Resona Holdings, Inc. (8308) 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

Hirogin Holdings, Inc.

Rakuten Bank Ltd.

Shizuoka Financial Group, Inc.

Nishi-Nippon Financial Holdings, Inc.

Gunma Bank, Ltd.

Iyogin Holdings, Inc.

Japan Post Bank Co., Ltd.

Concordia Financial Group, Ltd.

Yamaguchi Financial Group, Inc.

Resona Holdings, Inc.

The Hachijuni Bank, Ltd.

Why is Resona Holdings, Inc. ?

Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 12.30% signifying inadequate buffers against its risk based assets

Poor long term growth as Net profit has grown by an annual rate of 7.00%
Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 12.30% signifying inadequate buffers against its risk based assets
The bank has been able to generate a Return on Assets (avg) of 0.13% signifying low profitability per unit of total assets

With a growth in Interest of 7.16%, the company declared Very Positive results in Mar 26

ROCE(HY) Highest at 0.34%
CREDIT DEPOSIT RATIO(Q) Highest at 1.2%
NII(Q) Highest at JPY 166,080 MM

With ROA of 0.26%, it has a fair valuation with a 1.43 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 70.29%, its profits have risen by 34% ; the PEG ratio of the company is 0.5

Majority shareholders : FIIs

Underperformed the market in the last 1 year

The stock has generated a return of 70.29% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 88.41%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Resona Holdings, Inc. should be less than 10%
Overall Portfolio exposure to Regional Banks should be less than 30%

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

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

Is Resona Holdings, Inc. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Resona Holdings, Inc.

65.1%

1287.84

39.01%

Japan Nikkei 225

88.41%

3.25

27.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.20%

EBIT Growth (5y)

10.13%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

27.05%

Pledged Shares

Institutional Holding

0.01%

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

1.43

EV to EBIT

-11.71

EV to EBITDA

-10.32

EV to Capital Employed

0.73

EV to Sales

-5.50

PEG Ratio

0.54

Dividend Yield

ROCE (Latest)

-6.24%

ROE (Latest)

7.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Bullish

OBV

No Trend

Mildly Bearish

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

14What is working for the Company

ROCE(HY)

Highest at 0.34%

CREDIT DEPOSIT RATIO(Q)

Highest at 1.2%

NII(Q)

Highest at JPY 166,080 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 89.29%

DIVIDEND PER SHARE(HY)

Highest at JPY 0

NET SALES(Q)

Highest at JPY 233,479 MM

-10What is not working for the Company

INTEREST(9M)

At JPY 179,606 MM has Grown at 67.96%

ROCE(HY)

Lowest at 0.34%

CASH AND EQV(HY)

Lowest at JPY 29,749,579 MM

NET PROFIT(Q)

Lowest at JPY 39,991.87 MM

EPS(Q)

Lowest at JPY 16.24

Here's what is working for Resona Holdings, Inc.

Credit Deposit Ratio

Highest at 1.2% and Grown

In each half year 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 (%)

NII

Highest at JPY 166,080 MM

in the last five periods

MOJO Watch

The bank's income from core business is increasing

NII (JPY MM)

Net Sales

Highest at JPY 233,479 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 233,479 MM has Grown at 31.13%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Dividend per share

Highest at JPY 0

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 89.29%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

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

Interest

At JPY 179,606 MM has Grown at 67.96%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

Lowest at JPY 39,991.87 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 16.24

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Cash and Eqv

Lowest at JPY 29,749,579 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents