SBI Sumishin Net Bank Ltd (7163) AI Stock Analysis

• Market Cap: ¥734.93B
• Dividend Yield: 0.39%
• Average Volume (3M): 45.85K
• Price to Earnings (P/E): 26.8
• Beta (1Y): 1.25
• Revenue Growth: 23.73%
• EPS Growth: 12.39%
• Country: JP
• Employees: 746
• Sector: Financial
• Sector Strength: 73
• Industry: Banks - Regional
• EPS (TTM): 36.71
• Shares Outstanding: 150,793,800
• 10 Day Avg. Volume: 49,010
• 30 Day Avg. Volume: 45,850
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥5,289.00
• Price Target Upside: 8.49% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: ¥5,289.00 ▲(8.49% Upside)

SBI Sumishin Net Bank Ltd's stock score is primarily influenced by its strong financial performance, despite high leverage and declining profit margins. Technical analysis shows stable price trends but potential overbought conditions. The valuation suggests the stock may be overvalued, with a high P/E ratio and low dividend yield. These factors combined result in a moderate overall stock score.

Positive Factors

Revenue Growth

The consistent revenue growth indicates a strong market position and effective business model, supporting long-term financial health.

Strategic Alliance

The strategic alliance with NTT DOCOMO and others could enhance market positioning and strategic capabilities, fostering growth and innovation.

Cash Flow Management

Improved cash flow management indicates better financial discipline, enhancing the company's ability to invest in growth and manage debt.

Negative Factors

High Leverage

High leverage poses financial risks, potentially limiting flexibility and increasing vulnerability to interest rate changes or economic downturns.

Declining Profit Margins

Declining profit margins suggest rising costs or inefficiencies, which could impact long-term profitability if not addressed.

Potential Delisting

Potential delisting could reduce market visibility and liquidity, affecting investor interest and the company's ability to raise capital.

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 generates revenue primarily through interest income from loans and mortgages, as well as fees associated with banking services. The bank earns interest from various loan products including personal loans, home loans, and business loans. Additionally, the bank collects service fees for its online banking services, transaction processing, and investment products. A significant portion of its income is derived from maintaining a spread between the interest paid on deposits and the interest earned from loans. Collaborations with financial technology firms and partnerships with other banks enhance its service offerings, further contributing to its revenue streams.

SBI Sumishin Net Bank Ltd Financial Statement Overview

Summary

SBI Sumishin Net Bank Ltd shows strong revenue growth and effective equity utilization, but faces challenges with high leverage and declining profit margins. While cash flow has improved, the high debt levels pose a risk to financial stability. The company needs to focus on improving operational efficiency and managing debt to ensure long-term financial health.

Income Statement

SBI Sumishin Net Bank Ltd has demonstrated strong revenue growth with a 13.42% increase in the latest year, indicating a positive trajectory. The gross profit margin remains at 100%, showcasing excellent cost management. However, the net profit margin has decreased from 33.72% to 21.87%, suggesting increased expenses or other financial pressures. EBIT and EBITDA margins have also declined, which could indicate operational inefficiencies.

Balance Sheet

The company has a high debt-to-equity ratio of 6.79, which indicates significant leverage and potential financial risk. However, the return on equity is strong at 16.55%, reflecting effective use of equity to generate profits. The equity ratio is relatively low, suggesting a reliance on debt financing, which could pose risks if interest rates rise or if the company faces financial difficulties.

Cash Flow

The operating cash flow has improved significantly, turning positive after a negative previous year, indicating better cash management. The free cash flow to net income ratio is high at 98.56%, suggesting efficient conversion of income into cash. However, the free cash flow growth rate is marked as 'Infinity' due to a previous negative base, which complicates the analysis of growth trends.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	128.17B	128.63B	73.68B	90.19B	77.42B	56.37B
Gross Profit	125.04B	128.63B	73.68B	64.83B	77.42B	72.00B
EBITDA	29.55B	40.76B	43.31B	35.75B	28.17B	24.70B
Net Income	28.13B	28.13B	24.84B	19.93B	17.11B	13.93B
Balance Sheet
Total Assets	11.24T	11.24T	10.68T	8.68T	8.53T	7.23T
Cash, Cash Equivalents and Short-Term Investments	1.49T	1.49T	1.67T	1.10T	1.77T	1.51T
Total Debt	1.15T	1.15T	800.00B	348.00B	1.19T	738.66B
Total Liabilities	11.07T	11.07T	10.52T	8.55T	8.39T	7.10T
Stockholders Equity	169.94B	169.94B	151.61B	131.60B	145.36B	133.66B
Cash Flow
Free Cash Flow	0.00	106.42B	-44.37B	-960.25B	451.25B	259.97B
Operating Cash Flow	0.00	107.98B	-44.19B	-949.79B	462.15B	268.11B
Investing Cash Flow	0.00	-835.44B	15.35B	312.76B	-205.61B	-598.22B
Financing Cash Flow	0.00	556.39B	1.49T	832.87B	-632.00M	785.26B

SBI Sumishin Net Bank Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4875.00
• 50DMA: Negative
• 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:7163, the sentiment is Positive. The current price of 4875 is below the 20-day moving average (MA) of 4875.25, below the 50-day MA of 4876.80, and above the 200-day MA of 4227.51, indicating a neutral trend. The MACD of 4.09 indicates Positive momentum. The RSI at 61.06 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 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
5830	76 Outperform	¥621.35B	9.14		1.95%	5.72%	61.14%
7167	71 Outperform	¥801.24B	14.65		1.72%	13.30%	40.85%
8377	71 Outperform	¥468.87B	10.42		1.05%	33.00%	80.88%
7337	70 Outperform	¥433.92B	11.69		3.11%	14.20%	29.96%
Sector *	68 Neutral	$18.10B	11.66	9.93%	3.76%	9.70%	1.14%
7163	67 Neutral	¥734.93B	26.75		0.39%	23.73%	12.39%
HACBF	―	$4.89B	13.05	5.13%	3.25%	―	―

SBI Sumishin Net Bank Ltd Corporate Events

SBI Sumishin Net Bank’s Major Shareholder Structure Changes Following NTT DOCOMO Tender Offer

SBI Sumishin Net Bank, Ltd. announced the successful completion of a tender offer by NTT DOCOMO, INC., resulting in a significant change in its major shareholder structure. This development will see NTT DOCOMO, INC. and its parent company, NTT, becoming major shareholders, potentially impacting the company’s strategic direction and market positioning.

The most recent analyst rating on (JP:7163) stock is a Buy with a Yen4700.00 price target. To see the full list of analyst forecasts on SBI Sumishin Net Bank Ltd stock, see the JP:7163 Stock Forecast page.

SBI Sumishin Net Bank Supports NTT DOCOMO Tender Offer and Forms Strategic Alliance

SBI Sumishin Net Bank, Ltd. has announced its support for a tender offer by NTT DOCOMO, INC. for its common shares, recommending shareholders to tender their shares. Additionally, the company has entered into a business alliance agreement with NTT DOCOMO, Sumitomo Mitsui Trust Bank, SBI Holdings, and SBI Securities, aiming to make NTT DOCOMO and Sumitomo Mitsui Trust Bank the sole shareholders, leading to the company’s delisting. This move is expected to consolidate the company’s operations under NTT DOCOMO’s umbrella, potentially enhancing its market positioning and strategic capabilities.

The most recent analyst rating on (JP:7163) stock is a Hold with a Yen3020.00 price target. To see the full list of analyst forecasts on SBI Sumishin Net Bank Ltd stock, see the JP:7163 Stock Forecast page.