Fidea Holdings Co.Ltd. (8713) AI Stock Analysis

• Market Cap: €30.17B
• Dividend Yield: 4.51%
• Average Volume (3M): 58.18K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.74
• Revenue Growth: 10.11%
• EPS Growth: 109.51%
• Country: JP
• Employees: 1,421
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 64.54
• Shares Outstanding: 18,142,122
• 10 Day Avg. Volume: 58,290
• 30 Day Avg. Volume: 58,180
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 64 Neutral
• Price Target: ―

Fidea Holdings Co., Ltd. has shown improvements in profitability and operational efficiency but faces challenges with inconsistent revenue and high leverage. The technical indicators suggest short-term upward momentum, while the valuation is appealing with a reasonable P/E ratio and high dividend yield. However, liquidity concerns due to absent positive cash flows remain a key risk.

Fidea Holdings Co.Ltd. Business Overview & Revenue Model

Company Description

Fidea Holdings Co., Ltd. (8713) is a Japan-based financial services holding company primarily engaged in the management and operation of its group companies. The company operates through its subsidiaries, mainly focusing on banking services. Fidea Holdings provides a wide range of financial products and services, including commercial banking, asset management, and other related financial solutions to individuals and corporate clients.

How the Company Makes Money

Fidea Holdings Co., Ltd. generates revenue primarily through its banking operations. The company earns money through interest income from loans and advances offered to individuals and businesses, as well as through various service fees related to financial transactions and account management. Additionally, Fidea Holdings benefits from investment activities and asset management services, which contribute to its financial income. Strategic partnerships with other financial institutions and a focus on expanding its customer base also play a significant role in driving the company's revenue growth.

Fidea Holdings Co.Ltd. Financial Statement Overview

Summary

The company shows strong profitability and operational efficiency improvements in the TTM period. However, challenges such as inconsistent revenue growth and high leverage affect its financial stability. The cash flow situation is concerning with no positive operating and free cash flows, indicating potential liquidity risks.

Income Statement

The income statement shows a mixed performance. The gross profit margin remains stable with the entire revenue translating to gross profit due to the nature of the banking industry. The TTM (Trailing-Twelve-Months) net profit margin improved to 4.80% from the previous annual figure of 2.71%, indicating better profitability. However, revenue growth is inconsistent, showing a decline in the latest TTM period compared to the previous annual report. EBIT and EBITDA margins also show improvement in the TTM period, reflecting better operational efficiency.

Balance Sheet

The balance sheet reflects a solid equity position with an equity ratio of 2.62% in the TTM period, showing a decrease from 2.80% in the previous year. The debt-to-equity ratio is high at 1.29, signifying significant leverage. The return on equity (ROE) is modest at 2.79% for the TTM period, indicating room for improvement in generating returns from equity. Overall, the balance sheet suggests a stable financial position but with potential risks from high leverage.

Cash Flow

The cash flow statement reveals challenges in cash generation. The operating cash flow has fluctuated significantly, with zero operating cash flow reported in the TTM period. Free cash flow was also zero, pointing to potential liquidity issues. The lack of free cash flow to net income and operating cash flow to net income ratios further emphasizes the need for improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	47.09B	47.90B	46.72B	47.24B	46.29B	49.52B
Gross Profit	47.09B	47.90B	45.65B	47.24B	46.29B	49.02B
EBITDA	4.26B	2.23B	0.00	6.48B	7.58B	7.30B
Net Income	2.82B	2.82B	1.18B	3.27B	3.51B	3.31B
Balance Sheet
Total Assets	2.92T	2.92T	3.06T	3.02T	3.27T	3.22T
Cash, Cash Equivalents and Short-Term Investments	316.70B	316.70B	306.34B	316.92B	725.95B	612.33B
Total Debt	103.30B	103.30B	87.70B	157.65B	396.63B	399.70B
Total Liabilities	2.84T	2.84T	2.97T	2.93T	3.16T	3.10T
Stockholders Equity	77.23B	77.23B	85.67B	90.51B	108.92B	119.78B
Cash Flow
Free Cash Flow	0.00	42.82B	-14.28B	-405.49B	83.99B	468.07B
Operating Cash Flow	0.00	43.31B	-13.40B	-404.54B	85.90B	469.63B
Investing Cash Flow	0.00	159.67B	-75.51B	913.00M	34.70B	-3.14B
Financing Cash Flow	0.00	-1.84B	34.07B	-7.24B	-7.02B	-1.26B

Fidea Holdings Co.Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1663.00
• 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:8713, the sentiment is Positive. The current price of 1663 is above the 20-day moving average (MA) of 1618.85, above the 50-day MA of 1576.68, and above the 200-day MA of 1478.19, indicating a bullish trend. The MACD of 16.65 indicates Positive momentum. The RSI at 65.21 is Neutral, neither overbought nor oversold. The STOCH value of 50.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8713.

Fidea Holdings Co.Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8331	73 Outperform	1.15T	15.00	6.48%	2.49%	11.33%	20.11%
8344	72 Outperform	52.24B	12.19	3.25%	2.65%	-12.00%	28.81%
8334	72 Outperform	661.68B	13.86	7.80%	2.66%	7.15%	44.42%
8713	64 Neutral	€30.17B	10.56	3.65%	4.51%	10.11%	109.51%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Fidea Holdings Co.Ltd. Corporate Events

FIDEA Holdings Announces Shonai Bank Head Office Relocation Ahead of Merger

FIDEA Holdings Co. Ltd. announced that its subsidiary, Shonai Bank Ltd., will relocate its head office from Tsuruoka City to Yamagata City, effective May 26, 2025. This move is part of a strategic plan to merge Shonai Bank with Hokuto Bank in January 2027, aiming to strengthen regional economic support and development. The new bank will focus on enhancing problem-solving capabilities for regional businesses and promoting regional revitalization, with a dispersed headquarters system across multiple cities to optimize operational functions.

FIDEA Holdings Announces Executive Changes Ahead of Bank Merger

FIDEA Holdings Co. Ltd. has announced changes in its executive officers and those of its subsidiaries, Shonai Bank and Hokuto Bank, as part of a strategic move towards their planned merger in January 2027. This restructuring aims to achieve merger synergies ahead of schedule by having a unified management structure, with executives serving roles in both banks starting from FY2025. The new directors will be confirmed at the upcoming extraordinary general shareholders’ meetings in April 2025.