Shikoku Bank Ltd. (8387) AI Stock Analysis

• Market Cap: ¥97.38B
• Dividend Yield: 3.05%
• Average Volume (3M): 106.91K
• Price to Earnings (P/E): 6.0
• Beta (1Y): 0.95
• Revenue Growth: 8.75%
• EPS Growth: -12.68%
• Country: JP
• Employees: 1,263
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 285.27
• 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): 0.98
• 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: 74 Outperform
• Price Target: ¥2,460.00 ▲(30.02% Upside)
• Action: Reiterated Date: 02/05/26
• Date: Action: Reiterated 02/05/26

Overall score is driven primarily by solid financial performance led by strong cash flow and steady profitability, offset by increased leverage risk. Technicals are supportive due to a strong uptrend, but elevated RSI/Stoch suggest momentum is overextended. Valuation is reasonable with a moderate P/E and a 2.51% dividend yield.

Positive Factors

Strong cash generation

Exceptionally high operating cash flow conversion and near-1 free cash flow conversion indicate durable internal cash generation. This strengthens the bank's ability to fund lending, cover dividends, and absorb shocks without relying heavily on volatile external financing over the medium term.

Healthy profitability margins

Sustained net and EBIT margins show the bank manages pricing and costs effectively in its core regional businesses. Margin durability supports ongoing earnings retention, internal capital accumulation, and provides a buffer against cyclical revenue dips over a multi‑month horizon.

Solid capital base

A healthy equity ratio provides regulatory and operational resilience, enabling continued lending and investment while meeting capital requirements. This structural strength reduces the need for frequent external capital raises and supports strategic continuity in the medium term.

Negative Factors

Elevated leverage

A materially higher debt-to-equity ratio raises financial leverage and interest‑rate sensitivity. Over several months, increased leverage can elevate funding costs, constrain strategic flexibility, and heighten vulnerability to rate shocks or credit stress in the regional loan book.

Modest return on equity

A low ROE indicates the bank generates limited profit per unit of equity, which can constrain long-term shareholder returns and limit retained-capital growth. Persistently modest ROE reduces competitive appeal versus peers and pressures management to improve asset or capital efficiency.

Pressure on operational margins

A declining EBITDA margin points to rising operating costs or lower core efficiency. If cost pressures persist, they can erode the bank's profit buffer, limit reinvestment capacity, and force either higher pricing to customers or cuts to strategic initiatives over the medium term.

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

Income statement is solid with 4.4% revenue growth and strong profitability (13.4% net margin, 16.9% EBIT margin), while cash flow is a key strength (operating cash flow to net income of 10.94 and robust free cash flow). The main financial risk is higher balance-sheet leverage (debt-to-equity up to 1.14) and modest ROE (4.3%).

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: 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 1892 is below the 20-day moving average (MA) of 2346.10, below the 50-day MA of 2069.52, and above the 200-day MA of 1519.66, indicating a bullish trend. The MACD of 92.72 indicates Positive momentum. The RSI at 58.66 is Neutral, neither overbought nor oversold. The STOCH value of 64.10 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	74 Outperform	¥97.38B	6.00	―	3.05%	8.75%	-12.68%
8393	72 Outperform	¥156.10B	13.56	―	2.29%	13.93%	54.44%
8399	69 Neutral	¥100.49B	11.42	―	2.46%	9.12%	43.43%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8344	67 Neutral	¥81.51B	16.93	―	2.89%	-0.24%	95.49%
8392	67 Neutral	¥150.12B	18.48	3.68%	2.26%	9.34%	20.61%
8343	63 Neutral	¥95.37B	11.60	―	3.35%	15.96%	81.27%

Shikoku Bank Ltd. Corporate Events

Shikoku Bank Posts Profit Surge and Raises Full-Year Forecast, Lifts Dividend Outlook

The Shikoku Bank, Ltd. reported strong results for the nine months ended December 31, 2025, with ordinary income up 21.7% to ¥47.25 billion and ordinary profit up 40.3% to ¥11.64 billion. Profit attributable to owners of the parent surged 179.2% to ¥15.93 billion, lifting basic earnings per share to ¥381.93 and boosting comprehensive income to ¥28.67 billion.

The bank’s total assets rose to ¥3.47 trillion and net assets increased to ¥186.60 billion, improving its equity-to-asset ratio to 5.3%. Management raised its full-year forecast, projecting a 23.5% rise in ordinary profit to ¥12.7 billion and a 145.1% jump in profit attributable to owners of the parent to ¥16.7 billion, while also planning a higher annual dividend of ¥56 per share, signaling confidence in earnings and enhanced returns to shareholders.

The inclusion of The Shigin Leasing Company Limited in the consolidation scope underscores a strategic broadening of the group’s business base. Share dynamics remained relatively stable, with a slight increase in treasury shares but little change in average shares outstanding, supporting per-share earnings growth primarily driven by improved profitability rather than financial engineering.

The most recent analyst rating on (JP:8387) stock is a Hold with a Yen2582.00 price target. To see the full list of analyst forecasts on Shikoku Bank Ltd. stock, see the JP:8387 Stock Forecast page.