The Shikoku Bank, Ltd. (8387) 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

Bank of The Ryukyus, Ltd.

The Shikoku Bank, Ltd.

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First Bank of Toyama Ltd.

The Miyazaki Bank Ltd.

Oita Bank, Ltd.

Why is The Shikoku Bank, Ltd. ?

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

With a growth in Operating Profit of 146.19%, the company declared Outstanding results in Dec 25

ROCE(HY) Highest at 0.5%
CREDIT DEPOSIT RATIO(HY) Highest at 73.39%
NET SALES(Q) Highest at JPY 11,618 MM

With ROA of 0.20%, it has a very attractive valuation with a 0.30 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 85.65%, its profits have fallen by -6%
At the current price, the company has a high dividend yield of 0

Market Beating performance in long term as well as near term

Along with generating 85.65% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to The Shikoku 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 Shikoku Bank, Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

The Shikoku Bank, Ltd.

85.65%

2.96

34.73%

Japan Nikkei 225

36.73%

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)

7.30%

EBIT Growth (5y)

106.46%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

30.62%

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

0.30

EV to EBIT

5.47

EV to EBITDA

4.00

EV to Capital Employed

0.24

EV to Sales

0.85

PEG Ratio

Dividend Yield

0.04%

ROCE (Latest)

4.30%

ROE (Latest)

4.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

No Trend

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

24What is working for the Company

ROCE(HY)

Highest at 0.5%

CREDIT DEPOSIT RATIO(HY)

Highest at 73.39%

NET SALES(Q)

Highest at JPY 11,618 MM

PRE-TAX PROFIT(Q)

Highest at JPY 17,384 MM

NET PROFIT(Q)

Highest at JPY 15,656.53 MM

EPS(Q)

Highest at JPY 285.02

-7What is not working for the Company

INTEREST(9M)

At JPY 5,788 MM has Grown at 109.26%

ROCE(HY)

Lowest at 0.5%

CASH AND EQV(HY)

Lowest at JPY 313,374 MM

Here's what is working for The Shikoku Bank, Ltd.

Pre-Tax Profit

At JPY 17,384 MM has Grown at 528.6%

over average net sales of the previous four periods of JPY 2,765.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 15,656.53 MM has Grown at 830.93%

over average net sales of the previous four periods of JPY 1,681.82 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

Highest at JPY 11,618 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Pre-Tax Profit

Highest at JPY 17,384 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 15,656.53 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 285.02

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Credit Deposit Ratio

Highest at 73.39%

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 (%)

CASA

Highest at 9.13%

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 Shikoku Bank, Ltd.

Interest

At JPY 5,788 MM has Grown at 109.26%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 313,374 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents