Fukui Bank, Ltd. (8362) AI Stock Analysis

• Market Cap: ¥78.45B
• Dividend Yield: 2.49%
• Average Volume (3M): 47.96K
• Price to Earnings (P/E): 5.2
• Beta (1Y): 0.98
• 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: 71 Outperform
• Price Target: ¥3,472.00 ▲(26.48% Upside)
• Action: Upgraded Date: 03/05/26
• Date: Action: Upgraded 03/05/26

The score is driven primarily by improved profitability and solid cash generation, tempered by high leverage and negative revenue growth. Technicals are mixed with short-term weakness but a constructive longer-term trend. Valuation is a clear positive due to the low P/E and supportive dividend yield.

Positive Factors

Improved profitability and margins

Net profit margin of 11.78% and an EBIT margin of 12.51% show the bank has materially improved core profitability. Sustained margins enhance internal capital generation and provide buffer against credit losses, supporting durable earnings power over the medium term.

Strong cash generation

A free cash flow to net income ratio near 1.0 and a return to positive operating cash flow indicate efficient conversion of accounting profits into actual cash. This strengthens capacity to fund operations, dividends, and incremental lending without immediate external financing.

Stable regional franchise and customer mix

A focused regional franchise serving individuals, SMEs and local governments yields sticky deposit funding and deep customer relationships. That local footprint supports predictable loan demand and cross-sell opportunities, giving a durable, defensible business model in its market.

Negative Factors

High leverage and low equity ratio

A debt-to-equity ratio above 5x and a low equity ratio imply significant leverage exposure. This constrains capital flexibility, raises sensitivity to interest rate and credit shocks, and limits capacity to absorb loan losses or pursue growth without raising equity or reducing dividends.

Negative revenue growth trend

Declining revenue (-2.05%) undermines scale and can pressure long-term profitability despite margin gains. If top-line contraction continues, it may limit ability to expand net income and reinvest in services, weakening competitive positioning in the medium term.

Volatile free cash flow history

Historical FCF volatility and prior negative free cash flow complicate medium-term planning. Irregular cash generation increases reliance on external funding in down cycles, challenges dividend and capital allocation consistency, and elevates refinancing and operational risk.

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 (FCF to net income 0.96, operating cash flow turned positive). Offsetting this, revenue growth is negative (-2.05%) and leverage is high (debt-to-equity 5.04), which increases 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: 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 2745 is below the 20-day moving average (MA) of 3354.25, below the 50-day MA of 3159.98, and above the 200-day MA of 2337.01, indicating a neutral trend. The MACD of 35.15 indicates Positive momentum. The RSI at 53.34 is Neutral, neither overbought nor oversold. The STOCH value of 64.89 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	75 Outperform	¥94.71B	1.54	―	3.05%	8.75%	-12.68%
8362	71 Outperform	¥78.45B	5.15	―	2.49%	7.08%	-46.44%
8541	69 Neutral	¥61.77B	6.31	―	2.34%	-0.97%	27.62%
8344	68 Neutral	¥73.36B	10.96	―	2.89%	-0.24%	95.49%
8395	68 Neutral	¥78.40B	7.94	―	2.29%	7.97%	20.44%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8343	60 Neutral	¥89.46B	7.75	―	3.35%	15.96%	81.27%

Fukui Bank, Ltd. Corporate Events

Fukui Bank Group Reports Stable Capital Adequacy Ratios at Year-End 2025

The Fukui Bank group reported largely stable capital adequacy ratios as of December 31, 2025, with the consolidated ratio edging up to 8.08% from 8.05% three months earlier as total capital increased to ¥138.4 billion alongside a rise in risk-weighted assets. On a non-consolidated basis, Fukui Bank’s capital adequacy ratio was essentially flat at 8.32%, while Fukuho Bank improved to 5.54% as lower risk-weighted assets helped offset only marginal growth in capital, indicating steady regulatory capital positioning for the group.

Across the group, required capital rose modestly for Fukui Bank but declined for Fukuho Bank, suggesting a slight shift in the group’s risk profile and capital demands. These movements signal that the Fukui Bank group is maintaining adequate capital buffers while managing asset risk, which is likely to be viewed as a sign of balance-sheet stability by regulators, investors and depositors, even as overall risk-weighted assets continue to grow on a consolidated basis.

The most recent analyst rating on (JP:8362) stock is a Buy with a Yen3503.00 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 ¥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.