Akita Bank, Ltd. (8343) AI Stock Analysis

• Market Cap: ¥63.61B
• Dividend Yield: 2.95%
• Average Volume (3M): 64.11K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.91
• Revenue Growth: 8.73%
• EPS Growth: 12.43%
• Country: JP
• Employees: 1,234
• Sector: Financial
• Sector Strength: 72
• Industry: Banks - Regional
• EPS (TTM): 134.83
• Shares Outstanding: 18,093,643
• 10 Day Avg. Volume: 71,390
• 30 Day Avg. Volume: 64,110
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 60 Neutral
• Price Target: ―

Akita Bank's overall stock score reflects strong profitability and an appealing valuation, making it potentially attractive to value-oriented investors. However, technical indicators suggest a bearish trend, and persistent negative cash flow raises concerns about liquidity. These factors contribute to a moderately positive score, with room for improvement in cash flow management and technical momentum.

Akita Bank, Ltd. Business Overview & Revenue Model

Company Description

Akita Bank, Ltd. (8343) is a regional bank based in Akita Prefecture, Japan. The bank primarily operates within the financial services sector, offering a wide range of banking products and services to both individual and corporate clients. Its core offerings include personal and business banking, loans, deposits, and investment services, aimed at supporting the financial needs of the local community.

How the Company Makes Money

Akita Bank, Ltd. generates revenue primarily through interest income from loans and advances provided to individual and corporate clients. The bank also earns money from service fees associated with account maintenance, transaction processing, and other financial services. Additionally, Akita Bank invests in securities and earns income from these investments. The bank may also engage in partnerships with other financial institutions and businesses to expand its service offerings and revenue streams, although specific details on significant partnerships are not available.

Akita Bank, Ltd. Financial Statement Overview

Summary

Overall, Akita Bank demonstrates strong profitability and a stable balance sheet, with solid revenue growth and effective equity utilization. However, consistent negative cash flow raises concerns about liquidity management, which could affect long-term sustainability. Addressing cash flow issues is crucial for improving financial health.

Income Statement

Akita Bank's income statement shows solid profitability with a TTM gross profit margin of 96.33% and a net profit margin of 10.08%. The revenue growth rate from 2023 to TTM is 5.88%, reflecting healthy growth. However, the EBIT and EBITDA margins are relatively moderate at 43.18% and 10.97% respectively, indicating room for improvement in operational efficiency.

Balance Sheet

The balance sheet reflects a stable equity position with an equity ratio of 4.66% for TTM, showing a conservative leverage strategy. The debt-to-equity ratio is 0.78, illustrating moderate debt usage. Return on equity (ROE) is strong at 2.78%, indicating effective use of equity for generating profit.

Cash Flow

Akita Bank's cash flow statement highlights challenges with free cash flow, which is consistently negative, impacting the cash flow score. The operating cash flow to net income ratio is not calculable for TTM due to zero values, pointing to potential cash flow issues. Continuous negative free cash flow growth is a risk factor.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	45.81B	38.67B	44.67B	39.20B	40.84B	43.18B
Gross Profit	44.13B	38.67B	43.27B	37.26B	40.84B	43.18B
EBITDA	6.39B	7.89B	6.15B	5.95B	5.84B	6.50B
Net Income	4.62B	4.54B	3.29B	3.18B	2.72B	3.13B
Balance Sheet
Total Assets	3.57T	3.58T	3.53T	3.67T	3.49T	3.03T
Cash, Cash Equivalents and Short-Term Investments	651.72B	688.70B	754.30B	843.45B	789.28B	612.68B
Total Debt	130.26B	209.09B	196.25B	289.31B	248.49B	80.89B
Total Liabilities	3.40T	3.41T	3.38T	3.50T	3.31T	2.86T
Stockholders Equity	166.19B	172.07B	149.26B	167.18B	175.92B	165.17B
Cash Flow
Free Cash Flow	0.00	-53.74B	-168.20B	201.26B	210.31B	77.51B
Operating Cash Flow	0.00	-52.39B	-167.14B	203.31B	210.90B	79.33B
Investing Cash Flow	0.00	-12.57B	80.25B	-145.54B	-40.25B	-54.56B
Financing Cash Flow	0.00	-1.11B	-1.88B	-1.25B	-1.35B	-1.52B

Akita Bank, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3545.00
• 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:8343, the sentiment is Positive. The current price of 3545 is above the 20-day moving average (MA) of 3416.00, above the 50-day MA of 3204.18, and above the 200-day MA of 2570.03, indicating a bullish trend. The MACD of 102.64 indicates Negative momentum. The RSI at 69.03 is Neutral, neither overbought nor oversold. The STOCH value of 62.96 is Neutral, 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
8399	71 Outperform	¥55.06B	8.74		2.93%	6.16%	-3.02%
Sector *	68 Neutral	$17.84B	12.03	10.32%	3.73%	9.70%	0.76%
8343	60 Neutral	¥63.61B	9.89		2.95%	8.73%	12.43%
OITAF	―	$508.30M	6.66	3.53%	3.47%	―	―
8393	68 Neutral	¥74.28B	7.31		2.48%	14.57%	45.13%
8387	66 Neutral	¥57.67B	8.41		3.18%	7.21%	-3.97%
8344	52 Neutral	¥49.22B	11.77		2.83%	-12.00%	28.81%

Akita Bank, Ltd. Corporate Events

Akita Bank Revises and Extends Stock Compensation Plan

Akita Bank, Ltd. announced the continuation and partial revision of its Performance-Linked Stock Compensation Plan, which aims to align directors’ and executive officers’ incentives with the bank’s medium- to long-term performance goals. The plan will extend the trust period by three years and revise performance achievement conditions to include both financial and non-financial indicators, such as ROE and employee engagement scores, impacting the bank’s strategic alignment and stakeholder interests.

Akita Bank Proposes Amendments to Strengthen Governance

Akita Bank, Ltd. has announced a proposal to amend its Articles of Incorporation to enhance corporate governance and decision-making transparency. The proposed changes will allow directors, including outside directors, to convene and chair board meetings, which is expected to improve governance practices.