The Fukushima Bank Ltd. (8562) 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

Tsukuba Bank, Ltd.

Shimizu Bank, Ltd.

FIDEA Holdings Co., Ltd.

The Kita-Nippon Bank, Ltd.

Tomato Bank, Ltd.

The Chikuho Bank, Ltd.

The Taiko Bank, Ltd.

The Fukushima Bank Ltd.

The Towa Bank, Ltd.

The Daito Bank, Ltd.

The Bank of Kochi, Ltd.

Why is The Fukushima Bank Ltd. ?

Poor Management Efficiency with a low ROA of -0.01%

The bank has been able to generate a Return on Assets (avg) of -0.01% signifying low profitability per unit of total assets

Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 8.08% signifying inadequate buffers against its risk based assets

Poor long term growth as Net Interest Income (ex other income) has grown by an annual rate of 0%
Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 8.08% signifying inadequate buffers against its risk based assets
The bank has been able to generate a Return on Assets (avg) of -0.01% signifying low profitability per unit of total assets

Poor long term growth as Net Interest Income (ex other income) has grown by an annual rate of 0%

The company has declared Negative results for the last 4 consecutive quarters

INTEREST(9M) At JPY 838 MM has Grown at 721.57%
NET PROFIT(HY) At JPY -197 MM has Grown at -131.72%
NII(Q) Lowest at JPY 1,746 MM

Risky - Negative EBITDA

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 74.21%, its profits have fallen by -244%
At the current price, the company has a high dividend yield of 0.2

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to The Fukushima 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 The Fukushima Bank Ltd. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

The Fukushima Bank Ltd.

87.0%

1.36

31.31%

Japan Nikkei 225

38.59%

1.50

26.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.40%

EBIT Growth (5y)

-205.82%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

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

NA (Loss Making)

Industry P/E

Price to Book Value

0.32

EV to EBIT

40.02

EV to EBITDA

81.08

EV to Capital Employed

1.53

EV to Sales

-5.85

PEG Ratio

Dividend Yield

0.18%

ROCE (Latest)

3.83%

ROE (Latest)

-5.23%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

Mildly 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

8What is working for the Company

NET SALES(Q)

Highest at JPY 2,180 MM

PRE-TAX PROFIT(Q)

At JPY 67 MM has Grown at 121%

NET PROFIT(Q)

At JPY 64 MM has Grown at 125.27%

-15What is not working for the Company

INTEREST(9M)

At JPY 838 MM has Grown at 721.57%

NET PROFIT(HY)

At JPY -197 MM has Grown at -131.72%

NII(Q)

Lowest at JPY 1,746 MM

CASH AND EQV(HY)

Lowest at JPY 117,715 MM

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

Net Sales

Highest at JPY 2,180 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 67 MM has Grown at 121%

over average net sales of the previous four periods of JPY -319 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 64 MM has Grown at 125.27%

over average net sales of the previous four periods of JPY -253.25 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

CASA

Highest at 9.22%

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 The Fukushima Bank Ltd.

Interest

At JPY 838 MM has Grown at 721.57%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

NII

Lowest at JPY 1,746 MM

in the last five periods

MOJO Watch

The bank's income from core business is falling

NII (JPY MM)

Cash and Eqv

Lowest at JPY 117,715 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Non Operating Income

Highest at JPY 1.54 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income