Hyakugo Bank (8368) AI Stock Analysis

• Market Cap: ¥381.39B
• Dividend Yield: 2.19%
• Average Volume (3M): 656.97K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 1.19
• 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): 1.48
• 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: ¥1,638.00 ▲(75.94% 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

Regional franchise and deposit-funded lending

A focused regional banking model serving consumers, SMEs and local governments creates stable, relationship-driven deposit funding and recurring loan demand. That durable local franchise supports predictable net interest income and customer stickiness over a multi‑month horizon.

Consistent revenue growth and margins

Sustained top-line growth combined with a strong gross profit margin points to effective pricing and cost control. This trend underpins operating stability and provides room to invest in fee businesses or digital channels, supporting durable earnings power over 2–6 months and beyond.

Improving cash flow and leverage management

A material turnaround in free cash flow and notable improvement in debt metrics increase financial flexibility. Stronger cash generation and de-risked leverage enhance the bank's ability to absorb shocks, fund lending, and allocate capital sustainably over the medium term.

Negative Factors

Relatively high leverage

Despite progress, elevated leverage means higher sensitivity to credit losses or funding stress. Persistent high debt levels can constrain capital buffers and limit the pace of loan growth or shareholder returns, posing a structural constraint on long‑term financial flexibility.

Modest return on equity

A modest ROE signals limited earnings efficiency versus peers and suggests the bank may struggle to convert asset growth into shareholder value. Improving ROE typically requires sustained margin expansion, higher loan yields, or material cost efficiencies—structural levers that take time to execute.

Historical cash-flow volatility

Although cash flow has recently improved, prior negative free cash flow episodes indicate operational and liquidity volatility. Until cash generation proves consistently stable, the bank faces execution risk in funding credit growth, provisioning, and long‑term investments.

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’s earnings are primarily driven by (1) net interest income and (2) non-interest income (fees and commissions), with additional contributions from securities-related income and other banking activities. 1) Net interest income (core driver) - The bank takes deposits (a relatively low-cost funding source) and extends loans to customers. - It earns interest on loans and other interest-bearing assets and pays interest on deposits and other funding; the spread between these is net interest income. - Key balance-sheet activities that support this stream typically include: corporate lending to local businesses, residential mortgage lending, and consumer/other retail lending, funded mainly by customer deposits. 2) Fee and commission income - The bank generates fees from providing services such as payment and settlement (e.g., domestic remittances/transfers), account-related services, and other banking transactions. - It may also earn commissions from arranging or distributing financial products and services (e.g., investment products or insurance) to customers. Specific product categories and scale: null. 3) Securities and treasury-related income - Like many banks, it can invest part of its liquidity in securities and other financial instruments to manage liquidity and earn returns. - Income can include interest/dividends and gains/losses on the sale or revaluation of securities. The exact portfolio mix and contribution: null. 4) Other income factors - Credit costs (loan loss provisions) and operating expenses materially affect profitability even when revenue is stable. - Significant partnerships, group companies, or named strategic alliances tied directly to earnings: null.

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	123.88B	123.19B	117.73B	101.05B	96.29B	89.50B
Gross Profit	106.93B	104.41B	102.01B	90.96B	89.77B	81.29B
EBITDA	23.28B	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	770.86B	703.60B	1.37T	1.45T	2.17T	2.25T
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: Neutral
• Last Price: 931.00
• 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:8368, the sentiment is Neutral. The current price of 931 is below the 20-day moving average (MA) of 1550.55, below the 50-day MA of 1483.32, and below the 200-day MA of 1031.42, indicating a neutral trend. The MACD of 9.85 indicates Positive momentum. The RSI at 48.45 is Neutral, neither overbought nor oversold. The STOCH value of 61.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥330.45B	9.60	―	2.94%	1.91%	9.73%
8358	76 Outperform	¥367.76B	9.10	8.52%	2.12%	22.44%	59.32%
8524	72 Outperform	¥342.21B	10.18	―	3.01%	19.69%	70.91%
8370	71 Outperform	¥249.41B	8.21	7.61%	3.81%	17.68%	20.15%
8368	68 Neutral	¥381.39B	11.65	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	¥413.02B	14.75	―	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.