Hyakujushi Bank, Ltd. (8386) AI Stock Analysis

• Market Cap: ¥154.40B
• Dividend Yield: 2.58%
• Average Volume (3M): 91.48K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 1.07
• 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 ▲(6.24% 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

Hyakujushi Bank, Ltd. (8386) is a regional bank based in Japan, primarily serving the financial needs of individuals and small to medium-sized enterprises (SMEs) in its local communities. It operates within the banking sector, providing a range of financial products and services including personal banking, corporate banking, loans, deposits, investment services, and asset management. The bank is committed to supporting local economic development and enhancing customer satisfaction through tailored financial solutions.

How the Company Makes Money

Hyakujushi Bank generates revenue primarily through interest income from loans and financial products offered to customers. The bank provides various types of loans, including personal loans, business loans, and mortgages, which yield interest payments over time. Additionally, the bank earns fees from services such as account maintenance, transaction processing, and investment advisory services. Deposit accounts also generate income through the interest rate spread, where the interest paid on deposits is lower than the interest earned on loans. Significant partnerships with local businesses and participation in community development projects further enhance its revenue by fostering customer loyalty and expanding its client base.

Hyakujushi Bank, Ltd. Financial Statement Overview

Summary

Hyakujushi Bank demonstrates strong revenue growth and improved profitability, but faces challenges with operational efficiency and cash flow management. The balance sheet shows improved leverage, yet high debt levels pose a risk. Overall, while the financial performance is solid, 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	52.68B	85.78B	78.18B	81.42B	68.77B	64.85B
Gross Profit	52.68B	71.54B	63.91B	73.51B	67.26B	62.56B
EBITDA	8.83B	22.47B	17.13B	16.34B	18.29B	8.44B
Net Income	9.17B	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: 6220.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 6220 is above the 20-day moving average (MA) of 5808.50, above the 50-day MA of 5343.18, and above the 200-day MA of 4272.04, indicating a bullish trend. The MACD of 232.38 indicates Negative momentum. The RSI at 74.65 is Negative, neither overbought nor oversold. The STOCH value of 77.55 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
8336	78 Outperform	¥154.55B	10.86	―	2.92%	10.56%	16.02%
8388	76 Outperform	¥156.28B	11.17	―	2.88%	7.67%	11.03%
8544	75 Outperform	¥157.50B	13.89	―	2.57%	7.77%	5.80%
8361	72 Outperform	¥152.35B	9.70	―	2.68%	2.68%	74.80%
8386	71 Outperform	¥154.40B	11.16	―	2.58%	-0.36%	41.38%
7381	68 Neutral	¥151.04B	14.34	―	2.50%	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 Strong Q1 2025 Financial Results and Dividend Forecast

Hyakujushi Bank reported an increase in its consolidated financial results for the three months ended June 30, 2025, with ordinary income rising by 8.6% and profit attributable to owners of the parent increasing by 6.3% compared to the previous year. The bank’s comprehensive income saw a significant surge of 410.1%, reflecting robust financial performance and a strong market position. The bank also announced a forecasted increase in annual dividends for the fiscal year ending March 31, 2026, indicating confidence in sustained profitability and shareholder returns.