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Bank of Saga Ltd. (JP:8395)
:8395
Japanese Market
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Bank of Saga Ltd. (8395) AI Stock Analysis

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JP:8395

Bank of Saga Ltd.

(8395)

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Outperform 72 (OpenAI - 5.2)
Rating:72Outperform
Price Target:
¥7,082.00
▲(64.70% Upside)
Action:Upgraded
Date:08/17/26
The score is driven by strong technical uptrend and reasonable valuation, supported by solid earnings growth and improving leverage. Offsetting these positives is the largest risk factor: highly volatile cash flow and negative free cash flow in 2026, which weakens financial quality.
Positive Factors
Revenue and earnings growth
Strong multi-year revenue and net income growth indicates expanding earnings capacity. For a regional bank, this supports continued investment in lending and services while strengthening the ability to absorb credit costs.
Negative Factors
Volatile cash generation
Repeated swings in operating and free cash flow reduce confidence that reported profits consistently convert into financial resources. This may constrain capital deployment and weaken flexibility during credit or funding stress.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and earnings growth
Strong multi-year revenue and net income growth indicates expanding earnings capacity. For a regional bank, this supports continued investment in lending and services while strengthening the ability to absorb credit costs.
Read all positive factors

Bank of Saga Ltd. (8395) vs. iShares MSCI Japan ETF (EWJ)

Bank of Saga Ltd. Business Overview & Revenue Model

Company Description
The Bank of Saga Ltd. provides a diverse range of banking products and financial services across Japan. Its offerings encompass a variety of deposit accounts, including current, savings, ordinary, notification, time, segregated, tax reserve, non-r...
How the Company Makes Money
Bank of Saga Ltd. generates earnings mainly through traditional banking intermediation and related fee businesses. 1) Net interest income (core source): The bank collects deposits (e.g., ordinary and time deposits) and funds itself via other sour...

Bank of Saga Ltd. Financial Statement Overview

Summary
Income statement strength (Score 78) shows sharp revenue growth and consistently rising net income, and the balance sheet is improving with much lower debt-to-equity (Score 74). However, cash flow quality is a major concern (Score 38) with volatile operating cash flow and free cash flow returning negative in 2026, which lowers confidence in earnings durability.
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
38
Negative
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue70.20B51.67B47.57B44.47B40.69B
Gross Profit60.66B47.91B44.30B42.01B40.30B
EBITDA13.55B11.71B8.70B8.41B7.66B
Net Income8.59B7.50B6.22B5.49B4.08B
Balance Sheet
Total Assets3.22T3.18T3.16T3.01T3.16T
Cash, Cash Equivalents and Short-Term Investments280.15B270.96B201.84B72.97B301.83B
Total Debt34.05B45.20B110.51B74.77B208.39B
Total Liabilities3.09T3.06T3.04T2.90T3.05T
Stockholders Equity126.50B116.37B122.56B108.76B115.78B
Cash Flow
Free Cash Flow-1.18B20.36B-26.20B-190.17B-4.59B
Operating Cash Flow2.37B22.94B-24.61B-188.82B-3.58B
Investing Cash Flow-16.11B95.41B14.54B-43.72B-67.45B
Financing Cash Flow22.00B18.00B143.86B-1.18B86.57B

Bank of Saga Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4300.00
Price Trends
50DMA
5718.40
Positive
100DMA
5468.30
Positive
200DMA
4830.95
Positive
Market Momentum
MACD
220.72
Negative
RSI
61.14
Neutral
STOCH
41.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8395, the sentiment is Positive. The current price of 4300 is below the 20-day moving average (MA) of 6058.50, below the 50-day MA of 5718.40, and below the 200-day MA of 4830.95, indicating a bullish trend. The MACD of 220.72 indicates Negative momentum. The RSI at 61.14 is Neutral, neither overbought nor oversold. The STOCH value of 41.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8395.

Bank of Saga Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥157.83B14.822.49%16.26%88.25%
73
Outperform
¥138.93B8.373.05%36.24%144.55%
72
Outperform
¥105.25B10.682.29%15.70%63.78%
67
Neutral
¥151.91B17.513.35%28.83%38.45%
58
Neutral
¥132.21B18.722.89%24.86%73.80%
57
Neutral
¥119.75B16.572.34%7.73%24.05%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8395
Bank of Saga Ltd.
6,460.00
3,692.39
133.41%
JP:8343
Akita Bank, Ltd.
8,640.00
5,219.51
152.60%
JP:8344
Yamagata Bank, Ltd.
4,515.00
2,983.47
194.80%
JP:8362
Fukui Bank, Ltd.
7,000.00
5,087.39
265.99%
JP:8387
Shikoku Bank Ltd.
3,460.00
2,091.46
152.82%
JP:8541
Ehime Bank, Ltd.
3,070.00
1,900.24
162.45%

Bank of Saga Ltd. Corporate Events

Bank of Saga Launches Share-Based Remuneration System for Directors
Aug 5, 2026
The Bank of Saga Ltd., a regional Japanese financial institution headquartered in Saga City and listed on the TSE Prime and FSE, is implementing a share-based remuneration system for certain internal directors. The bank will use a monetary trust s...
Bank of Saga Delivers Strong Quarterly Profit Surge and Confirms Dividend Outlook
Aug 5, 2026
The Bank of Saga reported a sharp improvement in performance for the three months ended June 30, 2026, with ordinary income rising 31.6% year on year to ¥17.9 billion and ordinary profit more than doubling to ¥4.0 billion. Profit attribu...
Bank of Saga Completes Modest Share Buyback to Fulfill Board-Approved Program
Jun 17, 2026
The Bank of Saga Ltd. has completed a small-scale share buyback, acquiring 700 common shares for a total of 3,829,000 yen via market purchases on the Tokyo Stock Exchange. This transaction fulfills a Board-approved program authorizing up to 1,000 ...
Bank of Saga to Buy Back Limited Treasury Shares for Stock Option Plans
Jun 16, 2026
The Bank of Saga Ltd. has authorized the acquisition of up to 1,000 of its common shares, representing about 0.006% of its issued shares, for a maximum of ¥6 million through market purchases on the Tokyo Stock Exchange between June 17 and Jun...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 17, 2026