Shikoku Bank Ltd. (8387) AI Stock Analysis

• Market Cap: ¥45.59B
• Dividend Yield: 4.46%
• Average Volume (3M): 119.05K
• Price to Earnings (P/E): 6.9
• Beta (1Y): 0.79
• Revenue Growth: -11.64%
• EPS Growth: 8.31%
• Country: JP
• Employees: 1,263
• Sector: Financial
• Sector Strength: 84
• Industry: Banks - Regional
• EPS (TTM): 26.56
• Shares Outstanding: 42,400,000
• 10 Day Avg. Volume: 99,730
• 30 Day Avg. Volume: 119,050
• PEG Ratio: -3.07
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

Shikoku Bank Ltd. presents a mixed outlook. Strengths in profitability and a solid capital structure are offset by challenges in cash flow management and revenue inconsistency. The stock's current bearish technical trend contrasts with its attractive valuation, offering potential upside for income-focused investors. Careful monitoring of cash flow improvements and liability management is advised.

Shikoku Bank Ltd. Business Overview & Revenue Model

Company Description

Shikoku Bank Ltd. (8387) is a regional financial institution headquartered in Kochi, Japan. The bank offers a comprehensive range of financial services, including personal and commercial banking, lending, deposits, and asset management. Shikoku Bank primarily serves individuals, small and medium-sized enterprises (SMEs), and local corporations in the Shikoku region, focusing on providing tailored financial solutions to meet the needs of its community.

How the Company Makes Money

Shikoku Bank Ltd. generates revenue through various financial services and products. Its primary revenue streams include interest income from loans extended to individuals and businesses, and fees from account services, credit cards, and asset management. The bank also earns income from its investment activities, including securities trading and investment in government and corporate bonds. Furthermore, Shikoku Bank may engage in partnerships with other financial institutions to offer specialized financial products, enhancing its service offerings and revenue potential. Factors such as interest rate fluctuations, regional economic conditions, and regulatory changes can significantly influence the bank's earnings.

Shikoku Bank Ltd. Financial Statement Overview

Summary

Shikoku Bank Ltd. shows strengths in profitability margins and a stable balance sheet but faces challenges in cash flow management. Revenue inconsistency and high liabilities warrant caution. Strengthening cash flow operations and maintaining growth momentum are crucial for future performance.

Income Statement

The income statement shows mixed performance. The TTM gross profit margin is high, indicating good cost management relative to revenue. However, the net profit margin is moderate, suggesting room for improvement in operational efficiency. Revenue growth has been inconsistent, with a noticeable decline in the latest annual period. The EBIT margin is strong, reflecting solid core operations, but EBITDA margin data is lacking, limiting a comprehensive assessment.

Balance Sheet

The balance sheet reflects a stable equity position with a moderate debt-to-equity ratio. The company's equity ratio is healthy, suggesting a solid capital structure. However, the balance sheet reveals high total liabilities, which could pose risks if not managed properly. Return on equity is decent, indicating effective use of shareholders' capital.

Cash Flow

Cash flow analysis highlights concerns, particularly with free cash flow and operating cash flow being negative in recent periods. This indicates potential liquidity issues and raises questions about sustainable cash generation. The absence of positive cash flow growth and the inability to cover net income with operating cash flow are significant weaknesses.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
48.62B	48.80B	56.48B	38.92B	36.99B	36.80B
	Gross Profit
48.13B	48.80B	56.48B	38.92B	36.99B	36.80B
	EBIT
20.63B	9.42B	5.76B	8.31B	7.07B	1.33B
	EBITDA
4.73B	0.00	10.02B	12.74B	11.60B	4.87B
	Net Income Common Stockholders
7.35B	7.29B	5.55B	7.95B	6.64B	3.10B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
172.71B	217.36B	411.09B	643.72B	335.62B	239.36B
	Total Assets
3.40T	3.31T	3.32T	3.63T	3.33T	3.00T
	Total Debt
155.40B	66.57B	8.36B	294.66B	152.52B	70.28B
	Net Debt
-17.31B	-150.79B	-402.73B	-349.06B	-183.10B	-169.08B
	Total Liabilities
3.23T	3.14T	42.23B	3.48T	3.17T	2.86T
	Stockholders Equity
166.24B	168.09B	149.82B	154.48B	158.40B	137.87B
Cash Flow		Free Cash Flow
0.00	-87.62B	-364.04B	296.82B	223.08B	-96.94B
	Operating Cash Flow
0.00	-85.63B	-362.23B	299.23B	224.25B	-95.55B
	Investing Cash Flow
0.00	-95.86B	131.79B	9.90B	-128.31B	-15.81B
	Financing Cash Flow
0.00	-54.44B	-1.86B	-1.42B	-2.28B	-1.59B

Shikoku Bank Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1148.00
• 50DMA: Negative
• 100DMA: Negative
• 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:8387, the sentiment is Negative. The current price of 1148 is below the 20-day moving average (MA) of 1148.60, below the 50-day MA of 1154.62, and above the 200-day MA of 1071.03, indicating a neutral trend. The MACD of -3.17 indicates Positive momentum. The RSI at 41.49 is Neutral, neither overbought nor oversold. The STOCH value of 20.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8387.

Shikoku Bank Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8316	74 Outperform	$14.10T	12.04	7.92%	3.36%	16.80%	60.24%
8331	73 Outperform	¥959.69B	12.89	6.30%	2.92%	9.28%	20.48%
8377	71 Outperform	¥348.31B	9.12		1.82%	21.04%	20.47%
8387	66 Neutral	¥45.59B	6.87		4.46%	-11.64%	8.31%
Sector *	64 Neutral	$12.83B	9.83	7.64%	16985.66%	12.34%	-5.73%
8411	62 Neutral	$9.65T	10.92	8.45%	3.34%	22.26%	36.36%
8306	61 Neutral	$22.00T	11.70	9.18%	3.21%	21.88%	-3.60%

Shikoku Bank Ltd. Corporate Events

Shikoku Bank Revises Financial Forecasts Upward Amid Rising Interest Rates

Shikoku Bank, Ltd. has revised its financial forecasts for the fiscal year ending March 31, 2025, due to higher-than-expected interest on loans and dividends from securities, driven by rising domestic interest rates. This revision reflects an increase in both consolidated and non-consolidated financial results, indicating a positive impact on the bank’s operations and potential benefits for its stakeholders.

Shikoku Bank Reports Financial Results with Increased Profits and Dividend Outlook

Shikoku Bank reported its consolidated financial results for the nine months ending December 31, 2024, with ordinary revenues of ¥38,827 million, reflecting a slight decrease of 1.8% from the previous year. Despite this, the bank’s ordinary profit increased by 20.5% to ¥8,297 million, while profit attributable to owners of the parent rose marginally by 1.1% to ¥5,704 million. The bank’s financial position shows total assets at ¥3,395,463 million. Notably, the bank forecasts a year-end dividend increase to ¥50 from the previous ¥40, indicating a positive outlook for stakeholders.