Oita Bank (8392) AI Stock Analysis

• Market Cap: ¥149.96B
• Dividend Yield: 2.26%
• Average Volume (3M): 42.13K
• Price to Earnings (P/E): 18.1
• Beta (1Y): 1.12
• Revenue Growth: 9.34%
• EPS Growth: 20.61%
• Country: JP
• Employees: 1,715
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 202.12
• Shares Outstanding: 15,693,634
• 10 Day Avg. Volume: 54,970
• 30 Day Avg. Volume: 42,133
• PEG Ratio: 0.41
• Price to Book (P/B): 0.26
• Price to Sales (P/S): 0.71
• P/FCF Ratio: 1.24
• 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: 67 Neutral
• Price Target: ¥10,673.00 ▲(52.91% Upside)
• Action: Downgraded Date: 01/24/26
• Date: Action: Downgraded 01/24/26

The score is primarily driven by moderate-to-good financial performance, supported by revenue growth and strong gross margins but constrained by high leverage and modest returns. Technicals show a strong uptrend, yet extremely overbought momentum readings elevate near-term risk. Valuation is reasonable (P/E ~14.5) with a modest dividend yield (~1.8%), providing neutral support.

Positive Factors

Revenue Growth

Persistent top-line growth, even if modest in the latest year, indicates expanding loan and fee activity in the home region. A growing revenue base supports long-term earnings stability and provides a platform to absorb cyclical pressures without eroding capital.

High Gross Margin

A very high gross margin reflects efficient core operations and low direct costs. For a regional bank, sustained margin advantage aids resilience against revenue volatility, enabling reinvestment in digitization, branch optimization, or margin recovery initiatives over months to years.

Strong Free Cash Flow

Near parity of free cash flow to net income and strong FCF growth denote high cash conversion and disciplined capital allocation. Durable FCF supports debt servicing, dividend payments, and targeted investments without immediate reliance on external funding.

Negative Factors

High Leverage

Elevated leverage increases sensitivity to rising funding costs and interest-rate shifts, constraining strategic flexibility. For a regional bank, sustained high debt levels can pressure capital ratios, limit lending capacity, and raise refinancing and regulatory risks over the medium term.

Modest ROE

A low ROE suggests the bank is generating limited profits relative to equity capital, reducing shareholder upside and making it harder to justify retained earnings. Persistently weak ROE can signal pricing, mix, or efficiency issues and may force risk-taking to lift returns.

Profitability Pressure

Declining operating margins and a sub-10% net margin point to margin compression or rising operating costs. Structural margin erosion weakens core earnings power, reducing buffer against credit cycles and interest-rate shifts unless offset by higher spreads or cost reductions.

Oita Bank Business Overview & Revenue Model

Company Description

The Oita Bank, Ltd. provides various banking products and services to individual and corporate clients primarily in Oita Prefecture, Japan. It operates through Banking and Lease segments. The company engages in accepting deposits; providing loans; discounting bills; and buying and selling marketable securities and other financial instruments. It also offers leasing and credit card, financial instruments handling, and foreign exchange services. As of September 30, 2021, it operated through 93 branches and 33 money exchange offices. The Oita Bank, Ltd. was founded in 1893 and is headquartered in Oita, Japan.

How the Company Makes Money

Oita Bank generates revenue through multiple key streams, primarily from interest income on loans and investments. The bank offers various loan products, including personal loans, residential mortgages, and business loans, which typically carry interest rates that contribute to its earnings. Additionally, Oita Bank earns fees from account maintenance, transaction services, and financial advisory services. Investment income from securities and other financial instruments also forms a significant part of its revenue. Furthermore, the bank may engage in partnerships with local businesses and government entities, enhancing its service offerings and broadening its customer base, thereby contributing to its overall financial performance.

Oita Bank Financial Statement Overview

Summary

Solid income statement strength (75) supported by revenue growth and very strong gross margin, and decent cash flow score (70) driven by strong free cash flow to net income. Offsetting this, the balance sheet is weaker (60) with higher leverage (debt-to-equity 3.11) and modest ROE (3.62%), and profitability/efficiency pressures are noted via lower EBIT/EBITDA margins and a relatively low net margin (9.98%).

Income Statement

Oita Bank has demonstrated consistent revenue growth with a 1.76% increase in the latest year. The gross profit margin remains strong at over 91%, indicating efficient cost management. However, the net profit margin is relatively low at 9.98%, suggesting room for improvement in profitability. The EBIT and EBITDA margins have decreased compared to previous years, reflecting potential challenges in operational efficiency.

Balance Sheet

The bank's debt-to-equity ratio has increased to 3.11, indicating a higher reliance on debt financing, which could pose risks if interest rates rise. Return on equity is modest at 3.62%, showing limited returns for shareholders. The equity ratio is stable, suggesting a balanced asset structure, but the high leverage remains a concern.

Cash Flow

Oita Bank's cash flow performance is mixed. The operating cash flow to net income ratio is low at 0.16, indicating potential issues in converting income into cash. However, the free cash flow to net income ratio is strong at 0.97, showing effective cash management. The free cash flow growth rate is notably high, reflecting positive cash generation trends.

