Fukui Bank, Ltd. (8362) AI Stock Analysis

• Market Cap: ¥80.67B
• Dividend Yield: 2.49%
• Average Volume (3M): 47.96K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.99
• Revenue Growth: 7.08%
• EPS Growth: -46.44%
• Country: JP
• Employees: 1,770
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 125.72
• 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: 69 Neutral
• Price Target: ¥3,471.00 ▲(26.45% Upside)
• Action: Downgraded Date: 02/06/26
• Date: Action: Downgraded 02/06/26

The score is driven primarily by improved profitability and strong cash generation, tempered by high leverage and declining revenue growth. Technicals remain bullish but appear overbought, while valuation (P/E 10.48 and 2.02% yield) is supportive.

Positive Factors

Improved profitability margins

Net profit margin of 11.78% and EBIT margin of 12.51% reflect improved operational efficiency and pricing power. Sustained margins expand internal capital generation, support dividends and reinvestment, and provide a buffer against cyclical shocks in regional banking over the medium term.

Strong cash conversion

A free cash flow to net income ratio of 0.96 and positive operating cash flow demonstrate effective conversion of accounting profits into cash. Durable cash generation supports loan growth, debt servicing, capital allocation flexibility and balance-sheet strengthening over the next several quarters.

Regional franchise & SME focus

The bank's focus on individuals, SMEs and local governments creates sticky relationships and a stable deposit base. This local franchise supports recurring fee income and relationship lending advantages, helping sustain predictable loan demand and competitive positioning regionally over time.

Negative Factors

High financial leverage

A debt-to-equity ratio of 5.04 and low equity ratio indicate material leverage. High leverage amplifies earnings volatility, reduces shock-absorption capacity for credit losses, constrains strategic flexibility for lending or investment, and raises refinancing and liquidity risks over the medium term.

Negative revenue growth

Reported revenue growth of -2.05% signals top-line pressure despite margin improvements. Persistent revenue contraction undermines scalability of earnings, limits organic capital accumulation, and increases dependence on margin expansion or one-off items to sustain profitability over the coming quarters.

Concentration in interest income & local loans

Heavy reliance on interest income from loans to SMEs, mortgages and local entities concentrates exposure to the regional economy and credit cycle. Limited geographic and product diversification raises vulnerability to localized downturns, credit stress or prolonged NIM pressure over the medium term.

Fukui Bank, Ltd. Business Overview & Revenue Model

Company Description

The Fukui Bank, Ltd., together with its subsidiaries, provides various banking products and services. It operates through Banking and Leasing segments. The Banking segment offers deposits; lending services; credit cards; and domestic and foreign exchange, and credit guarantee services. The Leasing segment leases industrial machinery, computers, and office equipment. The company was incorporated in 1899 and is headquartered in Fukui, Japan.

How the Company Makes Money

Fukui Bank generates revenue primarily through the interest income from its lending activities, which includes personal loans, mortgages, and business loans to SMEs. The bank charges interest on these loans, which constitutes a significant portion of its earnings. Additionally, Fukui Bank earns fees from various banking services, such as account maintenance, transaction fees, and advisory services. Other revenue sources include income from investment securities and foreign exchange transactions. The bank may also engage in partnerships with local businesses and government entities to provide tailored financial solutions, thereby enhancing its customer base and revenue opportunities.

Fukui Bank, Ltd. Financial Statement Overview

Summary

Profitability improved (net profit margin 11.78%, EBIT margin 12.51%) and cash conversion is strong (free cash flow to net income 0.96, operating cash flow positive). Offsetting this, revenue growth is negative (-2.05%) and leverage is high (debt-to-equity 5.04), increasing financial risk.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: 2745.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• 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 2745 is below the 20-day moving average (MA) of 3311.05, below the 50-day MA of 2949.18, and above the 200-day MA of 2223.82, indicating a bullish trend. The MACD of 151.69 indicates Positive momentum. The RSI at 72.43 is Negative, neither overbought nor oversold. The STOCH value of 72.03 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	74 Outperform	¥97.38B	6.00	―	3.05%	8.75%	-12.68%
8395	74 Outperform	¥81.63B	10.29	―	2.29%	7.97%	20.44%
8541	72 Outperform	¥70.60B	10.46	―	2.34%	-0.97%	27.62%
8362	69 Neutral	¥80.67B	12.07	―	2.49%	7.08%	-46.44%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8344	67 Neutral	¥81.51B	16.93	―	2.89%	-0.24%	95.49%
8550	52 Neutral	¥100.17B	-5.21	―	2.12%	10.91%	-1225.48%

Fukui Bank, Ltd. Corporate Events

Fukui Bank Reports ¥5.7 Billion Unrealized Loss on Securities With No Change to Earnings Outlook

Fukui Bank has disclosed that, as of the end of the third quarter of the fiscal year ending March 31, 2026, it is carrying unrealized losses of ¥5.73 billion on its held-to-maturity debt securities, based on a book value of ¥298.5 billion and a market value of ¥292.8 billion. The scale of these paper losses is significant relative to its most recent full-year results, equivalent to 65.8% of consolidated ordinary profit and 79.9% of profit attributable to owners of parent for the year ended March 31, 2025, though the bank stressed that the valuation impact will not alter its earnings forecast for the current fiscal year, indicating that management views the losses as manageable within its existing capital and profit framework.

The most recent analyst rating on (JP:8362) stock is a Buy with a Yen3205.00 price target. To see the full list of analyst forecasts on Fukui Bank, Ltd. stock, see the JP:8362 Stock Forecast page.

Fukui Bank Lifts Profit and Dividend Outlook Despite Dip in Nine-Month Net Earnings

For the nine months ended December 31, 2025, Fukui Bank reported consolidated ordinary income of ¥56.6 billion, up 17.6% year on year, with ordinary profit rising 32.3% to ¥9.2 billion, while profit attributable to owners of parent slipped 4.3% to ¥5.3 billion as earnings per share fell to ¥223.90 from ¥240.63. The bank’s total assets increased to ¥4,315.5 billion and equity to ¥150.7 billion, improving its equity-to-asset ratio to 3.4%, and it maintained its full-year forecast of ¥10.5 billion in ordinary profit and ¥6.0 billion in profit attributable to owners, alongside a planned annual dividend increase to ¥75 per share, signaling confidence in capital strength and shareholder returns despite the modest decline in bottom-line profit for the period.

The most recent analyst rating on (JP:8362) stock is a Buy with a Yen3205.00 price target. To see the full list of analyst forecasts on Fukui Bank, Ltd. stock, see the JP:8362 Stock Forecast page.

Fukui Bank Reports Mixed Financial Results for First Half of 2025

Fukui Bank, Ltd. reported its consolidated financial results for the six months ended September 30, 2025, showing a 16% increase in ordinary income compared to the previous year. However, ordinary profit and profit attributable to owners of the parent decreased by 21.5% and 57% respectively, indicating challenges in profitability despite revenue growth.

The most recent analyst rating on (JP:8362) stock is a Buy with a Yen2420.00 price target. To see the full list of analyst forecasts on Fukui Bank, Ltd. stock, see the JP:8362 Stock Forecast page.