Akita Bank, Ltd. (8343) AI Stock Analysis

• Market Cap: ¥61.64B
• Dividend Yield: 3.92%
• Average Volume (3M): 86.06K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.87
• Revenue Growth: 8.73%
• EPS Growth: 12.43%
• Country: JP
• Employees: 1,234
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 134.83
• Shares Outstanding: 18,093,643
• 10 Day Avg. Volume: 93,750
• 30 Day Avg. Volume: 86,063
• PEG Ratio: 0.33
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.97
• P/FCF Ratio: -0.34
• 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: ¥3,916.00
• Price Target Upside: 13.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: ¥3,916.00 ▲(13.67% Upside)

Akita Bank's stock score is driven primarily by its strong technical indicators and attractive valuation. Despite mixed financial performance, with growth in revenue and net income but declining operational margins and cash flow issues, the stock's bullish trend and low valuation metrics make it appealing. The absence of earnings call data and corporate events does not impact the score.

Akita Bank, Ltd. Business Overview & Revenue Model

Company Description

Akita Bank, Ltd. (8343) is a regional financial institution based in Akita Prefecture, Japan. The bank primarily operates in the banking sector, offering a wide range of financial services that include personal and corporate banking, loans, deposits, and investment services. It caters to individual customers, small and medium-sized enterprises (SMEs), and local governments, focusing on fostering regional development and providing tailored financial solutions to meet the needs of its community.

How the Company Makes Money

Akita Bank generates revenue primarily through interest income from loans and advances made to customers, which constitutes a significant portion of its earnings. The bank offers various loan products, including personal loans, housing loans, and business loans, charging interest rates that contribute to its income. Additionally, the bank earns money through fees and commissions associated with its banking services, including account maintenance fees, transaction fees, and advisory services. The bank also generates revenue from its investment portfolio, which includes securities and other financial assets. Furthermore, strategic partnerships with local businesses and government entities enhance its service offerings and contribute to its revenue streams by facilitating community development projects and local economic growth.

Akita Bank, Ltd. Financial Statement Overview

Summary

Akita Bank shows a mixed financial performance. Revenue and net income have grown, but operational margins have declined, and cash flow issues persist. The balance sheet has strengthened with lower leverage, but the cash flow situation poses a significant risk to financial stability.

Income Statement

Akita Bank has shown a steady revenue growth rate of 1.62% in the latest year, with a net profit margin of 12.96% indicating solid profitability. However, the EBIT and EBITDA margins have decreased significantly compared to previous years, suggesting potential operational inefficiencies.

Balance Sheet

The bank's debt-to-equity ratio has improved to 0.56, indicating a stronger balance sheet with reduced leverage. Return on equity has increased to 3.62%, reflecting better utilization of equity. However, the equity ratio remains relatively low, suggesting a high reliance on debt financing.

Cash Flow

The cash flow situation is concerning, with negative operating and free cash flows. The free cash flow to net income ratio has dropped to zero, indicating that the bank is not generating sufficient cash from its operations to cover its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	48.79B	46.25B	40.32B	44.67B	37.50B	41.15B
Gross Profit	48.48B	46.25B	38.67B	43.27B	37.26B	40.84B
EBITDA	3.51B	10.32B	7.89B	6.15B	5.95B	4.44B
Net Income	6.36B	5.66B	4.54B	3.29B	3.18B	2.72B
Balance Sheet
Total Assets	3.57T	3.46T	3.58T	3.53T	3.67T	3.49T
Cash, Cash Equivalents and Short-Term Investments	0.00	466.75B	688.70B	754.30B	843.45B	789.28B
Total Debt	90.81B	87.39B	209.09B	196.25B	289.31B	297.35B
Total Liabilities	3.40T	3.30T	3.41T	3.38T	3.50T	3.31T
Stockholders Equity	166.66B	156.36B	172.07B	149.26B	167.18B	175.92B
Cash Flow
Free Cash Flow	0.00	-131.80B	-53.74B	-168.20B	201.26B	210.31B
Operating Cash Flow	0.00	-130.49B	-52.39B	-167.14B	203.31B	210.90B
Investing Cash Flow	0.00	-87.85B	-12.57B	80.25B	-145.54B	-40.25B
Financing Cash Flow	0.00	-1.48B	-1.11B	-1.88B	-1.25B	277.34B

Akita Bank, Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3445.00
• 50DMA: Negative
• 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:8343, the sentiment is Neutral. The current price of 3445 is below the 20-day moving average (MA) of 3475.38, above the 50-day MA of 3426.85, and above the 200-day MA of 2736.20, indicating a neutral trend. The MACD of 12.84 indicates Positive momentum. The RSI at 41.90 is Neutral, neither overbought nor oversold. The STOCH value of 36.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8343.

Akita Bank, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8387	79 Outperform	¥57.42B	8.19	―	3.58%	7.21%	-3.97%
8393	78 Outperform	¥73.19B	7.20	―	2.52%	14.57%	45.13%
8392	73 Outperform	$73.38B	10.02	3.53%	2.80%	2.61%	-1.50%
8399	73 Outperform	¥60.11B	9.28	―	2.81%	6.16%	-3.02%
8344	72 Outperform	¥49.19B	11.48	―	3.47%	-12.00%	28.81%
8343	70 Outperform	¥61.64B	9.59	―	3.92%	8.73%	12.43%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Akita Bank, Ltd. Corporate Events

Akita Bank Revises and Extends Stock Compensation Plan

Akita Bank, Ltd. announced the continuation and partial revision of its Performance-Linked Stock Compensation Plan, which aims to align directors’ and executive officers’ incentives with the bank’s medium- to long-term performance goals. The plan will extend the trust period by three years and revise performance achievement conditions to include both financial and non-financial indicators, such as ROE and employee engagement scores, impacting the bank’s strategic alignment and stakeholder interests.

Akita Bank Proposes Amendments to Strengthen Governance

Akita Bank, Ltd. has announced a proposal to amend its Articles of Incorporation to enhance corporate governance and decision-making transparency. The proposed changes will allow directors, including outside directors, to convene and chair board meetings, which is expected to improve governance practices.