Breakdown	TTM	Mar 2025	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	70.54B	75.68B	70.46B	68.67B	53.54B	55.41B
Gross Profit	70.54B	69.49B	66.17B	66.72B	53.05B	54.87B
EBITDA	7.70B	12.72B	10.46B	8.96B	8.62B	8.20B
Net Income	7.40B	7.55B	6.54B	5.41B	5.38B	3.62B
Balance Sheet
Total Assets	4.51T	4.51T	4.55T	4.32T	4.31T	3.81T
Cash, Cash Equivalents and Short-Term Investments	0.00	781.09B	872.90B	725.87B	942.67B	512.69B
Total Debt	580.30B	648.98B	402.20B	388.76B	430.65B	248.95B
Total Liabilities	4.30T	4.30T	4.34T	4.14T	4.11T	3.61T
Stockholders Equity	214.59B	208.49B	217.81B	187.45B	198.00B	202.68B
Cash Flow
Free Cash Flow	0.00	43.54B	12.17B	-98.87B	468.91B	339.46B
Operating Cash Flow	0.00	45.06B	13.54B	-95.94B	470.28B	341.52B
Investing Cash Flow	0.00	29.69B	15.39B	-120.08B	-34.18B	-165.66B
Financing Cash Flow	0.00	-53.39B	77.83B	-1.26B	-1.19B	-1.26B

Oita Bank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6980.00
• 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:8392, the sentiment is Positive. The current price of 6980 is below the 20-day moving average (MA) of 9606.50, below the 50-day MA of 8195.00, and above the 200-day MA of 5578.58, indicating a bullish trend. The MACD of 458.15 indicates Positive momentum. The RSI at 66.56 is Neutral, neither overbought nor oversold. The STOCH value of 74.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8392.

Oita Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7350	78 Outperform	¥120.16B	11.19	―	2.71%	15.37%	35.08%
8395	74 Outperform	¥80.64B	9.66	―	2.29%	7.97%	20.44%
8393	72 Outperform	¥153.92B	12.82	―	2.29%	13.93%	54.44%
7322	70 Outperform	¥160.03B	13.67	―	2.96%	14.85%	21.17%
8399	69 Neutral	¥99.73B	10.95	―	2.46%	9.12%	43.43%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8392	67 Neutral	¥149.96B	18.14	3.68%	2.26%	9.34%	20.61%

Oita Bank Corporate Events

Oita Bank Lifts Earnings and Dividends on Strong Nine-Month Results

Oita Bank reported strong consolidated results for the nine months ended December 31, 2025, with ordinary income rising 18.1% year on year to ¥69.47 billion and profit attributable to owners of the parent up 10.1% to ¥7.49 billion, lifting basic earnings per share to ¥493.23. The bank’s total assets increased to ¥4.56 trillion, equity improved and its equity-to-asset ratio rose to 5.2%, reflecting a stronger balance sheet and a sharp swing in comprehensive income.

The lender maintained its full-year forecast, targeting double-digit growth in ordinary income, ordinary profit and net profit, and projecting earnings of ¥606.13 per share for the year to March 2026. Oita Bank also confirmed a significant dividend increase, planning total annual dividends of ¥170 per share versus ¥110 a year earlier, underscoring confidence in earnings sustainability and enhancing returns to shareholders amid its expanded consolidation scope.

The most recent analyst rating on (JP:8392) stock is a Buy with a Yen10489.00 price target. To see the full list of analyst forecasts on Oita Bank stock, see the JP:8392 Stock Forecast page.

Oita Bank Books ¥4.35 Billion Unrealized Loss on Bonds, Keeps Earnings Outlook Intact

Oita Bank has disclosed that unrealized losses on its held-to-maturity debt securities totaled ¥4,350 million as of December 31, 2025, equivalent to 39.2% of its consolidated ordinary profit and 57.6% of profit attributable to owners of parent for the fiscal year ended March 31, 2025. While the book value of the relevant securities stood at ¥42,188 million against a market value of ¥37,837 million, the bank stated that these unrealized losses will not affect its earnings or dividend forecasts for the fiscal year ending March 31, 2026, suggesting that its capital management and profit outlook remain intact despite mark-to-market pressure on its bond portfolio.

The most recent analyst rating on (JP:8392) stock is a Buy with a Yen8975.00 price target. To see the full list of analyst forecasts on Oita Bank stock, see the JP:8392 Stock Forecast page.

Oita Bank Sharpens Governance With Larger Cut to Cross-Shareholdings

The Oita Bank has revised its target for reducing cross-shareholdings, deciding at a January 26, 2026 board meeting to increase the planned cut in book value from about ¥3.7 billion to approximately ¥5.3 billion, or around 40%, from the level as of March 31, 2023 by the end of fiscal 2026. The move is positioned as a governance and capital-efficiency measure under the bank’s Basic Policy on Cross-Shareholdings, reflecting a stricter review of the necessity of each holding; while the bank plans to unwind more of these mutual shareholdings, it emphasizes that it will maintain dialogue with business partners to preserve and strengthen long-standing relationships of trust even as the financial ties are reduced.

The most recent analyst rating on (JP:8392) stock is a Buy with a Yen8975.00 price target. To see the full list of analyst forecasts on Oita Bank stock, see the JP:8392 Stock Forecast page.

Oita Bank Announces 5-for-1 Stock Split and Launch of Shareholder Benefit Program

The Oita Bank’s board has approved a 5-for-1 stock split of its common shares, effective April 1, 2026, aimed at lowering the minimum investment amount, improving share liquidity and widening its investor base. In conjunction with the split, the bank will amend its Articles of Incorporation to increase the total number of authorized shares from 30 million to 150 million, while keeping total share capital unchanged and maintaining its previously announced full-year dividend per pre-split share. Starting in fiscal 2027, the bank will also launch a shareholder benefit program for investors holding at least 1,000 shares for a year or more, offering gift items linked to Oita Prefecture or the bank, a move designed to encourage long-term shareholding and further align its capital market strategy with regional promotion and stakeholder engagement.

The most recent analyst rating on (JP:8392) stock is a Buy with a Yen8975.00 price target. To see the full list of analyst forecasts on Oita Bank stock, see the JP:8392 Stock Forecast page.