Shimane Bank, Ltd. (7150) AI Stock Analysis

• Market Cap: ¥4.65B
• Dividend Yield: 2.01%
• Average Volume (3M): 12.84K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.78
• Revenue Growth: 11.86%
• EPS Growth: -29.73%
• Country: JP
• Employees: 316
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 19.81
• Shares Outstanding: 8,416,000
• 10 Day Avg. Volume: 18,220
• 30 Day Avg. Volume: 12,840
• PEG Ratio: 0.11
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 4.06
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥615.00 ▲(10.61% Upside)

Shimane Bank, Ltd. receives a solid score of 70, driven by stable financial performance and positive technical indicators. The stock is reasonably valued with a supportive dividend yield, making it attractive for both growth and income investors. The absence of earnings call and corporate events data does not impact the overall assessment.

Positive Factors

Diversified Revenue Mix

The bank's core model combines deposit-led lending with fee income and treasury/FX returns. This mix reduces reliance on a single revenue source, helping stabilize earnings across rate cycles and supporting durable margins and funding flexibility for regional SME and retail franchises.

Consistent Revenue Growth

Sustained top-line growth indicates stable local loan demand and effective client retention in the bank's regional markets. Over 2-6 months, consistent revenue expansion supports reinvestment capacity, incremental lending, and fee income buildup, reinforcing competitive positioning in its home region.

Strong Cash Conversion

High free cash flow conversion provides operational resilience and funding optionality: it supports dividend payouts, internal capital generation, and buffers for credit stress. Durable cash conversion enhances balance-sheet flexibility for lending and strategic investments over the medium term.

Negative Factors

Low Net Profit Margin

A modest net margin limits internal capital accumulation and constrains the bank's ability to absorb credit losses or fund growth without raising capital. Over months, pressure on profitability can slow ROE improvement and reduce competitive ability to invest in digital or branch initiatives.

Weak Operating Cash Alignment

Low operating cash relative to reported earnings suggests some earnings may not be cash-backed, raising earnings quality concerns. Persistently weak cash conversion can limit loan origination capacity, constrain liquidity buffers, and heighten vulnerability to short-term funding stress.

Persistently Elevated Leverage

Although leverage has improved, a debt-to-equity ~1.34 keeps the bank sensitive to credit and interest-rate shocks and may tighten regulatory capital headroom. Elevated leverage restricts strategic flexibility and heightens the need for stronger profitability or capital-raising over the medium term.

Shimane Bank, Ltd. Business Overview & Revenue Model

Company Description

The Shimane Bank,Ltd. provides various banking products and services for individual and corporate customers in Japan. The company offers various deposit products; and loans, including car, card, education, housing, multipurpose, bill, certificate, and institutional loans, as well as bill discounts. It also provides whole life, personal annuity, medical, cancer, income security, disability, and fire insurance products; investment trusts; financial product brokerage; and Internet banking services. The company operates 33 branches. The Shimane Bank, Ltd. was incorporated in 1915 and is headquartered in Matsue, Japan.

How the Company Makes Money

Shimane Bank generates revenue primarily through interest income from loans provided to individuals and businesses. The bank funds these loans by taking deposits from customers, which typically pay lower interest rates than the loans it issues. Additionally, Shimane Bank earns fee-based income from various services, including transaction fees, asset management services, and advisory services for corporate clients. The bank may also engage in investment activities, generating revenue from securities and other financial instruments. Partnerships with local businesses and government entities help enhance its service offerings and expand its customer base, contributing to its overall earnings.

Shimane Bank, Ltd. Financial Statement Overview

Summary

Shimane Bank, Ltd. demonstrates stable financial performance with consistent revenue growth and strong gross profit margins. However, the net profit margin and return on equity indicate room for improvement in profitability. The bank has made progress in reducing leverage and improving cash flow, but operational efficiency and debt management remain areas for focus.

Income Statement

Shimane Bank, Ltd. has shown a consistent revenue growth rate over the past few years, with a notable increase of 2.88% in the most recent year. The gross profit margin remains strong and stable above 100%, indicating efficient cost management. However, the net profit margin is relatively low at 6.49%, suggesting room for improvement in profitability. The EBIT and EBITDA margins have improved but are still modest, reflecting potential challenges in operational efficiency.

Balance Sheet

The bank's debt-to-equity ratio has improved from previous years, currently at 1.34, indicating a more balanced leverage position. However, it remains relatively high, which could pose risks if not managed carefully. The return on equity has shown improvement, reaching 4.08%, but still indicates moderate profitability. The equity ratio is stable, suggesting a solid asset base supported by equity.

Cash Flow

The cash flow situation has improved significantly, with a positive free cash flow growth rate. The operating cash flow to net income ratio is low at 0.26, indicating that cash generation from operations is not fully aligned with net income. The free cash flow to net income ratio is healthy at 72.76%, showing good cash conversion from profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.21B	9.39B	8.34B	7.32B	7.50B	7.46B
Gross Profit	9.21B	8.68B	7.83B	6.94B	7.12B	7.14B
EBITDA	667.00M	1.38B	1.09B	975.00M	844.00M	865.00M
Net Income	435.00M	609.00M	419.00M	418.00M	294.00M	357.00M
Balance Sheet
Total Assets	574.63B	568.78B	534.21B	503.76B	523.07B	529.03B
Cash, Cash Equivalents and Short-Term Investments	0.00	46.56B	33.59B	28.07B	46.79B	75.89B
Total Debt	20.06B	19.97B	18.03B	13.20B	35.28B	33.81B
Total Liabilities	559.88B	553.84B	515.54B	486.79B	509.02B	511.20B
Stockholders Equity	14.72B	14.92B	18.65B	16.96B	14.02B	17.81B
Cash Flow
Free Cash Flow	0.00	999.00M	4.13B	-27.92B	-19.36B	51.95B
Operating Cash Flow	0.00	1.37B	4.27B	-27.55B	-18.99B	52.05B
Investing Cash Flow	0.00	-5.38B	-794.00M	3.00B	-9.47B	-9.69B
Financing Cash Flow	0.00	35.91B	-173.00M	5.85B	-106.00M	-43.00M

Shimane Bank, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 556.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7150, the sentiment is Positive. The current price of 556 is below the 20-day moving average (MA) of 561.55, above the 50-day MA of 523.56, and above the 200-day MA of 486.48, indicating a neutral trend. The MACD of 13.93 indicates Positive momentum. The RSI at 54.94 is Neutral, neither overbought nor oversold. The STOCH value of 14.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7150.

Shimane Bank, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8349	72 Outperform	¥14.47B	9.19	―	3.58%	13.77%	19.08%
7150	70 Outperform	¥4.65B	11.69	―	2.01%	11.86%	-29.73%
8383	70 Outperform	¥16.02B	9.10	―	3.30%	11.93%	36.32%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8563	63 Neutral	¥12.67B	9.17	―	3.74%	5.91%	5.03%
8416	61 Neutral	¥11.87B	119.27	―	2.74%	7.74%	-92.49%
8562	55 Neutral	¥11.23B	-77.44	―	1.89%	8.11%	68.98%