The Awa Bank Ltd. (8388) 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

The Hyakugo Bank, Ltd.

Mebuki Financial Group, Inc.

Seven Bank Ltd.

Daishi Hokuetsu Financial Group, Inc.

Aichi Financial Group, Inc.

The Shiga Bank, Ltd.

The 77 Bank, Ltd.

The Awa Bank Ltd.

Tokyo Kiraboshi Financial Group, Inc.

Fukuoka Financial Group, Inc.

Kyushu Financial Group, Inc.

Why is The Awa Bank Ltd. ?

Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 11.22% signifying inadequate buffers against its risk based assets

Poor long term growth as Net profit has grown by an annual rate of 3.40%
Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 11.22% signifying inadequate buffers against its risk based assets
The bank has been able to generate a Return on Assets (avg) of 0.18% signifying low profitability per unit of total assets

Poor long term growth as Net profit has grown by an annual rate of 3.40%

Positive results in Mar 26

ROCE(HY) Highest at 0.38%
DIVIDEND PER SHARE(HY) Highest at JPY 0
NII(Q) Highest at JPY 11,972 MM

With ROA of 0.32%, it has a very attractive valuation with a 0.60 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 151.18%, its profits have risen by 17% ; the PEG ratio of the company is 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 The Awa Bank Ltd. should be less than 10%
Overall Portfolio exposure to Major Banks should be less than 30%

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

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

Is The Awa Bank Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

The Awa Bank Ltd.

151.18%

4.67

31.33%

Japan Nikkei 225

88.41%

3.12

27.27%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.40%

EBIT Growth (5y)

2.06%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

28.71%

Pledged Shares

Institutional Holding

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

0.59

EV to EBIT

2.24

EV to EBITDA

1.87

EV to Capital Employed

0.18

EV to Sales

0.73

PEG Ratio

1.00

Dividend Yield

ROCE (Latest)

7.93%

ROE (Latest)

3.44%

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

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

ROCE(HY)

Highest at 0.38%

DIVIDEND PER SHARE(HY)

Highest at JPY 0

NII(Q)

Highest at JPY 11,972 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 96.02%

CREDIT DEPOSIT RATIO(HY)

Highest at 73.79%

NET SALES(Q)

Highest at JPY 15,134 MM

-8What is not working for the Company

INTEREST(9M)

At JPY 8,427 MM has Grown at 49.68%

ROCE(HY)

Lowest at 0.38%

OPERATING PROFIT(Q)

Lowest at JPY 2,806 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 18.54 %

Here's what is working for The Awa Bank Ltd.

NII

Highest at JPY 11,972 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)

Net Sales

Highest at JPY 15,134 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 15,134 MM has Grown at 27.03%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Credit Deposit Ratio

Highest at 73.79%

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 (%)

Dividend Payout Ratio

Highest at 96.02%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at JPY 751 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 The Awa Bank Ltd.

Interest

At JPY 8,427 MM has Grown at 49.68%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY 2,806 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 18.54 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales