Hyakujushi Bank, Ltd. (8386) AI Stock Analysis

• Market Cap: ¥237.93B
• Dividend Yield: 2.55%
• Average Volume (3M): 91.48K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 1.18
• Revenue Growth: -0.36%
• EPS Growth: 41.38%
• Country: JP
• Employees: 2,147
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 155.99
• Shares Outstanding: 28,630,000
• 10 Day Avg. Volume: 92,330
• 30 Day Avg. Volume: 91,480
• PEG Ratio: 0.17
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 1.15
• P/FCF Ratio: -138.37
• 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: 59 Neutral
• Price Target: ¥8,788.00 ▲(25.01% Upside)
• Action: Reiterated Date: 02/13/26
• Date: Action: Reiterated 02/13/26

The score is driven mainly by solid financial performance (strong revenue growth and profitability) but tempered by weak cash flow and relatively high leverage. Technicals show a strong uptrend, yet extremely overbought RSI/Stoch readings raise near-term reversal risk. Valuation is average with a moderate P/E and modest dividend yield.

Positive Factors

Revenue Growth Momentum

Sustained revenue growth of 15.54% signals durable demand for the bank's core lending and fee services to individuals, SMEs and local governments. Over 2-6 months this underpins earnings stability, funds available for reinvestment, and supports competitive positioning in its regional market.

Improved Net Profit Margin

A materially higher net margin (18.46%) indicates better pricing, cost control or credit outcomes that persist beyond quarterly noise. Higher margins support internal capital generation, enable cushioning for loan losses, and improve the bank's ability to invest in products and services for sustained growth.

Progress on Leverage Management

An improving debt-to-equity ratio (now 1.89) shows management focus on strengthening the capital structure. Continued trimming of leverage increases resilience to shocks, expands regulatory headroom, and enhances capacity to extend credit to local customers over the medium term.

Negative Factors

Weak Cash Generation

Declining operating cash flow and negative free cash flow represent a structural conversion issue: earnings are not translating into spendable cash. Over months this constrains dividends, loan growth funding, and investment in systems, raising liquidity and operational flexibility risks.

Relatively High Leverage Remains

Although leverage improved, the balance sheet still carries relatively high debt versus equity. For a regional bank, elevated leverage heightens vulnerability to local economic downturns and interest-rate swings, limiting buffer room for credit losses and capital-intensive initiatives.

Modest Return on Equity

A ROE of ~4.17% indicates limited capital efficiency relative to peers; structurally low shareholder returns can reduce reinvestment appeal and make raising new equity costly. Improving ROE requires sustained margin expansion or better asset mix, a multi-quarter challenge.

Hyakujushi Bank, Ltd. Business Overview & Revenue Model

Company Description

The Hyakujushi Bank, Ltd. primarily engages in banking activities in Japan. It operates through two segments, Banking and Leasing. The Banking segment provides deposits, loans, and foreign currency exchange services; and marketable securities and related investment services. The Leasing segment engages in leasing and other operations. As of March 31, 2021, it operated 129 offices, including 99 branches, 21 sub-branches, 5 quick square, and 4 consulting plazas. The company was founded in 1878 and is headquartered in Takamatsu, Japan.

How the Company Makes Money

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Hyakujushi Bank, Ltd. Financial Statement Overview

Summary

Income statement strength (score 72) shows solid revenue growth and improved net margin, but the balance sheet (score 65) still carries relatively high leverage and the cash flow profile is weak (score 50) with declining operating cash flow and negative free cash flow.

Income Statement

Hyakujushi Bank has shown strong revenue growth of 15.54% in the latest year, indicating a positive trajectory. The net profit margin improved to 18.46%, reflecting enhanced profitability. However, the EBIT margin decreased slightly, suggesting some operational challenges. Overall, the income statement reflects a solid financial performance with room for operational efficiency improvements.

Balance Sheet

The bank's debt-to-equity ratio has improved to 1.89 from previous years, indicating better leverage management, though it remains relatively high. Return on equity is modest at 4.17%, suggesting average profitability for shareholders. The equity ratio is stable, reflecting a balanced asset structure. While the balance sheet shows improvement, high leverage remains a potential risk.

Cash Flow

Operating cash flow has decreased significantly, and free cash flow is negative, indicating potential liquidity challenges. The free cash flow to net income ratio is negative, highlighting cash flow issues despite profitability. The cash flow statement suggests the need for improved cash management and operational efficiency.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	72.86B	85.78B	78.18B	81.42B	68.77B	64.85B
Gross Profit	72.86B	71.54B	63.91B	73.51B	67.26B	62.56B
EBITDA	14.52B	22.47B	17.13B	16.34B	18.29B	8.44B
Net Income	13.98B	13.70B	9.64B	9.17B	11.70B	2.56B
Balance Sheet
Total Assets	5.70T	5.75T	5.84T	5.81T	5.75T	5.38T
Cash, Cash Equivalents and Short-Term Investments	0.00	861.93B	1.08T	1.20T	1.12T	893.02B
Total Debt	508.20B	621.79B	630.88B	644.79B	736.57B	462.06B
Total Liabilities	5.37T	5.43T	5.51T	5.53T	5.46T	5.08T
Stockholders Equity	336.83B	328.26B	329.19B	281.10B	284.33B	291.70B
Cash Flow
Free Cash Flow	0.00	-715.00M	7.40B	-154.66B	251.24B	213.53B
Operating Cash Flow	0.00	1.44B	9.61B	-152.15B	253.92B	216.35B
Investing Cash Flow	0.00	-162.56B	-16.58B	227.01B	-29.11B	27.36B
Financing Cash Flow	0.00	-67.45B	-33.92B	-3.19B	105.75B	-2.44B

