Miyazaki Bank Ltd. (8393) AI Stock Analysis

• Market Cap: ¥105.85B
• Dividend Yield: 2.29%
• Average Volume (3M): 36.97K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.99
• Revenue Growth: 13.93%
• EPS Growth: 54.44%
• Country: JP
• Employees: 1,424
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 189.81
• Shares Outstanding: 17,133,400
• 10 Day Avg. Volume: 43,120
• 30 Day Avg. Volume: 36,970
• PEG Ratio: 0.14
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 0.76
• P/FCF Ratio: 0.71
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥6,221.00 ▼(-1.57% Downside)

Miyazaki Bank Ltd. scores well due to its strong financial performance and attractive valuation. The stock's bullish technical indicators are tempered by overbought conditions, suggesting caution. The high leverage remains a risk factor, but overall, the stock presents a solid investment opportunity with room for growth.

Positive Factors

Revenue Growth

The robust revenue growth indicates effective market penetration and product demand, supporting long-term business expansion and competitiveness.

Cash Generation

Strong cash generation capability enhances financial flexibility, enabling strategic investments and debt servicing, supporting sustainable growth.

Profitability

Consistent profitability ensures the bank can reinvest in operations, maintain competitive services, and provide shareholder returns, fostering long-term stability.

Negative Factors

High Leverage

High leverage can increase financial risk, particularly in volatile markets, potentially impacting the bank's ability to manage economic downturns.

Equity Ratio

A low equity ratio indicates vulnerability to financial instability, limiting the bank's capacity to absorb losses and affecting long-term resilience.

Margin Pressure

Decreasing margins may signal rising costs or competitive pressures, potentially affecting profitability and the bank's ability to sustain growth.

Miyazaki Bank Ltd. Business Overview & Revenue Model

Company Description

The Miyazaki Bank, Ltd. provides banking products and services to individual and corporate clients in Japan. It offers deposit, loan, domestic and foreign exchange, and other related services, as well as general retail banking and related financial services, such as leasing, credit guarantee, and credit card services. The company also invests in government and corporate bonds; and provides management consulting service. It operates through 72 branches. The company was founded in 1932 and is headquartered in Miyazaki, Japan.

How the Company Makes Money

Miyazaki Bank generates revenue through several key streams, primarily through interest income from loans and advances made to individuals and businesses. The bank charges interest on personal loans, corporate loans, and mortgages, which constitutes a significant portion of its earnings. Additionally, it earns revenue from fees related to account services, transaction fees, and commissions from financial products like insurance and investment services. The bank also invests in government and corporate bonds, which provide interest income. Strategic partnerships with local businesses and government entities further contribute to its revenue by facilitating lending and financial services tailored to the needs of the community.

Miyazaki Bank Ltd. Financial Statement Overview

Summary

Miyazaki Bank Ltd. exhibits strong revenue growth and stable profitability, supported by effective cash flow management. However, the high leverage on the balance sheet poses a potential risk. The bank's financial health is generally positive, with opportunities for improvement in leverage management and margin expansion.

Income Statement

Miyazaki Bank Ltd. has shown a strong revenue growth rate of 15.52% in the latest year, indicating robust top-line expansion. The net profit margin stands at 12.86%, reflecting solid profitability, although it has slightly decreased from the previous year. The EBIT margin is healthy at 15.35%, but there is room for improvement in EBITDA margin, which has decreased compared to prior years. Overall, the income statement reflects a positive growth trajectory with stable profitability.

Balance Sheet

The bank's debt-to-equity ratio is relatively high at 3.56, indicating significant leverage, which could pose risks in volatile markets. However, the return on equity is moderate at 5.16%, showing that the bank is generating reasonable returns on its equity base. The equity ratio is low, suggesting a heavy reliance on debt financing. While the balance sheet shows some strengths, the high leverage is a concern.

