Aichi Financial Group, Inc. (7389) AI Stock Analysis

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Aichi Financial Group, Inc.

(TSE/TYO:7389)

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Rating:64Neutral

Price Target:JPY 1,648.00▼(-4.85% Downside)

Action:downgraded

Date:10/22/26

The company's solid financial performance, driven by revenue growth and improved cash flow, is the primary support for the score. However, significant technical weakness, with the stock trading below key moving averages and bearish momentum indicators, weighs heavily on the outlook. Fair valuation provides a neutral backdrop, resulting in a moderately positive overall assessment.

Positive Factors

Accelerating revenue and marginsStrong revenue acceleration combined with materially higher net and EBIT margins indicates improved operating performance across the regional banking group. If maintained, this earnings profile can strengthen internal capital generation and support continued investment in customer services and local-market growth.

Negative Factors

Highly volatile cash generationBack-to-back years of negative operating cash flow make the recent improvement less dependable as a durable trend. Such volatility complicates capital planning and weakens confidence that reported earnings will consistently translate into cash available for lending, investment, or shareholder distributions.

Aichi Financial Group, Inc. (7389) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 422.15B
Dividend Yield: 1.85%
Average Volume (3M): 1.09M
Price to Earnings (P/E): 13.0
Beta (1Y): 1.36
Revenue Growth: 33.44%
EPS Growth: 149.07%
Country: Japan
Employees: 2,562
Sector: Financial
Sector Strength: 68
Industry: Banks - Regional

Aichi Financial Group, Inc. Business Overview & Revenue Model

Company Description

Aichi Financial Group, Inc., encompassing its various subsidiaries, offers a wide array of banking and financial solutions across Japan. Their services include managing deposit accounts, providing diverse lending facilities, handling both domestic an...

Aichi Financial Group, Inc. Financial Statement Overview

Summary

Revenue growth and improved net profit margins signal strong operational efficiency, but declining gross margins and volatile net income temper the outlook. The balance sheet has strengthened with lower leverage, though low ROE and rising total debt are concerns. Cash flow rebounded positively, but historical volatility remains a risk.

Income Statement

80Positive

Balance Sheet

70Positive

Cash Flow

75Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023
Income Statement
Total Revenue	45.46B	115.08B	95.37B	83.26B	68.75B
Gross Profit	37.84B	93.90B	87.39B	79.78B	66.76B
EBITDA	20.96B	33.18B	14.34B	15.13B	84.64B
Net Income	14.48B	21.81B	9.10B	8.29B	81.81B
Balance Sheet
Total Assets	7.03T	7.17T	6.80T	6.83T	6.79T
Cash, Cash Equivalents and Short-Term Investments	571.20B	790.70B	612.64B	605.15B	712.78B
Total Debt	376.80B	547.70B	415.93B	717.07B	1.04T
Total Liabilities	6.57T	6.74T	6.45T	6.45T	6.46T
Stockholders Equity	463.06B	430.98B	353.81B	379.53B	318.93B
Cash Flow
Free Cash Flow	0	37.67B	37.96B	-165.12B	26.22B
Operating Cash Flow	0	40.77B	-105.08B	-160.57B	28.82B
Investing Cash Flow	0	9.92B	117.58B	64.78B	33.03B
Financing Cash Flow	0	128.87B	-4.96B	-12.10B	91.91B

Aichi Financial Group, Inc. Technical Analysis

Technical Analysis SentimentPositive

Last Price1732.00

Price Trends

50DMA1866.46Negative

100DMA1740.25Positive

200DMA1531.97Positive

Market Momentum

MACD-49.90Negative

RSI49.49Neutral

STOCH86.00Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7389, the sentiment is Positive. The current price of 1732.00 is above the 20-day moving average (MA) of 1720.00, below the 50-day MA of 1866.46, and above the 200-day MA of 1531.97, indicating a neutral trend. The MACD of -49.90 indicates Negative momentum. The RSI at 49.49 is Neutral, neither overbought nor oversold. The STOCH value of 86.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7389.

Aichi Financial Group, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

JP:7389 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:8386	83Outperform	JPY 323.12B	14.07	―	2.68%	21.78%	44.50%
JP:8370	81Outperform	JPY 302.12B	11.31	10.51%	6.88%	21.89%	36.89%
JP:8361	79Outperform	JPY 313.43B	15.01	―	6.18%	36.04%	27.52%
JP:7380	77Outperform	JPY 407.62B	12.65	―	2.46%	16.95%	53.47%
JP:7173	71Outperform	JPY 423.41B	8.76	―	1.75%	14.90%	8.34%
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
JP:7389	64Neutral	JPY 430.00B	12.99	―	1.85%	33.44%	149.07%

* Financial Sector Average

Performance Comparison

JP:7389 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7389	Aichi Financial Group, Inc.	1732.00	879.48	103.16%
JP:8370	Kiyo Bank	1527.00	572.81	60.03%
JP:7173	Tokyo Kiraboshi Financial Group, Inc.	1466.50	498.42	51.49%
JP:7380	Juroku Financial Group,Inc.	2362.00	1190.33	101.59%
JP:8361	Ogaki Kyoritsu Bank, Ltd.	1520.00	784.65	106.70%
JP:8386	Hyakujushi Bank, Ltd.	2854.00	1435.28	101.17%

Aichi Financial Group, Inc. Corporate Events

Aichi Financial Group Raises Fiscal 2027 Forecasts and Dividend

Nov 10, 2026

Aichi Financial Group operates as a financial group, with Aichi Bank as a consolidated subsidiary. The release does not specify the group’s primary products, services or market focus.The company raised its fiscal 2027 consolidated forecasts, lifting...

Ariake Master Fund Becomes Aichi Financial Group’s Largest Shareholder

Nov 9, 2026

Aichi Financial Group, Inc. said Ariake Master Fund became both a major shareholder and its largest shareholder on October 29, 2026, after its voting-rights stake rose above 10%.Filings showed the fund’s holdings increased from 26,857,500 shares, or...

Aichi Financial Group and San ju San Financial Group Scrap Planned Business Integration

Sep 10, 2026

Aichi Financial Group, Inc. and San ju San Financial Group, Inc. have dissolved their basic agreement to pursue a business integration through merger, originally announced in May 2026 and targeted for completion by April 1, 2027. After multiple round...

Aichi Financial Group Posts Strong Q1 Profit Surge and Confirms Dividend Outlook

Aug 14, 2026

Aichi Financial Group reported a sharp improvement in performance for the three months ended June 30, 2026, with ordinary income up 49.3% year-on-year to ¥39.9 billion and profit attributable to owners of the parent surging 280.8% to ¥14.5 billion. P...

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: Oct 22, 2026

Aichi Financial Group, Inc. AI Stock Analysis