Gunma Bank (8334) AI Stock Analysis

• Market Cap: ¥545.08B
• Dividend Yield: 3.22%
• Average Volume (3M): 920.52K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 1.00
• Revenue Growth: -1.55%
• EPS Growth: 45.42%
• Country: JP
• Employees: 2,983
• Sector: Financial
• Sector Strength: 72
• Industry: Banks - Regional
• EPS (TTM): 31.42
• Shares Outstanding: 405,888,180
• 10 Day Avg. Volume: 1,044,730
• 30 Day Avg. Volume: 920,520
• PEG Ratio: 0.85
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.27
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: ¥1,546.00 ▲(15.24%Upside)

The overall stock score reflects strong financial performance with robust revenue growth and profitability, despite concerns about declining operating cash flow. The technical analysis indicates bullish momentum, although caution is advised due to overbought signals. The stock's attractive valuation, with a low P/E ratio and good dividend yield, further supports a positive outlook.

Gunma Bank Business Overview & Revenue Model

Company Description

Gunma Bank, Ltd. (8334), headquartered in Maebashi, Japan, is a regional bank primarily serving the Gunma Prefecture and surrounding areas. The bank offers a comprehensive range of financial services, including personal and corporate banking, loans, investment services, and foreign exchange. It caters to both individual clients and businesses, providing tailored financial solutions designed to meet the unique needs of its clientele.

How the Company Makes Money

Gunma Bank generates revenue primarily through the interest income from loans and advances offered to individuals and businesses. The bank also earns from fees and commissions associated with its various financial services, such as asset management, investment advisory, and transaction processing. Additionally, Gunma Bank invests in securities and earns returns on these investments. The bank may also participate in strategic partnerships and collaborations within the financial sector, enhancing its product offerings and expanding its market reach. These diverse income streams contribute to the bank's financial stability and growth.

Gunma Bank Financial Statement Overview

Summary

Gunma Bank demonstrates strong revenue growth and cost efficiency, but operational margins could improve. The balance sheet is robust with controlled leverage, although cash flow management needs attention due to recent negative free cash flow figures.

Income Statement

Gunma Bank shows a solid performance in terms of revenue growth with a significant increase from the previous year. The TTM data indicates a gross profit margin of 101.9%, suggesting an ability to maintain cost efficiency. However, the net profit margin at 24.1% and the decline in EBIT and EBITDA margins from historical levels suggest room for improvement in operational efficiency.

Balance Sheet

The balance sheet of Gunma Bank is robust with a favorable debt-to-equity ratio of 1.98, indicating prudent leverage management. The return on equity (ROE) stands at 6.8%, reflecting moderate profitability relative to equity. A strong equity ratio of 5.3% suggests a solid financial foundation, although slightly lower than industry norms.

Cash Flow

Gunma Bank's cash flow statements reveal challenges with cash generation, as indicated by negative free cash flow figures. The TTM data shows no operating cash flow, which could be a concern going forward. Historical data shows fluctuations, and despite some positive free cash flow years, the overall trajectory needs stabilization.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	158.89B	151.44B	152.61B	140.10B	132.57B	128.50B
Gross Profit	161.91B	151.44B	152.61B	140.10B	132.57B	128.50B
EBITDA	20.89B	49.17B	0.00	0.00	0.00	0.00
Net Income	38.37B	31.13B	27.93B	26.44B	13.50B	22.28B
Balance Sheet
Total Assets	10.61T	10.82T	10.66T	11.15T	10.62T	8.42T
Cash, Cash Equivalents and Short-Term Investments	1.37T	1.84T	1.83T	2.65T	2.33T	845.31B
Total Debt	1.12T	1.23T	1.02T	1.63T	1.39T	536.64B
Total Liabilities	10.04T	10.25T	10.15T	10.62T	10.07T	7.93T
Stockholders Equity	567.22B	573.09B	515.81B	529.25B	548.09B	488.03B
Cash Flow
Free Cash Flow	0.00	-401.81B	-661.97B	453.61B	1.98T	310.67B
Operating Cash Flow	0.00	-394.52B	-656.17B	459.59B	1.99T	316.97B
Investing Cash Flow	0.00	-10.62B	-153.32B	-127.81B	-498.37B	-207.92B
Financing Cash Flow	0.00	-15.93B	-8.07B	-9.28B	-5.16B	-15.68B

Gunma Bank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1341.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 1341.5 is above the 20-day moving average (MA) of 1271.75, above the 50-day MA of 1224.11, and above the 200-day MA of 1098.88, indicating a bullish trend. The MACD of 45.20 indicates Negative momentum. The RSI at 86.38 is Negative, neither overbought nor oversold. The STOCH value of 89.93 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
8334	72 Outperform	¥545.08B	11.86	7.63%	3.22%	-1.55%	45.42%
7167	71 Outperform	¥763.75B	13.99		1.90%	2.02%	92.64%
8377	71 Outperform	¥409.39B	10.28		1.20%	21.04%	20.47%
5830	69 Neutral	¥544.08B	9.76		2.23%	18.72%	81.14%
Sector *	68 Neutral	¥760.77B	10.93	7.55%	3.20%	7.81%	14.63%
7337	67 Neutral	¥390.42B	10.83		3.38%	<0.01%	56.12%
8359	65 Neutral	¥660.89B	12.95	4.55%	3.09%	7.20%	31.52%

Gunma Bank Corporate Events

Gunma Bank Completes Treasury Stock Disposal for Remuneration Plans

The Gunma Bank has completed the payment procedures for the disposal of treasury stock as part of its restricted share and performance-linked stock remuneration plans. This move, resolved at the Board of Directors meeting on June 20, 2025, involves the disposal of common shares to directors and executive officers, reflecting the bank’s strategy to align management incentives with performance outcomes.

Gunma Bank Announces Disposal of Treasury Shares for Remuneration Plans

Gunma Bank announced its decision to dispose of treasury shares as part of its restricted share remuneration and performance-linked stock remuneration plans. This move aims to provide medium- to long-term incentives and align the interests of its directors and executive officers with those of shareholders. The disposal involves a total of 93,899 common shares, which will be allocated to directors and executive officers. This strategic decision is expected to enhance the company’s operational alignment and strengthen its market positioning by incentivizing key personnel.

Gunma Bank Updates Business Integration and Financial Results Documents

Gunma Bank announced corrections to previously released documents regarding its business integration with Daishi Hokuetsu Financial Group and its consolidated financial results for the fiscal year ended March 31, 2025. The corrections pertain to the number of Gunma Bank’s domestic branches, which was updated from 159 to 160, reflecting an adjustment in their corporate profile and financial statements.

Gunma Bank and Daishi Hokuetsu Form Integration Committee

Gunma Bank and Daishi Hokuetsu Financial Group have established an Integration Preparatory Committee to oversee their planned business integration set for April 2027. This committee, co-chaired by the presidents of both companies, will develop business plans, manage integration progress, and ensure compliance with antitrust laws, potentially enhancing their market positioning and operational synergies.

Gunma Bank Reports Significant Income Growth for FY2024

The Gunma Bank reported a significant increase in its ordinary income for the fiscal year ending March 31, 2025, compared to the previous year. This growth, exceeding 10%, is attributed mainly to higher interest on loans and increased interest and dividends on securities, indicating a strong financial performance and potentially enhancing its market position.