Fukushima Bank, Ltd. (8562) AI Stock Analysis

• Market Cap: ¥11.23B
• Dividend Yield: 1.89%
• Average Volume (3M): 135.61K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.97
• Revenue Growth: 8.11%
• EPS Growth: 68.98%
• Country: JP
• Employees: 484
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 2.46
• Shares Outstanding: 34,900,000
• 10 Day Avg. Volume: 149,040
• 30 Day Avg. Volume: 135,606
• PEG Ratio: 0.03
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 0.59
• P/FCF Ratio: 1.19
• 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: 55 Neutral
• Price Target: ¥343.00 ▲(16.27% Upside)

The score is held back primarily by weak and inconsistent profitability and volatile cash flow, despite a comparatively stable balance sheet. Technicals are supportive with strong trend/momentum, but overbought indicators add near-term risk. Valuation is also constrained by negative earnings (negative P/E), with only modest support from the dividend yield.

Positive Factors

Strong Capital Base

A strong equity ratio and manageable leverage provide a durable buffer against credit losses and regulatory shocks. This capital strength supports continued lending to the regional economy, permits steadier risk-weighted asset growth, and preserves strategic flexibility over the medium term.

Regional Franchise and Customer Base

A focused regional banking franchise with retail and corporate customers creates sticky deposit funding and deep local relationships. Community ties and partnerships increase customer loyalty and recurring fee and interest income, underpinning stable core revenue generation over coming quarters.

Positive Revenue Growth Trend

Mid-single-digit revenue growth suggests the bank is expanding loan volumes or fee income despite profitability headwinds. Persistent top-line growth provides a foundation for margin recovery and operating leverage if cost control and asset quality improve, supporting medium-term earnings resilience.

Negative Factors

Weak and Inconsistent Profitability

A recent negative net margin and erratic profit performance indicate structural earnings weakness. Persistent profitability shortfalls limit internal capital generation, constrain dividend sustainability, and impede the bank's ability to invest in systems or offset credit losses over the next several quarters.

Volatile Operating Cash Flow

Large fluctuations and a meaningful drop in operating cash flow signal underlying cash-generation issues tied to core operations. Volatile cash flow reduces predictability for provisioning and capital allocation, raising refinancing and investment risk and limiting capacity to support loan growth sustainably.

Negative Return on Equity

A negative ROE shows the bank is not generating adequate returns on shareholder capital, eroding long-term value creation. This undermines the ability to rebuild capital through retained earnings, may pressure management strategy, and reduces appeal to investors seeking consistent franchise returns.

Fukushima Bank, Ltd. Business Overview & Revenue Model

Company Description

The Fukushima Bank, Ltd. provides various banking products and services to individual and corporate customers in Japan. The company accepts time deposits; and offers housing, car, remodelling, card, simulation, education, and business loans, as well as provides loans for women and pensioners. It also provides investment trust and insurance products; and foreign currency, ATM, safe deposit box, and Internet banking services. In addition, the company leases and sells construction equipment, work equipment, transportation equipment, communication equipment, office equipment, household electrical equipment, medical equipment, precision machinery, etc. Further, it is involved in the credit card and credit guarantee activities; the development, maintenance, and contracting of computer software; the sale and rental of computer software, and computers and related equipment, as well as related consumables; and the operation and contracting of computer systems. The company was founded in 1922 and is headquartered in Fukushima, Japan.

How the Company Makes Money

Fukushima Bank generates revenue primarily through interest income from loans issued to individuals and businesses, as well as fees from various banking services. The bank also earns income from investment activities, including securities and asset management. Key revenue streams include personal loans, mortgages, commercial loans, and service fees for account maintenance and transactions. The bank's partnerships with local businesses and government entities allow it to expand its outreach and foster community relationships, which in turn supports its earnings through increased customer engagement and loyalty.

Fukushima Bank, Ltd. Financial Statement Overview

Summary

Financial statements reflect weak and inconsistent profitability (including a recent negative net margin) and volatile operating cash flow, partially offset by a relatively solid capital position and manageable leverage.

Income Statement

The income statement shows fluctuating revenue growth with a recent decline in profitability. The net profit margin turned negative in the latest year, indicating challenges in maintaining profitability. Historical EBIT and EBITDA margins have also been inconsistent, reflecting operational inefficiencies.

Balance Sheet

The balance sheet indicates a stable debt-to-equity ratio, suggesting manageable leverage. However, the return on equity has been negative recently, highlighting profitability issues. The equity ratio remains strong, indicating a solid capital base.

Cash Flow

Cash flow analysis reveals volatility, with a significant drop in operating cash flow in recent years. The free cash flow to net income ratio is relatively stable, but the operating cash flow to net income ratio has shown large fluctuations, indicating potential cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.65B	12.16B	12.06B	12.03B	11.96B	12.18B
Gross Profit	11.65B	11.62B	11.96B	11.93B	11.86B	12.02B
EBITDA	-823.00M	-921.00M	1.72B	1.76B	1.43B	-1.07B
Net Income	-1.31B	-1.25B	866.00M	868.00M	826.00M	-1.72B
Balance Sheet
Total Assets	815.00B	805.10B	828.95B	839.88B	842.25B	825.75B
Cash, Cash Equivalents and Short-Term Investments	0.00	55.58B	79.11B	76.26B	90.61B	92.13B
Total Debt	1.98B	2.11B	2.13B	47.63B	35.59B	29.34B
Total Liabilities	791.22B	781.04B	803.87B	815.60B	814.89B	796.11B
Stockholders Equity	23.62B	23.91B	24.94B	24.13B	27.22B	29.52B
Cash Flow
Free Cash Flow	0.00	6.03B	10.96B	-7.67B	12.79B	38.69B
Operating Cash Flow	0.00	7.31B	11.59B	-7.43B	13.18B	39.07B
Investing Cash Flow	0.00	-3.38B	1.49B	-6.45B	-14.22B	-23.08B
Financing Cash Flow	0.00	-20.80B	-140.00M	-140.00M	-1.00M	-113.00M

Fukushima Bank, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 295.00
• 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:8562, the sentiment is Positive. The current price of 295 is below the 20-day moving average (MA) of 311.80, above the 50-day MA of 278.24, and above the 200-day MA of 239.97, indicating a bullish trend. The MACD of 14.54 indicates Positive momentum. The RSI at 65.31 is Neutral, neither overbought nor oversold. The STOCH value of 41.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8562.

Fukushima Bank, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8349	72 Outperform	¥14.47B	9.19	―	3.58%	13.77%	19.08%
8365	68 Neutral	¥11.75B	11.00	―	2.68%	5.57%	-23.26%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7161	64 Neutral	¥12.22B	7.50	―	1.24%	5.92%	―
8563	63 Neutral	¥12.67B	9.17	―	3.74%	5.91%	5.03%
8416	61 Neutral	¥11.87B	119.27	―	2.74%	7.74%	-92.49%
8562	55 Neutral	¥11.23B	-77.44	―	1.89%	8.11%	68.98%