Aozora Bank (8304) AI Stock Analysis

• Market Cap: $305.00B
• Dividend Yield: 3.8%
• Average Volume (3M): 842.77K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.68
• Revenue Growth: -3.50%
• EPS Growth: N/A
• Country: JP
• Employees: 2,476
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 45.71
• Shares Outstanding: 139,789,410
• 10 Day Avg. Volume: 831,590
• 30 Day Avg. Volume: 842,770
• PEG Ratio: -0.10
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 2.60
• P/FCF Ratio: -4.35
• Enterprise Value/Market Cap: -0.19
• Enterprise Value/Revenue: -0.53
• Enterprise Value/Gross Profit: -0.53
• Enterprise Value/Ebitda: -3.19
• 1Y Price Target: $2,088.94
• Price Target Upside: -6.54% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 50 Neutral
• Price Target: ¥2,254.00 ▲(0.85% Upside)

Aozora Bank's overall stock score reflects a challenging financial environment with declining revenues and high leverage. While the valuation is reasonable and offers a good dividend yield, technical indicators suggest caution. The absence of earnings call data and corporate events limits additional insights.

Aozora Bank Business Overview & Revenue Model

Company Description

Aozora Bank (8304) is a prominent financial institution based in Japan, primarily engaged in banking services. The bank offers a wide range of products and services, including corporate banking, retail banking, and treasury operations. Aozora Bank serves a diverse clientele, including individuals, small and medium-sized enterprises, and large corporations, providing solutions such as loans, deposits, investment services, and foreign exchange transactions. The bank aims to leverage its expertise in financial services to support economic growth while maintaining a strong commitment to customer satisfaction.

How the Company Makes Money

Aozora Bank generates revenue primarily through the interest income earned from its lending activities. The bank provides various types of loans, including personal loans, business loans, and real estate loans, which are a significant source of income. Additionally, Aozora Bank earns fees from its retail and corporate banking services, such as account maintenance fees, transaction fees, and advisory services. The bank also engages in treasury operations, managing its investment portfolio and engaging in foreign exchange trading, which contributes to its earnings. Furthermore, strategic partnerships with other financial institutions and a focus on expanding its digital banking services are key factors enhancing its revenue streams in the evolving financial landscape.

Aozora Bank Financial Statement Overview

Summary

Aozora Bank is facing financial challenges across its income, balance sheet, and cash flow statements. Despite a stable equity position, negative income and cash flow metrics highlight operational inefficiencies and sustainability concerns. Declining revenue and negative cash flows need to be addressed to improve financial health.

Income Statement

Aozora Bank's income statement reveals mixed performance. The TTM data shows negative net income, resulting in a negative net profit margin, while the gross profit margin is positive but distorted due to negative revenue. Revenue growth has declined over the years, indicating a downward trend in earnings. EBIT margin is positive in the TTM, suggesting operational efficiency, but EBITDA margin is negative, highlighting issues with earnings before interest, taxes, depreciation, and amortization.

Balance Sheet

The balance sheet of Aozora Bank shows a moderate financial position. The debt-to-equity ratio is relatively high, indicating leverage reliance, but the equity ratio remains stable, reflecting a solid equity base compared to total assets. Return on equity is negative due to the negative net income, suggesting challenges in generating returns for shareholders.

