Fukushima Bank, Ltd. (8562) AI Stock Analysis

• Market Cap: ¥12.76B
• Dividend Yield: 1.89%
• Average Volume (3M): 135.61K
• Price to Earnings (P/E): 8.1
• Beta (1Y): 1.06
• 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: ¥371.00 ▲(25.76% 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

Stable capital base

Manageable leverage and a strong equity ratio provide structural resilience for a regional bank. A solid capital base supports lending through economic cycles, absorbs credit shocks without immediate recapitalization, and preserves regulatory headroom for growth or stress, sustaining franchise stability.

Regional deposit franchise

A focused regional retail and SME franchise yields sticky deposit funding and deep customer relationships. This business model supports predictable net interest income, cross-sell of fee products, and lower cost of funds versus market alternatives, underpinning durable local market competitive advantage.

Recent revenue growth

Sustained revenue growth near double digits indicates capacity to expand lending and fee income in its market. Durable top-line expansion provides room to absorb cyclical income volatility, fund investments in branches or digital channels, and improve margins if cost control follows revenue scale.

Negative Factors

Deteriorating profitability

Negative net margin and ROE signal structural profit generation issues that impair retained earnings accumulation. Persistent weak profitability limits reinvestment, constrains dividend policy, and raises the bar for management to restore sustainable returns, weakening long-term shareholder value creation.

Volatile operating cash flow

Large swings in operating cash flow indicate earnings quality and cash conversion risk. For a bank, inconsistent cash generation can force reliance on securities dispositions or wholesale funding to cover lending and liquidity needs, undermining funding stability and capital planning over time.

Inconsistent margins and efficiency

Inconsistent margins and operational inefficiencies reduce the bank's ability to translate revenue into reliable profits. If cost structure is inflexible, margin recovery will be slow even with revenue growth, constraining long-term scalability and competitive positioning against more efficient peers.

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

The bank primarily earns money through (1) net interest income and (2) fee-based income, with additional contributions from securities and other financial activities. 1) Net interest income (core earnings): The main revenue driver for a regional bank is the spread between interest earned on interest-bearing assets and interest paid on funding sources. Fukushima Bank earns interest income from loans to corporate customers (including working-capital and term loans) and retail borrowers (such as residential mortgages and consumer loans), as well as from interest on securities and other interest-earning instruments held for liquidity and investment purposes. It pays interest on customer deposits and other borrowings. The difference between these interest inflows and outflows (after accounting for funding costs) forms net interest income. 2) Fee and commission income: The bank also generates non-interest revenue from fees tied to services provided to customers. These commonly include fees for domestic remittances and settlement services, account-related services, and fees/commissions associated with distributing or arranging financial products and services. Specific product categories and the size of each fee stream are null. 3) Securities and other financial income: Like many banks, Fukushima Bank may earn income (or incur losses) from managing a portfolio of securities and other financial instruments, including realized gains/losses and other investment-related returns. The extent and composition of these activities are null. 4) Credit costs and operating factors affecting profitability: While not revenue, overall earnings are materially affected by credit costs (e.g., loan loss provisions), funding conditions, and the local economic environment that influences loan demand, deposit mix, and borrower credit quality. Any significant partnerships or named strategic alliances contributing to earnings are null.

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	0.00	-7.67B	12.79B	38.69B
Operating Cash Flow	0.00	7.31B	0.00	-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: Neutral
• 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 Neutral. The current price of 295 is below the 20-day moving average (MA) of 383.75, below the 50-day MA of 364.78, and above the 200-day MA of 269.33, indicating a neutral trend. The MACD of -1.20 indicates Positive momentum. The RSI at 46.84 is Neutral, neither overbought nor oversold. The STOCH value of 28.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥13.87B	9.31	―	3.58%	13.77%	19.08%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8542	67 Neutral	¥18.40B	4.85	―	3.37%	3.70%	24.98%
8365	66 Neutral	¥12.48B	21.28	―	2.68%	5.57%	-23.26%
8563	66 Neutral	¥12.72B	7.04	―	3.74%	5.91%	5.03%
8383	64 Neutral	¥16.22B	4.33	―	3.30%	11.93%	36.32%
8562	53 Neutral	¥12.76B	8.11	―	1.89%	8.11%	68.98%