Suruga Bank (8358) AI Stock Analysis

• Market Cap: $260.13B
• Dividend Yield: 2.15%
• Average Volume (3M): 506.46K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.68
• Revenue Growth: -3.31%
• EPS Growth: 897.54%
• Country: JP
• Employees: 1,449
• Sector: Financial
• Sector Strength: 78
• Industry: Banks - Regional
• EPS (TTM): 10.09
• Shares Outstanding: 197,139,250
• 10 Day Avg. Volume: 588,830
• 30 Day Avg. Volume: 506,463
• PEG Ratio: 0.33
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.09
• 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: 77 Outperform
• Price Target: ―

Suruga Bank's stock is positioned strongly due to its solid financial performance characterized by high profitability and a robust balance sheet with no debt. The technical analysis supports an upward momentum, although it is limited by the absence of certain indicators. The valuation suggests that the stock is reasonably priced with an attractive dividend yield, making it a potentially appealing investment in the banking sector.

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 from its lending activities. The bank offers mortgage loans, personal loans, and credit card services, earning interest from these financial products. Additionally, Suruga Bank earns fees and commissions from its wealth management and investment advisory services. The bank also engages in securitization and other financial services that contribute to its non-interest income. Partnerships with other financial institutions and businesses help expand its product offerings and reach more customers, supporting its revenue growth.

Suruga Bank Financial Statement Overview

Summary

Suruga Bank exhibits strong financial health with robust profitability and a solid balance sheet with no debt. Revenue growth inconsistency and missing cash flow data require attention. Overall, the bank is well-positioned in the banking industry with efficient operations and conservative financial management.

Income Statement

Suruga Bank demonstrates strong profitability with an impressive gross profit margin of 104.6% and a net profit margin of 25.6% in the TTM. Despite a revenue decline, EBIT and EBITDA margins remain healthy at 51.7% and 16.8% respectively, indicating efficient cost management and strong operational performance. Revenue growth has been inconsistent, indicating potential fluctuations in demand or competitive pressures.

Balance Sheet

The bank maintains an exceptionally strong balance sheet with zero total debt, resulting in a debt-to-equity ratio of zero, highlighting financial stability. The equity ratio stands at 8.7%, reflecting a conservative financial strategy. The return on equity (ROE) is robust at 6.7%, showcasing effective profitability relative to equity.

Cash Flow

Cash flow metrics present challenges due to missing data in the TTM period. Historical data shows strong free cash flow and a high operating cash flow to net income ratio, indicating efficient cash generation. However, the absence of free cash flow growth rate analysis in the TTM raises concerns on cash flow sustainability.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	79.03B	78.83B	73.16B	55.80B	73.85B	83.65B
Gross Profit	82.66B	0.00	73.16B	55.80B	73.85B	83.65B
EBITDA	27.56B	27.79B	24.80B	17.60B	14.83B	28.43B
Net Income	20.24B	20.18B	15.38B	10.58B	7.96B	21.43B
Balance Sheet
Total Assets	3.54T	3.46T	3.56T	3.64T	3.59T	3.55T
Cash, Cash Equivalents and Short-Term Investments	929.22B	0.00	982.20B	1.04T	874.18B	953.93B
Total Debt	0.00	0.00	80.00M	115.00M	151.00M	22.00M
Total Liabilities	3.25T	3.17T	3.27T	3.37T	3.33T	3.26T
Stockholders Equity	291.11B	295.71B	295.01B	270.94B	264.13B	285.67B
Cash Flow
Free Cash Flow	0.00	30.92B	34.59B	22.17B	137.00B	199.06B
Operating Cash Flow	0.00	32.06B	36.84B	24.49B	142.16B	203.69B
Investing Cash Flow	0.00	-199.53B	45.14B	142.31B	-210.78B	-129.27B
Financing Cash Flow	0.00	-112.41B	-112.98B	-1.13B	-18.83B	-1.16B

