Miyazaki Bank Ltd. (8393) AI Stock Analysis

• Market Cap: ¥76.54B
• Dividend Yield: 2.49%
• Average Volume (3M): 36.97K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 0.97
• Revenue Growth: 14.57%
• EPS Growth: 45.13%
• Country: JP
• Employees: 1,424
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 210.56
• 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: ¥5,051.00
• Price Target Upside: 10.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: ¥5,051.00 ▲(10.53% Upside)

Miyazaki Bank Ltd. scores well due to its strong financial performance, particularly in revenue growth and cash flow management, despite high leverage concerns. The technical analysis indicates a bullish trend, supported by positive momentum indicators. The stock's valuation is compelling, with a low P/E ratio and a decent dividend yield, making it an attractive investment opportunity.

Miyazaki Bank Ltd. Business Overview & Revenue Model

Company Description

Miyazaki Bank Ltd. (8393) is a regional financial institution based in Miyazaki Prefecture, Japan. The bank primarily operates in the sectors of retail and commercial banking, providing a wide range of financial services, including personal banking, corporate loans, deposit accounts, and investment products. With a focus on serving the local community, Miyazaki Bank aims to support regional economic development through tailored financial solutions and customer-centric services.

How the Company Makes Money

Miyazaki Bank generates revenue primarily through interest income from loans provided to individuals, businesses, and government entities. The bank charges interest on various loan products, including mortgages, personal loans, and business financing, which constitutes a significant portion of its earnings. Additionally, the bank earns money from service fees associated with deposit accounts, transaction services, and wealth management offerings. Investment income from securities and other financial instruments also contributes to the bank's revenue. Important partnerships with local businesses and government entities facilitate the bank's lending activities, while its emphasis on customer service and community engagement helps to maintain a loyal customer base, enhancing its overall profitability.

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	59.05B	54.59B	57.82B	53.57B	49.13B
EBITDA	16.29B	16.78B	12.96B	14.63B	14.23B	11.33B
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	676.05B	726.71B	602.30B	1.07T	655.50B
Total Liabilities	3.90T	3.88T	3.92T	3.86T	4.08T	3.50T
Stockholders Equity	196.69B	189.64B	189.85B	163.09B	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: 4570.00
• 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:8393, the sentiment is Positive. The current price of 4570 is above the 20-day moving average (MA) of 4446.03, above the 50-day MA of 4366.53, and above the 200-day MA of 3557.61, indicating a bullish trend. The MACD of 28.64 indicates Positive momentum. The RSI at 58.08 is Neutral, neither overbought nor oversold. The STOCH value of 77.31 is Neutral, 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	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%