Aozora Bank Ltd. (8304) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Okasan Securities Group, Inc.

Matsui Securities Co., Ltd.

Tokai Tokyo Financial Holdings, Inc.

Japan Exchange Group, Inc.

GMO Financial Holdings, Inc.

Nomura Holdings, Inc.

Japan Securities Finance Co., Ltd.

Daiwa Securities Group, Inc.

Aozora Bank Ltd.

Nihon M&A Center Holdings Inc.

Financial Partners Group Co., Ltd.

Why is Aozora Bank Ltd. ?

Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 10.16% signifying inadequate buffers against its risk based assets

Poor long term growth as Net Interest Income (ex other income) has grown by an annual rate of 0% and Net profit at -6.10%
Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 10.16% signifying inadequate buffers against its risk based assets
The bank has been able to generate a Return on Assets (avg) of 0.09% signifying low profitability per unit of total assets

Poor long term growth as Net Interest Income (ex other income) has grown by an annual rate of 0% and Net profit at -6.10%

Positive results in Mar 26

ROCE(HY) Highest at 0.31%
NII(Q) Highest at JPY 15,089 MM
DIVIDEND PAYOUT RATIO(Y) Highest at 89.16%

With ROA of 0.22%, it has a very attractive valuation with a 0.75 Price to Book Value

Over the past year, while the stock has generated a return of 27.30%, its profits have risen by 141% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Aozora Bank Ltd. should be less than 10%
Overall Portfolio exposure to Capital Markets should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Capital Markets)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Aozora Bank Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Aozora Bank Ltd.

26.7%

0.53

27.75%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.00%

EBIT Growth (5y)

-18.72%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

51.21%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.75

EV to EBIT

-0.72

EV to EBITDA

-0.47

EV to Capital Employed

-0.09

EV to Sales

-0.06

PEG Ratio

0.13

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

4.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

ROCE(HY)

Highest at 0.31%

NII(Q)

Highest at JPY 15,089 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 89.16%

NET SALES(Q)

Highest at JPY 41,216 MM

-7What is not working for the Company

ROCE(HY)

Lowest at 0.31%

PRE-TAX PROFIT(Q)

At JPY 3,520 MM has Fallen at -47.07%

NET PROFIT(Q)

Lowest at JPY 3,884 MM

EPS(Q)

Lowest at JPY 27.98

Here's what is working for Aozora Bank Ltd.

NII

Highest at JPY 15,089 MM

in the last five periods

MOJO Watch

The bank's income from core business is increasing

NII (JPY MM)

Net Sales

Highest at JPY 41,216 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Dividend Payout Ratio

Highest at 89.16%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Aozora Bank Ltd.

Pre-Tax Profit

At JPY 3,520 MM has Fallen at -47.07%

over average net sales of the previous four periods of JPY 6,650.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 3,884 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Net Profit

At JPY 3,884 MM has Fallen at -40.51%

over average net sales of the previous four periods of JPY 6,529.25 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 27.98

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)