Hyakujushi Bank, Ltd. (8386) AI Stock Analysis

• Market Cap: ¥181.68B
• Dividend Yield: 2.6%
• Average Volume (3M): 91.48K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 1.05
• Revenue Growth: -0.36%
• EPS Growth: 41.38%
• Country: JP
• Employees: 2,147
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 145.30
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥6,608.00 ▲(2.29% Upside)

Hyakujushi Bank's stock is supported by strong technical indicators and a reasonable valuation, making it attractive for investors. However, financial performance is hindered by cash flow challenges and high leverage, which slightly dampens the overall score. Addressing these financial issues could further enhance the stock's appeal.

Positive Factors

Improved Profitability

The improvement in net profit margin indicates better cost management and pricing strategies, contributing to stronger long-term profitability and shareholder value.

Revenue Growth

Consistent revenue growth highlights the bank's ability to expand its market reach and successfully offer financial products, supporting long-term business sustainability.

Leverage Management

Improved leverage management enhances financial stability and reduces risk, allowing the bank to better withstand economic fluctuations and invest in growth opportunities.

Negative Factors

High Debt Levels

High debt levels can strain financial resources and limit flexibility, posing risks to long-term financial health and the ability to invest in new initiatives.

Cash Flow Challenges

Negative free cash flow indicates potential liquidity issues, which could hinder the bank's ability to fund operations and growth, necessitating improved cash management.

Operational Efficiency

Decreased EBIT margin points to operational inefficiencies that could impact profitability, highlighting the need for process improvements to sustain competitive advantage.

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

Hyakujushi Bank generates revenue primarily through interest income from loans provided to individuals and businesses, which constitutes a significant portion of its earnings. The bank also earns income from fees associated with its various financial products and services, such as account maintenance fees, transaction fees, and advisory services. Additionally, the bank engages in investment activities, generating returns from its investment portfolio. Strategic partnerships with local businesses and community organizations enhance its service offerings and customer base, contributing to its overall financial performance.

Hyakujushi Bank, Ltd. Financial Statement Overview

Summary

Hyakujushi Bank shows strong revenue growth and improved profitability, but faces challenges with operational efficiency and cash flow management. The balance sheet indicates improved leverage, yet high debt levels pose a risk. Overall, the financial performance is solid, but addressing cash flow issues and operational efficiencies could enhance financial stability.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Positive
• Last Price: 6460.00
• 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:8386, the sentiment is Positive. The current price of 6460 is above the 20-day moving average (MA) of 6250.00, above the 50-day MA of 5741.30, and above the 200-day MA of 4500.00, indicating a bullish trend. The MACD of 181.99 indicates Positive momentum. The RSI at 64.89 is Neutral, neither overbought nor oversold. The STOCH value of 67.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8386.

Hyakujushi Bank, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8388	77 Outperform	¥168.68B	12.06	―	2.53%	7.67%	11.03%
8544	75 Outperform	¥188.52B	14.49	―	2.15%	7.77%	5.80%
8336	72 Outperform	¥158.02B	11.11	―	3.04%	10.56%	16.02%
8361	72 Outperform	¥192.72B	10.63	―	2.38%	2.68%	74.80%
8386	71 Outperform	¥181.68B	11.49	―	2.60%	-0.36%	41.38%
7381	68 Neutral	¥161.67B	15.35	―	2.38%	8.43%	38.21%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Hyakujushi Bank, Ltd. Corporate Events

Hyakujushi Bank Reports Zero Treasury Share Acquisition

Hyakujushi Bank, Ltd. announced the status of its treasury share acquisition, revealing that no shares were acquired during the specified period from November 10 to November 30, 2025. Despite a board resolution allowing for the acquisition of up to 250,000 shares, the bank reported zero shares acquired and no expenditure, indicating a potential delay or reconsideration in its share buyback strategy.

Hyakujushi Bank Revises Shareholder Benefit Program to Enhance Investment Appeal

Hyakujushi Bank, Ltd. has announced revisions to its shareholder benefit program to express gratitude to shareholders, increase the investment appeal of its shares, and encourage long-term holding. The updated program introduces a tiered benefit system based on the number of shares held and the duration of holding, with increased rewards for shareholders holding shares for three years or more. These changes are set to take effect from March 31, 2026, and aim to strengthen shareholder engagement and loyalty.

Hyakujushi Bank Announces Treasury Share Acquisition

Hyakujushi Bank, Ltd. has announced a decision by its Board of Directors to acquire up to 250,000 of its own common shares, which represents 0.87% of its total issued shares, excluding treasury shares. This move, with a maximum acquisition cost of 1,100 million yen, aims to return profits to shareholders and improve capital efficiency, and will take place between November 10, 2025, and March 24, 2026.

Hyakujushi Bank Revises Financial Forecasts and Increases Dividends

Hyakujushi Bank, Ltd. announced revisions to its full-year business results forecasts for the fiscal year ending March 31, 2026, reflecting positive trends in business outcomes. The bank increased its interim dividend and revised its year-end dividend forecast, indicating a strong financial performance and commitment to shareholder returns.

Hyakujushi Bank Reports Robust Financial Growth and Revised Dividend Forecast

Hyakujushi Bank, Ltd. reported significant growth in its financial performance for the six months ended September 30, 2025, with a notable increase in ordinary income and profit attributable to owners of the parent. The bank’s comprehensive income surged by 149.7% compared to the previous year, reflecting a strong operational performance and improved market positioning. The bank also announced a revision in its dividend forecast, indicating a positive outlook for stakeholders.