Shiga Bank, Ltd. (8366) AI Stock Analysis

• Market Cap: ¥370.31B
• Dividend Yield: 1.5%
• Average Volume (3M): 133.87K
• Price to Earnings (P/E): 18.4
• Beta (1Y): 1.22
• Revenue Growth: 15.79%
• EPS Growth: 78.27%
• Country: JP
• Employees: 2,154
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 121.66
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥8,837.00 ▲(15.82% 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 & profitability

Consistent revenue growth paired with a 15.31% net profit margin indicates durable core profitability for the regional franchise. Sustained margins support reinvestment, dividend capacity and an earnings buffer versus credit cycles, reinforcing long-term business resilience.

Free cash flow generation

Material free cash flow growth and a 0.58 FCF/net income ratio show an ability to convert profit into discretionary cash. Over months this strengthens funding flexibility, supports loan growth or capital needs without reliance on expensive external financing, and improves resilience.

Local deposit franchise & partnerships

Strong local relationships and government/business partnerships underpin a stable, low-cost deposit base and steady origination channels. This regional franchise advantage supports predictable funding, customer stickiness and competitive positioning in the home market over the medium term.

Negative Factors

High leverage

A debt-to-equity ratio near 2.5 indicates significant leverage for a regional bank. Elevated leverage increases vulnerability to credit losses or interest-rate shocks, constrains capital flexibility for growth or buffers, and raises structural risk to balance sheet stability.

Poor operating cash conversion

An operating cash flow to net income ratio of 0.08 suggests reported earnings convert poorly to cash. Persistently weak cash conversion undermines liquidity, complicates internal funding for loan growth or reserves, and raises questions about earnings quality and durability.

Declining core margins

Erosion in EBIT and EBITDA margins signals rising cost pressure or margin compression in core activities. If sustained, this reduces operating leverage, limits reinvestment and weakens returns on assets and equity, challenging long-term profitability and competitive positioning.

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 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: 7630.00
• 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:8366, the sentiment is Positive. The current price of 7630 is below the 20-day moving average (MA) of 7897.00, above the 50-day MA of 7395.00, and above the 200-day MA of 6432.94, indicating a neutral trend. The MACD of 214.97 indicates Positive momentum. The RSI at 53.76 is Neutral, neither overbought nor oversold. The STOCH value of 61.70 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	79 Outperform	¥505.39B	11.45	―	3.15%	12.71%	71.94%
8418	77 Outperform	¥480.17B	12.78	6.09%	2.93%	5.87%	50.22%
8358	76 Outperform	¥373.35B	14.11	8.13%	2.12%	22.44%	59.32%
8366	74 Outperform	¥370.31B	18.36	―	1.50%	15.79%	78.27%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
5832	67 Neutral	¥511.77B	16.50	―	2.93%	9.27%	19.72%
8304	60 Neutral	¥346.08B	15.59	4.74%	3.38%	5.47%	―

Shiga Bank, Ltd. Corporate Events

Shiga Bank Executes ¥1.5 Billion Share Buyback Under Ongoing Repurchase Program

The Shiga Bank, Ltd., a regional commercial bank based in Japan and listed on the TSE Prime Market, focuses on providing deposit, lending, and other financial services to local retail and corporate clients in Shiga Prefecture and surrounding areas. The bank has executed a share buyback via the Tokyo Stock Exchange’s off-auction ToSTNeT-3 system, repurchasing 182,200 common shares, equivalent to 0.39% of its outstanding shares (excluding treasury stock), at a total cost of approximately ¥1.5 billion on January 30, 2026; this transaction forms part of a previously approved buyback program authorizing repurchases of up to 417,000 shares or ¥2.5 billion through March 24, 2026, signaling ongoing capital management efforts that may support shareholder returns and enhance capital efficiency.

The most recent analyst rating on (JP:8366) stock is a Hold with a Yen8222.00 price target. To see the full list of analyst forecasts on Shiga Bank, Ltd. stock, see the JP:8366 Stock Forecast page.

Shiga Bank Launches Targeted Share Buyback via ToSTNeT-3

The Shiga Bank, Ltd. has resolved to repurchase up to 182,200 shares of its common stock, representing about 0.39% of its outstanding shares (excluding treasury stock), through the Tokyo Stock Exchange’s ToSTNeT-3 off-auction own share repurchase system at the January 29, 2026 closing price of ¥8,230 per share, for a maximum total outlay of approximately ¥1.5 billion, with the transaction scheduled for 8:45 a.m. on January 30, 2026. This specific buyback forms part of a broader board-approved share repurchase framework authorizing the acquisition of up to 417,000 shares, or 0.90% of outstanding stock, for as much as ¥2.5 billion between January 30 and March 24, 2026, signaling continued capital management efforts that may support shareholder returns and optimize the bank’s capital structure, although the final scale will depend on market conditions.

