Hyakugo Bank (8368) AI Stock Analysis

• Market Cap: ¥431.09B
• Dividend Yield: 2.19%
• Average Volume (3M): 656.97K
• Price to Earnings (P/E): 21.2
• Beta (1Y): 1.21
• Revenue Growth: 9.29%
• EPS Growth: 28.34%
• Country: JP
• Employees: 2,792
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 24.59
• Shares Outstanding: 254,119,000
• 10 Day Avg. Volume: 730,990
• 30 Day Avg. Volume: 656,973
• PEG Ratio: 0.35
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 1.53
• P/FCF Ratio: 5.29
• 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: 68 Neutral
• Price Target: ¥1,851.00 ▲(98.82% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is driven primarily by steady financial performance (growth and operating stability, but constrained by leverage/ROE and uneven historical cash flow) and strong technical momentum (price well above key moving averages with positive MACD). Valuation and income support are comparatively weaker due to a higher P/E and modest dividend yield.

Positive Factors

Consistent revenue growth

Hyakugo's ~12.4% revenue growth reflects steady expansion of core deposit, lending and fee services to individuals, SMEs and local governments. Durable top-line growth strengthens the net interest income and fee base, supporting sustainable earnings and reinvestment over months.

Improved leverage management

A significant improvement in debt-to-equity signals management discipline on leverage. Lower leverage enhances financial flexibility and reduces funding pressure, improving the bank's ability to lend, absorb credit losses and pursue strategic initiatives without immediate capital raises.

Stronger cash generation

The reported turnaround in free cash flow and positive operating-cash-to-net-income ratio indicate better conversion of earnings to cash. Reliable cash generation supports ongoing lending, provisioning capacity and the ability to fund operations or modest shareholder returns over the medium term.

Negative Factors

Modest return on equity

Modest ROE limits long-term shareholder value creation even with revenue gains. Persistently low ROE may reflect low-yield assets or capital intensity, constraining the bank's ability to attract capital or fund growth without improving margins or taking additional risk.

Residual high leverage

Although leverage has improved, debt levels remain relatively high, leaving the bank more exposed to interest-rate and credit-cycle shocks. Elevated leverage constrains strategic flexibility and increases the importance of continued deleveraging or capital buffer building.

Historical cash-flow volatility

Prior negative cash flows point to volatility in cash generation, which can tighten funding or provisioning capacity during stress. Continued variability requires disciplined liquidity and risk management to ensure durable capacity for lending and loss absorption.

Hyakugo Bank Business Overview & Revenue Model

Company Description

Hyakugo Bank (8368) is a regional bank based in Japan, primarily serving the Gifu and Mie Prefectures. The bank offers a wide range of financial services, including commercial banking, retail banking, and asset management. Its core products include savings accounts, personal and business loans, investment products, and various financial services tailored to meet the needs of individuals, small to medium-sized enterprises, and local corporations.

How the Company Makes Money

Hyakugo Bank generates revenue primarily through interest income from loans, which form a significant portion of its earnings. The bank extends credit to individuals and businesses, charging interest on these loans. Additionally, it earns fee income from various banking services such as account maintenance fees, transaction fees, and advisory services. The bank also invests in government and corporate bonds, generating interest income from these investments. Strategic partnerships with local businesses and community organizations enhance its service offerings and attract more customers, contributing to its overall revenue growth.

Hyakugo Bank Financial Statement Overview

Summary

Solid income statement strength (consistent revenue growth and stable operating margins), but overall financials are held back by modest return on equity, still-high leverage despite improvement, and a cash-flow profile that has improved yet shows prior volatility.

Income Statement

Hyakugo Bank has demonstrated consistent revenue growth over the years, with a notable 6.8% increase in the most recent year. The gross profit margin remains strong, indicating efficient cost management. However, the net profit margin, while improving, still suggests room for enhancing profitability. The EBIT and EBITDA margins are stable, reflecting solid operational performance.

Balance Sheet

The bank's debt-to-equity ratio has improved significantly, indicating better leverage management, although it remains relatively high. Return on equity is modest, suggesting potential for improved shareholder returns. The equity ratio indicates a stable capital structure, but the high debt levels could pose risks if not managed carefully.

Cash Flow

The cash flow situation has improved, with a significant turnaround in free cash flow. The operating cash flow to net income ratio is positive, indicating effective cash generation relative to earnings. However, past negative cash flows highlight the need for continued focus on cash management.

