Miyazaki Bank Ltd. (8393) AI Stock Analysis

• Market Cap: ¥156.10B
• Dividend Yield: 2.29%
• Average Volume (3M): 36.97K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 1.12
• Revenue Growth: 13.93%
• EPS Growth: 54.44%
• Country: JP
• Employees: 1,424
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 216.48
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥10,789.00 ▲(52.39% Upside)
• Action: Reiterated Date: 01/16/26
• Date: Action: Reiterated 01/16/26

The score is driven primarily by solid financial performance (strong growth and cash conversion, tempered by high leverage). Technicals are supportive due to a strong uptrend and positive MACD, but very overbought readings add near-term risk. Valuation is a constructive offset with a low P/E and a moderate dividend yield.

Positive Factors

Revenue and Profitability

Sustained 15.5% revenue growth with double-digit net and EBIT margins indicates durable core earnings power. For a regional bank, consistent top-line expansion and healthy operating margins support loan growth, reinvestment in services, and ongoing ability to fund dividends over the medium term.

Cash Generation

Near-1.0 FCF-to-net-income conversion shows the bank effectively turns accounting profits into cash. Strong cash conversion improves resilience to credit cycles, funds balance-sheet needs, supports payouts or targeted buybacks, and gives management flexibility for selective investment or deleveraging.

Local franchise and diversified revenue

A diversified product mix (retail, corporate, mortgages, fees) and a regional franchise tied to local economic activity create steady deposit funding and cross-sell opportunities. This structural customer base supports predictable loan origination and fee income over multiple economic cycles.

Negative Factors

High leverage

A debt-to-equity ratio above 3.5 signals substantial leverage for a regional bank. High leverage magnifies earnings volatility, reduces capital cushion against loan losses, increases regulatory and refinancing risk, and constrains strategic flexibility in adverse macro environments.

Low equity ratio

Low equity relative to assets means less buffer to absorb credit deterioration or unexpected losses. Persistent low capitalization can force dilutive capital raises during stress, limit credit growth, and increase regulatory scrutiny, undermining long-term expansion plans.

Margin pressure signs

Erosion in net and EBITDA margins suggests pressure on spreads or rising operating costs. For a bank that relies on interest margin and fee mix, sustained margin compression would reduce internal capital generation, weaken returns on equity, and impair capacity to absorb higher credit costs.

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

Strong revenue growth (15.52%) and solid profitability (net margin 12.86%, EBIT margin 15.35%) support the score, and cash conversion is strong (FCF to net income 0.99). This is partially offset by balance-sheet risk from high leverage (debt-to-equity 3.56) and a low equity ratio.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: 7080.00
• 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 7080 is below the 20-day moving average (MA) of 9089.00, below the 50-day MA of 7862.40, and above the 200-day MA of 5194.55, indicating a bullish trend. The MACD of 475.96 indicates Positive momentum. The RSI at 69.49 is Neutral, neither overbought nor oversold. The STOCH value of 52.68 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	74 Outperform	¥97.38B	6.00	―	3.05%	8.75%	-12.68%
8393	72 Outperform	¥156.10B	13.56	―	2.29%	13.93%	54.44%
8399	69 Neutral	¥100.49B	11.42	―	2.46%	9.12%	43.43%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8344	67 Neutral	¥81.51B	16.93	―	2.89%	-0.24%	95.49%
8392	67 Neutral	¥150.12B	18.48	3.68%	2.26%	9.34%	20.61%
8343	63 Neutral	¥95.37B	11.60	―	3.35%	15.96%	81.27%

Miyazaki Bank Ltd. Corporate Events

Miyazaki Bank Announces Five-for-One Share Split and Boosts Share Authorization

The Miyazaki Bank, Ltd. will conduct a five-for-one split of its common shares, aiming to reduce the per-unit investment price and make its stock more accessible to a wider range of shareholders and investors. The move is intended to enhance liquidity and broaden the investor base, with the record date set for March 31, 2026 and the effective date on April 1, 2026.

Following the split, the total number of issued shares will rise from 17,133,400 to 85,667,000, and the total number of authorized shares will increase to 148,550,000 through a concurrent amendment of the Articles of Incorporation. While the share capital amount will remain unchanged, the bank has separately revised its year-end dividend forecast for the fiscal year ending March 31, 2026 upward, signaling a shareholder-friendly stance alongside the capital market measures.

The most recent analyst rating on (JP:8393) stock is a Buy with a Yen9935.00 price target. To see the full list of analyst forecasts on Miyazaki Bank Ltd. stock, see the JP:8393 Stock Forecast page.

Miyazaki Bank Lifts Full-Year Profit Outlook and Hikes Dividend

The Miyazaki Bank has revised upward its full-year earnings forecasts for the fiscal year ending March 31, 2026, reflecting stronger-than-expected performance through the third quarter and favorable operating trends. Consolidated ordinary revenues are now projected at ¥89.2 billion and profit attributable to owners of parent at ¥13.6 billion, both rising versus the previous forecast and marking a solid increase over the prior fiscal year.

On a non-consolidated basis, the bank also lifted its outlook, with ordinary revenues forecast at ¥83.0 billion and net income at ¥13.2 billion, implying double-digit growth in earnings per share compared with the earlier guidance. In line with the improved outlook, the bank plans to raise its year-end dividend from ¥90 to ¥110 per share, bringing the expected annual dividend to ¥200 and signaling a more shareholder-friendly capital allocation stance supported by its earnings momentum.

The most recent analyst rating on (JP:8393) stock is a Buy with a Yen9935.00 price target. To see the full list of analyst forecasts on Miyazaki Bank Ltd. stock, see the JP:8393 Stock Forecast page.

Miyazaki Bank Lifts Profit Outlook and Dividend on Strong Nine-Month Results

Miyazaki Bank reported solid performance for the nine months ended December 31, 2025, with ordinary income rising 11.6% year on year to ¥66.7 billion and ordinary profit up 27.2% to ¥14.7 billion, while profit attributable to owners of the parent climbed 28.6% to ¥10.4 billion. Total assets expanded to ¥4.12 trillion and the equity-to-asset ratio improved to 5.2%, signaling a stronger balance sheet and higher profitability as earnings per share increased to ¥616.85.

The bank raised its annual dividend forecast for the fiscal year ending March 31, 2026, to a total of ¥200 per share, up from ¥110 in the previous year, reflecting management’s confidence in sustained earnings growth. It also upgraded its full-year outlook, projecting ordinary income of ¥89.2 billion and profit attributable to owners of the parent of ¥13.6 billion, indicating a continued focus on shareholder returns and capital reinforcement through stronger retained earnings.

The most recent analyst rating on (JP:8393) stock is a Buy with a Yen9935.00 price target. To see the full list of analyst forecasts on Miyazaki Bank Ltd. stock, see the JP:8393 Stock Forecast page.