Hokkoku Financial Holdings, Inc. (8363) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

SBI Holdings, Inc.

Mercuria Holdings Co., Ltd.

Hokkoku Financial Holdings, Inc.

Integrated Design & Engineering Holdings Co., Ltd.

Ikka Holdings Co., Ltd.

Procrea Holdings, Inc.

Why is Hokkoku Financial Holdings, Inc. ?

Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 10.52% signifying inadequate buffers against its risk based assets

Poor long term growth as Net profit has grown by an annual rate of 2.10%
Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 10.52% signifying inadequate buffers against its risk based assets
The bank has been able to generate a Return on Assets (avg) of 0.10% signifying low profitability per unit of total assets

Poor long term growth as Net profit has grown by an annual rate of 2.10%

With a growth in Interest of 1.33%, the company declared Very Positive results in Dec 25

NET PROFIT(Q) At JPY 5,100.98 MM has Grown at 329.67%
ROCE(HY) Highest at 0.24%
NET SALES(Q) At JPY 15,456 MM has Grown at 36.45%

With ROA of 0.11%, it has a very attractive valuation with a 0.54 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 59.16%, its profits have fallen by -10%
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hokkoku Financial Holdings, Inc. should be less than 10%
Overall Portfolio exposure to Finance should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Finance)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Hokkoku Financial Holdings, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hokkoku Financial Holdings, Inc.

60.24%

-0.81

100.72%

Japan Nikkei 225

38.94%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.00%

EBIT Growth (5y)

-184.20%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

33.80%

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.54

EV to EBIT

109.02

EV to EBITDA

-369.93

EV to Capital Employed

1.35

EV to Sales

-7.96

PEG Ratio

Dividend Yield

0.01%

ROCE (Latest)

1.24%

ROE (Latest)

3.83%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

21What is working for the Company

NET PROFIT(Q)

At JPY 5,100.98 MM has Grown at 329.67%

ROCE(HY)

Highest at 0.24%

NET SALES(Q)

At JPY 15,456 MM has Grown at 36.45%

PRE-TAX PROFIT(Q)

At JPY 6,700 MM has Grown at 170.38%

CREDIT DEPOSIT RATIO(HY)

Highest at 65.86%

-8What is not working for the Company

INTEREST(9M)

At JPY 12,960 MM has Grown at 92.09%

ROCE(HY)

Lowest at 0.24%

CASH AND EQV(HY)

Lowest at JPY 1,953,021 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 20.3 %

Here's what is working for Hokkoku Financial Holdings, Inc.

Net Profit

At JPY 5,100.98 MM has Grown at 329.67%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

At JPY 15,456 MM has Grown at 36.45%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 6,700 MM has Grown at 170.38%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Credit Deposit Ratio

Highest at 65.86%

in the last four Semi-Annual periods

MOJO Watch

Bank has been creating proportionately higher loans against its deposits, thereby creating higher revenue generating assets

Credit Deposit Ratio (%)

Depreciation

Highest at JPY 1,499 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Depreciation

At JPY 1,499 MM has Grown at 26.5%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

Here's what is not working for Hokkoku Financial Holdings, Inc.

Interest

At JPY 12,960 MM has Grown at 92.09%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit Margin

Lowest at 20.3 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at JPY 1,953,021 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents