Gunma Bank, Ltd. (8334) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Nishi-Nippon Financial Holdings, Inc.

Hirogin Holdings, Inc.

Concordia Financial Group, Ltd.

Gunma Bank, Ltd.

Japan Post Bank Co., Ltd.

Shizuoka Financial Group, Inc.

The Hachijuni Bank, Ltd.

Iyogin Holdings, Inc.

Yamaguchi Financial Group, Inc.

Resona Holdings, Inc.

Rakuten Bank Ltd.

Why is Gunma Bank, Ltd. ?

The company has declared Positive results for the last 3 consecutive quarters

NII(Q) Highest at JPY 25,833 MM
NET SALES(9M) At JPY 109,505 MM has Grown at 31.54%
ROCE(HY) Highest at 0.43%

With ROA of 0.41%, it has a very attractive valuation with a 0.89 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 52.38%, its profits have risen by 41% ; the PEG ratio of the company is 0.3
At the current price, the company has a high dividend yield of 0

Consistent Returns over the last 3 years

Along with generating 52.38% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Gunma Bank, Ltd. should be less than 10%
Overall Portfolio exposure to Regional Banks should be less than 30%

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

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

Is Gunma Bank, Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Gunma Bank, Ltd.

50.47%

1.91

36.33%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.30%

EBIT Growth (5y)

6.02%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

39.54%

Pledged Shares

Institutional Holding

0.02%

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

0.89

EV to EBIT

12.60

EV to EBITDA

10.69

EV to Capital Employed

0.87

EV to Sales

3.36

PEG Ratio

0.26

Dividend Yield

0.04%

ROCE (Latest)

6.93%

ROE (Latest)

7.80%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Bullish

OBV

Bullish

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

14What is working for the Company

NII(Q)

Highest at JPY 25,833 MM

NET SALES(9M)

At JPY 109,505 MM has Grown at 31.54%

ROCE(HY)

Highest at 0.43%

PRE-TAX PROFIT(Q)

Highest at JPY 19,867 MM

NET PROFIT(Q)

Highest at JPY 14,060 MM

EPS(Q)

Highest at JPY 36.77

-6What is not working for the Company

INTEREST(9M)

At JPY 40,220 MM has Grown at 21.74%

ROCE(HY)

Lowest at 0.43%

Here's what is working for Gunma Bank, Ltd.

NII

Highest at JPY 25,833 MM and Grown

In each period in the last five periods

MOJO Watch

The bank's income from core business is increasing

Net NPA (%)

Net Sales

Highest at JPY 39,372 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 39,372 MM has Grown at 18.94%

over average net sales of the previous four periods of JPY 33,101.25 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Pre-Tax Profit

Highest at JPY 19,867 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 14,060 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 36.77

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

CASA

Highest at 14.49%

in the last five periods

MOJO Watch

The Bank's capital base vs its risk assets is improving. However, the bank may not be taking adequate risk in its lending book.

CAR (%)

Here's what is not working for Gunma Bank, Ltd.

Interest

At JPY 40,220 MM has Grown at 21.74%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)