Yamaguchi Financial Group, Inc. (8418) 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

Nishi-Nippon Financial Holdings, Inc.

Gunma Bank, Ltd.

Rakuten Bank Ltd.

The Hachijuni Bank, Ltd.

Concordia Financial Group, Ltd.

Hirogin Holdings, Inc.

Iyogin Holdings, Inc.

Shizuoka Financial Group, Inc.

Resona Holdings, Inc.

Yamaguchi Financial Group, Inc.

Japan Post Bank Co., Ltd.

Why is Yamaguchi Financial Group, Inc. ?

Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 12.23% signifying inadequate buffers against its risk based assets

Poor long term growth as Net Interest Income (ex other income) has grown by an annual rate of 0% and Net profit at 6.80%
Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 12.23% signifying inadequate buffers against its risk based assets
The bank has been able to generate a Return on Assets (avg) of 0.11% signifying low profitability per unit of total assets

Poor long term growth as Net Interest Income (ex other income) has grown by an annual rate of 0% and Net profit at 6.80%

Flat results in Dec 25

INTEREST(9M) At JPY 40,728 MM has Grown at 76.71%
ROCE(HY) Lowest at 0.3%
OPERATING PROFIT(Q) Lowest at JPY -217 MM

With ROA of 0.26%, it has a very attractive valuation with a 0.59 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 34.24%, its profits have risen by 40% ; the PEG ratio of the company is 0.3

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Yamaguchi Financial Group, 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 Yamaguchi Financial Group, Inc. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Yamaguchi Financial Group, Inc.

34.24%

579.37

36.86%

Japan Nikkei 225

36.73%

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)

8.70%

EBIT Growth (5y)

2.78%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

36.33%

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

0.59

EV to EBIT

-10.98

EV to EBITDA

-9.61

EV to Capital Employed

3.04

EV to Sales

-2.55

PEG Ratio

0.26

Dividend Yield

ROCE (Latest)

-27.70%

ROE (Latest)

5.71%

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

Bullish

OBV

No Trend

Bullish

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

9What is working for the Company

ROCE(HY)

Highest at 0.3%

NET SALES(Q)

Highest at JPY 46,107 MM

NII(Q)

Highest at JPY 33,160 MM

-12What is not working for the Company

INTEREST(9M)

At JPY 40,728 MM has Grown at 76.71%

ROCE(HY)

Lowest at 0.3%

OPERATING PROFIT(Q)

Lowest at JPY -217 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -0.47 %

PRE-TAX PROFIT(Q)

Lowest at JPY 10,799 MM

NET PROFIT(Q)

Lowest at JPY 7,409.02 MM

EPS(Q)

Lowest at JPY 34.72

Here's what is working for Yamaguchi Financial Group, Inc.

Net Sales

Highest at JPY 46,107 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

NII

Highest at JPY 33,160 MM

in the last five periods

MOJO Watch

The bank's income from core business is increasing

NII (JPY MM)

Net Sales

At JPY 46,107 MM has Grown at 19.47%

over average net sales of the previous four periods of JPY 38,593.75 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

CASA

Highest at 12.78%

in the last five periods

MOJO Watch

The Bank's capital base vs its risk assets is improving. However, the bank may not be taking adequate risk in its lending book.

CAR (%)

Here's what is not working for Yamaguchi Financial Group, Inc.

Interest

At JPY 40,728 MM has Grown at 76.71%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY -217 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at -0.47 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 10,799 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 7,409.02 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 34.72

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Non Operating Income

Highest at JPY 1.03 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income