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

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The Shikoku Bank, Ltd.

Oita Bank, Ltd.

Why is The Shikoku Bank, Ltd. ?

Poor Management Efficiency with a low ROA of 0.13%

The bank has been able to generate a Return on Assets (avg) of 0.13% signifying low profitability per unit of total assets

Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 10.25% signifying inadequate buffers against its risk based assets

Poor long term growth as Net profit has grown by an annual rate of 17.10%
Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 10.25% signifying inadequate buffers against its risk based assets
The bank has been able to generate a Return on Assets (avg) of 0.13% signifying low profitability per unit of total assets

Poor long term growth as Net profit has grown by an annual rate of 17.10%

Flat results in Jun 26

INTEREST(9M) At JPY 7,277 MM has Grown at 89.31%
NET PROFIT(Q) At JPY 2,216 MM has Fallen at -58.22%
ROCE(HY) Lowest at 0.5%

With ROA of 0.20%, it has a very attractive valuation with a 0.66 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 156.97%, its profits have fallen by -6%
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 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.

156.97%

5.24

36.41%

Japan Nikkei 225

60.14%

2.05

29.37%

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)

114.59%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

14.35%

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

0.66

EV to EBIT

21.21

EV to EBITDA

16.28

EV to Capital Employed

0.72

EV to Sales

3.98

PEG Ratio

Dividend Yield

ROCE (Latest)

3.37%

ROE (Latest)

3.65%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Bullish

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

11What is working for the Company

ROCE(HY)

Highest at 0.5%

NET SALES(Q)

Highest at JPY 12,776 MM

CREDIT DEPOSIT RATIO(Q)

Highest at 0%

NET PROFIT(9M)

Higher at JPY 19,399.16 MM

-12What is not working for the Company

INTEREST(9M)

At JPY 7,277 MM has Grown at 89.31%

NET PROFIT(Q)

At JPY 2,216 MM has Fallen at -58.22%

ROCE(HY)

Lowest at 0.5%

PRE-TAX PROFIT(Q)

At JPY 3,592 MM has Fallen at -46.39%

OPERATING PROFIT MARGIN(Q)

Lowest at 18.13 %

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

Net Sales

Highest at JPY 12,776 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Credit Deposit Ratio

Highest at 0% and Grown

In each half year 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

At JPY 482 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

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

Interest

At JPY 7,277 MM has Grown at 89.31%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

At JPY 2,216 MM has Fallen at -58.22%

over average net sales of the previous four periods of JPY 5,304.54 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Pre-Tax Profit

At JPY 3,592 MM has Fallen at -46.39%

over average net sales of the previous four periods of JPY 6,700.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Operating Profit Margin

Lowest at 18.13 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales