Musashino Bank, Ltd. (8336) AI Stock Analysis

• Market Cap: ¥205.84B
• Dividend Yield: 3%
• Average Volume (3M): 90.86K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 1.12
• Revenue Growth: 10.56%
• EPS Growth: 16.02%
• Country: JP
• Employees: 2,002
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 142.11
• Shares Outstanding: 33,405,457
• 10 Day Avg. Volume: 110,180
• 30 Day Avg. Volume: 90,860
• PEG Ratio: 0.48
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 1.35
• P/FCF Ratio: 5.50
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥6,842.00 ▲(68.31% Upside)
• Action: Reiterated Date: 02/10/26
• Date: Action: Reiterated 02/10/26

The score is primarily supported by strong financial performance (solid revenue growth, improved profitability, and low leverage) and a reasonable valuation (moderate P/E with a 2.42% dividend). The main offset is technical risk: despite an uptrend, indicators are overbought (RSI 82, Stoch 97.6), which can raise near-term pullback risk.

Positive Factors

Revenue & Profitability

Consistent revenue growth and materially improved net profit and operating margins show the bank is converting business growth into durable profitability. Stable ~22% EBIT/EBITDA margins indicate structural cost control and scalable operations supporting medium-term earnings resilience.

Prudent Leverage

A low debt-to-equity ratio indicates conservative funding and a stronger capital buffer versus peers, reducing solvency risk. Prudent leverage supports lending capacity through economic cycles and provides flexibility for capital allocation and regulatory headroom over the coming months.

Regional Franchise & Diversified Services

A focused metropolitan franchise with broad retail and corporate product mix builds sticky customer relationships and diversified fee streams. Local partnerships and community focus underpin stable deposit bases and recurring service revenues, strengthening franchise durability.

Negative Factors

Cash Flow Volatility

Reported cash metrics show efficient FCF conversion but also notable volatility and a low operating-cash-to-net-income ratio. Moderate cash generation relative to earnings can constrain reinvestment, dividend sustainability, and buffer against loan losses in adverse scenarios.

Modest ROE

ROE under 5% remains modest for a bank and limits long-term shareholder value creation absent sustained earnings improvement. Lower profitability per unit of equity constrains pace of capital accumulation and could pressure payout or growth choices over the medium term.

Concentration in Interest Income

A heavy reliance on interest income creates structural exposure to shifts in loan demand and net interest margins. While fees exist, concentration raises sensitivity to structural credit cycles and margin compression, potentially amplifying earnings volatility over months to quarters.

Musashino Bank, Ltd. Business Overview & Revenue Model

Company Description

Musashino Bank, Ltd. (8336) is a regional bank based in Japan that primarily serves the Tokyo metropolitan area and surrounding regions. The bank provides a wide range of financial services, including retail banking, corporate banking, and asset management. Its core products include savings accounts, loans, credit cards, and investment services tailored for both individual and business clients, focusing on fostering strong customer relationships and supporting local economic development.

How the Company Makes Money

Musashino Bank generates revenue primarily through interest income from loans issued to individuals and businesses, which constitutes a significant portion of its earnings. The bank also earns fees and commissions from various services, such as asset management, investment advisory, and transaction services. Additionally, it may engage in trading and investment activities that contribute to its income. The bank's partnerships with local businesses and its involvement in community development projects enhance its customer base and strengthen its revenue streams, while its focus on maintaining a strong capital base and managing operating costs helps to optimize profitability.

Musashino Bank, Ltd. Financial Statement Overview

Summary

Income statement strength (revenue up 8.42% and net margin 18.91% with stable ~22% EBIT/EBITDA margins) is partly offset by only moderate cash generation versus earnings (operating cash flow to net income 0.34) and noted historical cash flow volatility. Balance sheet leverage is prudent (debt-to-equity 0.29) with improved ROE (4.91%).

Income Statement

Musashino Bank has demonstrated strong revenue growth with an 8.42% increase in the latest year, indicating robust business expansion. The net profit margin improved to 18.91%, showcasing enhanced profitability. Consistent EBIT and EBITDA margins around 22% reflect stable operational efficiency. However, the gross profit margin is not available, which limits a complete assessment of cost management.

Balance Sheet

The bank maintains a healthy debt-to-equity ratio of 0.29, indicating prudent leverage management. Return on equity improved to 4.91%, reflecting better utilization of shareholder funds. However, the equity ratio is not provided, which restricts a full evaluation of financial stability. The overall balance sheet shows a solid position with manageable debt levels.

