SBI Sumishin Net Bank Ltd (7163) AI Stock Analysis

• Market Cap: ¥734.93B
• Dividend Yield: 0.41%
• Average Volume (3M): 1.20M
• Price to Earnings (P/E): 26.1
• Beta (1Y): 1.34
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 746
• Sector: Financial
• Sector Strength: 81
• Industry: Banks - Regional
• EPS (TTM): 56.96
• Shares Outstanding: 150,793,800
• 10 Day Avg. Volume: 420,030
• 30 Day Avg. Volume: 1,204,230
• PEG Ratio: 0.56
• Price to Book (P/B): 1.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.19
• 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: ¥3,960.00
• Price Target Upside: -18.77% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 70 Outperform
• Price Target: ―

SBI Sumishin Net Bank Ltd demonstrates strong financial performance with robust income growth and profitability. However, cash flow management needs improvement. Technical analysis indicates a cautious outlook, with the stock trading below key moving averages. The valuation is moderate, with a reasonable P/E ratio but low dividend yield. Overall, the bank is well-positioned for growth but must address cash flow sustainability to improve its outlook.

SBI Sumishin Net Bank Ltd Business Overview & Revenue Model

Company Description

SBI Sumishin Net Bank, Ltd. provides various banking products and services to individuals and corporate customers in Japan. The company offers time, structured, hybrid, and foreign currency deposits, as well as savings accounts; house, card, auto, education, real estate secured, renovation, multipurpose, and other loans; and debit and credit cards. It also provides medical/cancer, death, travel and leisure, mortgage, and fire/earthquake compensation insurance products; and ATM, transfer, payment, asset management and real estate consultation, financial instruments intermediation, gold reserve, foreign exchange margin trading, and mobile banking services. SBI Sumishin Net Bank, Ltd. was formerly known as Sumishin SBI Net Bank Research Company, Ltd. and changed its name to SBI Sumishin Net Bank, Ltd. in September 2007. The company was incorporated in 1986 and is headquartered in Minato, Japan.

How the Company Makes Money

SBI Sumishin Net Bank Ltd generates revenue primarily through interest income from loans and deposits, as well as fees from financial services and transactions. The bank earns interest by lending customer deposits to borrowers at higher interest rates than it pays to depositors. Additionally, it charges fees for various banking services, including account maintenance, transaction processing, and investment product management. The bank also collaborates with its parent companies, SBI Holdings and Sumitomo Mitsui Trust Bank, to enhance its service offerings and expand its customer base, thereby driving further revenue growth.

SBI Sumishin Net Bank Ltd Financial Statement Overview

Summary

SBI Sumishin Net Bank Ltd shows strong income statement performance with a high gross profit margin of 97.24% and a solid net profit margin of 23.04%, indicating significant business expansion. The balance sheet is stable with a reasonable debt-to-equity ratio and impressive ROE, but low equity ratio poses a potential risk. Cash flow management needs improvement due to zero free cash flow, highlighting a challenge in cash generation capabilities.

Income Statement

SBI Sumishin Net Bank Ltd shows strong income statement performance with a high gross profit margin of 97.24% and a solid net profit margin of 23.04% for TTM. The revenue growth rate from the previous period to TTM is a robust 53.97%, indicating significant business expansion. The EBIT margin is also healthy at 63.73%, but the EBITDA margin is relatively low at 9.93%, which may suggest high depreciation and amortization costs.

Balance Sheet

The bank has a reasonable debt-to-equity ratio of 6.08, reflecting a stable but leveraged position typical for the industry. The return on equity (ROE) is impressive at 15.90%, indicating effective use of equity to generate profits. However, the equity ratio of 1.42% suggests low equity relative to total assets, which could pose a risk in adverse conditions.

Cash Flow

Cash flow analysis reveals potential challenges with zero free cash flow in TTM, raising concerns about cash generation capabilities. The operating cash flow to net income ratio is undefined due to zero operating cash flow, which is a risk factor. Historically, the bank showed strong free cash flow growth, but recent figures highlight a need for improvement in operational cash flow management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	113.41B	148.84B	73.68B	64.83B	55.07B	50.11B
Gross Profit	110.28B	0.00	73.68B	64.83B	55.07B	50.11B
EBITDA	29.18B	40.76B	43.31B	29.29B	28.17B	24.70B
Net Income	26.13B	28.13B	24.84B	19.93B	17.11B	13.93B
Balance Sheet
Total Assets	11.56T	11.24T	10.68T	8.68T	8.53T	7.23T
Cash, Cash Equivalents and Short-Term Investments	1.95T	0.00	1.67T	1.10T	1.77T	1.51T
Total Debt	1.00T	1.15T	800.00B	348.00B	820.40B	661.63B
Total Liabilities	11.40T	11.07T	10.52T	348.00B	820.40B	661.63B
Stockholders Equity	164.40B	169.94B	151.61B	131.60B	145.36B	133.66B
Cash Flow
Free Cash Flow	0.00	106.42B	541.44B	-960.25B	451.25B	259.97B
Operating Cash Flow	0.00	107.98B	551.18B	-949.79B	462.15B	268.11B
Investing Cash Flow	0.00	-835.44B	15.35B	312.76B	-205.61B	-39.80B
Financing Cash Flow	0.00	556.39B	-1.39B	-29.95B	-632.00M	785.26B

SBI Sumishin Net Bank Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4875.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7163, the sentiment is Positive. The current price of 4875 is below the 20-day moving average (MA) of 4883.50, above the 50-day MA of 4337.20, and above the 200-day MA of 3759.79, indicating a neutral trend. The MACD of 116.07 indicates Positive momentum. The RSI at 72.44 is Negative, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7163.

SBI Sumishin Net Bank Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7163	70 Outperform	¥734.93B	26.11		0.41%	―	―
Sector *	67 Neutral	$16.92B	11.85	9.77%	3.75%	12.07%	-8.35%
HACBF		$4.03B	12.59	4.55%	0.02%	―	―
7167	71 Outperform	¥712.97B	13.44		2.29%	2.02%	92.64%
8377	71 Outperform	¥355.06B	9.29		1.38%	21.04%	20.47%
5830	69 Neutral	¥503.47B	9.33		2.41%	18.72%	81.14%
7337	67 Neutral	¥368.22B	10.21		4.05%	<0.01%	56.12%