Suruga Bank (8358) AI Stock Analysis

• Market Cap: ¥328.10B
• Dividend Yield: 2.14%
• Average Volume (3M): 798.45K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.73
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 129.75
• Revenue Forecast (FY): ¥57.50B

• Rating: 76 Outperform
• Price Target: ¥1,896.00 ▲(11.27% 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

Revenue Growth

Strong revenue growth indicates robust business expansion and market demand, supporting long-term financial stability and potential for future growth.

Profitability

Improved net profit margin suggests effective cost management and pricing strategy, contributing to sustainable earnings and shareholder value.

Balance Sheet Strength

Minimal leverage reduces financial risk and enhances the bank's ability to withstand economic downturns, ensuring long-term operational stability.

Negative Factors

Cash Flow Challenges

Negative cash flows highlight liquidity concerns that could limit the bank's ability to invest in growth opportunities and meet short-term obligations.

Operational Efficiency

Lower operational efficiency margins indicate potential inefficiencies that could impact profitability and competitiveness if not addressed.

Cash Management

Ineffective cash management can strain financial resources, affecting the bank's ability to fund operations and strategic initiatives.

Suruga Bank Business Overview & Revenue Model

Company Description

Suruga Bank (8358) is a Japanese financial institution primarily engaged in banking services, including commercial banking, retail banking, and asset management. Established in Shizuoka, the bank caters to a diverse clientele, offering a range of products such as personal loans, corporate financing, investment services, and savings accounts. Suruga Bank is known for its focus on small and medium-sized enterprises (SMEs) and individuals, providing tailored financial solutions to meet their specific needs.

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: 1704.00
• 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:8358, the sentiment is Positive. The current price of 1704 is above the 20-day moving average (MA) of 1667.50, above the 50-day MA of 1583.84, and above the 200-day MA of 1409.28, indicating a bullish trend. The MACD of 38.03 indicates Negative momentum. The RSI at 60.56 is Neutral, neither overbought nor oversold. The STOCH value of 57.27 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	¥452.85B	11.49	―	3.18%	12.71%	71.94%
8418	77 Outperform	¥409.59B	10.90	6.09%	2.95%	5.87%	50.22%
8524	76 Outperform	¥303.25B	12.66	―	3.08%	19.69%	70.91%
8358	76 Outperform	¥328.10B	12.40	8.13%	2.14%	22.44%	59.32%
8366	74 Outperform	¥346.38B	16.03	―	1.49%	15.79%	78.27%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8304	60 Neutral	$335.09B	15.09	4.74%	3.58%	5.47%	―

Suruga Bank Corporate Events

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.

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.

Suruga Bank Announces Treasury Stock Repurchase

Suruga Bank has announced the repurchase of 1,237,500 shares of its common stock, totaling an acquisition cost of 1,882,391,300 yen, through market purchases on the Tokyo Stock Exchange. This action is part of a broader strategy approved by the Board of Directors to acquire up to 12,500,000 shares, aiming to enhance shareholder value and optimize capital structure.