Cash Flow

The cash flow statement indicates significant challenges. Operating cash flow is consistently negative, leading to a negative free cash flow. With the absence of positive operating cash flow, the bank struggles to sustain operations without external financing, as evidenced by negative free cash flow to net income ratio.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	109.42B	105.61B	230.12B	167.07B	130.65B	133.97B
Gross Profit	108.41B	108.41B	58.35B	104.58B	116.28B	117.75B
EBITDA	18.16B	26.64B	-46.00B	14.34B	52.44B	44.80B
Net Income	20.52B	20.52B	-49.90B	8.72B	35.00B	28.97B
Balance Sheet
Total Assets	7.76T	7.76T	7.60T	7.18T	6.73T	5.92T
Cash, Cash Equivalents and Short-Term Investments	1.41T	1.41T	1.58T	1.28T	1.14T	950.11B
Total Debt	855.94B	855.94B	1.04T	683.39B	617.42B	563.67B
Total Liabilities	7.30T	7.30T	7.21T	6.75T	6.24T	5.43T
Stockholders Equity	451.42B	451.42B	384.40B	438.66B	493.49B	494.55B
Cash Flow
Free Cash Flow	0.00	-62.98B	-224.85B	-67.37B	248.33B	722.29B
Operating Cash Flow	0.00	-56.90B	-222.45B	-61.38B	253.90B	728.73B
Investing Cash Flow	0.00	-147.85B	167.44B	213.94B	-23.83B	-223.53B
Financing Cash Flow	0.00	46.59B	281.15B	-18.07B	-16.06B	-14.88B

Aozora Bank Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2235.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8304, the sentiment is Negative. The current price of 2235 is below the 20-day moving average (MA) of 2290.60, below the 50-day MA of 2298.91, and above the 200-day MA of 2152.06, indicating a neutral trend. The MACD of -10.48 indicates Positive momentum. The RSI at 43.70 is Neutral, neither overbought nor oversold. The STOCH value of 51.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8304.

Aozora Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7327	―	¥401.40B	12.17	―	3.56%	6.67%	51.21%
8418	―	¥341.06B	11.06	5.35%	3.42%	4.24%	23.16%
8377	―	¥445.57B	9.65	―	1.53%	33.00%	80.88%
8410	―	¥280.49B	18.84	―	3.83%	4.01%	-42.81%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
5832	―	¥388.72B	13.57	―	3.42%	10.60%	20.32%
8304	―	$305.00B	15.83	4.62%	3.80%	-3.50%	―

Aozora Bank Corporate Events

Aozora Bank Reports Capital Adequacy Ratio for Mid-2025

Aozora Bank announced its capital adequacy ratio as of June 30, 2025, with a consolidated ratio of 10.47% and a CET1 ratio of 8.8%, indicating a slight decrease from the previous quarter. This announcement reflects the bank’s ongoing commitment to maintaining robust capital levels, which is crucial for its stability and competitiveness in the financial sector.

The most recent analyst rating on (JP:8304) stock is a Sell with a Yen2500.00 price target. To see the full list of analyst forecasts on Aozora Bank stock, see the JP:8304 Stock Forecast page.

Aozora Bank Reports Mixed FY2025 Q1 Results

Aozora Bank, Ltd., a prominent financial institution listed on the Tokyo Stock Exchange, operates in the banking sector providing a range of financial services. In its latest earnings report for the first three months of FY2025, Aozora Bank reported an ordinary income of JPY 60,745 million, marking a 4.2% increase from the previous year. However, the profit attributable to owners of the parent saw a decline of 16.4% to JPY 6,326 million.

Aozora Bank Announces Increased First Quarter Dividend for FY2025

Aozora Bank has announced a dividend payment for the first quarter of FY2025, with a dividend of 22 yen per common share, marking an increase from the previous year’s first quarter dividend of 19 yen. This decision reflects the bank’s commitment to delivering shareholder value and indicates a positive financial performance, with the total dividend amounting to 3,044 million yen.

The most recent analyst rating on (JP:8304) stock is a Sell with a Yen2100.00 price target. To see the full list of analyst forecasts on Aozora Bank stock, see the JP:8304 Stock Forecast page.

Aozora Bank Reports Q1 FY2025 Financial Results

Aozora Bank reported its financial results for the first quarter of FY2025, showing a 4.2% increase in ordinary income compared to the previous year, despite a 16.4% decrease in profit attributable to owners of the parent. The bank’s total assets and net assets saw slight increases, and it maintained its dividend payments, reflecting a stable financial condition.

The most recent analyst rating on (JP:8304) stock is a Sell with a Yen2100.00 price target. To see the full list of analyst forecasts on Aozora Bank stock, see the JP:8304 Stock Forecast page.