Gunma Bank (8334) AI Stock Analysis

• Market Cap: $473.21B
• Dividend Yield: 4.13%
• Average Volume (3M): 1.08M
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.99
• Revenue Growth: -4.47%
• EPS Growth: 30.59%
• Country: JP
• Employees: 2,983
• Sector: Financial
• Sector Strength: 79
• Industry: Banks - Regional
• EPS (TTM): 31.42
• Shares Outstanding: 405,888,180
• 10 Day Avg. Volume: 1,017,780
• 30 Day Avg. Volume: 1,084,353
• 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: 69 Neutral
• Price Target: ―

Gunma Bank's overall stock score is driven by strong financial performance and valuation metrics. Despite challenges in cash flow management and slightly bearish technical indicators, its solid dividend yield and reasonable valuation support the stock's attractiveness in the banking sector.

Gunma Bank Business Overview & Revenue Model

Company Description

Gunma Bank, headquartered in Maebashi, Gunma Prefecture, Japan, operates as a regional bank providing comprehensive financial services. The bank offers a range of products including retail banking, business banking, and investment services. With a strong presence in its local market, Gunma Bank serves individual customers, small and medium-sized enterprises (SMEs), and corporate clients through its network of branches and digital platforms.

How the Company Makes Money

Gunma Bank generates revenue primarily through interest income from its lending activities, including personal loans, mortgages, and business loans. The bank also earns fees and commissions from various financial services such as account management, transaction processing, and investment products. Additionally, Gunma Bank invests in securities and other financial instruments to generate income. Strategic partnerships and collaborations with other financial institutions and businesses further enhance its revenue streams by expanding its service offerings and customer reach.

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: 1210.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 1210.5 is above the 20-day moving average (MA) of 1197.90, above the 50-day MA of 1179.38, and above the 200-day MA of 1063.78, indicating a bullish trend. The MACD of 7.11 indicates Negative momentum. The RSI at 55.50 is Neutral, neither overbought nor oversold. The STOCH value of 76.70 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
8331	73 Outperform	$947.54B	12.73	6.30%	3.32%	9.27%	20.49%
8511	72 Outperform	¥149.52B	14.15	7.36%	0.91%	20.24%	32.69%
8377	71 Outperform	¥333.23B	8.72		1.47%	21.04%	20.47%
8336	70 Neutral	¥108.38B	8.24		3.66%	-1.59%	20.55%
8334	69 Neutral	$473.21B	10.64	7.63%	4.13%	-4.47%	30.59%
Sector *	67 Neutral	¥712.08B	10.83	7.42%	3.37%	7.74%	16.12%

Gunma Bank Corporate Events

Gunma Bank and Daishi Hokuetsu Financial Group Announce Business Integration

The Gunma Bank and Daishi Hokuetsu Financial Group have signed a memorandum of understanding to integrate their businesses, aiming to form a leading regional bank. This integration seeks to leverage their strengths and enhance service offerings, addressing challenges like demographic shifts and technological advancements, while maintaining strong regional ties and improving stakeholder value.

Gunma Bank Addresses Media Speculation on Business Integration

The Gunma Bank, Ltd. has clarified that recent media reports about a potential business integration with DAISHI HOKUETSU Financial Group are not based on an official announcement from the company. The bank’s board of directors is set to discuss a Memorandum of Understanding regarding this potential integration, with further details to be disclosed once decisions are finalized.

Gunma Bank Clarifies Media Reports on Business Integration

The Gunma Bank has addressed media reports about a potential business integration with Daishi Hokuetsu Financial Group, clarifying that no official decision has been made. The bank is exploring various business strategies, including potential integrations, but has not committed to any specific actions at this time.

Gunma Bank Adjusts Mid-Term Business Plan for Sustainable Growth

The Gunma Bank announced a correction to its New Mid-Term Business Plan, adjusting the consolidated capital ratio projection for March 2028. The plan, titled ‘Growth with Purpose,’ aims to enhance corporate value and support sustainable regional economic growth by focusing on purpose-driven management and establishing sustainability indicators.

Gunma Bank Unveils ‘Growth with Purpose’ Mid-Term Plan

Gunma Bank has announced a new Mid-Term Business Plan for 2025-2028, titled ‘Growth with Purpose,’ which aims to enhance sustainable growth for both the bank and its regional communities. The plan focuses on creating a virtuous cycle of social and economic values by strengthening purpose-driven sales, building sustainable regional economic zones, and reinforcing the business foundation to support long-term growth. This strategic initiative is expected to benefit customers, communities, employees, and shareholders by addressing key issues such as digital transformation, environmental preservation, and governance enhancement.

Gunma Bank to Cancel 10 Million Treasury Shares

The Gunma Bank, Ltd. announced its decision to cancel 10 million treasury shares, which constitutes 2.40% of its total issued shares, as resolved in a board meeting. This cancellation, planned for March 31, 2025, is expected to impact the bank’s share structure by reducing the total number of issued shares to 405,888,177, potentially affecting shareholder value and market perception.

Gunma Bank Introduces Progressive Dividend System and Increases Year-End Dividend Forecast

The Gunma Bank has announced changes to its shareholder return policy, introducing a progressive dividend system aimed at maintaining or increasing dividends. The bank plans to achieve a payout ratio of 40% of profit attributable to owners and will increase dividends through profit growth, with flexible implementation of treasury share acquisitions. Additionally, the bank has revised its year-end dividend forecast, increasing the annual dividend per share to 45.00 yen, up by 23.00 yen from the previous fiscal year. This move is intended to strengthen the bank’s financial structure and meet stakeholder expectations.