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Gunma Bank (JP:8334)
:8334
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Gunma Bank (8334) AI Stock Analysis

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JP:8334

Gunma Bank

(OTC:8334)

Rating:72Outperform
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 (8334) vs. iShares MSCI Japan ETF (EWJ)

Gunma Bank Business Overview & Revenue Model

Company DescriptionGunma 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 MoneyGunma 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
75
Positive
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
80
Positive
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
60
Neutral
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.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue158.89B151.44B152.61B140.10B132.57B128.50B
Gross Profit161.91B151.44B152.61B140.10B132.57B128.50B
EBITDA20.89B49.17B0.000.000.000.00
Net Income38.37B31.13B27.93B26.44B13.50B22.28B
Balance Sheet
Total Assets10.61T10.82T10.66T11.15T10.62T8.42T
Cash, Cash Equivalents and Short-Term Investments1.37T1.84T1.83T2.65T2.33T845.31B
Total Debt1.12T1.23T1.02T1.63T1.39T536.64B
Total Liabilities10.04T10.25T10.15T10.62T10.07T7.93T
Stockholders Equity567.22B573.09B515.81B529.25B548.09B488.03B
Cash Flow
Free Cash Flow0.00-401.81B-661.97B453.61B1.98T310.67B
Operating Cash Flow0.00-394.52B-656.17B459.59B1.99T316.97B
Investing Cash Flow0.00-10.62B-153.32B-127.81B-498.37B-207.92B
Financing Cash Flow0.00-15.93B-8.07B-9.28B-5.16B-15.68B

Gunma Bank Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1341.50
Price Trends
50DMA
1224.11
Positive
100DMA
1194.03
Positive
200DMA
1098.88
Positive
Market Momentum
MACD
45.20
Negative
RSI
86.38
Negative
STOCH
89.93
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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
¥545.08B11.867.63%3.22%-1.55%45.42%
71
Outperform
¥763.75B13.99
1.90%2.02%92.64%
71
Outperform
¥409.39B10.28
1.20%21.04%20.47%
69
Neutral
¥544.08B9.76
2.23%18.72%81.14%
68
Neutral
¥760.77B10.937.55%3.20%7.81%14.63%
67
Neutral
¥390.42B10.83
3.38%<0.01%56.12%
65
Neutral
¥660.89B12.954.55%3.09%7.20%31.52%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8334
Gunma Bank
1,395.50
476.46
51.84%
JP:5830
Iyogin Holdings,Inc.
1,738.00
353.38
25.52%
JP:7167
Mebuki Financial Group, Inc.
842.50
262.96
45.37%
JP:7337
Hirogin Holdings, Inc.
1,315.00
198.90
17.82%
JP:8377
Hokuhoku Financial Group, Inc.
3,381.00
1,512.75
80.97%
JP:8359
Hachijuni Bank
1,360.00
403.11
42.13%

Gunma Bank Corporate Events

Gunma Bank Completes Treasury Stock Disposal for Remuneration Plans
Jul 18, 2025

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
Jun 20, 2025

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
May 14, 2025

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
May 14, 2025

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
May 8, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 25, 2025