-52.34B	183.86B	4.48B
Operating Cash Flow	0.00	11.30B	-42.59B	-50.07B	188.08B	6.84B
Investing Cash Flow	0.00	-106.59B	-25.08B	-28.55B	-48.79B	-116.87B
Financing Cash Flow	0.00	-1.93B	-5.26B	-2.76B	-4.10B	364.54B

Okinawa Financial Group, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3635.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7350, the sentiment is Positive. The current price of 3635 is below the 20-day moving average (MA) of 3731.22, below the 50-day MA of 3641.37, and above the 200-day MA of 2899.03, indicating a bullish trend. The MACD of 25.59 indicates Positive momentum. The RSI at 55.73 is Neutral, neither overbought nor oversold. The STOCH value of 79.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7350.

Okinawa Financial Group, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7184	80 Outperform	¥94.62B	8.78	―	3.18%	25.33%	5.53%
8393	78 Outperform	¥76.54B	7.28	―	2.41%	14.57%	45.13%
7350	77 Outperform	¥80.04B	9.09	―	3.20%	8.97%	36.69%
8399	72 Outperform	¥61.21B	9.21	―	2.68%	6.16%	-3.02%
8343	70 Outperform	¥64.14B	9.98	―	3.78%	8.73%	12.43%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8337	66 Neutral	¥97.34B	11.53	―	0.60%	6.57%	13.25%

Okinawa Financial Group, Inc. Corporate Events

Okinawa Financial Group Reports Unrealized Losses but Maintains Financial Forecasts

Okinawa Financial Group, Inc. reported unrealized losses on held-to-maturity bonds amounting to ¥6,936 million for the six months ending September 30, 2025. Despite these losses, the company has not revised its financial forecasts or dividend payment expectations for the fiscal year ending March 31, 2026, indicating a stable outlook for stakeholders.

The most recent analyst rating on (JP:7350) stock is a Buy with a Yen3859.00 price target. To see the full list of analyst forecasts on Okinawa Financial Group, Inc. stock, see the JP:7350 Stock Forecast page.

Okinawa Financial Group Reports Strong Q1 2025 Results and Positive Outlook

Okinawa Financial Group, Inc. reported a significant increase in its financial performance for the three months ending June 30, 2025, with a 23.3% rise in ordinary income and a 50.9% increase in profit attributable to owners of the parent compared to the previous year. The company forecasts continued growth for the fiscal year ending March 31, 2026, with expectations of a 15.7% increase in ordinary income and a 23.9% rise in ordinary profit, indicating a strong financial position and positive outlook for stakeholders.

Okinawa Financial Group Reports Unrealized Losses on Securities

Okinawa Financial Group, Inc. reported unrealized losses of ¥6,161 million on held-to-maturity bonds for the three months ended June 30, 2025. Despite these losses, the company has not revised its financial results forecasts or dividend payment forecasts for the fiscal year ending March 31, 2026, indicating a stable outlook for stakeholders.