Gunma Bank (8334) AI Stock Analysis

• Market Cap: ¥860.92B
• Dividend Yield: 3.14%
• Average Volume (3M): 1.14M
• Price to Earnings (P/E): 15.1
• Beta (1Y): 1.15
• Revenue Growth: 15.77%
• EPS Growth: 27.55%
• Country: JP
• Employees: 2,983
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 44.71
• Shares Outstanding: 395,888,180
• 10 Day Avg. Volume: 961,470
• 30 Day Avg. Volume: 1,136,676
• PEG Ratio: 0.24
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 2.26
• P/FCF Ratio: -0.79
• 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: ¥2,400.00
• Price Target Upside: 32.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 147.15
• Revenue Forecast (FY): ¥111.20B

• Rating: 69 Neutral
• Price Target: ¥2,547.00 ▲(40.60% Upside)
• Action: Reiterated Date: 02/13/26
• Date: Action: Reiterated 02/13/26

The score is driven primarily by solid financial performance (strong revenue growth and improving ROE, though cash flow is a key concern). Technicals are supportive due to the strong uptrend, but very overbought momentum raises near-term downside risk. Valuation and dividend yield are reasonable but not a major positive catalyst.

Positive Factors

Revenue Growth

A 38.94% revenue increase from 2024 to 2025 reflects durable expansion of core lending, fees and securities income. Sustained top-line growth increases earnings capacity, funds reinvestment in digital/branch services, and provides a larger base to absorb shocks over multiple quarters.

Improving ROE

ROE rising to 7.80% signals improved capital efficiency and profitability allocation. A structurally higher ROE enhances the bank's ability to generate shareholder returns, retain capital for lending, and build buffers against credit stress, supporting sustainable profitability over time.

Balance Sheet Strength

Moderate leverage (D/E 2.22) with a stable equity ratio indicates a conservative capital posture for a regional bank. This provides capacity to support loan growth, absorb losses, and maintain confidence with depositors and counterparties, underpinning durable franchise stability.

Negative Factors

Cash Conversion

Declining operating cash flow and negative free cash flow to net income reduce internal funding capacity and increase reliance on financing activity. Over months this can constrain investment, dividend flexibility and liquidity buffers if operating cash trends do not recover.

Margin Pressure

A material drop in EBIT margin points to rising operating costs or lower operating leverage. Persisting margin compression would erode the durability of net income improvements, making profitability more sensitive to funding costs and credit losses over the medium term.

Regional Concentration Risk

Heavy reliance on Gunma Prefecture customers concentrates credit and deposit exposure to local economic cycles. This structural concentration limits diversification, can cap long-term growth opportunities, and raises vulnerability to regional downturns or sector-specific shocks.

Gunma Bank Business Overview & Revenue Model

Company Description

The Gunma Bank, Ltd. provides various banking and financial products and services in Japan. The company engages in the fund management activities, including investment in securities and funding in the call market; and accepting deposits and negotiable certificates of deposit, as well as the provision of loans. It also provides securities investment, leasing, derivative transaction, and proprietary derivative trading services. The Gunma Bank, Ltd. was founded in 1932 and is based in Maebashi, Japan.

How the Company Makes Money

Gunma Bank generates revenue through several key streams. The primary source of income comes from net interest income, which is earned from the difference between the interest rates on loans extended to customers and the interest paid on deposits. The bank provides various loan products, including personal loans, mortgages, and business loans, which contribute significantly to its interest income. Additionally, the bank earns fee-based income from transaction services, asset management, and investment advisory services. The bank may also engage in financial market operations, including trading and investment in securities, which can provide additional revenue. Strategic partnerships with local businesses and government entities further enhance its revenue potential by fostering a stable customer base and promoting lending opportunities. Overall, Gunma Bank's diversified revenue model allows it to adapt to changing market conditions while supporting local economic development.

Gunma Bank Financial Statement Overview

Summary

Strong revenue growth (38.94% from 2024 to 2025) and improved profitability (ROE up to 7.80%) support the score, with stable leverage for a bank. The main offset is weak cash conversion, as operating cash flow declines and free-cash-flow metrics are negative.

Income Statement

Gunma Bank has shown a steady increase in total revenue over the years, with a notable revenue growth rate of 38.94% from 2024 to 2025. The gross profit margin is robust, consistently above 76%. However, there is a slight decline in EBIT margin from 30.19% in 2024 to 19.79% in 2025, indicating rising operational costs. The net profit margin improved significantly from 20.55% in 2024 to 20.86% in 2025, highlighting effective cost management.

Balance Sheet

The balance sheet reflects a solid financial position with a debt-to-equity ratio of 2.22 in 2025, indicating moderate leverage for a bank. The return on equity increased to 7.80% in 2025 from 5.43% in 2024, showing improved profitability. The equity ratio remains stable at approximately 5.33%, ensuring adequate equity financing.