Breakdown	TTM	Mar 2025	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	108.26B	118.69B	113.97B	97.89B	93.93B	89.03B
Gross Profit	108.26B	103.53B	104.64B	91.51B	91.55B	85.71B
EBITDA	16.77B	29.30B	23.64B	24.39B	23.16B	22.51B
Net Income	16.44B	18.04B	14.28B	14.49B	13.40B	12.96B
Balance Sheet
Total Assets	7.66T	7.43T	8.10T	7.52T	7.75T	7.45T
Cash, Cash Equivalents and Short-Term Investments	0.00	665.53B	1.41T	1.35T	1.87T	1.57T
Total Debt	471.22B	703.60B	1.37T	837.85B	1.13T	900.78B
Total Liabilities	7.22T	7.00T	7.60T	7.13T	7.35T	7.06T
Stockholders Equity	446.07B	435.45B	496.92B	392.03B	401.85B	394.68B
Cash Flow
Free Cash Flow	0.00	34.40B	-28.86B	-559.28B	53.00B	580.59B
Operating Cash Flow	0.00	38.59B	-25.44B	-556.45B	55.95B	583.74B
Investing Cash Flow	0.00	-29.01B	-18.11B	38.60B	249.80B	114.02B
Financing Cash Flow	0.00	74.75B	138.16B	-2.91B	-2.82B	-2.41B

Hyakugo Bank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 931.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• 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 931 is below the 20-day moving average (MA) of 1542.85, below the 50-day MA of 1374.06, and below the 200-day MA of 971.32, indicating a bullish trend. The MACD of 60.45 indicates Positive momentum. The RSI at 71.01 is Negative, neither overbought nor oversold. The STOCH value of 63.71 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
7380	76 Outperform	¥385.02B	15.77	―	2.94%	1.91%	9.73%
8358	76 Outperform	¥408.78B	14.60	8.13%	2.12%	22.44%	59.32%
8524	72 Outperform	¥403.60B	14.60	―	3.01%	19.69%	70.91%
8370	71 Outperform	¥274.38B	12.78	7.61%	3.81%	17.68%	20.15%
8368	68 Neutral	¥431.09B	21.17	3.95%	2.19%	9.29%	28.34%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8366	65 Neutral	¥424.29B	21.04	―	1.50%	15.79%	78.27%

Hyakugo Bank Corporate Events

Hyakugo Bank Posts Higher Capital Adequacy Ratios in Third Quarter

Hyakugo Bank reported a consolidated domestic-standard capital adequacy ratio of 12.67% as of December 31, 2025, up 0.09 percentage point from the previous quarter, with equity capital rising to ¥295.4 billion and risk-weighted assets increasing to ¥2,330.8 billion. On a non-consolidated basis, the capital adequacy ratio improved to 12.26%, supported by higher equity capital and a larger risk asset base, underscoring the bank’s solid capital position and ongoing compliance with regulatory capital requirements despite expanding risk exposures.

The most recent analyst rating on (JP:8368) stock is a Hold with a Yen1700.00 price target. To see the full list of analyst forecasts on Hyakugo Bank stock, see the JP:8368 Stock Forecast page.

Hyakugo Bank Delivers Strong Nine-Month Earnings and Hikes Dividend Forecast

Hyakugo Bank reported solid consolidated results for the nine months ended December 31, 2025, with ordinary income rising 22.9% year on year to ¥110.1 billion and ordinary profit up 9.1% to ¥22.3 billion, while profit attributable to owners of the parent increased 10.4% to ¥16.1 billion. Total assets expanded to ¥7.70 trillion and net assets to ¥504.4 billion, lifting the equity-to-asset ratio to 6.6%, alongside a sharp turnaround in comprehensive income to ¥77.5 billion from a loss a year earlier. The bank maintained its previously announced full-year forecast, targeting ordinary profit of ¥28.8 billion and profit attributable to owners of the parent of ¥20.6 billion, and plans to raise annual dividends for the fiscal year ending March 31, 2026 to ¥26 per share from ¥21, signaling confidence in earnings strength and a continued focus on shareholder returns.

The most recent analyst rating on (JP:8368) stock is a Hold with a Yen1494.00 price target. To see the full list of analyst forecasts on Hyakugo Bank stock, see the JP:8368 Stock Forecast page.