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Bank of Saga Ltd. (JP:8395)
:8395
Japanese Market
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Bank of Saga Ltd. (8395) AI Stock Analysis

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JP:8395

Bank of Saga Ltd.

(8395)

Rating:78Outperform
Price Target:
¥3,317.00
▲(12.36% Upside)
The overall stock score is driven by strong technical indicators and attractive valuation, suggesting bullish momentum and potential undervaluation. Financial performance is solid but highlights areas for improvement in revenue growth and cash flow stability.

Bank of Saga Ltd. (8395) vs. iShares MSCI Japan ETF (EWJ)

Bank of Saga Ltd. Business Overview & Revenue Model

Company DescriptionBank of Saga Ltd. (8395) is a financial institution based in Japan, primarily operating in the banking sector. The bank offers a range of services including retail banking, corporate banking, and investment services. Its core products include savings and checking accounts, loans, credit cards, and wealth management services aimed at both individual and business clients. The bank is known for its customer-centric approach and innovative financial solutions tailored to meet the needs of its diverse clientele.
How the Company Makes MoneyBank of Saga Ltd. generates revenue primarily through the interest earned on loans provided to individuals and businesses. This interest income is a key revenue stream, as the bank charges higher interest rates on loans compared to the interest it pays on deposits. Additionally, the bank earns fees from various services, including account maintenance, transaction processing, and financial advisory services. Investment income from securities and other financial instruments also contributes to the bank's earnings. Strategic partnerships with local businesses and community organizations enhance its service offerings and customer base, further bolstering its revenue potential.

Bank of Saga Ltd. Financial Statement Overview

Summary
Bank of Saga Ltd. demonstrates strong profitability and a solid capital structure, with improvements in leverage and cash flow generation. However, challenges in revenue growth and historical cash flow volatility highlight areas for potential improvement.
Income Statement
75
Positive
The income statement shows a stable net profit margin of around 13.8% in 2025, with a slight decline in revenue growth rate compared to previous years. EBIT and EBITDA margins are healthy, indicating efficient operations. However, the negative revenue growth rate in 2025 suggests potential challenges in revenue generation.
Balance Sheet
70
Positive
The balance sheet reflects a strong equity position with a debt-to-equity ratio improving to 0.39 in 2025 from higher levels in previous years. Return on equity is moderate at 6.44%, indicating decent profitability. The equity ratio is stable, suggesting a solid capital structure, but the historical high leverage in 2022 poses a risk.
Cash Flow
65
Positive
Cash flow analysis shows a positive trend in free cash flow growth, with a significant improvement in 2025. The operating cash flow to net income ratio is stable, but historical volatility in cash flows, particularly in 2023, indicates potential liquidity management challenges.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue50.83B51.67B47.87B43.32B40.03B38.63B
Gross Profit50.83B50.83B47.87B43.32B40.03B38.63B
EBITDA7.23B10.54B8.70B8.41B7.66B4.93B
Net Income7.50B7.50B6.22B5.49B4.08B2.46B
Balance Sheet
Total Assets3.18T3.18T3.16T3.01T3.16T3.05T
Cash, Cash Equivalents and Short-Term Investments270.96B270.96B201.84B72.97B301.83B377.50B
Total Debt45.20B45.20B57.33B6.44B160.03B141.84B
Total Liabilities3.06T3.06T3.04T2.90T3.05T2.92T
Stockholders Equity116.37B116.37B122.56B108.76B115.78B126.41B
Cash Flow
Free Cash Flow0.0020.36B-26.20B-190.17B-4.59B230.85B
Operating Cash Flow0.0022.94B-24.61B-188.82B-3.58B232.20B
Investing Cash Flow0.0095.41B14.54B-43.72B-67.45B-67.86B
Financing Cash Flow0.0018.00B143.86B-1.18B86.57B324.17B

Bank of Saga Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2952.00
Price Trends
50DMA
2659.86
Positive
100DMA
2408.39
Positive
200DMA
2281.12
Positive
Market Momentum
MACD
83.03
Positive
RSI
66.71
Neutral
STOCH
73.75
Neutral
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 2952 is above the 20-day moving average (MA) of 2845.05, above the 50-day MA of 2659.86, and above the 200-day MA of 2281.12, indicating a bullish trend. The MACD of 83.03 indicates Positive momentum. The RSI at 66.71 is Neutral, neither overbought nor oversold. The STOCH value of 73.75 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥59.11B8.43
3.10%7.21%-3.97%
78
Outperform
¥48.83B7.95
2.72%5.00%-10.64%
77
Outperform
¥47.86B8.24
2.78%-3.02%7.28%
73
Outperform
¥47.04B7.86
2.89%10.04%-16.66%
72
Outperform
¥49.41B11.53
2.80%-12.00%28.81%
68
Neutral
$17.80B11.949.89%3.74%9.69%1.17%
54
Neutral
¥50.66B7.44
1.45%3.90%-935.77%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8395
Bank of Saga Ltd.
2,952.00
950.05
47.46%
JP:8344
Yamagata Bank, Ltd.
1,640.00
636.00
63.35%
JP:8362
Fukui Bank, Ltd.
2,005.00
200.70
11.12%
JP:8387
Shikoku Bank Ltd.
1,450.00
506.09
53.62%
JP:8541
Ehime Bank, Ltd.
1,225.00
80.86
7.07%
JP:8550
Tochigi Bank, Ltd.
483.00
226.11
88.02%

Bank of Saga Ltd. Corporate Events

Bank of Saga Ltd. Increases Year-End Dividend Forecast
Apr 22, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 29, 2025