Aozora Bank (8304) AI Stock Analysis

• Market Cap: $292.21B
• Dividend Yield: 4.17%
• Average Volume (3M): 1.20M
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.65
• Revenue Growth: 1.12%
• EPS Growth: 6.36%
• Country: JP
• Employees: 2,476
• Sector: Financial
• Sector Strength: 75
• Industry: Banks - Regional
• EPS (TTM): 30.59
• Shares Outstanding: 139,789,410
• 10 Day Avg. Volume: 995,970
• 30 Day Avg. Volume: 1,198,153
• PEG Ratio: -0.43
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.16
• 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: $1,871.64
• Price Target Upside: -11.36% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 42 Neutral
• Price Target: ―

Aozora Bank's overall score reflects significant financial challenges, particularly in generating income and cash flows. The technical indicators signal a bearish trend, while the valuation metrics raise concerns about profitability. Despite a healthy dividend yield, the negative financial performance and technical analysis suggest caution for investors.

Aozora Bank Business Overview & Revenue Model

Company Description

Aozora Bank (8304) is a Japan-based financial institution that offers a wide range of banking and financial services. The bank primarily operates in three sectors: retail banking, institutional banking, and financial markets. Aozora Bank provides services such as loans, deposits, asset management, and advisory services to individuals, corporations, and government entities. The bank is headquartered in Tokyo, Japan, and serves a diverse clientele, leveraging its expertise in financial solutions to provide tailored products and services.

How the Company Makes Money

Aozora Bank makes money through a variety of revenue streams typical of financial institutions. The primary sources of revenue include interest income from loans and advances provided to individual and corporate clients. The bank also earns from fees and commissions on services such as asset management, advisory, and brokerage activities. Additionally, Aozora Bank generates income from trading activities and investments in financial markets. Strategic partnerships and collaborations with other financial entities might also contribute to its earnings, enhancing its service offerings and market reach. The bank's revenue model is supported by its ability to manage risks and optimize its asset portfolio to ensure sustainable profitability.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
136.88B	220.18B	106.52B	105.78B	116.28B	116.26B
	Gross Profit
164.28B	0.00	106.52B	105.78B	116.28B	116.26B
	EBIT
39.34B	23.79B	-8.77B	2.43B	41.48B	35.38B
	EBITDA
-4.53B	23.79B	0.00	14.34B	52.44B	44.81B
	Net Income Common Stockholders
-18.97B	20.52B	-49.90B	8.72B	35.00B	28.97B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.42T	0.00	1.58T	1.28T	1.14T	950.11B
	Total Assets
7.92T	7.76T	7.60T	7.18T	6.73T	5.92T
	Total Debt
831.41B	1.23T	744.70B	683.39B	617.42B	563.67B
	Net Debt
-593.09B	1.23T	-835.08B	-591.62B	-524.52B	-386.44B
	Total Liabilities
7.47T	7.30T	7.21T	6.75T	6.24T	5.43T
	Stockholders Equity
446.68B	451.42B	384.40B	438.66B	493.49B	494.55B
Cash Flow		Free Cash Flow
0.00	67.28B	-229.93B	-67.37B	248.33B	722.29B
	Operating Cash Flow
0.00	68.73B	-222.45B	-61.38B	253.90B	728.73B
	Investing Cash Flow
0.00	-362.35B	167.44B	213.94B	-23.83B	-223.53B
	Financing Cash Flow
0.00	134.91B	281.15B	-18.07B	-16.06B	-14.88B

Aozora Bank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2111.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 Positive. The current price of 2111.5 is above the 20-day moving average (MA) of 2102.72, above the 50-day MA of 1990.56, and below the 200-day MA of 2301.96, indicating a neutral trend. The MACD of 24.88 indicates Positive momentum. The RSI at 57.56 is Neutral, neither overbought nor oversold. The STOCH value of 36.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8304.

Aozora Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8331	73 Outperform	$929.32B	12.48	6.30%	3.38%	9.28%	20.48%
8354	70 Outperform	$767.17B	10.47	7.30%	3.54%	15.35%	-1.62%
8336	70 Neutral	¥107.22B	8.15		3.70%	-1.59%	20.55%
8334	69 Neutral	$459.54B	10.34	7.63%	4.16%	-4.47%	30.59%
Sector *	64 Neutral	$12.73B	9.77	7.84%	78.17%	12.05%	-7.99%
8304	42 Neutral	$292.21B	13.69	4.83%	4.17%	1.12%	6.36%

Aozora Bank Corporate Events

Aozora Bank Announces Stable Dividend Payments for FY2024

Aozora Bank announced a third quarter dividend payment of 19 yen per share, which aligns with 25% of its unchanged full-year dividend forecast of 76 yen per share. The bank also updated its fourth quarter dividend forecast to 19 yen per share, reflecting stability and planning in its financial strategy, which may affect shareholder expectations and market positioning.

Aozora Bank Reports Financial Improvement in FY2024

Aozora Bank’s financial statement for the first nine months of FY2024 shows a decline in ordinary income by 11% compared to the previous year, with a notable turnaround in profitability from a loss in 2023 to a profit in 2024. The bank’s dividend forecast remains unchanged at 76 yen per common share for FY2024, indicating stability in shareholder returns. The company also reported a significant increase in total assets and net assets ratio, reflecting improved financial health.

Aozora Bank Reports Robust Q3 FY2024 Financial Results

Aozora Bank reported a strong financial performance for the third quarter of FY2024, with notable increases in net revenue and business-related profit year-on-year. The bank’s strategic investment business and GMO Aozora Net Bank achieved significant milestones, contributing to the improved financial results. Aozora’s alliance with Daiwa Securities Group is progressing well, enhancing the bank’s corporate and real estate finance offerings. Additionally, the bank has successfully managed its securities portfolio and reduced risks associated with its U.S. non-recourse office loans.