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

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Okinawa Financial Group, Inc.

(TSE/TYO:7350)

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Rating:61Neutral

Price Target:JPY 7,533.00▲(5.50% Upside)

Action:downgraded

Date:11/08/26

The score is anchored by improving profitability trends and better leverage, but is held back by weak technical momentum and materially volatile cash flow. Valuation (low P/E and ~3.13% yield) is supportive and partially offsets these risks.

Positive Factors

Revenue and earnings growthAccelerating revenue and steadily rising net income indicate stronger operating momentum across the group. If sustained, this growth can expand the earnings base, support reinvestment in financial services, and strengthen the company’s position in its regional banking market over coming quarters.

Negative Factors

Volatile cash generationLarge year-to-year cash-flow swings reduce confidence in the consistency of internally generated funds, even after the recent rebound. Unpredictable cash generation can complicate capital planning, constrain shareholder returns, and make growth funding less dependable across business cycles.

Okinawa Financial Group, Inc. (7350) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 150.92B
Dividend Yield: 2.80%
Average Volume (3M): 99.50K
Price to Earnings (P/E): 12.2
Beta (1Y): 1.31
Revenue Growth: 20.97%
EPS Growth: 40.16%
Country: Japan
Employees: 1,513
Sector: General
Sector Strength: 55
Industry: Banks - Regional

Okinawa Financial Group, Inc. Business Overview & Revenue Model

Company Description

Okinawa Financial Group, Inc. functions as a diversified provider of financial services. Its extensive portfolio includes conventional banking, general leasing, credit card offerings, securities trading, guarantees, agency operations, and debt collec...

How the Company Makes Money

The company makes money primarily through earnings generated by its consolidated financial subsidiaries, especially its banking business. Key revenue streams typically include: (1) net interest income, earned from the spread between interest received...

Okinawa Financial Group, Inc. Financial Statement Overview

Summary

Income statement strength (78) shows improving revenue and net income momentum into 2026, and the balance sheet (64) reflects improved leverage versus 2022–2023. However, cash-flow quality is a major weakness (42) due to large swings in operating/free cash flow, which reduces confidence in consistency despite the recent rebound.

Income Statement

78Positive

Balance Sheet

64Positive

Cash Flow

42Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	71.30B	69.72B	55.98B	50.97B	49.31B	46.71B
Gross Profit	64.83B	63.18B	53.62B	49.77B	48.89B	46.42B
EBITDA	17.43B	18.44B	14.13B	11.12B	10.56B	10.09B
Net Income	12.34B	11.29B	7.94B	6.26B	5.83B	5.01B
Balance Sheet
Total Assets	3.11T	2.94T	2.98T	2.93T	2.88T	2.86T
Cash, Cash Equivalents and Short-Term Investments	370.74B	201.70B	349.39B	439.56B	510.74B	590.65B
Total Debt	87.97B	96.26B	99.84B	94.55B	161.03B	222.29B
Total Liabilities	2.94T	2.77T	2.83T	2.78T	2.72T	2.70T
Stockholders Equity	165.09B	162.30B	153.51B	156.92B	153.66B	159.39B
Cash Flow
Free Cash Flow	0	7.20B	10.18B	-44.16B	-52.34B	183.86B
Operating Cash Flow	0	8.53B	11.30B	-42.59B	-50.07B	188.08B
Investing Cash Flow	0	-104.31B	-106.59B	-25.08B	-28.55B	-48.79B
Financing Cash Flow	0	-54.02B	-1.93B	-5.26B	-2.76B	-4.10B

Okinawa Financial Group, Inc. Technical Analysis

Technical Analysis SentimentPositive

Last Price7140.00

Price Trends

50DMA7469.67Negative

100DMA7230.69Negative

200DMA6411.04Positive

Market Momentum

MACD-193.09Negative

RSI50.38Neutral

STOCH61.56Neutral

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 7140.00 is above the 20-day moving average (MA) of 7000.50, below the 50-day MA of 7469.67, and above the 200-day MA of 6411.04, indicating a neutral trend. The MACD of -193.09 indicates Negative momentum. The RSI at 50.38 is Neutral, neither overbought nor oversold. The STOCH value of 61.56 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

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:7350 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:8399	78Outperform	JPY 111.69B	11.49	―	4.07%	18.94%	26.15%
JP:8346	76Outperform	JPY 229.12B	16.29	―	2.45%	63.98%	60.28%
JP:8393	68Neutral	JPY 205.45B	14.06	―	2.24%	9.60%	33.99%
JP:8392	66Neutral	JPY 208.02B	15.46	5.27%	1.52%	24.51%	62.67%
JP:7350	61Neutral	JPY 147.48B	12.18	―	2.80%	20.97%	40.16%
JP:8337	56Neutral	JPY 152.37B	19.19	―	0.38%	21.31%	18.00%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:7350 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7350	Okinawa Financial Group, Inc.	7140.00	2973.02	71.35%
JP:8392	Oita Bank	2757.00	1702.17	161.37%
JP:8337	Chiba Kogyo Bank, Ltd.	2615.00	1102.53	72.90%
JP:8346	Toho Bank, Ltd.	940.00	483.30	105.82%
JP:8393	Miyazaki Bank Ltd.	2541.00	1528.29	150.91%
JP:8399	Bank Of The Ryukyus,Limited	2700.00	1182.39	77.91%

Okinawa Financial Group, Inc. Corporate Events

Okinawa Financial Group Flags Large Unrealized Bond Losses but Keeps 2027 Forecasts Intact

Oct 22, 2026

Okinawa Financial Group, Inc. reported unrealized losses of ¥11,321 million on held-to-maturity bonds at The Bank of Okinawa, Ltd. as of September 30, 2026, reflecting a market value of ¥31,485 million against a book value of ¥42,806 million. The los...

Okinawa Financial Group Delivers Strong Q1 Earnings and Raises Annual Dividend Outlook

Aug 14, 2026

Okinawa Financial Group, Inc. reported a strong start to the fiscal year, with ordinary income rising 16.5% year-on-year to ¥19.9 billion and profit attributable to owners of parent climbing 40.9% to ¥3.6 billion in the three months ended June 30, 20...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 07, 2026

Okinawa Financial Group, Inc. AI Stock Analysis