Suruga Bank (8358) AI Stock Analysis

• Market Cap: ¥373.35B
• Dividend Yield: 2.12%
• Average Volume (3M): 798.45K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.75
• Revenue Growth: 22.44%
• EPS Growth: 59.32%
• Country: JP
• Employees: 1,449
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 58.69
• Shares Outstanding: 197,139,250
• 10 Day Avg. Volume: 862,000
• 30 Day Avg. Volume: 798,453
• PEG Ratio: 0.29
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 3.57
• P/FCF Ratio: -1.17
• 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: ¥1,800.00
• Price Target Upside: 0.56% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥2,187.00 ▲(22.18% Upside)

Suruga Bank's strong financial performance, particularly in revenue growth and profitability, is a key strength, supported by a solid balance sheet. The technical analysis indicates strong bullish momentum, although caution is advised due to potential overbought conditions. The valuation is reasonable, providing a fair entry point for investors. However, cash flow management remains a concern that could impact future growth.

Positive Factors

High revenue growth

Sustained high revenue growth indicates durable expansion of lending and fee businesses, showing the bank is scaling client volumes and product uptake. Over months this supports recurring interest and fee income, improves earning power, and creates room for reinvestment and reserve building.

Very low leverage

Extremely low debt-to-equity reduces financial risk and enhances resilience to economic shocks. For a regional bank, minimal leverage preserves regulatory flexibility, lowers funding stress probability, and supports strategic lending capacity, benefiting long-term stability and creditworthiness.

Strong profitability margins

Elevated gross and net margins reflect efficient cost control and profitable core operations, producing reliable earnings generation. Durable margin strength supports internal capital accumulation, dividend capacity, and lending growth without immediate reliance on external funding or dilutive capital actions.

Negative Factors

Negative operating and free cash flow

Persistent negative operating and free cash flows point to liquidity and cash generation weaknesses despite accounting profits. Over time this can constrain loan origination, force reliance on external funding or asset sales, and increase vulnerability to funding-cost shocks or stress scenarios.

Concentration in SME and retail lending

Concentration on SMEs and retail borrowers raises cyclical credit risk exposure and can amplify default rates during downturns. Structurally, this customer mix may require higher provisioning and more active credit monitoring, limiting stable asset quality relative to more diversified commercial portfolios.

Moderate return on equity

An ROE below typical industry high performers suggests limited efficiency in converting equity into profits. Over a multi-quarter horizon this can pressure shareholder returns, constrain internal capital growth, and require either higher margins, faster loan growth, or capital structure changes to improve long-term competitiveness.

Suruga Bank Business Overview & Revenue Model

Company Description

Suruga Bank Ltd. provides various banking and financial products and services to individuals and corporate customers in Japan. The company offers deposit products, such as time, ordinary, savings, foreign currency, and other deposits, as well as current and general accounts; card, housing, second house, resort, startup, project assistance, and business up term loans, as well as loans by purpose; credit and debit cards; and overdrafts and other financing products. It also provides investment trust, public bond, pension contribution, insurance, inheritance/trust, lottery, foreign currency exchange reservation, pay-easy, Web oral receipt, safe deposit box, external linkage, foreign remittance, fund management, e-combination, payment, nursing care/medical care/dispensing compensation receivable factoring, mortgage, and Internet and telephone banking services. In addition, the company offers staffing, money lending and credit guarantee, mortgage loans guarantee, printing, bookbinding, packing and shipping, leasing, and clerical agency and system engineering services. It operates through a network of 128 branches in Japan. The company was founded in 1895 and is headquartered in Numazu, Japan.

How the Company Makes Money

Suruga Bank generates revenue primarily through interest income derived from loans and advances made to its customers. The bank charges interest on various loan products, including personal loans, business loans, and mortgages, which constitutes a significant portion of its earnings. Additionally, the bank earns fee income from services such as account maintenance, transaction fees, and investment advisory services. Suruga Bank also benefits from asset management fees and commissions related to its investment products. Strategic partnerships with other financial institutions and businesses may enhance its service offerings and client base, further contributing to its revenue streams.

Suruga Bank Financial Statement Overview

Summary

Suruga Bank demonstrates strong revenue growth and profitability, supported by a robust balance sheet with minimal leverage. However, cash flow challenges indicate potential liquidity concerns that need addressing. Overall, the financial health is solid, but attention to cash flow management is crucial for sustaining growth.

Income Statement

Suruga Bank's income statement shows strong performance with a significant revenue growth rate of 49.89% in the latest year, indicating robust business expansion. The gross profit margin remains exceptionally high at 96.32%, showcasing efficient cost management. Net profit margin improved to 29.14%, reflecting enhanced profitability. However, the EBIT margin of 35.70% and EBITDA margin of 44.49% suggest room for improvement in operational efficiency.

Balance Sheet

The balance sheet is solid with a very low debt-to-equity ratio of 0.00016, indicating minimal leverage and financial risk. Return on equity is moderate at 6.82%, suggesting decent profitability relative to shareholder equity. The equity ratio stands at 8.54%, reflecting a stable capital structure. Overall, the bank maintains a strong financial position with low leverage.