Hyakujushi Bank, Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7030.00
• 50DMA: Negative
• 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:8386, the sentiment is Negative. The current price of 7030 is below the 20-day moving average (MA) of 9063.50, below the 50-day MA of 8636.40, and above the 200-day MA of 5987.32, indicating a neutral trend. The MACD of -88.84 indicates Positive momentum. The RSI at 43.93 is Neutral, neither overbought nor oversold. The STOCH value of 35.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8386.

Hyakujushi Bank, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8544	71 Outperform	¥233.48B	14.45	―	2.13%	7.77%	5.80%
8370	71 Outperform	¥247.81B	8.21	7.61%	3.81%	17.68%	20.15%
8361	68 Neutral	¥252.66B	9.68	―	2.27%	2.68%	74.80%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8367	65 Neutral	¥231.46B	8.20	―	3.46%	11.92%	16.40%
8388	65 Neutral	¥212.50B	10.90	―	2.53%	7.67%	11.03%
8386	59 Neutral	¥237.93B	10.68	―	2.55%	-0.36%	41.38%

Hyakujushi Bank, Ltd. Corporate Events

Hyakujushi Bank Overhauls Executive Lineup to Bolster Regional and Strategic Functions

The Hyakujushi Bank, Ltd. announced a broad reshuffle of its executive officer lineup, effective April 1, 2026, aimed at strengthening regional management and key functional divisions. Several executives, including Hiroshi Masuda, Tetsuya Kaniwa, and Masaki Matsuura, will be promoted to senior executive officer roles overseeing major regions such as Kansai, Tokyo, and Chugoku, signalling a reinforced focus on metropolitan and regional markets.

The bank is also reallocating responsibilities among existing executives and appointing new executive officers to lead core areas like operations supervision, digital innovation, corporate planning, and alliances with Nomura Securities, underscoring its emphasis on digital transformation and strategic partnerships. Two senior executives, Yuichi Oshima and Mitsuteru Nagata, will retire from the bank but transition to leadership roles within group companies and related institutions, maintaining continuity of expertise within the broader Hyakujushi group ecosystem.

The most recent analyst rating on (JP:8386) stock is a Hold with a Yen9127.00 price target. To see the full list of analyst forecasts on Hyakujushi Bank, Ltd. stock, see the JP:8386 Stock Forecast page.

Hyakujushi Bank Announces 4-for-1 Stock Split and Adjusts Shareholder Benefits

Hyakujushi Bank will implement a four-for-one stock split of its common shares effective April 1, 2026, aiming to lower the minimum investment amount, improve share liquidity, and attract a wider range of investors. In conjunction with the split, the bank will amend its Articles of Incorporation to increase authorized shares to 350 million, while adjusting the thresholds of its shareholder benefit program proportionally so that the economic content of the benefits remains effectively unchanged for eligible long-term shareholders.

The shareholder benefit program will now apply to investors holding at least 400 shares after the split, with benefits determined by both the number of shares held and the length of the holding period, thereby reinforcing incentives for stable, long-term ownership. Transitional measures ensure that pre-split holdings of 100 shares or more are treated as 400 shares or more for eligibility, helping existing investors maintain their benefit status through the capital structure change without dilution of their benefit entitlements.

The most recent analyst rating on (JP:8386) stock is a Hold with a Yen11042.00 price target. To see the full list of analyst forecasts on Hyakujushi Bank, Ltd. stock, see the JP:8386 Stock Forecast page.

Hyakujushi Bank Posts Strong Nine-Month Earnings and Doubles Dividend Forecast

Hyakujushi Bank reported strong consolidated results for the nine months ended 31 December 2025, with ordinary income rising 24.2% year on year to ¥78.9 billion, ordinary profit up 34.9% to ¥21.1 billion, and profit attributable to owners of the parent climbing 33.9% to ¥13.4 billion, supported by a surge in comprehensive income and improved earnings per share. The bank’s total assets reached ¥5.81 trillion and equity-to-asset ratio improved to 6.2%, and it confirmed a sharp increase in shareholder payouts, forecasting a full-year dividend of ¥216 per share and maintaining its full-year guidance for fiscal 2025, signaling confidence in its capital position and earnings outlook for stakeholders.

The most recent analyst rating on (JP:8386) stock is a Hold with a Yen8424.00 price target. To see the full list of analyst forecasts on Hyakujushi Bank, Ltd. stock, see the JP:8386 Stock Forecast page.