Cash Flow

Musashino Bank's free cash flow growth is notably high, but this is due to a previous negative base, which skews the growth rate. The operating cash flow to net income ratio is 0.34, indicating moderate cash generation relative to earnings. The free cash flow to net income ratio of 0.96 suggests efficient cash conversion. However, past volatility in cash flows poses a potential risk.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	76.38B	79.98B	77.23B	77.86B	67.15B	67.40B
Gross Profit	76.38B	72.79B	72.61B	74.74B	66.10B	66.13B
EBITDA	18.09B	22.06B	20.16B	19.28B	16.51B	15.51B
Net Income	13.52B	13.15B	11.26B	10.87B	9.00B	8.02B
Balance Sheet
Total Assets	5.47T	5.47T	5.40T	5.33T	5.49T	5.32T
Cash, Cash Equivalents and Short-Term Investments	0.00	161.49B	230.92B	484.39B	790.92B	739.97B
Total Debt	76.45B	76.45B	70.92B	133.58B	397.78B	349.94B
Total Liabilities	5.20T	5.21T	5.13T	5.07T	5.24T	5.07T
Stockholders Equity	275.01B	267.93B	274.10B	252.88B	250.52B	249.15B
Cash Flow
Free Cash Flow	0.00	19.62B	2.85B	-227.94B	110.83B	417.07B
Operating Cash Flow	0.00	20.54B	4.60B	-225.62B	124.33B	425.70B
Investing Cash Flow	0.00	-158.54B	-219.48B	-77.62B	-70.81B	-57.73B
Financing Cash Flow	0.00	68.31B	117.50B	-3.24B	-2.66B	-2.69B

Musashino Bank, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4065.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8336, the sentiment is Positive. The current price of 4065 is below the 20-day moving average (MA) of 6137.00, below the 50-day MA of 5561.90, and below the 200-day MA of 4226.70, indicating a bullish trend. The MACD of 226.79 indicates Positive momentum. The RSI at 69.25 is Neutral, neither overbought nor oversold. The STOCH value of 67.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8336.

Musashino Bank, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8388	71 Outperform	¥223.75B	15.28	―	2.53%	7.67%	11.03%
8544	71 Outperform	¥252.60B	20.66	―	2.13%	7.77%	5.80%
8336	70 Outperform	¥205.84B	13.68	―	3.00%	10.56%	16.02%
8361	68 Neutral	¥275.14B	14.85	―	2.27%	2.68%	74.80%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7381	65 Neutral	¥225.88B	16.51	―	2.38%	8.43%	38.21%
8386	59 Neutral	¥259.02B	16.25	―	2.55%	-0.36%	41.38%

Musashino Bank, Ltd. Corporate Events

Musashino Bank Maintains Stable Capital Adequacy at End of Third Quarter FY2025

The Musashino Bank reported a consolidated capital adequacy ratio of 13.59% as of December 31, 2025, under the domestic standard, essentially unchanged from 13.60% at the end of the previous quarter. Consolidated capital stood at ¥241.0 billion against risk-weighted assets of ¥1,772.8 billion, resulting in a required capital amount of ¥70.9 billion.

On a non-consolidated basis, the bank’s capital adequacy ratio was 12.99%, slightly down from 13.01% three months earlier, with capital of ¥225.7 billion and risk-weighted assets of ¥1,737.4 billion. The marginal movements in these indicators suggest that Musashino Bank’s regulatory capital position remains stable, signaling steady risk management and a maintained buffer over minimum capital requirements for stakeholders and regulators.

The most recent analyst rating on (JP:8336) stock is a Buy with a Yen6649.00 price target. To see the full list of analyst forecasts on Musashino Bank, Ltd. stock, see the JP:8336 Stock Forecast page.

Musashino Bank Posts Strong Nine-Month Earnings and Confirms Higher Dividend Payout

The Musashino Bank reported strong consolidated results for the nine months ended 31 December 2025, with ordinary income rising 22.3% year on year to ¥75.9 billion, ordinary profit climbing 30.7% to ¥18.3 billion, and profit attributable to owners of the parent up 25.6% to ¥12.8 billion. Total assets edged up to ¥5.58 trillion, net assets increased to ¥278.1 billion with a slightly higher equity ratio of 4.9%, and earnings per share improved to ¥387.26. Reflecting this earnings momentum, the bank has already paid an interim dividend of ¥80 per share and is maintaining its full-year forecast for FY2025/26, projecting ordinary income of ¥97.6 billion, ordinary profit of ¥22.0 billion, profit attributable to owners of the parent of ¥15.0 billion, and annual dividends totaling ¥160 per share, signaling confidence in its profit outlook and shareholder returns.

The most recent analyst rating on (JP:8336) stock is a Buy with a Yen6061.00 price target. To see the full list of analyst forecasts on Musashino Bank, Ltd. stock, see the JP:8336 Stock Forecast page.

Musashino Bank Issues Corrections to Financial Results

Musashino Bank, Ltd. announced corrections to its previously released consolidated financial results for the six months ended September 30, 2025, due to inaccuracies found in the reported data. These corrections, which pertain to non-performing loans and other financial metrics, are crucial for maintaining transparency and accuracy in financial reporting, impacting the bank’s stakeholders and its market positioning.

The most recent analyst rating on (JP:8336) stock is a Buy with a Yen4381.00 price target. To see the full list of analyst forecasts on Musashino Bank, Ltd. stock, see the JP:8336 Stock Forecast page.