Cash Flow

Gunma Bank's cash flow statements show negative free cash flow growth due to significant decreases in operating cash flow. The free cash flow to net income ratio is negative, highlighting challenges in converting income into cash flow. However, the bank has been active in managing its financing activities to maintain liquidity.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	176.13B	210.43B	191.22B	168.23B	141.97B	135.10B
Gross Profit	176.13B	160.15B	151.44B	152.61B	140.10B	132.57B
EBITDA	47.79B	67.70B	49.17B	45.47B	46.65B	26.30B
Net Income	46.80B	43.90B	31.13B	27.93B	26.44B	13.50B
Balance Sheet
Total Assets	10.63T	10.56T	10.82T	10.66T	11.15T	10.62T
Cash, Cash Equivalents and Short-Term Investments	0.00	1.28T	1.84T	1.83T	2.65T	2.33T
Total Debt	1.18T	1.10T	1.65T	1.02T	1.63T	1.39T
Total Liabilities	10.05T	9.99T	10.25T	10.15T	10.62T	10.07T
Stockholders Equity	579.50B	562.94B	573.09B	515.81B	529.25B	548.09B
Cash Flow
Free Cash Flow	-603.17B	-603.17B	22.76B	-661.97B	453.61B	1.98T
Operating Cash Flow	-597.11B	-597.11B	27.10B	-656.17B	459.59B	1.99T
Investing Cash Flow	54.96B	54.96B	411.00B	-153.32B	-127.81B	-498.37B
Financing Cash Flow	-32.30B	-32.30B	-13.53B	-8.07B	-9.28B	-5.16B

Gunma Bank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1811.50
• 50DMA: Positive
• 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:8334, the sentiment is Positive. The current price of 1811.5 is below the 20-day moving average (MA) of 2146.05, below the 50-day MA of 1952.17, and above the 200-day MA of 1567.78, indicating a bullish trend. The MACD of 60.94 indicates Positive momentum. The RSI at 55.91 is Neutral, neither overbought nor oversold. The STOCH value of 23.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8334.

Gunma Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7327	79 Outperform	¥561.52B	12.72	―	3.15%	12.71%	71.94%
8359	70 Outperform	¥951.93B	14.93	5.37%	2.87%	14.57%	100.81%
7337	70 Outperform	¥589.05B	14.62	―	3.21%	19.82%	29.59%
8334	69 Neutral	¥860.92B	15.14	8.19%	3.14%	15.77%	27.55%
5830	69 Neutral	¥1.03T	13.90	―	2.10%	1.39%	52.58%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7167	64 Neutral	¥1.17T	17.32	―	2.00%	18.45%	41.89%

Gunma Bank Corporate Events

Gunma Bank Lifts Nine-Month Profit, Nears Full-Year Target Ahead of Schedule

Gunma Bank reported strong results for the nine months ended December 2025, with profit attributable to owners of parent rising to 44.7 billion yen, an increase of 12.9 billion yen year-on-year and already 81.4% of its 55 billion yen full-year target, indicating the bank is ahead of schedule on its earnings plan. Core business gross profit and net interest income both grew solidly on a non-consolidated basis, supported by higher domestic and international interest income and improved gains on investment securities, while expenses remained controlled, contributing to higher core business net profit and robust ordinary profit, underscoring steady operational performance and improved profitability metrics such as ROE and cost efficiency for stakeholders.

The most recent analyst rating on (JP:8334) stock is a Hold with a Yen2124.00 price target. To see the full list of analyst forecasts on Gunma Bank stock, see the JP:8334 Stock Forecast page.

Gunma Bank Posts Strong Nine-Month Earnings, Affirms Full-Year Forecasts and Higher Dividends

Gunma Bank reported solid consolidated results for the nine months ended December 31, 2025, with ordinary income of ¥199.3 billion, up 19.8% year on year, ordinary profit of ¥65.1 billion, up 44.5%, and profit attributable to owners of parent of ¥44.8 billion, up 40.5%. Basic earnings per share rose to ¥117.69, supported by a stronger financial position as total assets increased to ¥10.77 trillion and net assets to ¥605.5 billion, lifting the equity-to-asset ratio to 5.6%. The bank left its earnings and dividend forecasts unchanged, targeting full-year fiscal 2025 ordinary profit of ¥78.0 billion, profit attributable to owners of parent of ¥55.0 billion, and annual dividends of ¥60 per share, indicating confidence in sustained earnings growth and continued shareholder returns despite the absence of special accounting changes or one-off effects. These results, alongside higher equity and stable guidance, suggest a strengthening capital base and underscore Gunma Bank’s continued efforts to enhance profitability and shareholder value in a competitive regional banking environment.

The most recent analyst rating on (JP:8334) stock is a Hold with a Yen2124.00 price target. To see the full list of analyst forecasts on Gunma Bank stock, see the JP:8334 Stock Forecast page.