Shikoku Bank Ltd. (8387) AI Stock Analysis

• Market Cap: ¥77.77B
• Dividend Yield: 3.05%
• Average Volume (3M): 106.91K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.89
• Revenue Growth: 8.75%
• EPS Growth: -12.68%
• Country: JP
• Employees: 1,263
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 42.60
• Shares Outstanding: 42,400,000
• 10 Day Avg. Volume: 92,490
• 30 Day Avg. Volume: 106,906
• PEG Ratio: -1.12
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.99
• P/FCF Ratio: 1.22
• 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: 78 Outperform
• Price Target: ¥1,769.00 ▼(-6.50% Downside)

Shikoku Bank Ltd. receives a strong overall score due to its robust financial performance, particularly in cash flow management, and attractive valuation metrics. The technical analysis supports a bullish outlook, with the stock showing strong upward momentum. The increased leverage is a potential risk, but the overall financial health remains stable.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a recovery trend and suggests the bank's ability to expand its market presence and improve its financial performance over time.

Cash Flow Management

Strong cash flow management enhances the bank's ability to fund operations, invest in growth opportunities, and maintain financial stability.

Net Profit Margin

A strong net profit margin reflects effective cost management and profitability, supporting the bank's long-term financial health and shareholder value.

Negative Factors

Increased Leverage

Higher leverage can increase financial risk, especially if interest rates rise, potentially impacting the bank's ability to manage debt and maintain financial flexibility.

EBITDA Margin Decline

A declining EBITDA margin indicates rising operational costs, which could pressure profitability and require strategic cost management to sustain margins.

EPS Growth Decline

Negative EPS growth suggests challenges in improving earnings, which may affect investor confidence and the bank's ability to generate shareholder returns.

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 primarily through interest income from loans and advances provided to individuals and businesses. This interest income is supplemented by fees and commissions from various banking services, including account maintenance, transaction processing, and wealth management services. The bank also earns income from investment securities and treasury operations. Additionally, strategic partnerships with local businesses and government entities enhance its service offerings and client base, contributing to its overall financial performance.

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	48.87B	50.98B	50.09B	58.27B	40.01B	38.41B
Gross Profit	48.87B	47.08B	48.80B	56.48B	38.92B	36.99B
EBITDA	9.86B	12.33B	11.20B	10.02B	12.74B	11.60B
Net Income	7.12B	6.81B	7.29B	5.55B	7.95B	6.64B
Balance Sheet
Total Assets	3.46T	3.38T	3.31T	3.32T	3.63T	3.33T
Cash, Cash Equivalents and Short-Term Investments	0.00	178.83B	217.36B	411.09B	643.72B	335.62B
Total Debt	188.11B	182.87B	66.57B	8.36B	294.66B	152.52B
Total Liabilities	3.30T	3.21T	3.14T	3.17T	3.48T	3.17T
Stockholders Equity	165.62B	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: 1892.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 1892 is above the 20-day moving average (MA) of 1752.20, above the 50-day MA of 1633.70, and above the 200-day MA of 1330.05, indicating a bullish trend. The MACD of 64.19 indicates Negative momentum. The RSI at 80.95 is Negative, neither overbought nor oversold. The STOCH value of 90.44 is Negative, 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	78 Outperform	¥77.77B	12.04	―	3.05%	8.75%	-12.68%
8392	75 Outperform	¥106.27B	12.95	3.68%	2.26%	9.34%	20.61%
8344	74 Outperform	¥63.34B	12.96	―	2.89%	-0.24%	95.49%
8399	74 Outperform	¥85.22B	10.97	―	2.46%	9.12%	43.43%
8393	71 Outperform	¥118.58B	10.25	―	2.29%	13.93%	54.44%
8343	70 Outperform	¥77.12B	9.99	―	3.35%	15.96%	81.27%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Shikoku Bank Ltd. Corporate Events

Shikoku Bank Announces Increased Dividends and Revised Forecasts

Shikoku Bank Ltd. announced an increase in its interim dividends to ¥28.00 per share, up from the previous forecast of ¥25.00, reflecting a focus on shareholder returns and recent business performance. The bank also revised its fiscal year-end dividend forecast to ¥28.00 per share, bringing the total annual dividend to ¥56.00 per share, an increase of ¥6.00 from previous forecasts, while targeting a consolidated dividend payout ratio of 30% or more, excluding non-recurring items.

The most recent analyst rating on (JP:8387) stock is a Buy with a Yen1648.00 price target. To see the full list of analyst forecasts on Shikoku Bank Ltd. stock, see the JP:8387 Stock Forecast page.

Shikoku Bank Reports Increased Income Amidst Decline in Attributable Profit

Shikoku Bank Ltd. reported its consolidated financial results for the six months ending September 30, 2025, showing a 13.7% increase in ordinary income and a 13.1% rise in ordinary profit compared to the previous year. However, profit attributable to owners of the parent decreased by 5.9%. The bank’s total assets and net assets have grown, with an equity-to-asset ratio of 5.0%. The bank has revised its cash dividend forecast for the fiscal year ending March 31, 2026, and anticipates a significant increase in profit attributable to owners of the parent by 136.3% for the full year.

The most recent analyst rating on (JP:8387) stock is a Buy with a Yen1648.00 price target. To see the full list of analyst forecasts on Shikoku Bank Ltd. stock, see the JP:8387 Stock Forecast page.