Suruga Bank (8358) AI Stock Analysis

• Market Cap: ¥408.78B
• Dividend Yield: 2.12%
• Average Volume (3M): 798.45K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.78
• Revenue Growth: 22.44%
• EPS Growth: 59.32%
• Country: JP
• Employees: 1,449
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 46.95
• 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): 153.08
• Revenue Forecast (FY): ¥57.50B

• Rating: 76 Outperform
• Price Target: ¥2,395.00 ▲(33.80% Upside)
• Action: Reiterated Date: 11/30/25
• Date: Action: Reiterated 11/30/25

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 & margins

Suruga Bank reported exceptionally strong top-line growth and high margins, signaling durable core profitability from lending and fee activities. Sustained high margins and recent revenue expansion support reinvestment capacity and earnings resilience across economic cycles.

Low leverage / strong balance sheet

The bank's extremely low leverage and a stable equity ratio provide significant solvency and regulatory buffer. This conservative capital structure supports credit extension and risk-taking discipline, lowering bankruptcy risk and enabling strategic flexibility over the medium term.

Diversified income streams

Suruga's mix of net interest income, fee/commission revenues and securities income reduces dependence on any single source. That diversification helps stabilize earnings through interest-rate cycles and local economic swings, supporting margin sustainability and growth options.

Negative Factors

Negative operating cash flow

Persistent negative operating and free cash flows point to structural cash-generation weakness despite reported profits. That gap can constrain loan growth, capital return policies and liquidity buffers, forcing reliance on non-operating funding or asset sales over time.

Moderate ROE

A mid-single-digit ROE indicates limited capital efficiency relative to growth and investor return expectations. Over the medium term, moderate ROE can reduce internal capital accumulation and limit the bank's ability to fund expansion or absorb shocks without dilutive capital measures.

Regional concentration risk

Concentration in a regional retail and mortgage lending franchise exposes Suruga to localized economic downturns and real estate cycles. Limited geographic diversification can amplify credit and deposit volatility, increasing structural earnings and credit risk through adverse local trends.

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	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
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 2087.00, below the 50-day MA of 1925.92, and above the 200-day MA of 1575.49, indicating a bullish trend. The MACD of 51.34 indicates Positive momentum. The RSI at 59.93 is Neutral, neither overbought nor oversold. The STOCH value of 36.34 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
7380	76 Outperform	¥385.02B	15.77	―	2.94%	1.91%	9.73%
8358	76 Outperform	¥408.78B	14.60	8.13%	2.12%	22.44%	59.32%
8524	72 Outperform	¥403.60B	14.60	―	3.01%	19.69%	70.91%
8368	68 Neutral	¥431.09B	21.17	3.95%	2.19%	9.29%	28.34%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8366	65 Neutral	¥424.29B	21.04	―	1.50%	15.79%	78.27%
8304	54 Neutral	¥390.76B	14.97	4.74%	3.38%	5.47%	―

Suruga Bank Corporate Events

Suruga Bank lifts nine-month profit 30% and plans higher dividend

Suruga Bank reported strong results for the nine months to December 31, 2025, with ordinary income up 18.0% to ¥79.9 billion and profit attributable to owners surging 30.1% to ¥23.9 billion, lifting basic earnings per share to ¥135.52. Net assets rose to ¥305.9 billion and the equity-to-asset ratio edged up to 8.8%, signaling gradual balance sheet strengthening.

The bank maintained its full-year forecast for the period ending March 31, 2026, targeting ordinary profit of ¥31.0 billion and profit attributable to owners of ¥25.0 billion, implying continued earnings momentum. It also plans to lift total annual dividends to ¥44.00 per share from ¥29.00 in the previous year, underscoring a more shareholder-friendly capital policy amid rising profits and an expanded treasury stock position.

The most recent analyst rating on (JP:8358) stock is a Buy with a Yen2383.00 price target. To see the full list of analyst forecasts on Suruga Bank stock, see the JP:8358 Stock Forecast page.

Suruga Bank Completes ¥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.