The most recent analyst rating on (JP:8366) stock is a Buy with a Yen8982.00 price target. To see the full list of analyst forecasts on Shiga Bank, Ltd. stock, see the JP:8366 Stock Forecast page.

Shiga Bank Adjusts Stock Split Figures After Treasury Share Cancellation

The Shiga Bank, Ltd. has announced a revision to its previously disclosed stock split plan following a decision by its board of directors on January 29, 2026, to cancel 5,000,000 treasury shares effective February 27, 2026. As a result of this cancellation, the total number of shares issued before the split will be reduced from 53,090,081 to 48,090,081, and the increase in shares from the split will be reduced from 212,360,324 to 192,360,324, bringing the post-split total issued shares to 240,450,405, while the total number of authorized shares remains unchanged at 500,000,000. The adjustment fine-tunes the capital structure and share count impact of the stock split without altering any other conditions of the split or the broader framework of the company’s previously announced shareholder-focused measures.

The most recent analyst rating on (JP:8366) stock is a Buy with a Yen8982.00 price target. To see the full list of analyst forecasts on Shiga Bank, Ltd. stock, see the JP:8366 Stock Forecast page.

Shiga Bank to Retire 5 Million Shares, Cutting Float by Over 9%

The Shiga Bank, Ltd. has resolved to retire 5,000,000 shares of its own common stock, representing 9.41% of its issued shares prior to retirement, with the retirement scheduled for February 27, 2026. Following this transaction, the bank’s total number of issued shares will decline to 48,090,081, a move that effectively reduces share supply and may enhance capital efficiency and shareholder value by increasing the relative ownership stake of remaining shareholders.

The most recent analyst rating on (JP:8366) stock is a Buy with a Yen8982.00 price target. To see the full list of analyst forecasts on Shiga Bank, Ltd. stock, see the JP:8366 Stock Forecast page.

Shiga Bank Launches ¥2.5 Billion Share Buyback to Boost Shareholder Returns

The Shiga Bank, Ltd. has approved a share buyback program aimed at enhancing shareholder value by returning capital to investors. The bank plans to repurchase up to 417,000 shares, equivalent to approximately 0.90% of its outstanding shares excluding treasury stock, for a maximum total of ¥2.5 billion between January 30 and March 24, 2026, via ToSTNeT-3 and regular market purchases on the Tokyo Stock Exchange, although the full amount may not be executed depending on market conditions. This move signals a shareholder-friendly capital management stance and may marginally improve earnings per share and capital efficiency, while slightly increasing the bank’s already sizable treasury stock position.

The most recent analyst rating on (JP:8366) stock is a Buy with a Yen8982.00 price target. To see the full list of analyst forecasts on Shiga Bank, Ltd. stock, see the JP:8366 Stock Forecast page.

Shiga Bank Delivers Strong Nine-Month Earnings and Lifts Annual Dividend Plan

For the nine months ended December 31, 2025, Shiga Bank reported strong consolidated results under Japanese GAAP, with ordinary income up 29.5% year on year to ¥119.3 billion and ordinary profit surging 51.5% to ¥23.4 billion, while profit attributable to owners of the parent rose 7.1% to ¥17.0 billion and basic earnings per share increased to ¥368.64. Total assets expanded to ¥7.63 trillion and equity climbed to ¥497.5 billion, improving the equity-to-asset ratio to 6.5%, and the bank kept its full-year forecast unchanged, projecting a 49.3% rise in ordinary profit to ¥28.3 billion and a 6.8% increase in profit attributable to owners, alongside a planned increase in the annual dividend to ¥130 per share for the year ending March 31, 2026, signaling continued capital strength and a more shareholder-friendly payout policy.

The most recent analyst rating on (JP:8366) stock is a Buy with a Yen8982.00 price target. To see the full list of analyst forecasts on Shiga Bank, Ltd. stock, see the JP:8366 Stock Forecast page.

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.

The most recent analyst rating on (JP:8366) stock is a Hold with a Yen6475.00 price target. To see the full list of analyst forecasts on Shiga Bank, Ltd. stock, see the JP:8366 Stock Forecast page.

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.

The most recent analyst rating on (JP:8366) stock is a Hold with a Yen6475.00 price target. To see the full list of analyst forecasts on Shiga Bank, Ltd. stock, see the JP:8366 Stock Forecast page.