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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)

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Neutral 65 (OpenAI - 5.2)
Rating:65Neutral
Price Target:
¥6,257.00
▲(45.51% Upside)
Action:Reiterated
Date:05/14/26
Overall score is driven by strong earnings momentum and a much-improved balance sheet, supported by attractive valuation. The main offset is highly volatile cash flow (including negative free cash flow in 2026), while technicals are neutral with a constructive longer-term trend but weaker near-term positioning.
Positive Factors
Improved balance sheet and lower leverage
The marked decline in debt-to-equity to ~0.27x and rising equity provide durable financial resilience. A stronger capital base improves regulatory buffers, supports lending capacity, reduces refinancing risk, and gives management more flexibility for credit stress or strategic investments over months.
Negative Factors
Highly volatile and often negative cash flow
Large swings and periodic negative operating and free cash flow weaken the reliability of reported earnings. Inconsistent cash generation reduces funding flexibility, can force external financing or asset sales, and undermines confidence in dividend durability and capital allocation over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved balance sheet and lower leverage
The marked decline in debt-to-equity to ~0.27x and rising equity provide durable financial resilience. A stronger capital base improves regulatory buffers, supports lending capacity, reduces refinancing risk, and gives management more flexibility for credit stress or strategic investments over months.
Read all positive factors

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

Bank of Saga Ltd. Business Overview & Revenue Model

Company Description
The Bank of Saga Ltd. provides a diverse range of banking products and financial services across Japan. Its offerings encompass a variety of deposit accounts, including current, savings, ordinary, notification, time, segregated, tax reserve, non-r...
How the Company Makes Money
Bank of Saga Ltd. generates earnings mainly through traditional banking intermediation and related fee businesses. 1) Net interest income (core source): The bank collects deposits (e.g., ordinary and time deposits) and funds itself via other sour...

Bank of Saga Ltd. Financial Statement Overview

Summary
Income statement is solid (revenue and net income growth, healthy profitability) and leverage has improved materially, but the cash flow profile is a major weakness due to large swings and negative free cash flow in 2026 despite strong earnings.
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
38
Negative
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue70.20B51.67B47.57B44.47B40.69B
Gross Profit60.66B47.91B44.30B42.01B40.30B
EBITDA13.55B11.71B8.70B8.41B7.66B
Net Income8.59B7.50B6.22B5.49B4.08B
Balance Sheet
Total Assets3.22T3.18T3.16T3.01T3.16T
Cash, Cash Equivalents and Short-Term Investments280.15B270.96B201.84B72.97B301.83B
Total Debt34.05B45.20B110.51B74.77B208.39B
Total Liabilities3.09T3.06T3.04T2.90T3.05T
Stockholders Equity126.50B116.37B122.56B108.76B115.78B
Cash Flow
Free Cash Flow-1.18B20.36B-26.20B-190.17B-4.59B
Operating Cash Flow2.37B22.94B-24.61B-188.82B-3.58B
Investing Cash Flow-16.11B95.41B14.54B-43.72B-67.45B
Financing Cash Flow22.00B18.00B143.86B-1.18B86.57B

Bank of Saga Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4300.00
Price Trends
50DMA
5454.60
Positive
100DMA
5249.90
Positive
200DMA
4608.90
Positive
Market Momentum
MACD
54.08
Positive
RSI
56.37
Neutral
STOCH
45.50
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 4300 is below the 20-day moving average (MA) of 5680.00, below the 50-day MA of 5454.60, and below the 200-day MA of 4608.90, indicating a bullish trend. The MACD of 54.08 indicates Positive momentum. The RSI at 56.37 is Neutral, neither overbought nor oversold. The STOCH value of 45.50 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 (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
¥136.88B7.973.05%24.77%156.11%
69
Neutral
¥108.66B15.062.34%3.68%26.05%
68
Neutral
¥133.01B15.632.49%12.95%16.68%
67
Neutral
¥129.90B14.593.35%28.83%38.45%
65
Neutral
¥92.82B11.022.29%11.72%14.29%
64
Neutral
¥114.99B17.992.89%23.58%50.21%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8395
Bank of Saga Ltd.
5,800.00
3,243.71
126.89%
JP:8343
Akita Bank, Ltd.
7,510.00
4,296.96
133.73%
JP:8344
Yamagata Bank, Ltd.
4,025.00
2,559.01
174.56%
JP:8362
Fukui Bank, Ltd.
5,850.00
3,998.71
216.00%
JP:8387
Shikoku Bank Ltd.
3,450.00
2,215.99
179.58%
JP:8541
Ehime Bank, Ltd.
2,725.00
1,649.80
153.44%

Bank of Saga Ltd. Corporate Events

Bank of Saga Completes Modest Share Buyback to Fulfill Board-Approved Program
Jun 17, 2026
The Bank of Saga Ltd. has completed a small-scale share buyback, acquiring 700 common shares for a total of 3,829,000 yen via market purchases on the Tokyo Stock Exchange. This transaction fulfills a Board-approved program authorizing up to 1,000 ...
Bank of Saga to Buy Back Limited Treasury Shares for Stock Option Plans
Jun 16, 2026
The Bank of Saga Ltd. has authorized the acquisition of up to 1,000 of its common shares, representing about 0.006% of its issued shares, for a maximum of ¥6 million through market purchases on the Tokyo Stock Exchange between June 17 and Jun...
Bank of Saga Announces Leadership Transition in Top Management
May 12, 2026
The Bank of Saga Ltd. has announced a leadership change following a resolution by its board of directors on May 12, 2026, reflecting routine succession in its top management. The move underscores the bank’s ongoing efforts to refresh its gov...
Bank of Saga to Replace Stock Options with Share-Based Director Pay Plan
May 12, 2026
The Bank of Saga is overhauling its director compensation framework by abolishing its existing share-based stock option system, subject to shareholder approval at the June 26, 2026 annual meeting, and cancelling unexercised stock options previousl...
Bank of Saga lifts profits and dividend as assets grow, eyes further earnings gains
May 12, 2026
The Bank of Saga reported a strong fiscal year to March 31, 2026, with ordinary income up 30.0% to ¥71.8 billion and profit attributable to owners of the parent rising 14.5% to ¥8.6 billion, lifting ROE to 7.0% and expanding net assets a...
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: May 14, 2026