Fukui Bank, Ltd. (8362) AI Stock Analysis

• Market Cap: ¥55.68B
• Dividend Yield: 2.64%
• Average Volume (3M): 47.96K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.90
• Revenue Growth: 7.08%
• EPS Growth: -46.44%
• Country: JP
• Employees: 1,770
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): -28.61
• Shares Outstanding: 24,144,669
• 10 Day Avg. Volume: 37,710
• 30 Day Avg. Volume: 47,963
• PEG Ratio: 0.06
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.71
• P/FCF Ratio: 2.02
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥2,651.00 ▲(11.48% Upside)

Fukui Bank's stock is supported by strong technical momentum and reasonable valuation. The financial performance is solid, with profitability improvements, but concerns over high leverage and negative revenue growth persist. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Profitability

Improved net profit margin indicates strong profitability, enhancing the bank's ability to generate earnings from its operations over the long term.

Cash Flow Management

Positive operating cash flow reflects improved cash management, ensuring the bank can meet its obligations and reinvest in growth opportunities.

Operational Efficiency

Higher EBIT margin suggests better operational efficiency, allowing the bank to maintain profitability even in challenging revenue environments.

Negative Factors

Revenue Decline

Negative revenue growth indicates challenges in maintaining sales momentum, which could affect long-term growth prospects if not addressed.

High Leverage

High leverage poses financial risks, limiting flexibility and increasing vulnerability to economic downturns, which could impact future stability.

Equity Ratio

A low equity ratio suggests heavy reliance on debt financing, which can strain financial health and limit growth opportunities in the long term.

Fukui Bank, Ltd. Business Overview & Revenue Model

Company Description

Fukui Bank, Ltd. (8362) is a regional financial institution based in Fukui Prefecture, Japan. The bank primarily operates in the banking sector, offering a range of financial services including retail banking, corporate banking, and investment services. Its core products include personal and business loans, savings and checking accounts, foreign exchange services, and various investment products. Fukui Bank also engages in asset management and provides services to support local businesses and communities.

How the Company Makes Money

Fukui Bank generates revenue primarily through interest income earned from loans provided to individuals and businesses. The bank charges interest on various types of loans, including personal loans, mortgages, and corporate loans, which constitutes a significant portion of its earnings. Additionally, it earns income from fees associated with banking services, such as account maintenance fees, transaction fees, and advisory services. The bank also generates revenue from its investment activities, including trading and asset management. Partnerships with local businesses and government entities further enhance its revenue streams by fostering community development and providing tailored financial solutions.

Fukui Bank, Ltd. Financial Statement Overview

Summary

Fukui Bank shows strong profitability with improved margins and return on equity. However, the high debt-to-equity ratio and negative revenue growth rate highlight potential risks. The cash flow position has improved, but historical volatility suggests caution.

Income Statement

Fukui Bank has shown a mixed performance in its income statement. The net profit margin has improved to 11.78% in the latest year, indicating strong profitability. However, the revenue growth rate has turned negative at -2.05%, suggesting a decline in revenue generation. The EBIT margin has improved to 12.51%, reflecting better operational efficiency. Despite these improvements, the declining revenue growth poses a concern.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 5.04, indicating significant leverage, which could pose financial risks. The return on equity has improved to 5.24%, showing better utilization of equity. However, the equity ratio remains low, suggesting a heavy reliance on debt financing. Overall, while profitability has improved, the high leverage remains a concern.

Cash Flow

The cash flow statement shows a strong free cash flow to net income ratio of 0.96, indicating efficient cash generation relative to net income. The operating cash flow has turned positive, reflecting improved cash management. However, the free cash flow growth rate is not calculable due to previous negative values, indicating volatility in cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	61.55B	59.05B	51.73B	51.27B	42.73B	39.11B
Gross Profit	61.55B	56.12B	50.94B	50.15B	42.65B	38.86B
EBITDA	6.39B	10.43B	7.04B	2.05B	4.63B	5.42B
Net Income	5.99B	7.17B	3.72B	1.80B	4.44B	2.55B
Balance Sheet
Total Assets	4.32T	4.29T	4.16T	4.00T	4.19T	3.51T
Cash, Cash Equivalents and Short-Term Investments	0.00	872.38B	896.18B	1.11T	1.20T	903.66B
Total Debt	656.22B	523.51B	572.89B	448.32B	647.87B	475.89B
Total Liabilities	4.17T	4.15T	4.02T	3.87T	4.05T	3.38T
Stockholders Equity	142.59B	136.38B	135.74B	123.12B	133.00B	136.61B
Cash Flow
Free Cash Flow	0.00	20.68B	-8.10B	-260.25B	185.70B	479.27B
Operating Cash Flow	0.00	112.07B	-6.28B	-258.76B	186.54B	483.85B
Investing Cash Flow	0.00	-133.39B	-241.33B	168.91B	111.20B	-53.77B
Financing Cash Flow	0.00	-2.36B	40.18B	-2.53B	-1.76B	-976.00M

Fukui Bank, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2378.00
• 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:8362, the sentiment is Positive. The current price of 2378 is above the 20-day moving average (MA) of 2197.05, above the 50-day MA of 2116.57, and above the 200-day MA of 1867.55, indicating a bullish trend. The MACD of 37.50 indicates Negative momentum. The RSI at 68.08 is Neutral, neither overbought nor oversold. The STOCH value of 60.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8362.

Fukui Bank, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8387	78 Outperform	¥60.59B	8.64	―	3.35%	8.75%	-12.68%
8395	78 Outperform	¥53.54B	8.72	―	2.80%	7.97%	20.44%
8344	74 Outperform	¥52.30B	12.20	―	3.17%	-0.24%	95.49%
8362	73 Outperform	¥55.68B	13.80	―	2.64%	7.08%	-46.44%
8541	71 Outperform	¥49.11B	8.46	―	2.73%	-0.97%	27.62%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8550	56 Neutral	¥58.60B	-2.69	―	2.69%	10.91%	-1225.48%

Fukui Bank, Ltd. Corporate Events

Fukui Bank Corrects Capital Adequacy Ratios for 2025

Fukui Bank, Ltd. announced corrections to its previously reported capital adequacy ratios for the fiscal year ended March 31, 2025, and the three months ended June 30, 2025. These corrections, which involve minor adjustments to risk-weighted assets and capital adequacy ratios, are significant for stakeholders as they reflect the bank’s compliance with Japanese banking regulations and its financial health.

The most recent analyst rating on (JP:8362) stock is a Buy with a Yen2213.00 price target. To see the full list of analyst forecasts on Fukui Bank, Ltd. stock, see the JP:8362 Stock Forecast page.

Fukui Bank Completes Share Acquisition for Compensation Plan

Fukui Bank, Ltd. announced the successful acquisition of 100,000 of its common shares through a closing price transaction at the Tokyo Stock Exchange, as part of its performance-linked stock compensation plan. This move is expected to enhance the bank’s compensation strategy, potentially impacting its operational efficiency and stakeholder relations.

Fukui Bank Announces Share Acquisition for Stock Compensation Plan

The Fukui Bank, Ltd. announced the acquisition of its shares by the trustee of a trust established for a performance-linked stock compensation plan. This transaction, scheduled for August 26, 2025, involves the purchase of 100,000 common shares at a closing price of ¥2,032, totaling approximately ¥203.5 million. This move is part of the bank’s strategy to align executive compensation with performance, potentially impacting its financial management and stakeholder interests.

Fukui Bank Continues Performance-Linked Stock Compensation Plan

Fukui Bank, Ltd. announced the continuation of its performance-linked stock compensation plan for executive officers, initially introduced in 2019. The bank has decided to make an additional entrustment of funds for acquiring its shares under this plan, aiming to align executive interests with company performance, which could enhance stakeholder value and influence the bank’s market positioning.

Fukui Bank to Dispose Treasury Shares for Executive Compensation Plan

Fukui Bank, Ltd. announced the disposal of 50,000 treasury shares as part of its performance-linked stock compensation plan for executive officers. This move aims to align executive compensation with the bank’s performance and stock value, enhancing corporate value over the medium to long term. The disposal, scheduled for August 26, 2025, is expected to have minimal impact on the secondary market due to its reasonable dilution effect.

Fukui Bank Reports Unrealized Losses on Securities

Fukui Bank, Ltd. reported unrealized losses on held-to-maturity debt securities amounting to ¥3,393 million as of the end of the first quarter of the fiscal year ending March 31, 2026. Despite these losses, the bank stated that there would be no impact on its earnings forecasts for the fiscal year, indicating stability in its financial outlook.

Fukui Bank Reports Increased Income but Decline in Profit

Fukui Bank reported a significant increase in ordinary income for the three months ended June 30, 2025, with a 26.9% rise compared to the previous year. However, profit attributable to owners of the parent decreased by 28.0%. The bank’s total assets and net assets saw slight increases, with an equity-to-asset ratio of 3.3%. The bank maintained its dividend forecast for the fiscal year ending March 31, 2026, with no revisions announced.