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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Hirogin Holdings, Inc.

Rakuten Bank Ltd.

Shizuoka Financial Group, Inc.

Nishi-Nippon Financial Holdings, Inc.

Gunma Bank, Ltd.

Iyogin Holdings, Inc.

Japan Post Bank Co., Ltd.

Concordia Financial Group, Ltd.

Yamaguchi Financial Group, Inc.

Resona Holdings, Inc.

The Hachijuni Bank, Ltd.

Why is Gunma Bank, Ltd. ?

Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 12.34% signifying inadequate buffers against its risk based assets

Poor long term growth as Net profit has grown by an annual rate of 14.50%
Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 12.34% signifying inadequate buffers against its risk based assets
The bank has been able to generate a Return on Assets (avg) of 0.16% signifying low profitability per unit of total assets

With a growth in Operating Profit of 38.15%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 7 consecutive quarters
ROCE(HY) Highest at 0.55%
DIVIDEND PER SHARE(HY) Highest at JPY 0
NET SALES(Q) Highest at JPY 43,453 MM

With ROA of 0.40%, it has a very attractive valuation with a 1.41 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 93.94%, its profits have risen by 41% ; the PEG ratio of the company is 0.4
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 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?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Gunma Bank, Ltd.

94.03%

3.70

35.47%

Japan Nikkei 225

88.41%

3.25

27.24%

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)

17.05%

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

1.41

EV to EBIT

13.40

EV to EBITDA

12.09

EV to Capital Employed

1.47

EV to Sales

5.87

PEG Ratio

0.44

Dividend Yield

ROCE (Latest)

10.96%

ROE (Latest)

7.25%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Bullish

OBV

No Trend

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

15What is working for the Company

ROCE(HY)

Highest at 0.55%

DIVIDEND PER SHARE(HY)

Highest at JPY 0

NET SALES(Q)

Highest at JPY 43,453 MM

CREDIT DEPOSIT RATIO(Q)

Highest at 1.21%

NII(Q)

Highest at JPY 27,590 MM

OPERATING PROFIT(Q)

Highest at JPY 20,311 MM

-6What is not working for the Company

INTEREST(9M)

At JPY 46,779 MM has Grown at 23.16%

ROCE(HY)

Lowest at 0.55%

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

Net Sales

Highest at JPY 43,453 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Credit Deposit Ratio

Highest at 1.21% and Grown

In each half year in the last four Semi-Annual periods

MOJO Watch

Bank has been creating proportionately higher loans against its deposits, thereby creating higher revenue generating assets

Credit Deposit Ratio (%)

NII

Highest at JPY 27,590 MM

in the last five periods

MOJO Watch

The bank's income from core business is increasing

NII (JPY MM)

Dividend per share

Highest at JPY 0 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Operating Profit

Highest at JPY 20,311 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Depreciation

Highest at JPY 1,642 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

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

Interest

At JPY 46,779 MM has Grown at 23.16%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)