Shiga Bank, Ltd. (8366) AI Stock Analysis

• Market Cap: ¥344.03B
• Dividend Yield: 1.5%
• Average Volume (3M): 133.87K
• Price to Earnings (P/E): 15.9
• Beta (1Y): 1.17
• Revenue Growth: 15.79%
• EPS Growth: 78.27%
• Country: JP
• Employees: 2,154
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 100.73
• Shares Outstanding: 53,090,080
• 10 Day Avg. Volume: 131,030
• 30 Day Avg. Volume: 133,873
• PEG Ratio: 0.70
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 1.94
• P/FCF Ratio: 19.33
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥7,974.00 ▲(8.79% Upside)

Shiga Bank's stock is supported by strong technical momentum and reasonable valuation, despite financial performance concerns related to leverage and cash flow conversion. The bullish trend is a significant positive factor, while financial stability requires attention.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Net Profit Margin

A strong net profit margin reflects efficient cost management and robust earnings, contributing to sustainable financial health.

Free Cash Flow Growth

Growth in free cash flow enhances financial flexibility, allowing for reinvestment in growth opportunities and debt reduction.

Negative Factors

High Leverage

High leverage increases financial risk and may limit the bank's ability to invest in growth or weather economic downturns.

Declining EBIT and EBITDA Margins

Declining margins suggest potential cost management issues, which could pressure profitability if not addressed.

Weak Cash Flow Conversion

Weak cash flow conversion indicates challenges in turning income into cash, potentially impacting liquidity and operational flexibility.

Shiga Bank, Ltd. Business Overview & Revenue Model

Company Description

Shiga Bank, Ltd. (8366) is a regional bank based in Shiga Prefecture, Japan. The bank provides a range of financial services including commercial banking, retail banking, and investment services. It primarily serves individual customers, small and medium-sized enterprises (SMEs), and local corporations, offering products such as savings accounts, loans, credit cards, and investment trusts. Shiga Bank plays a crucial role in the local economy by supporting the financial needs of its community and promoting regional development.

How the Company Makes Money

Shiga Bank generates revenue primarily through the interest income earned from its lending activities. The bank issues various types of loans, including personal loans, business loans, and mortgages, which are charged interest. Additionally, it earns fees from non-interest income sources such as account management fees, transaction fees, and commissions from investment services. The bank also invests in securities and earns returns on those investments. Key partnerships with local businesses and government entities enhance its ability to attract deposits and provide tailored financial solutions, contributing to its overall profitability.

Shiga Bank, Ltd. Financial Statement Overview

Summary

Shiga Bank shows strong revenue growth and profitability with a net profit margin of 15.31%. However, declining EBIT and EBITDA margins and high leverage are concerns. Cash flow conversion from income is weak, though free cash flow growth is promising.

Income Statement

Shiga Bank has demonstrated consistent revenue growth with a notable 8.94% increase in the latest year. The net profit margin remains strong at 15.31%, indicating solid profitability. However, there is a decline in EBIT and EBITDA margins compared to previous years, suggesting potential cost management issues.

Balance Sheet

The bank's debt-to-equity ratio is relatively high at 2.47, indicating significant leverage which could pose risks if not managed properly. Return on equity is modest at 4.21%, reflecting moderate efficiency in generating profits from shareholder equity. The equity ratio is not explicitly calculated, but the high leverage suggests a lower proportion of equity in the asset base.

Cash Flow

Free cash flow has shown significant growth, but the operating cash flow to net income ratio is low at 0.08, indicating potential issues in converting income into cash. The free cash flow to net income ratio is healthier at 0.58, suggesting some ability to generate cash relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	102.28B	126.70B	116.90B	110.41B	94.21B	81.15B
Gross Profit	102.28B	103.31B	97.91B	101.40B	91.26B	77.86B
EBITDA	17.39B	27.75B	26.14B	22.01B	25.66B	15.50B
Net Income	19.75B	18.72B	15.94B	14.86B	17.71B	11.45B
Balance Sheet
Total Assets	7.64T	7.53T	7.97T	7.31T	7.54T	7.79T
Cash, Cash Equivalents and Short-Term Investments	0.00	898.94B	1.36T	1.20T	1.75T	2.01T
Total Debt	1.11T	1.10T	1.47T	776.55B	1.27T	1.42T
Total Liabilities	7.18T	7.08T	7.48T	6.86T	7.07T	7.30T
Stockholders Equity	456.91B	444.81B	490.89B	441.22B	464.21B	495.47B
Cash Flow
Free Cash Flow	0.00	12.75B	368.47B	-488.52B	-284.07B	1.24T
Operating Cash Flow	0.00	21.98B	369.60B	-483.43B	-278.96B	1.24T
Investing Cash Flow	0.00	-47.63B	-288.59B	-57.99B	21.82B	-126.66B
Financing Cash Flow	0.00	-381.21B	565.53B	-7.95B	200.07B	-34.34B

Shiga Bank, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7330.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8366, the sentiment is Positive. The current price of 7330 is above the 20-day moving average (MA) of 6702.00, above the 50-day MA of 6442.80, and above the 200-day MA of 5951.89, indicating a bullish trend. The MACD of 254.72 indicates Negative momentum. The RSI at 72.30 is Negative, neither overbought nor oversold. The STOCH value of 87.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8366.

Shiga Bank, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7327	79 Outperform	¥449.00B	11.40	―	3.19%	12.71%	71.94%
8418	77 Outperform	¥414.57B	11.03	6.09%	2.92%	5.87%	50.22%
8358	76 Outperform	¥328.48B	12.41	8.13%	2.14%	22.44%	59.32%
8366	74 Outperform	¥344.03B	15.93	―	1.50%	15.79%	78.27%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
5832	63 Neutral	¥433.96B	13.99	―	3.07%	9.27%	19.72%
8304	60 Neutral	¥326.65B	14.71	4.74%	3.60%	5.47%	―

Shiga Bank, Ltd. Corporate Events

Shiga Bank Announces Stock Split and Shareholder Benefit Enhancements

Shiga Bank, Ltd. announced a five-for-one stock split, effective April 1, 2026, to make its shares more accessible and attractive to a broader range of investors. The bank also plans to amend its Articles of Incorporation to increase the total number of authorized shares and enhance its shareholder benefit program by adjusting shareholding criteria and introducing new benefits for long-term shareholders.

Shiga Bank Reports Strong Financial Growth and Increased Dividends

Shiga Bank, Ltd. reported a significant increase in its financial performance for the six months ended September 30, 2025, with ordinary income rising by 31.5% and ordinary profit by 34.5% compared to the previous year. The bank’s total assets grew to ¥7,589,627 million, and it announced an increase in annual dividends per share, reflecting a strong financial position and positive outlook for stakeholders.