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Kyushu Financial Group

Market Cap

JP¥184.8b

Last Updated

2021/05/16 08:23 UTC

Data Sources

Company Financials +

Executive Summary

Kyushu Financial Group, Inc., through its subsidiaries, provides various financial services to customers in Japan. More Details


Snowflake Analysis

Excellent balance sheet unattractive dividend payer.


Similar Companies

Share Price & News

How has Kyushu Financial Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 7180 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 7180's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-3.9%

7180

0.5%

JP Banks

-2.5%

JP Market


1 Year Return

0%

7180

29.3%

JP Banks

28.6%

JP Market

Return vs Industry: 7180 underperformed the JP Banks industry which returned 29.3% over the past year.

Return vs Market: 7180 underperformed the JP Market which returned 28.6% over the past year.


Shareholder returns

7180IndustryMarket
7 Day-3.9%0.5%-2.5%
30 Day-6.7%1.7%-3.9%
90 Day-5.6%8.2%-3.1%
1 Year2.4%0%35.2%29.3%31.4%28.6%
3 Year-20.3%-25.9%-14.7%-24.7%11.1%3.4%
5 Year-15.9%-24.7%14.4%-4.8%54.9%37.9%

Long-Term Price Volatility Vs. Market

How volatile is Kyushu Financial Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Kyushu Financial Group undervalued compared to its fair value and its price relative to the market?

12.31x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 7180 (¥420) is trading above our estimate of fair value (¥418.05)

Significantly Below Fair Value: 7180 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 7180 is poor value based on its PE Ratio (12.3x) compared to the JP Banks industry average (9.7x).

PE vs Market: 7180 is good value based on its PE Ratio (12.3x) compared to the JP market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: 7180 is poor value based on its PEG Ratio (88.9x)


Price to Book Ratio

PB vs Industry: 7180's PB Ratio (0.3x) is in line with the JP Banks industry average.


Future Growth

How is Kyushu Financial Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

0.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 7180's forecast earnings growth (0.1% per year) is above the savings rate (0%).

Earnings vs Market: 7180's earnings (0.1% per year) are forecast to grow slower than the JP market (14.2% per year).

High Growth Earnings: 7180's earnings are forecast to grow, but not significantly.

Revenue vs Market: 7180's revenue (3.9% per year) is forecast to grow slower than the JP market (5.3% per year).

High Growth Revenue: 7180's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 7180's Return on Equity is forecast to be low in 3 years time (3.2%).


Past Performance

How has Kyushu Financial Group performed over the past 5 years?

-27.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 7180 has high quality earnings.

Growing Profit Margin: 7180's current net profit margins (9.5%) are lower than last year (11.5%).


Past Earnings Growth Analysis

Earnings Trend: 7180's earnings have declined by 27.2% per year over the past 5 years.

Accelerating Growth: 7180's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 7180 had negative earnings growth (-17.8%) over the past year, making it difficult to compare to the Banks industry average (-12.8%).


Return on Equity

High ROE: 7180's Return on Equity (2.2%) is considered low.


Financial Health

How is Kyushu Financial Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: 7180's Assets to Equity ratio (17.9x) is moderate.

Allowance for Bad Loans: 7180 has a low allowance for bad loans (48%).

Low Risk Liabilities: 84% of 7180's liabilities are made up of primarily low risk sources of funding.

Loan Level: 7180 has an appropriate level of Loans to Assets ratio (62%).

Low Risk Deposits: 7180's Loans to Deposits ratio (78%) is appropriate.

Level of Bad Loans: 7180 has an appropriate level of bad loans (1.9%).


Dividend

What is Kyushu Financial Group current dividend yield, its reliability and sustainability?

2.86%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 7180's dividend (2.86%) is higher than the bottom 25% of dividend payers in the JP market (1.29%).

High Dividend: 7180's dividend (2.86%) is low compared to the top 25% of dividend payers in the JP market (2.94%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 7180 has been paying a dividend for less than 10 years.

Growing Dividend: 7180's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.2%), 7180's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.5yrs

Average management tenure


CEO

Yoshihisa Kasahara (58 yo)

1.92yrs

Tenure

Mr. Yoshihisa Kasahara has been President and CEO of Kyushu Financial Group, Inc. since June 21, 2019 and has been its Representative Director since June 2016. Mr. Kasahara has been President and Director ...


Leadership Team

Experienced Management: 7180's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

Experienced Board: 7180's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Kyushu Financial Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kyushu Financial Group, Inc.
  • Ticker: 7180
  • Exchange: TSE
  • Founded: 2015
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: JP¥184.763b
  • Shares outstanding: 439.91m
  • Website: https://www.kyushu-fg.co.jp

Number of Employees


Location

  • Kyushu Financial Group, Inc.
  • 1, Renpeicho
  • Chuo-ku
  • Kumamoto
  • Kumamoto
  • 860-0017
  • Japan

Listings


Biography

Kyushu Financial Group, Inc., through its subsidiaries, provides various financial services to customers in Japan. The company operates through Banking and Leasing segments. It offers deposit products; sec...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/16 08:23
End of Day Share Price2021/05/14 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.