Seven Bank, Ltd. (8410) AI Stock Analysis

• Market Cap: ¥314.86B
• Dividend Yield: 4.11%
• Average Volume (3M): 7.72M
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.51
• Revenue Growth: 14.13%
• EPS Growth: -74.08%
• Country: JP
• Employees: 1,301
• Sector: Financial
• Sector Strength: 83
• Industry: Banks - Regional
• EPS (TTM): 2.77
• Shares Outstanding: 1,179,308,000
• 10 Day Avg. Volume: 8,662,690
• 30 Day Avg. Volume: 7,719,363
• PEG Ratio: 52.28
• Price to Book (P/B): 1.13
• 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

• Rating: 62 Neutral
• Price Target: ―

Seven Bank, Ltd. presents a strong financial foundation with impressive revenue growth and a robust balance sheet. However, cash flow challenges pose risks to financial flexibility. Technical analysis indicates a bearish trend, and the high P/E ratio suggests limited upside potential. The attractive dividend yield partially offsets valuation concerns.

Seven Bank, Ltd. Business Overview & Revenue Model

Company Description

Seven Bank, Ltd. provides various banking products and services to individual and corporate customers in Japan and internationally. It accepts accounts, and ordinary and time deposits; and offers personal loans, as well as debit and credit card, debit, debt, money transfer, Internet banking, ATM, and other services. The company also provides back-office support services for financial institutions; and security services. The company was incorporated in 2001 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Seven Bank, Ltd. generates revenue primarily through transaction fees collected from ATM users, which include fees from customers of other banks who utilize Seven Bank's ATM services. Additionally, the company earns income from service fees paid by financial institutions for network usage, as well as from leasing its ATM infrastructure. Seven Bank benefits from strategic partnerships with retail giants like Seven & I Holdings, which enables the widespread placement of its ATMs in high-traffic locations, thereby increasing transaction volume and revenue. The company's international operations also contribute to its earnings by expanding its ATM network and service offerings outside Japan.

Seven Bank, Ltd. Financial Statement Overview

Summary

Seven Bank, Ltd. demonstrates strong financial stability and growth in revenue, with a solid balance sheet characterized by low leverage and strong equity. However, recent cash flow challenges highlight areas for improvement in cash generation and management.

Income Statement

Seven Bank, Ltd. shows a solid gross profit margin with consistent revenue growth over recent years. The net profit margin has declined in the TTM period compared to the previous year, but overall, the company maintains a healthy EBIT margin. The revenue growth rate is strong, indicating a positive trajectory in revenue generation.

Balance Sheet

The balance sheet reflects a strong equity position with a low debt-to-equity ratio, indicating prudent financial management. The equity ratio remains stable, suggesting a sound capital structure. Return on equity has experienced some fluctuation but remains respectable, highlighting effective use of shareholders' equity.

Cash Flow

The cash flow situation is mixed, with fluctuations in free cash flow. The operating cash flow to net income ratio is not calculable due to zero operating cash flow in the TTM period, indicating potential cash generation issues. However, the company's previous free cash flow growth shows positive historical performance.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
207.50B	143.28B	111.91B	100.25B	101.37B	107.58B
	Gross Profit
207.77B	143.28B	111.91B	100.25B	101.37B	107.58B
	EBIT
73.94B	32.71B	8.16B	10.91B	21.75B	25.20B
	EBITDA
28.78B	0.00	46.98B	43.54B	49.73B	54.41B
	Net Income Common Stockholders
10.36B	31.97B	18.85B	20.83B	25.91B	26.16B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.21T	988.93B	952.03B	931.40B	937.95B	848.45B
	Total Assets
1.89T	1.72T	1.31T	1.22T	1.20T	1.09T
	Total Debt
80.50B	194.05B	144.96B	106.94B	105.59B	105.20B
	Net Debt
-1.13T	-988.93B	-807.07B	-824.47B	-832.35B	-743.25B
	Total Liabilities
1.61T	1.44T	94.96B	977.51B	962.48B	863.05B
	Stockholders Equity
273.02B	270.55B	250.63B	242.50B	233.27B	221.48B
Cash Flow		Free Cash Flow
0.00	-51.47B	41.26B	17.03B	110.80B	73.97B
	Operating Cash Flow
0.00	-12.20B	66.58B	41.31B	136.04B	89.62B
	Investing Cash Flow
0.00	-51.94B	-36.19B	-36.11B	-32.77B	-5.80B
	Financing Cash Flow
0.00	81.82B	-12.97B	-12.73B	-13.55B	-16.01B

Seven Bank, Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 270.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8410, the sentiment is Negative. The current price of 270 is above the 20-day moving average (MA) of 265.36, above the 50-day MA of 263.42, and below the 200-day MA of 288.21, indicating a neutral trend. The MACD of 2.88 indicates Negative momentum. The RSI at 51.91 is Neutral, neither overbought nor oversold. The STOCH value of 50.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8410.

Seven Bank, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$12.79B	9.71	7.54%	16971.00%	12.07%	-7.53%
8410	62 Neutral	¥314.86B	17.19		4.11%	14.13%	-74.08%
KYUNF		$2.25B	6.08	4.21%	4.96%	―	―
YFGSF		$2.14B	9.97	5.46%	3.68%	―	―
7327	73 Outperform	¥305.56B	9.96		3.92%	9.02%	14.49%
8377	71 Outperform	¥342.85B	8.97		1.79%	21.04%	20.47%
5832	63 Neutral	¥328.43B	11.73		3.46%	12.82%	13.03%

Seven Bank, Ltd. Corporate Events

Seven Bank Reports Mixed Financial Results for Q3 FY2025

Seven Bank, Ltd. reported its financial results for the third quarter of the fiscal year ending March 31, 2025, showing a notable increase in ordinary income by 10.1%, reaching 159,490 million yen. However, net income attributable to owners saw a significant decline of 59% compared to the previous year. The bank’s total assets increased to 1,885,148 million yen, though its net assets to total assets ratio slightly decreased to 14.4%. The company also made a significant change in its scope of consolidation by adding a new entity in Malaysia while excluding another due to stock transfer. These results indicate potential challenges in profitability despite growth in ordinary income, impacting stakeholders’ expectations for future performance.