Hyakugo Bank (8368) AI Stock Analysis

• Market Cap: ¥180.55B
• Dividend Yield: 3.52%
• Average Volume (3M): 533.82K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 1.07
• Revenue Growth: 7.03%
• EPS Growth: 8.58%
• Country: JP
• Employees: 2,792
• Sector: Financial
• Sector Strength: 82
• Industry: Banks - Regional
• EPS (TTM): 13.96
• Shares Outstanding: 254,119,000
• 10 Day Avg. Volume: 613,860
• 30 Day Avg. Volume: 533,820
• PEG Ratio: 0.78
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 71 Outperform
• Price Target: ―

Hyakugo Bank exhibits solid financial performance with strong revenue growth and profitability. However, cash flow challenges need to be addressed. The technical analysis indicates neutral trends with potential downward momentum. The stock appears undervalued with an attractive dividend yield, enhancing its investment appeal.

Hyakugo Bank Business Overview & Revenue Model

Company Description

Hyakugo Bank (8368) is a regional bank based in Japan, primarily serving the Mie and Aichi Prefectures. It offers a wide range of financial services, including deposit accounts, loans, asset management, and foreign exchange services. The bank caters to both individual and corporate clients, providing tailored financial solutions that meet the diverse needs of its customer base.

How the Company Makes Money

Hyakugo Bank generates revenue through various streams, primarily from interest income on loans and advances, fees and commissions from a variety of financial services, and investment income. Interest income forms the largest portion of its revenue, derived from personal and business loans, mortgages, and other credit facilities offered to customers. Additionally, the bank earns fees from transaction services, wealth management, and advisory services. Investment income is generated from the bank's portfolio of securities and other financial instruments. The bank's strategic focus on regional development and relationship banking helps maintain strong customer loyalty and a stable revenue base. Key partnerships with local businesses and entities also contribute to its earnings, fostering community growth and financial stability.

Hyakugo Bank Financial Statement Overview

Summary

Overall, Hyakugo Bank demonstrates solid revenue growth and profitability, supported by a strong gross profit margin. The balance sheet is robust with a healthy equity ratio, but high leverage could pose risks. The main concern lies in cash flow management, where zero cash flow in the TTM period suggests challenges in liquidity and operational flexibility. Continuous monitoring and strategic adjustments are recommended to sustain growth and improve cash flow generation.

Income Statement

Hyakugo Bank's income statement reveals a robust financial performance in the TTM period with a significant revenue growth rate of approximately 4.51% from the previous year. The gross profit margin is exceptionally high at 102.58%, showcasing efficient cost management. The net profit margin is strong at 15.48%, indicating profitability. However, the EBIT margin at 39.18% and EBITDA margin at 3.92% reflect operational efficiency, although there's room for improvement in EBITDA performance.

Balance Sheet

The balance sheet shows a healthy equity ratio of 6.13%, suggesting a stable financial position with sufficient capital structure. The debt-to-equity ratio is high at 1.37, indicating moderate leverage that could pose potential risks if not managed carefully. Return on equity (ROE) stands at 3.58%, reflecting moderate shareholder value creation.

Cash Flow

Cash flow analysis indicates challenges with cash generation as both operating cash flow and free cash flow are zero in the TTM period. This lack of positive cash flow may constrain flexibility in financing operations or investments. The free cash flow to net income ratio is consequently low, highlighting potential issues in converting earnings into cash.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
109.37B	104.64B	91.51B	91.55B	85.71B	80.51B
	Gross Profit
112.19B	103.14B	91.51B	91.55B	85.71B	80.51B
	EBIT
42.85B	26.44B	16.52B	14.66B	14.02B	11.75B
	EBITDA
10.69B	0.00	24.40B	23.16B	22.51B	19.58B
	Net Income Common Stockholders
16.92B	14.28B	14.49B	13.40B	12.96B	11.43B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
823.40B	1.41T	1.35T	1.87T	1.57T	873.54B
	Total Assets
7.71T	8.10T	7.52T	7.75T	7.45T	6.44T
	Total Debt
646.13B	1.37T	837.85B	1.13T	900.78B	569.10B
	Net Debt
-177.27B	-1.41T	-513.30B	-741.15B	-668.97B	-304.44B
	Total Liabilities
7.24T	7.60T	707.66B	7.35T	7.06T	6.11T
	Stockholders Equity
472.82B	496.92B	392.03B	401.85B	394.68B	331.95B
Cash Flow		Free Cash Flow
0.00	-30.39B	-559.28B	53.00B	580.59B	19.07B
	Operating Cash Flow
0.00	-25.44B	-556.45B	55.95B	583.74B	22.82B
	Investing Cash Flow
0.00	-18.11B	38.60B	249.80B	114.02B	-52.35B
	Financing Cash Flow
0.00	138.16B	-2.91B	-2.82B	-2.41B	-2.28B

Hyakugo Bank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 712.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8368, the sentiment is Positive. The current price of 712 is above the 20-day moving average (MA) of 699.20, above the 50-day MA of 677.98, and above the 200-day MA of 628.63, indicating a bullish trend. The MACD of 11.92 indicates Negative momentum. The RSI at 56.67 is Neutral, neither overbought nor oversold. The STOCH value of 71.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8368.

Hyakugo Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8331	73 Outperform	¥926.10B	12.44	6.30%	2.93%	9.28%	20.48%
8368	71 Outperform	¥180.55B	9.77	3.81%	3.52%	7.03%	8.58%
8377	71 Outperform	¥341.20B	8.93		1.80%	21.04%	20.47%
8354	70 Outperform	$763.14B	10.42	7.30%	3.17%	15.35%	-1.62%
8334	69 Neutral	$465.79B	10.48	7.63%	3.62%	-4.47%	30.59%
Sector *	64 Neutral	$12.87B	9.81	7.76%	16985.65%	12.28%	-7.83%