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

Shizuoka Financial Group, Inc.

Nishi-Nippon Financial Holdings, Inc.

Rakuten Bank Ltd.

Gunma Bank, Ltd.

Concordia Financial Group, Ltd.

Hirogin Holdings, Inc.

Iyogin Holdings, Inc.

Yamaguchi Financial Group, Inc.

Japan Post Bank Co., Ltd.

The Hachijuni Bank, Ltd.

Resona Holdings, Inc.

Why is Gunma Bank, Ltd. ?

Poor Management Efficiency with a low ROA of 0.16%

The bank has been able to generate a Return on Assets (avg) of 0.16% signifying low profitability per unit of total assets

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 34.20%
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

Poor long term growth as Net profit has grown by an annual rate of 34.20%

The company has declared Positive results for the last 8 consecutive quarters

ROCE(HY) Highest at 0.58%
NET SALES(Q) Highest at JPY 46,951 MM
NII(Q) Highest at JPY 30,591 MM

With ROA of 0.32%, it has a fair valuation with a 1.49 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 86.82%, its profits have risen by 34% ; 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.

86.82%

4.36

35.98%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.90%

EBIT Growth (5y)

45.38%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

40.03%

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

1.49

EV to EBIT

10.80

EV to EBITDA

10.05

EV to Capital Employed

1.49

EV to Sales

5.61

PEG Ratio

0.38

Dividend Yield

ROCE (Latest)

13.76%

ROE (Latest)

9.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Bullish

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 0.58%

NET SALES(Q)

Highest at JPY 46,951 MM

NII(Q)

Highest at JPY 30,591 MM

OPERATING PROFIT(Q)

Highest at JPY 21,171 MM

PRE-TAX PROFIT(Q)

Highest at JPY 25,095 MM

NET PROFIT(Q)

Highest at JPY 17,584 MM

EPS(Q)

Highest at JPY 46.46

-7What is not working for the Company

INTEREST(9M)

At JPY 48,312 MM has Grown at 20.12%

ROCE(HY)

Lowest at 0.58%

CASH AND EQV(HY)

Lowest at JPY 2,678,513 MM

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

Net Sales

Highest at JPY 46,951 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

NII

Highest at JPY 30,591 MM

in the last five periods

MOJO Watch

The bank's income from core business is increasing

NII (JPY MM)

Net Sales

At JPY 46,951 MM has Grown at 13.42%

over average net sales of the previous four periods of JPY 41,394.5 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 21,171 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 25,095 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 17,584 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 46.46

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

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

Interest

At JPY 48,312 MM has Grown at 20.12%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 2,678,513 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents