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Gunma Bank Ltd (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
▼(-4.06% Downside)
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 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.
Income Statement
75
Positive
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
80
Positive
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
60
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue155.38B210.43B191.22B161.05B139.18B115.70B
Gross Profit158.40B155.38B159.79B152.61B140.10B132.57B
EBITDA35.95B41.63B49.17B45.47B46.65B26.30B
Net Income43.90B43.90B31.13B27.93B26.44B13.50B
Balance Sheet
Total Assets10.56T10.56T10.82T10.66T11.15T10.62T
Cash, Cash Equivalents and Short-Term Investments1.28T1.28T1.84T1.83T2.65T2.33T
Total Debt1.10T1.10T1.23T1.02T1.63T1.39T
Total Liabilities9.99T9.99T10.25T10.15T10.62T10.07T
Stockholders Equity562.94B562.94B573.09B515.81B529.25B548.09B
Cash Flow
Free Cash Flow-603.17B-603.17B22.76B-661.97B453.61B1.98T
Operating Cash Flow-597.11B-597.11B27.10B-656.17B459.59B1.99T
Investing Cash Flow54.96B54.96B411.00B-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 Price1611.50
Price Trends
50DMA
1404.69
Positive
100DMA
1290.85
Positive
200DMA
1190.43
Positive
Market Momentum
MACD
49.19
Positive
RSI
64.89
Neutral
STOCH
81.62
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 1611.5 is above the 20-day moving average (MA) of 1532.35, above the 50-day MA of 1404.69, and above the 200-day MA of 1190.43, indicating a bullish trend. The MACD of 49.19 indicates Positive momentum. The RSI at 64.89 is Neutral, neither overbought nor oversold. The STOCH value of 81.62 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
$632.19B13.258.39%2.79%7.15%44.42%
68
Neutral
$18.10B11.529.93%3.73%9.70%1.14%
$4.91B13.055.13%3.25%
76
Outperform
¥627.41B9.14
1.93%5.72%61.14%
71
Outperform
¥808.62B14.65
1.72%13.30%40.85%
71
Outperform
¥466.05B10.42
1.05%33.00%80.88%
70
Outperform
¥434.83B11.69
3.11%14.20%29.96%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8334
Gunma Bank
1,611.50
719.50
80.66%
HACBF
Hachijuni Bank
10.08
4.42
78.09%
JP:5830
Iyogin Holdings,Inc.
2,070.50
771.90
59.44%
JP:7167
Mebuki Financial Group, Inc.
931.20
378.40
68.45%
JP:7337
Hirogin Holdings, Inc.
1,429.50
384.00
36.73%
JP:8377
Hokuhoku Financial Group, Inc.
3,800.00
2,234.18
142.68%

Gunma Bank Corporate Events

Gunma Bank Acquires Treasury Shares to Optimize Capital Structure
Aug 1, 2025

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
Jul 29, 2025

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
Jul 29, 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
Jul 28, 2025

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.

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