Bank Of The Ryukyus,Limited (8399) AI Stock Analysis

• Market Cap: ¥104.05B
• Dividend Yield: 2.46%
• Average Volume (3M): 142.27K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 1.18
• Revenue Growth: 9.12%
• EPS Growth: 43.43%
• Country: JP
• Employees: 1,772
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 69.48
• Shares Outstanding: 43,108,470
• 10 Day Avg. Volume: 123,030
• 30 Day Avg. Volume: 142,269
• PEG Ratio: 3.18
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 0.76
• P/FCF Ratio: 2.99
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥2,492.00 ▲(24.04% Upside)
• Action: Downgraded Date: 01/24/26
• Date: Action: Downgraded 01/24/26

The score is primarily driven by stable but mixed financial performance (solid balance sheet and cost control offset by weakening profitability, inconsistent revenue, and volatile cash flows). Technicals are bullish with strong trend alignment, but overbought indicators raise near-term risk. Valuation is reasonable with a moderate dividend yield.

Positive Factors

Strong capital base

A low debt-to-equity ratio and healthy equity ratio indicate regulatory resilience and funding flexibility. This durable capital strength supports sustained lending capacity, cushions against credit shocks, and enables measured expansion or provisioning without immediate external capital needs.

Efficient cost management

A strong gross margin reflects enduring operational efficiency, which helps absorb pressure on net interest margins or fee income. Sustained cost discipline supports long-term profitability, funds strategic investments, and enhances competitive pricing flexibility in the regional banking market.

Solid operating cash generation

Robust operating cash conversion provides durable liquidity and lowers reliance on wholesale funding. Consistent cash generation supports loan book growth, underwriting capacity, and the ability to fund dividends or capital expenditures without recurring external financing.

Negative Factors

Declining profitability

A persistent decline in net margins erodes return on equity and internal capital formation. Over months, weaker profitability limits the bank's ability to build buffers against credit losses, invest in technology or branches, and may force trade-offs between growth and capital preservation.

Inconsistent revenue trends

Variable revenue undermines predictable earnings and strategic planning. For a regional bank, inconsistent top-line performance weakens scale economics, complicates credit pricing and product expansion, and increases sensitivity to local economic cycles over the medium term.

Volatile free cash flow conversion

Irregular free cash flow conversion constrains capital allocation and raises financing risk. Over a multi-month horizon, volatile FCF can limit dividends, slow strategic investments, and force reliance on external funding during downturns, reducing operational resilience.

Bank Of The Ryukyus,Limited Business Overview & Revenue Model

Company Description

Bank of The Ryukyus, Limited provides various banking products and services in Japan. The company offers savings, time, and property deposits; loan products, including housing, apartment, car, education, card, and corporate loans; reverse mortgages; and insurance products, such as individual, annuity, whole life, medical, long-term, term life, fire, pet, and cancer insurance. It also engages in the provision of investment trust, bonds, and foreign currency deposits; corporate consulting services, which include and business succession, merger and acquisitions, capital policy, and organizational structure; and security brokerage business. In addition, the company provides debit card, ATM, online banking, safe deposit box, foreign currency exchange, and remittance services. Bank of The Ryukyus, Limited was incorporated in 1948 and is headquartered in Naha, Japan.

How the Company Makes Money

The Bank Of The Ryukyus generates revenue primarily through interest income from loans and advances provided to customers, which is a significant portion of its earnings. Additionally, the bank earns money through fees and commissions associated with various banking services, such as account maintenance, transaction processing, and advisory services. Other revenue streams include income from investment securities and foreign exchange transactions. The bank may also have partnerships with local businesses and governmental agencies that enhance its service offerings and contribute to its financial performance.

Bank Of The Ryukyus,Limited Financial Statement Overview

Summary

Financials are stable but mixed: strong cost management and a healthy capital base (low debt-to-equity, solid equity ratio), but profitability and operating efficiency have weakened (declining net profit and EBIT/EBITDA margins), revenue growth has been inconsistent with recent declines, and cash flows are volatile despite good operating cash generation versus net income.

