Oita Bank (8392) AI Stock Analysis

• Market Cap: $79.32B
• Dividend Yield: 2.6%
• Average Volume (3M): 42.13K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 1.03
• Revenue Growth: 2.61%
• EPS Growth: -1.50%
• Country: JP
• Employees: 1,715
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 75.56
• Shares Outstanding: 15,693,634
• 10 Day Avg. Volume: 54,970
• 30 Day Avg. Volume: 42,133
• PEG Ratio: 0.41
• Price to Book (P/B): 0.26
• Price to Sales (P/S): 0.71
• P/FCF Ratio: 1.24
• Enterprise Value/Market Cap: -1.67
• Enterprise Value/Revenue: -1.88
• Enterprise Value/Gross Profit: -1.88
• Enterprise Value/Ebitda: -17.20
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥5,374.00 ▲(3.35% Upside)

Oita Bank's overall stock score reflects its solid financial performance, particularly in revenue growth and cash flow management, despite challenges with profitability and leverage. The technical analysis indicates moderate strength, while the valuation suggests potential undervaluation with an attractive dividend yield.

Oita Bank Business Overview & Revenue Model

Company Description

The Oita Bank, Ltd. provides various banking products and services to individual and corporate clients primarily in Oita Prefecture, Japan. It operates through Banking and Lease segments. The company engages in accepting deposits; providing loans; discounting bills; and buying and selling marketable securities and other financial instruments. It also offers leasing and credit card, financial instruments handling, and foreign exchange services. As of September 30, 2021, it operated through 93 branches and 33 money exchange offices. The Oita Bank, Ltd. was founded in 1893 and is headquartered in Oita, Japan.

How the Company Makes Money

Oita Bank generates revenue through multiple key streams, primarily from interest income on loans and investments. The bank offers various loan products, including personal loans, residential mortgages, and business loans, which typically carry interest rates that contribute to its earnings. Additionally, Oita Bank earns fees from account maintenance, transaction services, and financial advisory services. Investment income from securities and other financial instruments also forms a significant part of its revenue. Furthermore, the bank may engage in partnerships with local businesses and government entities, enhancing its service offerings and broadening its customer base, thereby contributing to its overall financial performance.

Oita Bank Financial Statement Overview

Summary

Oita Bank shows solid revenue growth and strong gross profit margins, but faces challenges with profitability and high leverage. The balance sheet indicates increased debt levels, which could impact financial stability. Cash flow management is effective, though there are concerns about the conversion of income to cash.

Income Statement

Oita Bank has demonstrated consistent revenue growth with a 1.76% increase in the latest year. The gross profit margin remains strong at over 91%, indicating efficient cost management. However, the net profit margin is relatively low at 9.98%, suggesting room for improvement in profitability. The EBIT and EBITDA margins have decreased compared to previous years, reflecting potential challenges in operational efficiency.

Balance Sheet

The bank's debt-to-equity ratio has increased to 3.11, indicating a higher reliance on debt financing, which could pose risks if interest rates rise. Return on equity is modest at 3.62%, showing limited returns for shareholders. The equity ratio is stable, suggesting a balanced asset structure, but the high leverage remains a concern.

Cash Flow

Oita Bank's cash flow performance is mixed. The operating cash flow to net income ratio is low at 0.16, indicating potential issues in converting income into cash. However, the free cash flow to net income ratio is strong at 0.97, showing effective cash management. The free cash flow growth rate is notably high, reflecting positive cash generation trends.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	70.54B	75.68B	66.17B	69.65B	53.54B	52.60B
Gross Profit	70.54B	69.49B	66.17B	69.65B	53.05B	52.60B
EBITDA	7.70B	6.26B	10.46B	9.46B	8.62B	8.28B
Net Income	7.40B	7.55B	6.54B	5.41B	5.38B	3.62B
Balance Sheet
Total Assets	4.51T	4.51T	4.55T	4.32T	4.31T	3.81T
Cash, Cash Equivalents and Short-Term Investments	0.00	781.09B	872.90B	725.87B	942.67B	512.69B
Total Debt	580.30B	648.98B	402.20B	388.76B	430.65B	248.95B
Total Liabilities	4.30T	4.30T	4.34T	4.14T	4.11T	3.61T
Stockholders Equity	208.49B	208.49B	217.81B	187.45B	198.00B	202.68B
Cash Flow
Free Cash Flow	0.00	43.54B	12.17B	-98.87B	468.91B	339.46B
Operating Cash Flow	0.00	45.06B	13.54B	-95.94B	470.28B	341.52B
Investing Cash Flow	0.00	29.69B	15.39B	-120.08B	-34.18B	-165.66B
Financing Cash Flow	0.00	-53.39B	77.83B	-1.26B	-1.19B	-1.26B

Oita Bank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5200.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8392, the sentiment is Positive. The current price of 5200 is above the 20-day moving average (MA) of 5050.00, above the 50-day MA of 4969.57, and above the 200-day MA of 3953.84, indicating a bullish trend. The MACD of 74.39 indicates Negative momentum. The RSI at 55.34 is Neutral, neither overbought nor oversold. The STOCH value of 69.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8392.

