Shikoku Bank Ltd. (8387) AI Stock Analysis

• Market Cap: ¥59.11B
• Dividend Yield: 3.11%
• Average Volume (3M): 113.94K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.81
• Revenue Growth: 7.21%
• EPS Growth: -3.97%
• Country: JP
• Employees: 1,263
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 54.06
• Shares Outstanding: 42,400,000
• 10 Day Avg. Volume: 87,540
• 30 Day Avg. Volume: 113,936
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,648.00
• Price Target Upside: 13.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 79 Outperform
• Price Target: ¥1,648.00 ▲(13.97% Upside)

Shikoku Bank Ltd. scores well due to strong technical indicators and an attractive valuation, with a low P/E ratio and a healthy dividend yield. The financial performance is stable, though increased leverage is a potential risk. The absence of earnings call data and corporate events does not impact the score.

Shikoku Bank Ltd. Business Overview & Revenue Model

Company Description

The Shikoku Bank, Ltd. provides various commercial banking products and services for individual and corporate customers in Japan. The company offers time, property accumulation, and foreign currency deposits; guaranteed, mortgages, card, owner's, education, car, purpose, remodeling, pension free, proxy and syndicated, and unoccupied house demolition support loans; loan simulation; and factoring services, as well as prepaid, credit, and cash cards. It also provides personal annuity, and life and pet insurance products; government and private placement bonds; payroll, foreign remittance, payment, trust, management consultation, merger and acquisition intermediary support, business succession, financial diagnostic, grant diagnostic, and farm banking services; and safe deposit boxes, as well as Internet banking services. The company was formerly known as Koichi Bank, Ltd. and changed its name to The Shikoku Bank, Ltd. in 1923. The Shikoku Bank, Ltd. was incorporated in 1878 and is headquartered in Kochi, Japan.

How the Company Makes Money

Shikoku Bank generates revenue through several key streams. Primarily, the bank earns interest income from loans issued to individuals and businesses, which typically involves charging higher interest rates than what it pays on customer deposits. Additionally, the bank collects fees from various banking services such as account maintenance, transaction processing, and financial advisory services. Investment income also plays a role, as the bank invests in securities and other financial instruments. Furthermore, Shikoku Bank engages in partnerships with local businesses and government entities to facilitate regional economic development, which can enhance its service offerings and customer base, ultimately contributing to its earnings.

Shikoku Bank Ltd. Financial Statement Overview

Summary

Shikoku Bank Ltd. demonstrates strong cash flow management and a solid income statement with positive revenue growth and profitability. However, the increased leverage on the balance sheet could be a concern if not managed carefully. Overall, the financial health is stable, with opportunities for further improvement in equity returns and cost management.

Income Statement

Shikoku Bank Ltd. has shown a positive revenue growth rate of 4.4% in the latest year, indicating a recovery from the previous year's decline. The net profit margin of 13.4% is strong, although it has decreased from the prior year. The EBIT margin of 16.9% reflects efficient cost management. However, the EBITDA margin has decreased, suggesting rising operational costs.

Balance Sheet

The bank's debt-to-equity ratio increased significantly to 1.14, indicating higher leverage, which could pose a risk if interest rates rise. The return on equity is stable at 4.3%, but there is room for improvement. The equity ratio remains healthy, suggesting a solid capital base.

Cash Flow

Operating cash flow has improved significantly, with a strong operating cash flow to net income ratio of 10.94. Free cash flow growth is robust, and the free cash flow to net income ratio is nearly 1, indicating efficient cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	48.56B	50.76B	50.09B	58.27B	40.01B	38.41B
Gross Profit	48.56B	48.56B	48.80B	56.48B	38.92B	36.99B
EBITDA	7.12B	8.56B	11.20B	10.02B	12.74B	11.60B
Net Income	6.81B	6.81B	7.29B	5.55B	7.95B	6.64B
Balance Sheet
Total Assets	3.38T	3.38T	3.31T	3.32T	3.63T	3.33T
Cash, Cash Equivalents and Short-Term Investments	178.83B	178.83B	217.36B	411.09B	643.72B	335.62B
Total Debt	182.87B	182.87B	66.57B	8.36B	294.66B	152.52B
Total Liabilities	3.21T	3.21T	3.14T	3.17T	3.48T	3.17T
Stockholders Equity	160.07B	160.07B	168.09B	149.82B	154.48B	158.40B
Cash Flow
Free Cash Flow	0.00	41.29B	25.64B	-364.04B	296.82B	223.08B
Operating Cash Flow	0.00	42.36B	26.64B	-362.23B	299.23B	224.25B
Investing Cash Flow	0.00	-132.58B	-95.86B	131.79B	9.90B	-128.31B
Financing Cash Flow	0.00	52.88B	-54.44B	-1.86B	165.98B	-2.28B

Shikoku Bank Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1446.00
• 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:8387, the sentiment is Positive. The current price of 1446 is above the 20-day moving average (MA) of 1436.25, above the 50-day MA of 1346.82, and above the 200-day MA of 1190.46, indicating a bullish trend. The MACD of 24.34 indicates Positive momentum. The RSI at 60.51 is Neutral, neither overbought nor oversold. The STOCH value of 43.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8387.

Shikoku Bank Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8387	79 Outperform	¥59.11B	8.39	―	3.11%	7.21%	-3.97%
8393	78 Outperform	74.95B	7.33	5.16%	2.46%	14.57%	45.13%
8399	73 Outperform	60.36B	9.34	4.11%	2.67%	6.16%	-3.02%
8344	72 Outperform	50.21B	11.69	3.25%	2.76%	-12.00%	28.81%
8343	70 Outperform	62.53B	9.77	3.62%	3.00%	8.73%	12.43%
8392	63 Neutral	75.74B	10.29	―	2.21%	2.61%	-1.50%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Shikoku Bank Ltd. Corporate Events

Shikoku Bank Revises Financial Forecasts Upward Amid Rising Interest Rates

Shikoku Bank, Ltd. has revised its financial forecasts for the fiscal year ending March 31, 2025, due to higher-than-expected interest on loans and dividends from securities, driven by rising domestic interest rates. This revision reflects an increase in both consolidated and non-consolidated financial results, indicating a positive impact on the bank’s operations and potential benefits for its stakeholders.

Shikoku Bank Reports Financial Results with Increased Profits and Dividend Outlook

Shikoku Bank reported its consolidated financial results for the nine months ending December 31, 2024, with ordinary revenues of ¥38,827 million, reflecting a slight decrease of 1.8% from the previous year. Despite this, the bank’s ordinary profit increased by 20.5% to ¥8,297 million, while profit attributable to owners of the parent rose marginally by 1.1% to ¥5,704 million. The bank’s financial position shows total assets at ¥3,395,463 million. Notably, the bank forecasts a year-end dividend increase to ¥50 from the previous ¥40, indicating a positive outlook for stakeholders.