Income Statement

The income statement shows a mixed performance. The gross profit margin is strong, indicating efficient cost management. However, the net profit margin has decreased over the years, reflecting challenges in maintaining profitability. Revenue growth has been inconsistent, with recent declines suggesting potential market or operational issues. The EBIT and EBITDA margins have also declined, indicating pressure on operating efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio, indicating prudent financial management. The return on equity is modest, suggesting average profitability relative to shareholder equity. The equity ratio is healthy, showing a strong capital base. However, the historical fluctuations in debt levels highlight potential volatility in financial strategy.

Cash Flow

Cash flow analysis reveals volatility, with significant fluctuations in operating and free cash flow. The operating cash flow to net income ratio is strong, indicating good cash generation relative to net income. However, the free cash flow growth rate has been inconsistent, and the free cash flow to net income ratio suggests challenges in converting profits into free cash flow.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	66.68B	62.74B	58.56B	52.98B	51.62B	52.65B
Gross Profit	66.65B	60.70B	56.55B	52.01B	51.45B	52.23B
EBITDA	8.34B	11.48B	11.53B	11.42B	11.12B	6.66B
Net Income	6.29B	5.75B	5.65B	5.90B	5.59B	2.58B
Balance Sheet
Total Assets	3.11T	2.98T	3.07T	3.04T	3.06T	2.78T
Cash, Cash Equivalents and Short-Term Investments	0.00	171.57B	341.75B	598.66B	770.55B	525.14B
Total Debt	18.82B	19.54B	47.44B	104.86B	297.87B	131.15B
Total Liabilities	2.97T	2.84T	2.92T	2.90T	2.93T	2.65T
Stockholders Equity	143.54B	139.83B	142.56B	138.16B	135.02B	131.81B
Cash Flow
Free Cash Flow	0.00	15.89B	-157.81B	-56.59B	282.68B	8.57B
Operating Cash Flow	0.00	26.36B	-144.73B	-52.27B	22.56B	10.76B
Investing Cash Flow	0.00	-113.69B	-265.72B	-116.73B	-38.66B	-74.70B
Financing Cash Flow	0.00	-83.19B	10.93B	-2.90B	116.82B	-1.74B

Bank Of The Ryukyus,Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2009.00
• 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:8399, the sentiment is Positive. The current price of 2009 is below the 20-day moving average (MA) of 2393.70, below the 50-day MA of 2155.24, and above the 200-day MA of 1547.64, indicating a bullish trend. The MACD of 75.93 indicates Positive momentum. The RSI at 57.14 is Neutral, neither overbought nor oversold. The STOCH value of 43.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8399.

Bank Of The Ryukyus,Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8387	74 Outperform	¥100.83B	6.00	―	3.05%	8.75%	-12.68%
8393	72 Outperform	¥162.80B	13.56	―	2.29%	13.93%	54.44%
8399	69 Neutral	¥104.05B	11.42	―	2.46%	9.12%	43.43%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8344	67 Neutral	¥83.94B	16.93	―	2.89%	-0.24%	95.49%
8392	67 Neutral	¥152.71B	18.48	3.68%	2.26%	9.34%	20.61%
8343	63 Neutral	¥100.38B	11.60	―	3.35%	15.96%	81.27%

Bank Of The Ryukyus,Limited Corporate Events

Bank of The Ryukyus Reports Unrealized Securities Losses but Keeps Earnings Outlook Unchanged

Bank of The Ryukyus has reported unrealized losses of ¥2,644 million on its held-to-maturity securities as of December 31, 2025, an amount equivalent to 31.7% of its previous fiscal year’s consolidated ordinary profit and 45.9% of net income attributable to owners of the parent. Despite these valuation losses, which stem from a decline in the market value of assessed securities relative to their book value, the bank stated that there will be no changes to its consolidated earnings or dividend forecasts for the fiscal year ending March 31, 2026, indicating management’s view that the impact on overall performance and shareholder returns remains contained.

The most recent analyst rating on (JP:8399) stock is a Hold with a Yen2492.00 price target. To see the full list of analyst forecasts on Bank Of The Ryukyus,Limited stock, see the JP:8399 Stock Forecast page.