Cash Flow

Cash flow analysis reveals challenges, with negative operating and free cash flows, indicating potential liquidity issues. The free cash flow to net income ratio is slightly above 1, suggesting that free cash flow aligns with net income. However, the negative growth in free cash flow and operating cash flow coverage ratio highlight the need for improved cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	80.64B	69.23B	62.90B	57.19B	75.34B	85.22B
Gross Profit	80.64B	66.68B	61.75B	55.80B	73.85B	83.65B
EBITDA	23.29B	30.80B	24.80B	17.60B	14.83B	28.43B
Net Income	18.82B	20.18B	15.38B	10.58B	7.96B	21.43B
Balance Sheet
Total Assets	3.51T	3.46T	3.56T	3.64T	3.59T	3.55T
Cash, Cash Equivalents and Short-Term Investments	0.00	693.36B	982.20B	1.04T	874.18B	953.93B
Total Debt	0.00	46.00M	80.00M	115.00M	151.00M	22.00M
Total Liabilities	3.21T	3.17T	3.27T	3.37T	3.33T	3.26T
Stockholders Equity	301.99B	295.71B	295.01B	270.94B	264.13B	285.67B
Cash Flow
Free Cash Flow	0.00	-210.53B	-95.32B	22.17B	137.00B	199.06B
Operating Cash Flow	0.00	-208.48B	-93.08B	24.49B	142.16B	203.69B
Investing Cash Flow	0.00	-56.45B	45.14B	142.31B	-210.78B	-129.27B
Financing Cash Flow	0.00	-15.92B	-137.68B	-1.13B	-18.83B	39.99B

Suruga Bank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1790.00
• 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:8358, the sentiment is Positive. The current price of 1790 is below the 20-day moving average (MA) of 1871.35, above the 50-day MA of 1758.12, and above the 200-day MA of 1487.65, indicating a bullish trend. The MACD of 58.04 indicates Positive momentum. The RSI at 65.16 is Neutral, neither overbought nor oversold. The STOCH value of 31.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8358.

Suruga Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7327	79 Outperform	¥505.39B	11.45	―	3.15%	12.71%	71.94%
8418	77 Outperform	¥480.17B	12.78	6.09%	2.93%	5.87%	50.22%
8524	76 Outperform	¥338.54B	14.13	―	3.01%	19.69%	70.91%
8358	76 Outperform	¥373.35B	14.11	8.13%	2.12%	22.44%	59.32%
8366	74 Outperform	¥370.31B	18.36	―	1.50%	15.79%	78.27%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8304	60 Neutral	¥346.08B	15.59	4.74%	3.38%	5.47%	―

Suruga Bank Corporate Events

Suruga Bank Completes ¥15 Billion Share Buyback Program

Suruga Bank has completed a repurchase of its common shares under an authorization based on its Articles of Incorporation, fulfilling the share buyback program approved by its board of directors in May 2025. Between January 1 and January 19, 2026, the bank bought 246,100 shares on the Tokyo Stock Exchange at a total cost of ¥445.651 million, bringing cumulative purchases under the program to 11,232,700 shares for approximately ¥14.9999 billion, a move that signals continued capital management efforts and may support shareholder value through a reduced free float and improved capital efficiency.

The most recent analyst rating on (JP:8358) stock is a Buy with a Yen2128.00 price target. To see the full list of analyst forecasts on Suruga Bank stock, see the JP:8358 Stock Forecast page.

Suruga Bank Nears Completion of ¥15 Billion Share Buyback Program

Suruga Bank, Ltd., a regional Japanese lender listed on the Tokyo Stock Exchange’s Prime Market, offers a range of commercial banking services such as deposits, loans and other financial products to individuals and businesses domestically. The bank disclosed that it repurchased 450,200 shares of its common stock on the Tokyo Stock Exchange between December 1 and December 31, 2025, at a total cost of ¥764.1 million, as part of an ongoing buyback program authorized by its board in May 2025. Under that resolution, the bank may acquire up to 12.5 million shares for as much as ¥15 billion by January 31, 2026, and it has so far bought back a cumulative 10,986,600 shares for approximately ¥14.55 billion, signaling continued execution of shareholder return measures and potential enhancement of capital efficiency and earnings per share.

The most recent analyst rating on (JP:8358) stock is a Buy with a Yen1896.00 price target. To see the full list of analyst forecasts on Suruga Bank stock, see the JP:8358 Stock Forecast page.

Suruga Bank Completes Treasury Stock Repurchase

Suruga Bank has announced the completion of a treasury stock repurchase, acquiring 511,900 shares at a total cost of 801,964,500 yen through market purchases on the Tokyo Stock Exchange. This move is part of a broader strategy approved by the Board of Directors to repurchase up to 12,500,000 shares, reflecting a 6.80% ratio to total shares issued, with a maximum acquisition cost of 15,000 million yen, aimed at enhancing shareholder value.

The most recent analyst rating on (JP:8358) stock is a Buy with a Yen1896.00 price target. To see the full list of analyst forecasts on Suruga Bank stock, see the JP:8358 Stock Forecast page.

Suruga Bank Reports Strong Financial Performance for H1 2025

Suruga Bank reported a strong performance for the six months ending September 30, 2025, with a notable increase in ordinary income and profit attributable to owners of the parent. The bank’s comprehensive income more than doubled compared to the previous year, reflecting a robust financial position. The increase in dividends per share indicates a positive outlook for shareholders, and the stable equity-to-asset ratio suggests a solid financial foundation. These results underscore Suruga Bank’s strengthened position in the financial industry and its commitment to delivering value to its stakeholders.

Suruga Bank Completes Treasury Stock Repurchase

Suruga Bank has announced the completion of a treasury stock repurchase, acquiring 1,919,700 shares at a total cost of 2,892,076,400 yen through market purchases on the Tokyo Stock Exchange. This move is part of a larger plan approved by the Board of Directors to repurchase up to 12,500,000 shares, aiming to enhance shareholder value and optimize capital structure.

Suruga Bank’s Legal Victory in Share House Loan Case

Suruga Bank announced a court judgment concerning a lawsuit filed against former directors related to share house loan issues. The Shizuoka District Court partially granted claims against several former directors, holding them liable for damages due to breaches of duty. The ruling clarifies legal responsibilities but its impact on the bank’s current fiscal performance remains undetermined.