Bank of Saga Ltd. (8395) AI Stock Analysis

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Bank of Saga Ltd.

(TSE/TYO:8395)

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Rating:79Outperform

Price Target:JPY 6,412.00▲(3.92% Upside)

Action:reiterated

Date:08/17/26

Strong financial performance driven by revenue growth and deleveraging provides a solid foundation, enhanced by positive technical momentum and attractive valuation metrics.

Positive Factors

Revenue and Net Income GrowthStrong multi-year earnings growth indicates expanding business activity and improving profit generation rather than a single isolated result. This momentum can strengthen the bank’s capacity to reinvest, support customers, build capital, and sustain earnings over the next several quarters.

Negative Factors

Volatile Cash GenerationRepeated swings in operating and free cash flow make reported profitability less dependable as a source of internally generated funds. The return to negative free cash flow in 2026 could constrain financial flexibility and make capital planning more sensitive to future cash-flow fluctuations.

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

Market Cap: JPY 103.10B
Dividend Yield: 2.03%
Average Volume (3M): 72.46K
Price to Earnings (P/E): 10.0
Beta (1Y): 1.25
Revenue Growth: 15.58%
EPS Growth: 15.08%
Country: Japan
Employees: 1,286
Sector: General
Sector Strength: 55
Industry: Banks - Regional

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-resi...

Bank of Saga Ltd. Financial Statement Overview

Summary

Robust revenue and net income growth with improving profit margins, alongside better balance sheet stability from reduced leverage, offset by historical cash flow volatility.

Income Statement

88Very Positive

Balance Sheet

75Positive

Cash Flow

65Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	66.94B	70.20B	51.67B	47.57B	44.47B	40.69B
Gross Profit	61.99B	60.66B	47.91B	44.30B	42.01B	40.30B
EBITDA	12.06B	13.55B	11.71B	8.70B	8.41B	7.66B
Net Income	8.59B	8.59B	7.50B	6.22B	5.49B	4.08B
Balance Sheet
Total Assets	3.22T	3.22T	3.18T	3.16T	3.01T	3.16T
Cash, Cash Equivalents and Short-Term Investments	280.15B	280.15B	270.96B	201.84B	72.97B	301.83B
Total Debt	34.05B	34.05B	45.20B	110.51B	74.77B	208.39B
Total Liabilities	3.09T	3.09T	3.06T	3.04T	2.90T	3.05T
Stockholders Equity	126.50B	126.50B	116.37B	122.56B	108.76B	115.78B
Cash Flow
Free Cash Flow	0	-1.18B	20.36B	-26.20B	-190.17B	-4.59B
Operating Cash Flow	0	2.37B	22.94B	-24.61B	-188.82B	-3.58B
Investing Cash Flow	0	-16.11B	95.41B	14.54B	-43.72B	-67.45B
Financing Cash Flow	0	22.00B	18.00B	143.86B	-1.18B	86.57B

Bank of Saga Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price6170.00

Price Trends

50DMA6497.74Negative

100DMA6085.61Positive

200DMA5511.64Positive

Market Momentum

MACD-175.29Positive

RSI48.03Neutral

STOCH38.55Neutral

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 6170.00 is below the 20-day moving average (MA) of 6190.00, below the 50-day MA of 6497.74, and above the 200-day MA of 5511.64, indicating a neutral trend. The MACD of -175.29 indicates Positive momentum. The RSI at 48.03 is Neutral, neither overbought nor oversold. The STOCH value of 38.55 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

JP:8395 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:8387	85Outperform	JPY 146.33B	8.54	―	2.05%	39.23%	178.34%
JP:8395	79Outperform	JPY 97.13B	10.02	―	2.03%	15.58%	15.08%
JP:8362	73Outperform	JPY 151.27B	13.98	―	2.25%	16.26%	88.25%
JP:8541	67Neutral	JPY 127.96B	13.24	―	1.69%	10.04%	57.66%
JP:8343	63Neutral	JPY 128.45B	14.48	―	13.61%	28.83%	38.45%
JP:8344	62Neutral	JPY 130.67B	17.75	―	2.54%	24.86%	73.80%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:8395 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:8395	Bank of Saga Ltd.	6170.00	2881.83	87.64%
JP:8343	Akita Bank, Ltd.	1470.00	745.56	102.92%
JP:8344	Yamagata Bank, Ltd.	4410.00	2713.94	160.01%
JP:8362	Fukui Bank, Ltd.	6850.00	4627.47	208.21%
JP:8387	Shikoku Bank Ltd.	3665.00	2169.39	145.05%
JP:8541	Ehime Bank, Ltd.	3370.00	2131.63	172.13%

Bank of Saga Ltd. Corporate Events

Bank of Saga Raises Interim Dividend to 65 Yen

Nov 6, 2026

The Bank of Saga Ltd. is a Japanese banking company focused on providing banking and financial services.Its board approved an interim dividend of 65 yen per share for shareholders of record on September 30, 2026, totaling 1.1 billion yen and payable...

Bank of Saga Reports Stronger First-Half Earnings

Nov 6, 2026

Bank of Saga reported stronger consolidated results for the six months ended September 30, 2026, with ordinary income rising 26.8% year on year to ¥37.806 billion. Ordinary profit increased 19.3% to ¥8.311 billion, while profit attributable to owners...

Bank of Saga lifts interim earnings and dividend forecasts on stronger income

Oct 23, 2026

The Bank of Saga Ltd. has raised its consolidated and non-consolidated forecasts for the six months ended September 30, 2026, reflecting stronger-than-expected performance. Higher non-consolidated ordinary income is driven mainly by gains on sales of...

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

Bank of Saga Ltd. AI Stock Analysis