Shiga Bank, Ltd. (8366) AI Stock Analysis

• Market Cap: ¥310.71B
• Dividend Yield: 1.36%
• Average Volume (3M): 127.94K
• Price to Earnings (P/E): 15.2
• Beta (1Y): 1.10
• Revenue Growth: 6.36%
• EPS Growth: 67.68%
• Country: JP
• Employees: 2,154
• Sector: Financial
• Sector Strength: 77
• Industry: Banks - Regional
• EPS (TTM): 146.25
• Shares Outstanding: 53,090,080
• 10 Day Avg. Volume: 124,080
• 30 Day Avg. Volume: 127,940
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥7,203.00
• Price Target Upside: 8.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ¥7,203.00 ▲(8.81% Upside)

Shiga Bank's overall stock score is driven by strong technical indicators and reasonable valuation. Financial performance is stable but requires attention to leverage and operational efficiency. The absence of earnings call and corporate events data did not impact the score.

Shiga Bank, Ltd. Business Overview & Revenue Model

Company Description

Shiga Bank, Ltd. (8366) is a regional bank headquartered in Otsu, Shiga Prefecture, Japan. It primarily operates in the banking sector, providing a range of financial services including retail banking, corporate banking, and asset management. The bank offers products such as savings accounts, loans, investment services, and various financial advisory services to individual customers and businesses, contributing to the economic development of its local community.

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	107.14B	126.70B	116.90B	110.41B	94.21B	74.58B
Gross Profit	107.14B	103.31B	99.14B	103.52B	91.26B	74.58B
EBITDA	16.87B	12.92B	26.14B	22.01B	25.66B	15.50B
Net Income	18.72B	18.72B	15.94B	14.86B	17.71B	11.45B
Balance Sheet
Total Assets	7.53T	7.53T	7.97T	7.31T	7.54T	7.79T
Cash, Cash Equivalents and Short-Term Investments	898.94B	898.94B	1.36T	1.20T	1.75T	2.01T
Total Debt	1.10T	1.10T	1.47T	776.55B	1.27T	1.42T
Total Liabilities	7.08T	7.08T	7.48T	6.86T	7.07T	7.30T
Stockholders Equity	444.81B	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	-7.61B	565.53B	-7.95B	200.07B	-34.34B

Shiga Bank, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6620.00
• 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 6620 is above the 20-day moving average (MA) of 6530.00, above the 50-day MA of 6226.00, and above the 200-day MA of 5141.92, indicating a bullish trend. The MACD of 99.16 indicates Positive momentum. The RSI at 57.06 is Neutral, neither overbought nor oversold. The STOCH value of 49.12 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
8366	71 Outperform	¥310.71B	15.18		1.36%	6.36%	67.68%
Sector *	68 Neutral	$18.06B	11.97	10.24%	3.74%	9.75%	1.30%
AOZOF	―	$2.10B	16.18	4.62%	―	―	―
SRGBF	―	$1.98B	14.81	6.41%	―	―	―
YFGSF	―	$2.35B	11.25	5.35%	7.09%	―	―
7327	78 Outperform	¥371.79B	11.23		3.10%	6.67%	51.21%
5832	63 Neutral	¥388.99B	13.37		2.97%	10.60%	20.32%

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.