Oita Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8387	79 Outperform	¥60.59B	8.64	―	3.35%	7.21%	-3.97%
8393	78 Outperform	¥79.14B	7.79	―	2.84%	13.93%	54.44%
8344	74 Outperform	¥52.30B	12.20	―	3.23%	-12.00%	28.81%
8399	72 Outperform	¥64.60B	9.98	―	3.03%	6.16%	-3.02%
8343	70 Outperform	¥66.38B	10.32	―	3.64%	8.73%	12.43%
8392	68 Neutral	$79.32B	10.83	3.68%	2.60%	2.61%	-1.50%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Oita Bank Corporate Events

Oita Bank Reports Unrealized Losses but Revises Forecasts Upward

Oita Bank has reported unrealized losses on held-to-maturity debt securities amounting to 3,722 million yen as of September 30, 2025. Despite these losses, the bank has revised its financial results forecasts upward for the six-month period ended September 30, 2025, due to gains on the sale of equity securities and higher-than-expected interest and dividends on securities. The bank anticipates no impact on its full-year financial results forecasts, which will be announced on November 10, 2025.

The most recent analyst rating on (JP:8392) stock is a Hold with a Yen5374.00 price target. To see the full list of analyst forecasts on Oita Bank stock, see the JP:8392 Stock Forecast page.

Oita Bank Revises Financial Forecasts Upward for First Half of 2025

Oita Bank has revised its financial forecasts for the six months ended September 30, 2025, showing an increase in expected ordinary income, ordinary profit, and profit attributable to owners of the parent. The revisions are attributed to higher-than-expected gains on the sale of equity securities and increased interest and dividends on securities, indicating a positive trend in the bank’s financial performance.

The most recent analyst rating on (JP:8392) stock is a Hold with a Yen5374.00 price target. To see the full list of analyst forecasts on Oita Bank stock, see the JP:8392 Stock Forecast page.

Oita Bank Finalizes Stock Compensation Details for Leadership

Oita Bank has finalized the details of its stock compensation-type share options for its Directors and Executive Officers, a decision initially resolved in June 2025. This move is part of the bank’s strategy to align the interests of its leadership with the company’s performance, potentially impacting its operational dynamics and stakeholder relations.

Oita Bank Enhances Shareholder Value with Treasury Stock Repurchase

Oita Bank has repurchased 200,000 shares of its common stock for a total of 934 million yen as part of its strategy to enhance shareholder returns and improve capital efficiency. This move is part of a broader plan approved by the Board of Directors to purchase up to 300,000 shares or a maximum of 1 billion yen worth of stock by September 30, 2025, through market purchases and the ToSTNeT-3 system.

Oita Bank Announces Treasury Stock Repurchase Plan

The Oita Bank, Ltd. has announced its plan to repurchase up to 200,000 shares of its common stock through the Tokyo Stock Exchange’s Off-Auction Own Share Repurchase Trading System (ToSTNeT-3) at a closing price of 4,670 yen. This strategic move, approved by the Board of Directors, aims to enhance shareholder value and optimize the bank’s capital structure, with the transaction scheduled for August 12, 2025.

Oita Bank to Enhance Shareholder Value Through Treasury Stock Purchase

Oita Bank announced a resolution to purchase up to 300,000 shares of its treasury stock to enhance shareholder returns and improve capital efficiency. This strategic move, scheduled between August 12 and September 30, 2025, aims to bolster the bank’s corporate value by executing market purchases on the Tokyo Stock Exchange.

Oita Bank Reports Q1 2025 Financial Results with Revenue Growth

Oita Bank reported its consolidated financial results for the three months ending June 30, 2025, showing a 10.3% increase in ordinary revenues compared to the previous year. However, there was a slight decline in ordinary profit and profit attributable to owners of the parent, indicating challenges in maintaining profitability. The bank’s total assets and net assets increased slightly, reflecting a stable financial position. The bank also announced a forecasted increase in dividends for the fiscal year ending March 31, 2026, suggesting confidence in future earnings growth.

Oita Bank Reports Unrealized Losses on Securities

Oita Bank has reported unrealized losses on its held-to-maturity debt securities amounting to 3,368 million yen as of June 30, 2025. Despite these losses, the bank has stated that there will be no impact on its financial results forecasts or dividend forecasts for the fiscal year ending March 31, 2026.