Oita Bank (8392) AI Stock Analysis

• Market Cap: ¥96.37B
• Dividend Yield: 2.26%
• Average Volume (3M): 42.13K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 1.03
• Revenue Growth: 9.34%
• EPS Growth: 20.61%
• Country: JP
• Employees: 1,715
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 75.52
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥6,683.00 ▲(5.58% Upside)

Oita Bank's stock is supported by strong technical momentum and a fair valuation, making it attractive for investors seeking growth and income. However, financial performance is hindered by high leverage and profitability challenges, which could pose risks if not addressed.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a stable and expanding customer base, which is crucial for long-term sustainability and market position.

Gross Profit Margin

A strong gross profit margin reflects effective cost control and operational efficiency, supporting long-term profitability.

Cash Management

Effective cash management ensures liquidity and the ability to invest in growth opportunities, enhancing financial stability.

Negative Factors

High Leverage

High leverage can increase financial risk, especially if interest rates rise, potentially impacting long-term financial health.

Profitability Challenges

Low profitability margins can limit reinvestment in business growth and reduce shareholder returns, affecting long-term competitiveness.

Cash Conversion Issues

Poor cash conversion can strain liquidity, affecting the bank's ability to meet obligations and invest in future growth.

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

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.

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	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: 6330.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 6330 is above the 20-day moving average (MA) of 6090.50, above the 50-day MA of 5514.60, and above the 200-day MA of 4359.41, indicating a bullish trend. The MACD of 239.04 indicates Negative momentum. The RSI at 68.58 is Neutral, neither overbought nor oversold. The STOCH value of 86.89 is Negative, 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
8387	78 Outperform	¥71.40B	11.06	―	3.05%	8.75%	-12.68%
8392	75 Outperform	¥96.37B	11.74	3.68%	2.26%	9.34%	20.61%
8344	74 Outperform	¥58.33B	11.93	―	2.89%	-0.24%	95.49%
8399	74 Outperform	¥77.88B	10.03	―	2.46%	9.12%	43.43%
8393	71 Outperform	¥105.85B	9.15	―	2.29%	13.93%	54.44%
8343	70 Outperform	¥71.39B	9.25	―	3.35%	15.96%	81.27%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Oita Bank Corporate Events

Oita Bank Revises Financial Targets Amid Rising Interest Rates

Oita Bank has revised its financial targets for the Medium-Term Management Plan 2024, aiming for higher profitability with a consolidated profit target increased from 8.0 billion yen to more than 10.0 billion yen and an ROE target raised from around 4.0% to more than 5.0%. This revision is in response to the current domestic interest rate environment, which is higher than initially expected, and the steady progress of the bank’s strategic plan.

Oita Bank Increases Dividend Forecast Amid Strategic Financial Enhancements

The Oita Bank announced an increase in its interim and year-end dividend forecasts for the fiscal year ending March 31, 2026, reflecting a 20 yen increase from the initial forecast. This decision is part of the bank’s strategy to maintain a total payout ratio of 30% or more and respond to shareholder support. The revised dividend per share is set at 170 yen, with the interim and year-end dividends increased to 85 yen each. The bank aims to strengthen its financial structure and enhance shareholder returns, projecting a consolidated dividend payout ratio of 28.1% and a total payout ratio of 38.9%.

Oita Bank Reports Strong Financial Growth and Upward Forecasts

Oita Bank reported a significant increase in its financial performance for the six months ending September 30, 2025, with a 14.8% rise in ordinary income and a 24.2% increase in ordinary profit compared to the previous year. The bank also revised its financial forecasts upward for the fiscal year ending March 31, 2026, indicating strong expected growth and a substantial increase in dividends, reflecting its robust financial health and strategic expansion, including the inclusion of two new companies in its consolidation scope.

Oita Bank Reports Unrealized Losses but Revises Forecasts Upward

Oita Bank has reported unrealized losses on held-to-maturity debt securities amounting to 3,722 million yen as of September 30, 2025. Despite these losses, the bank has revised its financial results forecasts upward for the six-month period ended September 30, 2025, due to gains on the sale of equity securities and higher-than-expected interest and dividends on securities. The bank anticipates no impact on its full-year financial results forecasts, which will be announced on November 10, 2025.

Oita Bank Revises Financial Forecasts Upward for First Half of 2025

Oita Bank has revised its financial forecasts for the six months ended September 30, 2025, showing an increase in expected ordinary income, ordinary profit, and profit attributable to owners of the parent. The revisions are attributed to higher-than-expected gains on the sale of equity securities and increased interest and dividends on securities, indicating a positive trend in the bank’s financial performance.