Bank of Saga Ltd. (8395) AI Stock Analysis

• Market Cap: ¥37.67B
• Dividend Yield: 3.52%
• Average Volume (3M): 57.89K
• Price to Earnings (P/E): 5.1
• Beta (1Y): 1.00
• Revenue Growth: 12.46%
• EPS Growth: 94.62%
• Country: JP
• Employees: 1,294
• Sector: Financial
• Sector Strength: 74
• Industry: Banks - Regional
• EPS (TTM): 78.75
• Shares Outstanding: 16,935,910
• 10 Day Avg. Volume: 38,230
• 30 Day Avg. Volume: 57,890
• PEG Ratio: 0.14
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.14
• 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

• Rating: 72 Outperform
• Price Target: ―

Bank of Saga Ltd. demonstrates a stable financial performance with strong revenue growth and effective cost management, though cash flow inconsistencies pose a risk. The technical analysis suggests neutral to positive momentum, despite prices being below key moving averages. Valuation is a strong point with a low P/E ratio and solid dividend yield, indicating potential undervaluation. The overall score reflects a generally positive outlook with some areas needing attention.

Bank of Saga Ltd. Business Overview & Revenue Model

Company Description

The Bank of Saga Ltd. provides various banking products and services in Japan. The company offers checking accounts, savings accounts, ordinary deposits, notification deposits, time deposits, separate deposits, tax reserve deposits, non-resident yen deposits, foreign currency deposits, etc.; and mortgage, auto, education, and card loans, as well as discount bolls. It also invests in government bonds, municipal bonds, corporate bonds, stocks, and other securities to prepare and fund deposits; offers remittances, transfers, and collections; and provides export, import, and other foreign exchange services, as well as engages in bond contracting and registration, and financial futures trading businesses. In addition, the company is involved in protection and safe deposit box, securities lending, debt guarantee, public bonds underwriting, public bonds sales, card, commercial paper, defined contribution pension, and life insurance agency businesses. As of March 31, 2021, it operated through a network of 103 branches and 78 out-of-brach ATMs. The company was founded in 1882 and is headquartered in Saga, Japan.

How the Company Makes Money

Bank of Saga Ltd. generates revenue primarily through interest income from loans and advances to customers, which is a significant component of its earnings. The bank also earns money from fees and commissions charged for various financial services, such as account maintenance, transaction services, and advisory services. Additionally, it earns income from investment activities, including securities trading and portfolio management. Partnerships with local businesses and institutions help broaden its customer base and enhance revenue through collaborative financial products and services.

Bank of Saga Ltd. Financial Statement Overview

Summary

Bank of Saga Ltd. shows strong revenue growth and effective cost management, reflected in a solid income statement score. The balance sheet indicates prudent leverage, typical for regional banks, but the cash flow statement highlights potential liquidity challenges with inconsistent cash flows. Overall, the company's financial health is stable, with areas for improvement in profitability and cash flow management.

Income Statement

The income statement shows steady growth with a solid revenue growth rate of 22.13% from the previous year. The TTM gross profit margin is strong at 95.52%, indicating effective cost management. However, the net profit margin for the TTM is relatively modest at 14.81%, suggesting room for improvement in profitability. The EBIT margin is robust at 51.50%, while the TTM EBITDA margin seems low, likely due to incomplete data. Overall, the company demonstrates a strong revenue trajectory with stable profitability metrics.

Balance Sheet

The balance sheet reflects a healthy financial position with a low debt-to-equity ratio of 0.38, indicating conservative leverage. The return on equity (ROE) is 6.49%, which suggests a moderate return to shareholders. The equity ratio of 3.87% highlights a low reliance on equity financing, typical for regional banks. While the company maintains a strong asset base, the low equity ratio may pose a risk during financial downturns.

Cash Flow

Cash flow analysis reveals challenges, with zero operating and free cash flows for the TTM period. Historically, the company has experienced fluctuations in operating cash flows, with significant negative cash flows in recent years. This inconsistency may affect the company's ability to manage liquidity and support growth initiatives. The absence of free cash flow growth further underscores potential cash management issues.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
52.43B	54.15B	46.29B	42.01B	40.30B	37.34B
	Gross Profit
50.08B	0.00	46.29B	42.01B	40.30B	37.34B
	EBIT
27.01B	10.54B	7.69B	6.73B	5.68B	2.85B
	EBITDA
6.40B	10.54B	8.70B	8.41B	7.66B	4.93B
	Net Income Common Stockholders
7.76B	7.50B	6.22B	5.49B	4.08B	2.46B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
170.82B	0.00	201.84B	72.97B	301.83B	377.50B
	Total Assets
3.10T	3.18T	3.16T	3.01T	3.16T	3.05T
	Total Debt
45.47B	45.20B	57.33B	6.44B	160.03B	141.84B
	Net Debt
-125.34B	45.20B	-195.27B	-66.53B	-141.81B	-235.65B
	Total Liabilities
2.98T	3.06T	3.04T	72.13B	3.05T	2.92T
	Stockholders Equity
119.72B	116.37B	122.56B	108.76B	115.78B	126.41B
Cash Flow		Free Cash Flow
0.00	20.36B	-27.01B	-190.17B	-3.15B	230.85B
	Operating Cash Flow
0.00	22.94B	-24.61B	-188.82B	-3.58B	232.20B
	Investing Cash Flow
0.00	32.59B	14.54B	-43.72B	-67.45B	-67.86B
	Financing Cash Flow
0.00	5.87B	143.86B	-1.18B	-1.18B	324.17B

Bank of Saga Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2273.00
• 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:8395, the sentiment is Positive. The current price of 2273 is above the 20-day moving average (MA) of 2220.25, above the 50-day MA of 2116.08, and above the 200-day MA of 2135.09, indicating a bullish trend. The MACD of 38.27 indicates Negative momentum. The RSI at 67.82 is Neutral, neither overbought nor oversold. The STOCH value of 89.79 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8395.

Bank of Saga Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8395	72 Outperform	¥37.67B	5.12		3.52%	12.46%	94.62%
8362	72 Outperform	¥41.92B	5.79		3.69%	3.71%	145.88%
8387	66 Neutral	¥45.96B	6.85		4.47%	-11.64%	8.31%
Sector *	64 Neutral	$12.77B	9.78	7.84%	78.83%	12.06%	-7.99%
8550	61 Neutral	¥41.36B	7.44		1.77%	-4.70%	670.89%
8541	60 Neutral	¥39.27B	6.86		3.38%	1.51%	7.90%
8344	52 Neutral	¥45.66B	10.75		3.70%	-16.07%	43.79%

Bank of Saga Ltd. Corporate Events

Bank of Saga Ltd. Increases Year-End Dividend Forecast

The Bank of Saga Ltd. has announced a revision to its year-end dividend forecast for the fiscal year ended March 31, 2025. The bank has increased the year-end dividend to ¥50 per share, raising the total annual dividend to ¥90 per share, in response to favorable business results and to reward shareholder support.