Fukushima Bank, Ltd. (8562) AI Stock Analysis

• Market Cap: ¥14.33B
• Dividend Yield: 1.89%
• Average Volume (3M): 135.61K
• Price to Earnings (P/E): 79.1
• Beta (1Y): 1.07
• Revenue Growth: 8.11%
• EPS Growth: 68.98%
• Country: JP
• Employees: 484
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 8.24
• 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: 53 Neutral
• Price Target: ¥423.00 ▲(43.39% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is held back primarily by weak and inconsistent financial performance (recent negative profitability and volatile operating cash flow) and an expensive valuation (very high P/E with a modest dividend). Technicals are supportive due to the strong uptrend, but overbought momentum signals add near-term risk.

Positive Factors

Regional franchise and community ties

Deep local presence and government/business partnerships create sticky deposit bases and relationship lending advantages. Over months, these durable ties support stable funding, higher customer retention and cross-sell of loans and services — cushioning revenue through regional cycles.

Strong capital base / manageable leverage

A strong equity ratio and manageable leverage provide resilience to credit losses and regulatory shocks. This capital buffer supports continued lending, absorbs cyclical loan losses, and sustains strategic initiatives over the next several months without forcing asset sales.

Positive revenue growth trend

Double-digit reported revenue growth indicates expanding loan and fee-generating activity. Sustained top-line growth supports economies of scale, helps cover fixed costs, and provides room to rebuild margins if cost control and credit quality improve over a medium-term horizon.

Negative Factors

Earnings and margin deterioration

Negative net margin and declining profitability signal structural pressure on core returns. Persistent margin weakness reduces internal capital generation, constrains dividend flexibility and limits reinvestment capacity unless margins recover through higher NIMs or improved cost efficiency.

Volatile operating cash flow

Large swings in operating cash flow indicate earnings quality and cash generation issues. Over months, this volatility can hinder predictable funding for lending, raise reliance on wholesale funding, and complicate capital planning and payout policies.

Regional concentration risk

Concentration in a single prefecture exposes the bank to localized economic shocks and slower diversification of loan portfolios. This geographic reliance limits revenue expansion opportunities and raises sensitivity to regional credit cycles and demographic trends over the medium term.

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

Financials are mixed: the balance sheet is relatively solid with manageable leverage and a strong equity ratio, but profitability has deteriorated (negative net margin and negative ROE recently) and operating cash flow has been volatile, raising concerns about earnings quality and stability.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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 394.50, below the 50-day MA of 335.64, and above the 200-day MA of 258.45, indicating a bullish trend. The MACD of 20.32 indicates Positive momentum. The RSI at 61.43 is Neutral, neither overbought nor oversold. The STOCH value of 34.96 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	¥15.84B	10.05	―	3.58%	13.77%	19.08%
8563	69 Neutral	¥15.26B	10.41	―	3.74%	5.91%	5.03%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8365	66 Neutral	¥13.78B	12.10	―	2.68%	5.57%	-23.26%
8416	65 Neutral	¥12.24B	2,527.73	―	2.74%	7.74%	-92.49%
7161	64 Neutral	¥15.97B	7.42	―	1.24%	5.92%	―
8562	53 Neutral	¥14.33B	79.09	―	1.89%	8.11%	68.98%