Fact based stock research
Kyushu Financial Group (TSE:7180)

JP3246500007

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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Kyushu Financial Group stock research in summary

kyushu-fg.co.jp

ANALYSIS: With an Obermatt Combined Rank of 67 (better than 67% compared with investment alternatives), Kyushu Financial Group (Regional Banks, Japan) shares have above-average financial characteristics compared with similar stocks. Shares of Kyushu Financial Group are a good value (attractively priced) with a consolidated Value Rank of 75 (better than 75% of alternatives), are safely financed (Safety Rank of 88, which means low debt burdens), but show below-average growth (Growth Rank of 11). ...read more

RECOMMENDATION: A Combined Rank of 67, is a buy recommendation based on Kyushu Financial Group's financial characteristics. As the company Kyushu Financial Group's key financial metrics exhibit good value (Obermatt Value Rank of 75) but low growth (Obermatt Growth Rank of 11) while being safely financed (Obermatt Safety Rank of 88), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 75% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	75
Growth Rank	11
Safety Rank	88
Combined Rank	67

Country	Japan
Industry	Regional Banks
Index
Size class	XX-Large

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Kyushu Financial Group

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	60	61	28	75
GROWTH
GROWTH	2	8	85	11
SAFETY
SAFETY	98	76	88	88
SENTIMENT
SENTIMENT	n/a	37	32	^new
360° VIEW
360° VIEW	n/a	39	65	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Kyushu Financial Group is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	60	61	28	75
GROWTH
GROWTH	2	8	85	11
SAFETY
SAFETY	98	76	88	88
COMBINED
COMBINED	53	42	84	67

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Kyushu Financial Group the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 75 (better than 75% compared with alternatives) for 2024, Kyushu Financial Group shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Kyushu Financial Group. Price-to-Sales (P/S) is 95, which means that the stock price compared with what market professionals expect for future sales is lower than for 95% of comparable companies, indicating a good value regarding Kyushu Financial Group's revenue size. The same is valid for expected Price to Profits (or Price / Earnings, P/E), more favorable than for 58% of alternatives, and it's also true for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 92. But, compared with other companies in the same industry, dividend yields are expected to be lower than average; only 15% of all competitors have even lower dividend yields than Kyushu Financial Group (a Dividend Yield Rank of 15). 85% alternative investments in the same business provide a higher dividend yield. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 75, is a buy recommendation based on Kyushu Financial Group's stock price compared with the company's operational size and dividend yields. The below-average dividend yield may be a good sign, as it could mean the company has more attractive investment opportunities for the generated cash than to pay it out as dividends. A low dividend yield can also indicate a growth phase. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	96	94	35	95
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	21	48	40	58
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	100	88	75	92
DIVIDEND YIELD
DIVIDEND YIELD	26	10	4	15
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	60	61	28	75

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Kyushu Financial Group; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 11 (better than 11% compared with alternatives), Kyushu Financial Group shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below-average for Kyushu Financial Group. While Sales Growth ranks at 67, professionals currently expect the company to grow more than 67% of its competitors, while all other growth ranks are below the market median. Profit Growth has a rank of 18, which means that, currently, professionals expect the company to grow its profits less than 82% of its competitors, and Capital Growth has a low rank of 29. Historic stock returns were also below average with a current Stock Returns rank of 5 which means that the stock returns have recently been below 95% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 11, is a sell recommendation for growth and momentum investors. If revenues are expected to increase, but all other growth indicators are negative, the company may be investing in future growth through means not visible in the balance sheet and thus not reflected in capital growth. The fact that Stock Returns have been below market doesn't mean that much, as it may be due to overly optimistic investor behavior in the past, which has been corrected to a more reasonable level recently. If that were the case, a positive Value Rank would be a reason to invest because the company is still expected to grow, while stock prices are now at a more reasonable level. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance isn't stellar here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	4	34	55	67
PROFIT GROWTH
PROFIT GROWTH	n/a	31	63	18
CAPITAL GROWTH
CAPITAL GROWTH	n/a	45	33	29
STOCK RETURNS
STOCK RETURNS	2	17	100	5
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	2	8	85	11

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Kyushu Financial Group.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 88 (better than 88% compared with alternatives) for 2024, the company Kyushu Financial Group has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Kyushu Financial Group is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, where all three are above average for Kyushu Financial Group. Leverage is at 71, meaning the company has a below-average debt-to-equity ratio. It has less debt than 71% of its competitors. Refinancing is at a rank of 63, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 63% of its competitors. Finally, Liquidity is also good at a rank of 80, which means that the company generates more profit to service its debt than 80% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 88 (better than 88% compared with alternatives), Kyushu Financial Group has a financing structure that is significantly safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. Investors may not have a debt issue with Kyushu Financial Group but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	88	65	64	71
REFINANCING
REFINANCING	80	72	55	63
LIQUIDITY
LIQUIDITY	89	55	83	80
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	98	76	88	88

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Kyushu Financial Group and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	31	32	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	86	78	^new
MARKET PULSE
MARKET PULSE	n/a	12	9	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	37	32	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Kyushu Financial Group.
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