Shiga Bank, Ltd. (8366) AI Stock Analysis

• Market Cap: ¥286.30B
• Dividend Yield: 1.48%
• Average Volume (3M): 133.87K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 1.15
• Revenue Growth: 6.36%
• EPS Growth: 67.68%
• Country: JP
• Employees: 2,154
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 146.25
• 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: ¥6,773.00
• Price Target Upside: 8.02% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: ¥6,773.00 ▲(8.02% Upside)

Shiga Bank's overall stock score is driven by stable financial performance with strong revenue growth but offset by high leverage and cash flow conversion issues. Technical indicators suggest bearish momentum, while valuation remains fair. The absence of earnings call and corporate events data limits additional insights.

Shiga Bank, Ltd. Business Overview & Revenue Model

Company Description

The Shiga Bank, Ltd. provides various banking products and services in Japan and internationally. The company accepts various deposits products, including current, ordinary, notice, time, and other deposits, as well as negotiable certificates of deposit. It also offers loans and bills discounted; loans on bills and deeds; overdrafts; investment trust services; life insurance products; and financial instruments intermediary services. As of March 31, 2021, the company operated through 133 offices and branches, including 25 agents. The Shiga Bank, Ltd. was incorporated in 1933 and is headquartered in Otsu, Japan.

How the Company Makes Money

Shiga Bank generates revenue primarily through interest income from loans and advances to customers, which constitutes a significant portion of its earnings. The bank lends to both individual and corporate clients, earning interest on these loans. Additionally, Shiga Bank earns fee income from various services such as asset management, investment advisory, and transaction services. The bank may also generate revenue through investment income from its securities holdings and other financial instruments. Key partnerships with local businesses and government entities enhance its lending capabilities and facilitate growth in its client base, further contributing to its financial performance.

Shiga Bank, Ltd. Financial Statement Overview

Summary

Shiga Bank shows strong revenue growth and profitability, but faces challenges with declining EBIT and EBITDA margins and high leverage. Cash flow conversion from income is an area of concern, although free cash flow growth is promising. Overall, the bank's financial health is stable but requires attention to leverage and operational efficiency.

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	74.58B
Gross Profit	102.28B	102.38B	99.14B	103.52B	91.26B	74.58B
EBITDA	17.39B	27.75B	26.14B	22.01B	25.66B	10.86B
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: 6270.00
• 50DMA: Negative
• 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:8366, the sentiment is Positive. The current price of 6270 is below the 20-day moving average (MA) of 6377.69, below the 50-day MA of 6445.13, and above the 200-day MA of 5527.41, indicating a neutral trend. The MACD of -78.85 indicates Positive momentum. The RSI at 47.28 is Neutral, neither overbought nor oversold. The STOCH value of 46.26 is Neutral, 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	78 Outperform	¥403.60B	12.04	―	3.60%	6.67%	51.21%
8358	77 Outperform	$291.71B	14.35	6.41%	2.18%	19.98%	10.24%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8418	67 Neutral	¥340.48B	10.57	5.35%	3.54%	4.24%	23.16%
8366	63 Neutral	¥286.30B	14.37	―	1.48%	6.36%	67.68%
5832	63 Neutral	¥390.46B	13.22	―	3.51%	10.60%	20.32%
8304	47 Neutral	$305.00B	15.83	4.62%	3.85%	-3.50%	―

Shiga Bank, Ltd. Corporate Events

Shiga Bank Completes Treasury Share Acquisition

Shiga Bank, Ltd. has completed the acquisition of its own shares, purchasing 178,700 shares at a total cost of JPY 850,905,500 through market purchases on the Tokyo Stock Exchange. This acquisition is part of a broader plan approved by the Board of Directors to acquire up to 1,150,000 shares, representing 2.45% of the total issued shares, with a budget of JPY 4,000,000,000. The completion of this acquisition could potentially enhance shareholder value and optimize the bank’s capital structure.

Shiga Bank Announces Treasury Share Acquisition

Shiga Bank, Ltd. announced the acquisition of 672,200 of its own shares at a total cost of JPY 3,149,044,000, as part of a previously resolved plan to buy back up to 1,150,000 shares. This move is part of the bank’s strategic financial management, potentially impacting its share value and providing returns to shareholders.