Awa Bank, Ltd. (8388) AI Stock Analysis

• Market Cap: ¥134.56B
• Dividend Yield: 2.59%
• Average Volume (3M): 56.19K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 1.02
• Revenue Growth: 3.78%
• EPS Growth: 1.63%
• Country: JP
• Employees: 1,332
• Sector: Financial
• Sector Strength: 76
• Industry: Banks - Regional
• EPS (TTM): 95.83
• Shares Outstanding: 40,000,000
• 10 Day Avg. Volume: 49,840
• 30 Day Avg. Volume: 56,190
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: ―

Awa Bank, Ltd. scores well due to its strong financial stability and attractive valuation. However, the stock's mixed technical indicators and inconsistent cash flow performance slightly dampen the overall outlook.

Awa Bank, Ltd. Business Overview & Revenue Model

Company Description

Awa Bank, Ltd. (8388) is a regional financial institution headquartered in Tokushima, Japan. The bank primarily operates in the banking sector, offering a range of financial services including retail banking, corporate banking, and mortgage lending. Awa Bank serves individual customers, small and medium-sized enterprises (SMEs), and larger corporations within its regional footprint, providing products such as savings accounts, personal loans, business loans, and investment services.

How the Company Makes Money

Awa Bank, Ltd. generates revenue primarily through net interest income, which is the difference between the interest earned on loans and the interest paid on deposits. The bank offers various types of loans, including personal, home, and business loans, to its customers, which serve as a significant source of interest income. Additionally, Awa Bank earns non-interest income through fees and commissions from services such as account maintenance, transaction fees, investment services, and insurance products. The bank may also engage in investment activities, such as trading securities, which contribute to its earnings. Awa Bank's revenue streams are further supported by its strategic partnerships with other financial institutions and service providers, enhancing its product offerings and market reach.

Awa Bank, Ltd. Financial Statement Overview

Summary

Awa Bank, Ltd. demonstrates strong operational efficiency and financial stability, with a high gross profit margin and a robust balance sheet. However, fluctuating cash flows and inconsistent revenue growth suggest areas needing improvement.

Income Statement

Awa Bank, Ltd. has shown a mixed performance in its income statement. The TTM gross profit margin is high, indicating efficient cost management. However, the net profit margin is moderate, suggesting some room for improvement in profitability. Revenue growth is inconsistent, with recent declines from previous periods. Nonetheless, EBIT margin remains strong, reflecting solid operational efficiency.

Balance Sheet

The balance sheet of Awa Bank, Ltd. is robust, with a healthy equity ratio indicating financial stability. The debt-to-equity ratio is reasonable, demonstrating prudent leverage management. Return on equity is strong, showcasing effective utilization of equity to generate profits.

Cash Flow

Cash flow performance is mixed, with significant fluctuations in operating cash flow over the years. The free cash flow growth rate is inconsistent, and recent periods show a decline in free cash flow. The operating cash flow to net income ratio is not calculable due to zero operating cash flow in the TTM data.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	69.59B	77.69B	63.93B	79.19B	66.67B	64.36B
Gross Profit	69.30B	69.59B	63.93B	79.22B	65.04B	62.24B
EBITDA	11.91B	15.33B	0.00	17.70B	19.07B	15.10B
Net Income	13.20B	13.20B	11.26B	10.21B	11.11B	8.50B
Balance Sheet
Total Assets	4.02T	4.02T	3.92T	3.85T	3.98T	3.87T
Cash, Cash Equivalents and Short-Term Investments	427.65B	427.65B	402.27B	482.87B	690.24B	632.77B
Total Debt	208.19B	208.19B	167.93B	128.11B	279.23B	248.06B
Total Liabilities	3.69T	3.69T	3.59T	3.57T	3.69T	3.57T
Stockholders Equity	334.22B	334.22B	332.62B	278.76B	288.40B	292.89B
Cash Flow
Free Cash Flow	0.00	36.74B	2.49B	-325.82B	92.37B	299.27B
Operating Cash Flow	0.00	38.54B	5.69B	-321.75B	96.67B	301.56B
Investing Cash Flow	0.00	1.99B	-72.30B	93.25B	-37.03B	46.83B
Financing Cash Flow	0.00	65.85B	-13.75B	-3.60B	-2.27B	-2.44B

Awa Bank, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3470.00
• 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:8388, the sentiment is Positive. The current price of 3470 is above the 20-day moving average (MA) of 3383.00, above the 50-day MA of 3152.14, and above the 200-day MA of 2835.94, indicating a bullish trend. The MACD of 99.39 indicates Positive momentum. The RSI at 65.06 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8388.

Awa Bank, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8336	78 Outperform	¥127.91B	9.46		2.98%	5.74%	10.39%
8544	76 Outperform	¥146.50B	12.92		2.39%	6.37%	-11.55%
8361	74 Outperform	¥130.70B	8.32		2.87%	-7.59%	76.05%
8386	71 Outperform	¥140.34B	10.14		2.20%	-6.76%	34.71%
8388	70 Outperform	¥134.56B	10.85		2.59%	3.78%	1.63%
7381	69 Neutral	¥137.87B	12.26		1.94%	-4.66%	144.51%
Sector *	68 Neutral	$17.89B	11.95	10.28%	3.72%	9.74%	1.61%

Awa Bank, Ltd. Corporate Events

Awa Bank Announces Improved Financial Results for 2024

Awa Bank reported consolidated financial results for the nine months ending December 31, 2024, showing a slight increase in ordinary revenue by 2.3% and profit attributable to owners of the parent by 10.8% year-on-year. The bank’s financial position improved with total assets reaching ¥3,941,640 million and a capital adequacy ratio of 8.8%, indicating strong financial health and a positive outlook for stakeholders.