Bank of Saga Ltd. (8395) AI Stock Analysis

• Market Cap: ¥62.65B
• Dividend Yield: 2.38%
• Average Volume (3M): 54.99K
• Price to Earnings (P/E): 7.8
• Beta (1Y): 1.02
• Revenue Growth: 7.97%
• EPS Growth: 20.44%
• Country: JP
• Employees: 1,294
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 223.69
• Shares Outstanding: 16,935,910
• 10 Day Avg. Volume: 40,980
• 30 Day Avg. Volume: 54,986
• PEG Ratio: 0.26
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.75
• P/FCF Ratio: 1.91
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: ¥4,047.00 ▲(7.06% Upside)

The overall stock score of 78 reflects strong technical momentum and attractive valuation, despite some challenges in revenue growth and historical cash flow volatility. The company's solid financial performance and undervaluation make it a compelling investment opportunity in the regional banking sector.

Positive Factors

Profitability

Strong profitability indicates effective cost management and pricing strategies, supporting long-term financial health and shareholder value.

Cash Flow Generation

Improving cash flow generation enhances liquidity and provides flexibility for investments and debt reduction, supporting sustainable growth.

Capital Structure

A lower debt-to-equity ratio indicates reduced leverage, enhancing financial stability and reducing risk in economic downturns.

Negative Factors

Revenue Growth Challenges

Declining revenue growth can limit expansion opportunities and affect competitive positioning, necessitating strategic adjustments.

Cash Flow Volatility

Volatile cash flows can complicate liquidity management and hinder the ability to fund operations and strategic initiatives consistently.

Leverage Risk

Past high leverage levels may indicate potential risk exposure, requiring careful debt management to avoid financial strain.

Bank of Saga Ltd. Business Overview & Revenue Model

Company Description

Bank of Saga Ltd. (8395) is a financial institution based in Japan, specializing in retail banking services. The bank offers a wide range of products including savings accounts, personal loans, mortgages, and investment services. It primarily serves individual consumers and small to medium-sized enterprises, focusing on providing tailored financial solutions to meet the diverse needs of its clientele. The bank operates within the broader financial services sector, leveraging technology to enhance its service delivery and customer experience.

How the Company Makes Money

Bank of Saga Ltd. generates revenue primarily through the interest income earned from lending activities, which includes personal loans, mortgages, and business loans. The bank charges interest on these loans, which constitutes a significant portion of its income. Additionally, the bank earns fee-based income from various services such as account maintenance fees, transaction fees, and advisory services. Investment income from securities and other financial instruments also contributes to its revenue. The bank may also engage in partnerships with local businesses and financial institutions to expand its service offerings and customer base, thereby enhancing its overall earnings 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	48.58B	51.67B	47.57B	44.47B	40.69B	37.78B
Gross Profit	48.58B	47.91B	44.30B	42.01B	40.30B	37.34B
EBITDA	7.80B	11.71B	8.70B	8.41B	7.66B	4.93B
Net Income	6.26B	7.50B	6.22B	5.49B	4.08B	2.46B
Balance Sheet
Total Assets	3.26T	3.18T	3.16T	3.01T	3.16T	3.05T
Cash, Cash Equivalents and Short-Term Investments	0.00	270.96B	201.84B	72.97B	301.83B	377.50B
Total Debt	42.38B	45.20B	57.33B	72.13B	208.39B	168.55B
Total Liabilities	3.14T	3.06T	3.04T	2.90T	3.05T	2.92T
Stockholders Equity	119.52B	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	6.54B
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: 3780.00
• 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 3780 is above the 20-day moving average (MA) of 3585.50, above the 50-day MA of 3339.96, and above the 200-day MA of 2620.96, indicating a bullish trend. The MACD of 140.33 indicates Negative momentum. The RSI at 64.35 is Neutral, neither overbought nor oversold. The STOCH value of 85.04 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	78 Outperform	¥62.65B	7.78	―	2.38%	7.97%	20.44%
8387	78 Outperform	¥68.77B	10.65	―	3.17%	8.75%	-12.68%
8541	78 Outperform	¥54.43B	8.83	―	2.43%	-0.97%	27.62%
8344	74 Outperform	¥57.06B	11.67	―	2.99%	-0.24%	95.49%
8362	73 Outperform	¥56.04B	13.89	―	2.61%	7.08%	-46.44%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8550	56 Neutral	¥74.06B	-3.73	―	2.14%	10.91%	-1225.48%

Bank of Saga Ltd. Corporate Events

Bank of Saga Announces Increased Interim Dividend

The Bank of Saga Ltd. announced an interim dividend of 50 yen per share, an increase from the previous year’s 40 yen, with a total dividend payout of 845 million yen. This decision reflects the bank’s strong financial performance and commitment to returning value to shareholders, potentially enhancing its market position.

Bank of Saga Ltd. Reports Positive Financial Growth for H1 2025

The Bank of Saga Ltd. reported its consolidated financial results for the six months ending September 30, 2025, showing a year-on-year increase in ordinary income and profit attributable to owners of the parent. The bank’s total assets and net assets also saw growth, indicating a stable financial position. The dividend forecast remains unchanged, reflecting confidence in future performance.

Bank of Saga Ltd. Increases Dividend Forecast for FY 2026

The Bank of Saga Ltd. announced a revision to its dividend forecasts for the fiscal year ending March 31, 2026, increasing the annual dividend by ¥10 to ¥100 per share. This decision reflects the bank’s strategy to ensure stable dividends while considering internal reserves and performance progress, indicating a positive outlook for stakeholders.