Bank of Saga Ltd. (8395) AI Stock Analysis

• Market Cap: ¥51.13B
• Dividend Yield: 2.76%
• Average Volume (3M): 68.06K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 1.01
• Revenue Growth: 5.00%
• EPS Growth: -10.64%
• Country: JP
• Employees: 1,294
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 73.53
• Shares Outstanding: 16,935,910
• 10 Day Avg. Volume: 61,870
• 30 Day Avg. Volume: 68,063
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥3,317.00
• Price Target Upside: 7.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: ¥3,317.00 ▲(7.52% 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. Business Overview & Revenue Model

Company Description

Bank 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 Money

Bank 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	50.83B	51.67B	47.87B	43.32B	40.03B	38.63B
Gross Profit	50.83B	50.83B	47.87B	43.32B	40.03B	38.63B
EBITDA	7.23B	10.54B	8.70B	8.41B	7.66B	4.93B
Net Income	7.50B	7.50B	6.22B	5.49B	4.08B	2.46B
Balance Sheet
Total Assets	3.18T	3.18T	3.16T	3.01T	3.16T	3.05T
Cash, Cash Equivalents and Short-Term Investments	270.96B	270.96B	201.84B	72.97B	301.83B	377.50B
Total Debt	45.20B	45.20B	57.33B	6.44B	160.03B	141.84B
Total Liabilities	3.06T	3.06T	3.04T	2.90T	3.05T	2.92T
Stockholders Equity	116.37B	116.37B	122.56B	108.76B	115.78B	126.41B
Cash Flow
Free Cash Flow	0.00	20.36B	-26.20B	-190.17B	-4.59B	230.85B
Operating Cash Flow	0.00	22.94B	-24.61B	-188.82B	-3.58B	232.20B
Investing Cash Flow	0.00	95.41B	14.54B	-43.72B	-67.45B	-67.86B
Financing Cash Flow	0.00	18.00B	143.86B	-1.18B	86.57B	324.17B

Bank of Saga Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3085.00
• 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:8395, the sentiment is Positive. The current price of 3085 is above the 20-day moving average (MA) of 2991.05, above the 50-day MA of 2824.90, and above the 200-day MA of 2338.07, indicating a bullish trend. The MACD of 73.28 indicates Positive momentum. The RSI at 66.53 is Neutral, neither overbought nor oversold. The STOCH value of 62.70 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8387	79 Outperform	¥60.55B	8.64	4.26%	3.39%	7.21%	-3.97%
8395	78 Outperform	¥51.13B	8.33	―	2.76%	5.00%	-10.64%
8541	77 Outperform	¥48.21B	8.30	4.22%	2.76%	-3.02%	7.28%
8362	73 Outperform	¥50.49B	8.43	5.24%	2.69%	10.04%	-16.66%
8344	72 Outperform	¥52.24B	12.19	3.25%	3.27%	-12.00%	28.81%
8550	54 Neutral	¥53.06B	-2.43	-14.74%	1.38%	3.90%	-935.77%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

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.