Gunma Bank (8334) AI Stock Analysis

• Market Cap: $613.72B
• Dividend Yield: 3.44%
• Average Volume (3M): 1.14M
• Price to Earnings (P/E): 13.2
• Beta (1Y): 1.04
• Revenue Growth: 15.77%
• EPS Growth: 27.55%
• Country: JP
• Employees: 2,983
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 36.21
• 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): 2.84
• P/FCF Ratio: -0.79
• Enterprise Value/Market Cap: 0.09
• Enterprise Value/Revenue: 0.44
• Enterprise Value/Gross Profit: 0.44
• Enterprise Value/Ebitda: 1.51
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥1,755.00 ▲(2.60% Upside)

Gunma Bank's overall stock score is driven by strong financial performance, particularly in revenue growth and profitability, despite concerns over declining cash flow. The technical analysis indicates a neutral to slightly bullish trend, supported by positive momentum indicators. The valuation is attractive with a reasonable P/E ratio and a solid dividend yield, making it a balanced investment opportunity.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, which are crucial for long-term sustainability and competitiveness.

Profitability

Improved profitability through effective cost management enhances financial stability and provides more resources for strategic investments and growth.

Equity Position

A stronger return on equity reflects efficient use of shareholders' capital, indicating a robust financial position and potential for future growth.

Negative Factors

Declining Cash Flow

Declining cash flow can hinder the bank's ability to fund operations and growth initiatives, posing a risk to long-term financial health and flexibility.

Operational Costs

Increasing operational costs can pressure profit margins, affecting the bank's ability to maintain competitive pricing and invest in growth opportunities.

Leverage

While leverage is moderate, it still requires careful management to avoid potential financial strain, especially in volatile market conditions.

Gunma Bank Business Overview & Revenue Model

Company Description

Gunma Bank, established in 1943, is a regional financial institution based in Japan, primarily serving the Gunma Prefecture and surrounding areas. As a comprehensive bank, it provides a wide range of financial services including personal and corporate banking, asset management, and investment services. The bank focuses on fostering economic growth in its local community by offering tailored financial solutions to individuals, small and medium-sized enterprises (SMEs), and large corporations.

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

Gunma Bank demonstrates strong revenue growth and profitability, supported by effective cost management and stable leverage. However, the declining operating cash flow remains a concern. The bank's robust equity position and improved return on equity are positive indicators of its financial health. Continued focus on cash flow improvement will be crucial for sustaining long-term growth.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	122.84B	210.43B	191.22B	168.23B	141.97B	135.10B
Gross Profit	122.84B	160.15B	151.44B	152.61B	140.10B	132.57B
EBITDA	35.95B	67.70B	49.17B	45.47B	46.65B	26.30B
Net Income	32.74B	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: 1710.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1710.5 is above the 20-day moving average (MA) of 1624.80, above the 50-day MA of 1595.52, and above the 200-day MA of 1317.48, indicating a bullish trend. The MACD of 29.04 indicates Negative momentum. The RSI at 66.63 is Neutral, neither overbought nor oversold. The STOCH value of 89.87 is Negative, 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
8359	76 Outperform	$722.36B	14.07	5.37%	3.14%	14.57%	100.81%
8377	75 Outperform	¥467.28B	10.45	―	1.58%	28.83%	105.24%
5830	75 Outperform	¥723.77B	10.54	―	1.94%	1.39%	52.58%
8334	73 Outperform	$613.72B	13.20	8.19%	3.44%	15.77%	27.55%
7167	71 Outperform	¥839.97B	15.22	―	2.21%	18.45%	41.89%
7337	70 Outperform	¥463.58B	12.12	―	3.54%	19.82%	29.59%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Gunma Bank Corporate Events

Gunma Bank Revises Earnings and Dividend Forecasts Upward

Gunma Bank has revised its earnings projections and dividend forecasts upward for the fiscal year ending March 31, 2026, citing increased interest on loans and securities as key drivers. This revision indicates a record high in both consolidated and non-consolidated earnings, reflecting strong operational performance and potentially enhancing its market position.

The most recent analyst rating on (JP:8334) stock is a Buy with a Yen1546.00 price target. To see the full list of analyst forecasts on Gunma Bank stock, see the JP:8334 Stock Forecast page.

Gunma Bank Completes Treasury Share Acquisition

The Gunma Bank, Ltd. has completed the acquisition of its treasury shares, purchasing a total of 1,479,700 common shares for 2,334,355,300 yen through market purchases at the Tokyo Stock Exchange. This acquisition, resolved at the Board of Directors Meeting on July 28, 2025, is part of a broader strategy to acquire up to 6 million shares, representing 1.56% of the total issued shares, with a total acquisition cost of up to 6 billion yen. This move is likely aimed at enhancing shareholder value and optimizing the bank’s capital structure.

The most recent analyst rating on (JP:8334) stock is a Buy with a Yen1546.00 price target. To see the full list of analyst forecasts on Gunma Bank stock, see the JP:8334 Stock Forecast page.

Gunma Bank Acquires Treasury Shares as Part of Strategic Capital Management

Gunma Bank has announced the acquisition of 2,261,900 of its own treasury shares for a total cost of 3,332,372,050 yen, conducted through market purchases at the Tokyo Stock Exchange. This move is part of a broader resolution by the Board of Directors to acquire up to 6 million shares, indicating a strategic effort to manage capital and potentially enhance shareholder value.

The most recent analyst rating on (JP:8334) stock is a Buy with a Yen1546.00 price target. To see the full list of analyst forecasts on Gunma Bank stock, see the JP:8334 Stock Forecast page.

Gunma Bank Acquires Treasury Shares to Optimize Capital Structure

The Gunma Bank, Ltd. announced the acquisition of 239,100 treasury shares at a total cost of 333,179,400 yen through market purchase at the Tokyo Stock Exchange. This move is part of a broader plan approved by the Board of Directors to acquire up to 6.0 million shares, reflecting the bank’s strategic efforts to manage its capital structure and potentially enhance shareholder value.

Gunma Bank Reports Strong Start to Fiscal Year with Increased Profits

Gunma Bank reported a positive financial performance for the three months ending June 2025, with a notable increase in net interest income contributing to a profit attributable to owners of 14.0 billion yen, up 2.8 billion yen year-over-year. The bank achieved a progress rate of 28.6% towards its annual profit target of 49 billion yen, indicating a strong start to the fiscal year.

Gunma Bank Reports Strong Financial Results for Q2 2025

Gunma Bank reported a strong financial performance for the three months ending June 30, 2025, with significant year-on-year increases in ordinary income, ordinary profit, and profit attributable to owners of the parent. The bank’s total assets and equity-to-asset ratio also showed improvement, indicating a solid financial position. These results suggest a positive outlook for the bank’s operations and a potential strengthening of its market position.

Gunma Bank to Acquire and Cancel Treasury Shares for Capital Efficiency

The Gunma Bank announced its decision to acquire and subsequently cancel a portion of its treasury shares. This move is aimed at enhancing shareholder value and improving capital efficiency, reflecting the bank’s strategic response to current business performance and stock price levels. The acquisition will involve up to 6 million shares, while 10 million shares are planned for cancellation, indicating a significant adjustment in the bank’s capital structure.