Shikoku Bank Ltd. (8387) AI Stock Analysis

• Market Cap: ¥57.67B
• Dividend Yield: 3.18%
• Average Volume (3M): 111.96K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.83
• Revenue Growth: 7.21%
• EPS Growth: -3.97%
• Country: JP
• Employees: 1,263
• Sector: Financial
• Sector Strength: 72
• Industry: Banks - Regional
• EPS (TTM): 54.06
• Shares Outstanding: 42,400,000
• 10 Day Avg. Volume: 144,360
• 30 Day Avg. Volume: 111,963
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 66 Neutral
• Price Target: ―

Shikoku Bank Ltd. presents a mixed outlook. Strengths in profitability and a solid capital structure are offset by challenges in cash flow management and revenue inconsistency. The stock's current bearish technical trend contrasts with its attractive valuation, offering potential upside for income-focused investors. Careful monitoring of cash flow improvements and liability management is advised.

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 Ltd. generates revenue through various financial services and products. Its primary revenue streams include interest income from loans extended to individuals and businesses, and fees from account services, credit cards, and asset management. The bank also earns income from its investment activities, including securities trading and investment in government and corporate bonds. Furthermore, Shikoku Bank may engage in partnerships with other financial institutions to offer specialized financial products, enhancing its service offerings and revenue potential. Factors such as interest rate fluctuations, regional economic conditions, and regulatory changes can significantly influence the bank's earnings.

Shikoku Bank Ltd. Financial Statement Overview

Summary

Shikoku Bank Ltd. shows strengths in profitability margins and a stable balance sheet but faces challenges in cash flow management. Revenue inconsistency and high liabilities warrant caution. Strengthening cash flow operations and maintaining growth momentum are crucial for future performance.

Income Statement

The income statement shows mixed performance. The TTM gross profit margin is high, indicating good cost management relative to revenue. However, the net profit margin is moderate, suggesting room for improvement in operational efficiency. Revenue growth has been inconsistent, with a noticeable decline in the latest annual period. The EBIT margin is strong, reflecting solid core operations, but EBITDA margin data is lacking, limiting a comprehensive assessment.

Balance Sheet

The balance sheet reflects a stable equity position with a moderate debt-to-equity ratio. The company's equity ratio is healthy, suggesting a solid capital structure. However, the balance sheet reveals high total liabilities, which could pose risks if not managed properly. Return on equity is decent, indicating effective use of shareholders' capital.

Cash Flow

Cash flow analysis highlights concerns, particularly with free cash flow and operating cash flow being negative in recent periods. This indicates potential liquidity issues and raises questions about sustainable cash generation. The absence of positive cash flow growth and the inability to cover net income with operating cash flow are significant weaknesses.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	48.62B	50.76B	48.80B	56.48B	38.92B	36.99B
Gross Profit	48.13B	0.00	48.80B	56.48B	38.92B	36.99B
EBITDA	4.73B	8.56B	11.20B	10.02B	12.74B	11.60B
Net Income	7.35B	6.81B	7.29B	5.55B	7.95B	6.64B
Balance Sheet
Total Assets	3.27T	3.38T	3.31T	3.32T	3.63T	3.33T
Cash, Cash Equivalents and Short-Term Investments	195.13B	0.00	217.36B	411.09B	643.72B	335.62B
Total Debt	6.66B	182.87B	66.57B	8.36B	294.66B	152.52B
Total Liabilities	6.66B	3.21T	3.14T	42.23B	3.48T	3.17T
Stockholders Equity	159.83B	160.07B	168.09B	149.82B	154.48B	158.40B
Cash Flow
Free Cash Flow	0.00	41.29B	-87.62B	-364.04B	296.82B	223.08B
Operating Cash Flow	0.00	42.36B	-85.63B	-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	-1.42B	-2.28B

Shikoku Bank Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1414.00
• 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:8387, the sentiment is Positive. The current price of 1414 is above the 20-day moving average (MA) of 1331.45, above the 50-day MA of 1228.22, and above the 200-day MA of 1151.30, indicating a bullish trend. The MACD of 55.70 indicates Negative momentum. The RSI at 72.25 is Negative, neither overbought nor oversold. The STOCH value of 69.29 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
8399	71 Outperform	¥55.06B	8.74		2.93%	6.16%	-3.02%
Sector *	68 Neutral	$17.84B	12.03	10.32%	3.73%	9.70%	0.76%
8387	66 Neutral	¥57.67B	8.41		3.18%	7.21%	-3.97%
OITAF	―	$508.30M	6.66	3.53%	3.47%	―	―
8393	68 Neutral	¥74.28B	7.49		2.48%	14.57%	45.13%
8343	60 Neutral	¥63.61B	9.89		2.95%	8.73%	12.43%
8344	52 Neutral	¥49.22B	11.77		2.83%	-12.00%	28.81%

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.