Suruga Bank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1351.00
• 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:8358, the sentiment is Positive. The current price of 1351 is above the 20-day moving average (MA) of 1319.45, above the 50-day MA of 1284.50, and above the 200-day MA of 1187.61, indicating a bullish trend. The MACD of 12.79 indicates Negative momentum. The RSI at 62.24 is Neutral, neither overbought nor oversold. The STOCH value of 89.86 is Negative, 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
8358	77 Outperform	$260.13B	12.64	6.72%	2.15%	-3.31%	897.54%
Sector *	67 Neutral	$16.66B	11.44	9.71%	3.91%	11.61%	-10.70%
AOZOF		$2.06B	14.70	4.83%	4.09%	―	―
YFGSF		$2.09B	9.83	5.46%	3.97%	―	―
7327	73 Outperform	¥306.47B	9.99		4.20%	9.02%	14.49%
8366	70 Outperform	¥275.04B	14.66		1.53%	2.18%	-20.03%
8524	66 Neutral	¥213.93B	10.79		4.47%	9.37%	72.56%

Suruga Bank Corporate Events

Suruga Bank Completes Treasury Stock Repurchase

Suruga Bank has completed the repurchase of 1,470,100 shares of its common stock at a total cost of 1,812,026,900 yen, as part of a resolution made by the Board of Directors on February 6, 2025. This acquisition is part of a larger plan to repurchase up to 4,500,000 shares, with a maximum total acquisition cost of 6,000 million yen, aimed at optimizing the company’s capital structure.

Suruga Bank Executes Treasury Stock Repurchase

Suruga Bank has announced the acquisition of 1,815,500 shares of its treasury stock, costing approximately 2.39 billion 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 4.5 million shares, aiming to enhance shareholder value and optimize capital structure.

Suruga Bank Reports Losses from Securities Sales to Improve Portfolio

Suruga Bank has announced a strategic decision to record losses due to the sale of securities, particularly focusing on multi-asset funds, to enhance the quality of its securities portfolio. The bank aims to build a more stable earnings structure by concentrating on yen-denominated bonds, reflecting recent financial market trends. The full impact on the fiscal year ending March 31, 2025, is under examination, and further disclosures will be made as necessary.

Suruga Bank Announces Board of Directors Changes

Suruga Bank announced changes in its board of directors, which will be finalized at the upcoming Annual General Meeting of Shareholders in June 2025. These changes include new appointments and reappointments of directors, impacting the bank’s governance structure and potentially influencing its strategic direction.

Suruga Bank Announces Treasury Stock Repurchase

Suruga Bank, Ltd. announced the repurchase of 1,214,400 shares of its common stock at a total cost of 1,605,640,500 yen, conducted through market purchases on the Tokyo Stock Exchange. This move is part of a broader strategy authorized by the Board of Directors to repurchase up to 4,500,000 shares, aiming to optimize the company’s capital structure and potentially enhance shareholder value.

Suruga Bank Maintains Earnings Forecast Amid Cloud Migration and Securities Sale Losses

Suruga Bank announced it will incur expenses related to its accounting system’s migration to the cloud and a loss on the sale of securities. Despite these expenses, which amount to approximately 1,300 million yen for cloud migration and 3,000 million yen in losses on securities, the bank’s full-year earnings forecast remains unchanged, indicating steady financial performance.

Suruga Bank Announces Financial Adjustments Amid Cloud Migration and Securities Sale

Suruga Bank announced the recording of expenses related to the cloud migration of its accounting system and a loss on sales of securities in the fourth quarter of the fiscal year ending March 2025. Despite these financial adjustments, the bank maintains its full-year earnings forecast, emphasizing stability and strategic portfolio management focusing on yen-denominated bonds.

Suruga Bank Sets Quota for Treasury Stock Repurchase

Suruga Bank has announced the establishment of a quota for the repurchase of its treasury stock, a move aimed at enhancing shareholder returns while balancing capital soundness and growth investments. This decision reflects the bank’s commitment to improving capital efficiency and returning profits to shareholders, with plans to acquire a maximum of 4.5 million common shares, costing up to 6 billion yen, between February 7 and April 30, 2025.