Cash Flow

Miyazaki Bank Ltd. has demonstrated strong free cash flow growth, with a significant increase in free cash flow. The operating cash flow to net income ratio is 0.25, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is high at 0.99, suggesting that the bank is effectively converting its earnings into cash. Despite past fluctuations, the cash flow statement shows a positive trend in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	60.60B	74.14B	63.37B	60.90B	58.85B	49.83B
Gross Profit	60.60B	57.87B	53.66B	57.82B	58.27B	49.13B
EBITDA	16.29B	16.78B	12.96B	14.63B	14.23B	14.75B
Net Income	10.30B	9.78B	7.09B	8.13B	7.47B	8.00B
Balance Sheet
Total Assets	4.10T	4.07T	4.11T	4.03T	4.24T	3.65T
Cash, Cash Equivalents and Short-Term Investments	0.00	828.46B	925.05B	1.02T	1.19T	720.68B
Total Debt	613.82B	379.01B	500.41B	602.30B	947.19B	517.26B
Total Liabilities	3.90T	3.88T	3.92T	3.86T	4.08T	3.50T
Stockholders Equity	196.69B	189.64B	189.85B	163.16B	159.13B	158.58B
Cash Flow
Free Cash Flow	0.00	79.98B	64.20B	-198.67B	485.93B	254.53B
Operating Cash Flow	0.00	80.68B	65.51B	-196.26B	487.69B	256.48B
Investing Cash Flow	0.00	30.54B	-134.71B	27.26B	-14.87B	-97.33B
Financing Cash Flow	0.00	3.97B	-22.57B	-1.90B	-1.73B	-1.99B

Miyazaki Bank Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6320.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8393, the sentiment is Positive. The current price of 6320 is above the 20-day moving average (MA) of 5993.00, above the 50-day MA of 5294.10, and above the 200-day MA of 4076.79, indicating a bullish trend. The MACD of 280.56 indicates Positive momentum. The RSI at 72.87 is Negative, neither overbought nor oversold. The STOCH value of 86.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8393.

Miyazaki Bank Ltd. 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%

Miyazaki Bank Ltd. Corporate Events

Miyazaki Bank Acquires Shares in Miyazaki Taiyo Bank to Stabilize Regional Finance

Miyazaki Bank, Ltd. announced its decision to acquire 297,100 common shares of Miyazaki Taiyo Bank, Ltd., representing 5.65% of total voting rights. This strategic move aims to stabilize the regional financial system by positioning Miyazaki Bank as a stable shareholder, potentially strengthening its influence and stability in the regional banking sector.

Miyazaki Bank Increases Dividend Forecast for FY 2026

The Miyazaki Bank, Ltd. announced a revision to its dividend forecast for the fiscal year ending March 31, 2026, increasing both interim and year-end dividends by ¥32.5 per share, resulting in an annual dividend of ¥180 per share. This decision reflects the bank’s strategy to enhance shareholder returns through profit growth and flexible share buybacks, signaling strong financial performance and a commitment to rewarding shareholders.

Miyazaki Bank Reports Strong Six-Month Financial Performance

Miyazaki Bank Ltd. reported a significant increase in its financial performance for the six months ending September 30, 2025, with ordinary income rising by 10.8% and profit attributable to owners of the parent increasing by 39.4%. This robust financial growth is reflected in the bank’s decision to revise its dividend forecast, indicating confidence in sustained profitability and a positive outlook for stakeholders.

Miyazaki Bank Revises Financial Forecasts Upward for 2025

The Miyazaki Bank, Ltd. has revised its financial forecasts for the six months ended September 30, 2025, showing an upward trend in both consolidated and non-consolidated financial results. This positive revision is attributed to higher-than-expected income from loans, securities, and service transactions, coupled with lower credit-related costs and expenses, indicating a strong financial performance for the bank.

Miyazaki Bank Completes Share Acquisition

The Miyazaki Bank announced the completion of its own share acquisition, which was initially resolved in May 2025. Despite planning to acquire up to 350,000 shares, the bank successfully acquired 232,400 shares, spending approximately ¥932.8 million. This move reflects the bank’s strategic efforts to manage its capital structure, potentially impacting shareholder value and market perception.