Fukushima Bank, Ltd. (8562) AI Stock Analysis

• Market Cap: ¥10.29B
• Dividend Yield: 1.89%
• Average Volume (3M): 135.61K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.90
• 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: 54 Neutral
• Price Target: ¥267.00 ▼(-9.49% Downside)

Fukushima Bank, Ltd. has a moderate overall stock score. The financial performance is a concern due to inconsistent profitability and cash flow issues, which are partially offset by a strong balance sheet. Technical analysis shows strong bullish momentum, but valuation metrics are weak due to a negative P/E ratio. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Strong Balance Sheet

A stable debt-to-equity ratio reflects strong financial health, providing the bank with resilience against economic fluctuations and the ability to invest in growth opportunities.

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business strategies, which can lead to increased market share and long-term profitability.

Community Engagement

Strong community ties enhance customer loyalty and support regional economic development, which can lead to sustained business growth and a stable customer base.

Negative Factors

Profitability Issues

Negative profit margins highlight operational challenges and inefficiencies, which can hinder the bank's ability to generate sustainable profits and reinvest in its business.

Cash Flow Volatility

Volatile cash flow can limit the bank's ability to manage day-to-day operations and invest in growth initiatives, potentially affecting its long-term financial stability.

Inconsistent Profitability

Inconsistent profitability can undermine investor confidence and limit the bank's ability to attract capital for expansion, impacting its competitive position in the market.

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

Fukushima Bank, Ltd. faces challenges in maintaining consistent profitability and cash flow stability. The income statement and cash flow statement highlight areas of concern, particularly in profitability and cash flow management. However, the balance sheet remains relatively strong with low 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: Negative
• RSI: Negative
• STOCH: Negative

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 above the 20-day moving average (MA) of 269.75, above the 50-day MA of 250.24, and above the 200-day MA of 231.95, indicating a bullish trend. The MACD of 9.97 indicates Negative momentum. The RSI at 79.89 is Negative, neither overbought nor oversold. The STOCH value of 91.12 is Negative, 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	¥14.16B	8.84	―	3.58%	13.77%	19.08%
8365	68 Neutral	¥11.12B	10.42	―	2.68%	5.57%	-23.26%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7161	64 Neutral	¥11.61B	7.12	―	1.24%	5.92%	―
8563	63 Neutral	¥11.99B	8.67	―	3.74%	5.91%	5.03%
8416	60 Neutral	¥10.90B	109.50	―	2.74%	7.74%	-92.49%
8562	54 Neutral	¥10.29B	-70.95	―	1.89%	8.11%	68.98%