Akita Bank, Ltd. (8343) AI Stock Analysis

• Market Cap: ¥68.71B
• Dividend Yield: 3.64%
• Average Volume (3M): 59.88K
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.88
• Revenue Growth: 15.96%
• EPS Growth: 81.27%
• Country: JP
• Employees: 1,234
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 85.33
• Shares Outstanding: 18,093,643
• 10 Day Avg. Volume: 54,530
• 30 Day Avg. Volume: 59,880
• PEG Ratio: 0.33
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.98
• P/FCF Ratio: -0.34
• 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: ¥3,916.00 ▲(1.06% Upside)

Akita Bank's overall stock score is driven by strong technical indicators and attractive valuation metrics. However, the mixed financial performance, particularly the negative cash flow, is a significant risk factor. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a stable demand for Akita Bank's financial services, which supports long-term business sustainability and expansion potential.

Balance Sheet Strength

Improved leverage ratios enhance financial stability, providing Akita Bank with greater resilience against economic fluctuations and the ability to invest in growth opportunities.

Net Income Growth

Growth in net income suggests effective cost management and operational efficiency, which can lead to enhanced profitability and shareholder value over time.

Negative Factors

Operational Margin Decline

Declining operational margins may indicate rising costs or inefficiencies, which could pressure profitability if not addressed, affecting long-term financial health.

Cash Flow Issues

Inadequate cash generation from operations can strain liquidity and limit Akita Bank's ability to fund new projects or return capital to shareholders, impacting future growth.

Equity Ratio Concerns

A low equity ratio indicates potential vulnerability to financial distress, as heavy reliance on debt may increase risk during economic downturns or interest rate hikes.

Akita Bank, Ltd. Business Overview & Revenue Model

Company Description

Akita Bank, Ltd. (8343) is a regional financial institution based in Akita Prefecture, Japan. The bank primarily operates in the banking sector, offering a wide range of financial services that include personal and corporate banking, loans, deposits, and investment services. It caters to individual customers, small and medium-sized enterprises (SMEs), and local governments, focusing on fostering regional development and providing tailored financial solutions to meet the needs of its community.

How the Company Makes Money

Akita Bank generates revenue primarily through interest income from loans and advances made to customers, which constitutes a significant portion of its earnings. The bank offers various loan products, including personal loans, housing loans, and business loans, charging interest rates that contribute to its income. Additionally, the bank earns money through fees and commissions associated with its banking services, including account maintenance fees, transaction fees, and advisory services. The bank also generates revenue from its investment portfolio, which includes securities and other financial assets. Furthermore, strategic partnerships with local businesses and government entities enhance its service offerings and contribute to its revenue streams by facilitating community development projects and local economic growth.

Akita Bank, Ltd. Financial Statement Overview

Summary

Akita Bank shows a mixed financial performance. Revenue and net income have grown, but operational margins have declined, and cash flow issues persist. The balance sheet has strengthened with lower leverage, but the cash flow situation poses a significant risk to financial stability.

Income Statement

Akita Bank has shown a steady revenue growth rate of 1.62% in the latest year, with a net profit margin of 12.96% indicating solid profitability. However, the EBIT and EBITDA margins have decreased significantly compared to previous years, suggesting potential operational inefficiencies.

Balance Sheet

The bank's debt-to-equity ratio has improved to 0.56, indicating a stronger balance sheet with reduced leverage. Return on equity has increased to 3.62%, reflecting better utilization of equity. However, the equity ratio remains relatively low, suggesting a high reliance on debt financing.

Cash Flow

The cash flow situation is concerning, with negative operating and free cash flows. The free cash flow to net income ratio has dropped to zero, indicating that the bank is not generating sufficient cash from its operations to cover its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	34.16B	49.83B	40.32B	44.67B	37.50B	41.15B
Gross Profit	33.85B	46.96B	38.67B	43.27B	37.26B	40.84B
EBITDA	3.74B	10.32B	7.89B	6.15B	5.95B	5.84B
Net Income	3.98B	5.66B	4.54B	3.29B	3.18B	2.72B
Balance Sheet
Total Assets	3.57T	3.46T	3.58T	3.53T	3.67T	3.49T
Cash, Cash Equivalents and Short-Term Investments	0.00	466.75B	688.70B	754.30B	843.45B	789.28B
Total Debt	90.81B	87.39B	209.09B	196.25B	289.31B	248.49B
Total Liabilities	3.40T	3.30T	3.41T	3.38T	3.50T	3.31T
Stockholders Equity	166.66B	156.36B	172.07B	149.26B	167.18B	175.92B
Cash Flow
Free Cash Flow	0.00	-131.80B	-53.74B	-168.20B	201.26B	210.31B
Operating Cash Flow	0.00	-130.49B	-52.39B	-167.14B	203.31B	210.90B
Investing Cash Flow	0.00	-87.85B	-12.57B	80.25B	-145.54B	-40.25B
Financing Cash Flow	0.00	-1.48B	-1.11B	-1.88B	-1.25B	277.34B

Akita Bank, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3875.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8343, the sentiment is Positive. The current price of 3875 is above the 20-day moving average (MA) of 3705.25, above the 50-day MA of 3585.75, and above the 200-day MA of 2972.59, indicating a bullish trend. The MACD of 66.79 indicates Negative momentum. The RSI at 65.77 is Neutral, neither overbought nor oversold. The STOCH value of 86.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8343.

Akita Bank, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8387	78 Outperform	¥60.59B	8.64	―	3.35%	8.75%	-12.68%
8392	75 Outperform	$79.32B	10.83	3.68%	2.60%	9.34%	20.61%
8344	74 Outperform	¥52.30B	12.20	―	3.17%	-0.24%	95.49%
8399	74 Outperform	¥64.60B	9.98	―	2.91%	9.12%	43.43%
8393	71 Outperform	¥79.14B	7.79	―	2.84%	13.93%	54.44%
8343	70 Outperform	¥68.71B	8.90	―	3.64%	15.96%	81.27%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Akita Bank, Ltd. Corporate Events

Akita Bank Reports Improved Capital Adequacy Ratio for Q1 FY2026

Akita Bank, Ltd. has reported its capital adequacy ratio for the first quarter of the fiscal year ending March 31, 2026. The consolidated capital adequacy ratio increased to 12.17% from 11.97% as of March 31, 2025, indicating a stronger capital position. This improvement suggests enhanced financial stability and could positively impact the bank’s operations and stakeholder confidence.

Akita Bank Announces Disposal of Treasury Shares for Stock Compensation

Akita Bank, Ltd. has announced its decision to dispose of 35,500 treasury shares as stock compensation to improve the performance and motivation of its directors and executive officers. This move is part of a performance-linked stock compensation plan and is expected to have minimal impact on the stock market due to the limited scale of dilution.

Akita Bank Reports Strong Financial Performance for Q1 2025

Akita Bank, Ltd. has reported a significant increase in its financial performance for the three months ended June 30, 2025, with a 24.8% rise in ordinary income and a 41.5% increase in profit attributable to owners of the parent compared to the previous year. The bank’s strong performance is reflected in its improved equity-to-asset ratio and optimistic earnings forecasts for the fiscal year ending March 31, 2026, indicating a positive outlook for stakeholders.