Oita Bank (8392) AI Stock Analysis

• Market Cap: $76.73B
• Dividend Yield: 2.68%
• Average Volume (3M): 42.13K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 1.02
• Revenue Growth: 2.61%
• EPS Growth: -1.50%
• Country: JP
• Employees: 1,715
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 215.59
• 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: -1.73
• Enterprise Value/Revenue: -1.88
• Enterprise Value/Gross Profit: -1.88
• Enterprise Value/Ebitda: -17.20
• 1Y Price Target: $5,373.81
• Price Target Upside: 6.62% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: ¥5,374.00 ▲(6.63% Upside)

Oita Bank's overall stock score reflects its solid financial performance, particularly in revenue growth and cash flow management, despite challenges with profitability and leverage. The technical analysis indicates moderate strength, while the valuation suggests potential undervaluation with an attractive dividend yield.

Oita Bank Business Overview & Revenue Model

Company Description

Oita Bank (8392) is a regional financial institution based in Oita Prefecture, Japan. The bank primarily operates in the banking sector, providing a range of financial services including retail banking, corporate banking, and investment services. Its core products include savings and checking accounts, loans (personal, housing, and business), and various financial investment products. Oita Bank plays a crucial role in supporting the local economy through its commitment to serving both individual customers and businesses within its region.

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

Oita Bank shows solid revenue growth and strong gross profit margins, but faces challenges with profitability and high leverage. The balance sheet indicates increased debt levels, which could impact financial stability. Cash flow management is effective, though there are concerns about the conversion of income to cash. Overall, the bank is performing well but should address leverage and profitability issues to enhance financial health.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	70.54B	75.68B	66.17B	69.65B	53.54B	52.60B
Gross Profit	70.54B	69.49B	66.17B	69.65B	53.05B	52.60B
EBITDA	7.70B	6.26B	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	208.49B	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: Neutral
• Last Price: 5040.00
• 50DMA: Negative
• 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 Neutral. The current price of 5040 is above the 20-day moving average (MA) of 4951.13, above the 50-day MA of 4852.16, and above the 200-day MA of 3793.95, indicating a neutral trend. The MACD of 9.77 indicates Positive momentum. The RSI at 47.51 is Neutral, neither overbought nor oversold. The STOCH value of 45.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8392.

Oita Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8387	79 Outperform	¥58.82B	8.18	―	3.58%	7.21%	-3.97%
8393	78 Outperform	¥76.54B	7.28	―	2.49%	14.57%	45.13%
8399	73 Outperform	¥61.21B	9.21	―	2.77%	6.16%	-3.02%
8344	72 Outperform	¥48.67B	11.36	―	3.41%	-12.00%	28.81%
8343	70 Outperform	¥64.14B	9.61	―	3.91%	8.73%	12.43%
8392	68 Neutral	$76.73B	10.09	3.53%	2.68%	2.61%	-1.50%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%