Awa Bank, Ltd. (JP:8388)
:8388
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Awa Bank, Ltd.
(8388)
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Rating:65Neutral
Price Target:
¥6,740.00
▲(46.20% Upside)
Action:DowngradedDate:03/05/26
The score is primarily supported by solid financial performance (good revenue growth, strong gross margin, and improved/free-cash-flow generation) tempered by modest ROE and weak operating cash flow efficiency versus net income. Technicals are mixed with near-term weakness (below 20-day average) but a still-supportive longer-term trend (above 50/100/200-day averages). Valuation is moderately favorable with a low-to-moderate P/E and a modest dividend yield.
Positive Factors
High gross margin
An 87.9% gross margin indicates a very efficient core franchise with low direct costs relative to revenue. This structural cost advantage supports resilient operating leverage, funds reinvestment in digital/branch services, and cushions profitability across economic cycles.
Negative Factors
Modest ROE
A ROE below 4% signals limited effectiveness in turning equity into shareholder returns. Persistently low ROE constrains capital allocation options, reduces attractiveness to equity investors, and requires structural improvements in margins or leverage to raise long-term returns.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margin
An 87.9% gross margin indicates a very efficient core franchise with low direct costs relative to revenue. This structural cost advantage supports resilient operating leverage, funds reinvestment in digital/branch services, and cushions profitability across economic cycles.
Read all positive factors
Awa Bank, Ltd. (8388) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥243.14B
Dividend Yield2.53%
Average Volume (3M)52.99K
Price to Earnings (P/E)10.9
Beta (1Y)1.02
Revenue Growth11.64%
EPS Growth28.24%
CountryJP
Employees1,332
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)319.91
Shares Outstanding40,000,000
10 Day Avg. Volume54,740
30 Day Avg. Volume52,990
Financial Highlights & Ratios
PEG Ratio0.45
Price to Book (P/B)0.34
Price to Sales (P/S)1.51
P/FCF Ratio3.11
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Awa Bank, Ltd. Business Overview & Revenue Model
Company Description
The Awa Bank, Ltd. provides banking products and services to individual and corporate customers in Japan. The company offers general accounts, saving deposits, time deposits, and foreign currency deposits, as well as certificates of deposit; and i...
How the Company Makes Money
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Awa Bank, Ltd. Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
70
Positive
Cash Flow
65
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 75.93B | 75.71B | 72.81B | 85.75B | 66.11B | 62.12B |
| Gross Profit | 67.83B | 67.62B | 62.55B | 77.49B | 61.72B | 54.58B |
| EBITDA | 16.91B | 20.55B | 19.27B | 17.70B | 19.07B | 15.10B |
| Net Income | 12.71B | 13.20B | 11.26B | 10.21B | 11.11B | 8.50B |
Balance Sheet | ||||||
| Total Assets | 4.03T | 4.02T | 3.92T | 3.85T | 3.98T | 3.87T |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 427.65B | 402.27B | 482.87B | 690.24B | 632.77B |
| Total Debt | 193.44B | 216.41B | 213.13B | 128.11B | 605.05B | 519.34B |
| Total Liabilities | 3.69T | 3.69T | 3.59T | 3.57T | 3.69T | 3.57T |
| Stockholders Equity | 338.84B | 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
Positive
4610.00
Price Trends
5831.62
Positive
5136.02
Positive
4234.16
Positive
Market Momentum
291.97
Negative
66.69
Neutral
75.73
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 4610 is below the 20-day moving average (MA) of 6162.09, below the 50-day MA of 5831.62, and above the 200-day MA of 4234.16, indicating a bullish trend. The MACD of 291.97 indicates Negative momentum. The RSI at 66.69 is Neutral, neither overbought nor oversold. The STOCH value of 75.73 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | ¥245.30B | 14.45 | ― | 2.13% | 11.80% | -4.44% | |
70 Outperform | ¥238.57B | 8.55 | ― | 3.00% | 15.17% | 21.00% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | ¥243.14B | 10.90 | ― | 2.53% | 11.64% | 28.24% | |
65 Neutral | ¥241.39B | 8.20 | ― | 3.46% | 9.73% | 15.55% | |
59 Neutral | ¥270.33B | 10.68 | ― | 2.55% | 8.16% | 35.67% | |
55 Neutral | ¥217.74B | 16.61 | ― | 2.38% | 33.44% | 57.44% |
* Financial Sector Average
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Awa Bank, Ltd. Corporate Events
Awa Bank Completes ¥1 Billion Share Buyback Program
Mar 13, 2026
The Awa Bank, Ltd. has completed a share buyback authorized by its board, acquiring 175,000 common shares for a total of 999,714,000 yen through market purchases on the Tokyo Stock Exchange. The latest tranche, executed between March 1 and March 1...
Awa Bank Reports Progress on Share Buyback Program
Mar 2, 2026
The Awa Bank, Ltd. has reported the progress of its share buyback program authorized under Japan’s Companies Act, targeting common shares as part of capital management efforts. Between February 4 and February 28, 2026, the bank repurchased 1...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.