Miyazaki Bank Ltd. (8393) AI Stock Analysis

• Market Cap: ¥150.74B
• Dividend Yield: 2.29%
• Average Volume (3M): 36.97K
• Price to Earnings (P/E): 7.5
• Beta (1Y): 1.11
• 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): 0.72
• 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: ¥9,990.00 ▲(41.10% 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 growth

Sustained 15.52% revenue growth signals durable demand for core lending and fee services in the bank's market. Over 2–6 months this supports higher core earnings, better ability to fund branch operations and digital initiatives, and creates runway for cross-sell and fee expansion.

Cash conversion

Near-1.0 FCF-to-net-income indicates the bank effectively converts accounting earnings into cash. Strong cash conversion sustains dividend capacity, funds loan growth without equity raises, and provides buffers for provisions or reinvestment in technology and branches over a medium-term horizon.

Regional relationship banking model

A focused regional model with SME and local government clients yields sticky deposits, deep customer relationships and cross-sell opportunities. This structural positioning supports predictable deposit funding and stable fee income, enhancing long-term franchise resilience.

Negative Factors

High leverage

Elevated leverage raises sensitivity to credit deterioration or funding stress and reduces capital flexibility. Over several months, high debt reliance can constrain lending growth, amplify provisioning impacts, and force tighter capital management under adverse macro or regulatory scenarios.

Modest return on equity

ROE near 5% is modest relative to the bank's leverage, indicating limited profitability per unit of equity. Persistently low ROE can pressure retained earnings accumulation, limit organic capital build-up, and reduce strategic flexibility for M&A or investment without dilutive capital actions.

Geographic concentration risk

Concentration in a single prefecture exposes earnings to local economic cycles, sectoral shocks and demographic trends. This structural exposure can cap diversification and make long-term growth and credit quality more correlated with regional performance than broader national trends.

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’s earnings are primarily driven by its banking intermediation and fee-based services. (1) Net interest income: The bank collects interest on loans and other interest-earning assets and pays interest on deposits and other funding; the spread (net interest margin) is a core profit driver. Loan categories that generally contribute include corporate lending to local businesses, residential mortgages, and consumer finance, while interest-bearing securities and interbank placements can also contribute interest income depending on its asset allocation. (2) Fee and commission income: The bank generates non-interest revenue from services such as remittances and payment/settlement services, account-related fees, underwriting/arrangement or advisory services associated with financing, and distribution of financial products (e.g., investment trusts and insurance) where it earns sales commissions and/or ongoing trailer fees. (3) Trading and investment-related income: Income can arise from securities portfolio activities (e.g., gains/losses on bonds or equities, dividends, and realized capital gains), though the size and volatility depend on portfolio composition and market conditions. (4) Other operating income: This may include leasing or credit-related services and other ancillary operations if conducted within the group; specific breakdowns are not available here. Profitability is influenced by factors such as local credit demand, credit costs (loan-loss provisions), interest rate conditions in Japan, and the bank’s ability to grow fee businesses and manage its securities portfolio risks. Information on specific major partnerships contributing to earnings is null.

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	77.13B	78.32B	67.09B	62.00B	58.36B	53.77B
Gross Profit	59.96B	58.76B	54.46B	56.16B	53.08B	51.41B
EBITDA	14.80B	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 9089.50, below the 50-day MA of 8551.60, and above the 200-day MA of 5594.87, indicating a neutral trend. The MACD of 73.33 indicates Positive momentum. The RSI at 51.69 is Neutral, neither overbought nor oversold. The STOCH value of 61.65 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
8393	72 Outperform	¥150.74B	7.55	―	2.29%	13.93%	54.44%
8392	72 Outperform	¥145.40B	8.04	3.68%	2.26%	9.34%	20.61%
8399	69 Neutral	¥96.55B	6.66	―	2.46%	9.12%	43.43%
8395	68 Neutral	¥78.40B	7.94	―	2.29%	7.97%	20.44%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8354	66 Neutral	$1.17T	8.94	8.24%	3.06%	12.77%	9.22%
7180	66 Neutral	¥509.13B	10.79	5.53%	2.02%	12.96%	44.62%

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.