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

Nishi-Nippon Financial Holdings, Inc.

Gunma Bank, Ltd.

Rakuten Bank Ltd.

The Hachijuni Bank, Ltd.

Concordia Financial Group, Ltd.

Hirogin Holdings, Inc.

Iyogin Holdings, Inc.

Shizuoka Financial Group, Inc.

Resona Holdings, Inc.

Yamaguchi Financial Group, Inc.

Japan Post Bank Co., Ltd.

Why is Gunma Bank, Ltd. ?

With a growth in Operating Profit of 38.15%, the company declared Very Positive results in Dec 25

The company has declared positive results for the last 3 consecutive quarters
ROCE(HY) Highest at 0.53%
PRE-TAX PROFIT(Q) Highest at JPY 24,477 MM
NII(Q) Highest at JPY 26,043 MM

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 62.20%, 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 62.20% 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.

62.2%

2.72

39.52%

Japan Nikkei 225

38.94%

1.30

28.24%

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)

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

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

No Trend

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

16What is working for the Company

ROCE(HY)

Highest at 0.53%

PRE-TAX PROFIT(Q)

Highest at JPY 24,477 MM

NII(Q)

Highest at JPY 26,043 MM

CREDIT DEPOSIT RATIO(HY)

Highest at 81.16%

NET SALES(Q)

Highest at JPY 42,132 MM

NET PROFIT(Q)

Highest at JPY 17,007.88 MM

EPS(Q)

Highest at JPY 44.75

-6What is not working for the Company

INTEREST(9M)

At JPY 44,455 MM has Grown at 16.35%

ROCE(HY)

Lowest at 0.53%

CASH AND EQV(HY)

Lowest at JPY 2,736,077 MM

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

Pre-Tax Profit

Highest at JPY 24,477 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

NII

Highest at JPY 26,043 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 42,132 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 42,132 MM has Grown at 12.26%

over average net sales of the previous four periods of JPY 37,531.5 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Profit

Highest at JPY 17,007.88 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 44.75

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Credit Deposit Ratio

Highest at 81.16%

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 (%)

Depreciation

Highest at JPY 1,630 MM

in the last five periods

MOJO Watch

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

Depreciation (JPY MM)

CASA

Highest at 15.38%

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 44,455 MM has Grown at 16.35%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 2,736,077 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents