| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 7564.56 | 201 |
| Intrinsic value (DCF) | 532.58 | -79 |
| Graham-Dodd Method | 6267.04 | 150 |
| Graham Formula | 3606.07 | 44 |
The Shimizu Bank, Ltd. is a regional banking institution headquartered in Shizuoka, Japan, offering a comprehensive suite of financial services including cash calculation, credit guarantees, leasing, and credit card services. Established in 1928, the bank operates a network of 78 branches and 1 sub-branch, serving local businesses and individuals. Beyond traditional banking, Shimizu Bank engages in real estate management, personnel delegation, and financial research, positioning itself as a multifaceted financial services provider in Japan's competitive regional banking sector. The bank plays a crucial role in supporting regional economic activities, particularly in Shizuoka Prefecture, where it contributes to local development through tailored financial solutions. Despite challenges in profitability, Shimizu Bank maintains a stable presence with a focus on community banking and diversified financial services.
The Shimizu Bank presents a mixed investment profile. On one hand, its regional focus and diversified services provide stability in Japan's competitive banking sector, supported by a long-standing presence in Shizuoka. The bank's low beta (0.196) suggests lower volatility compared to the broader market, which may appeal to risk-averse investors. However, the bank reported a net loss of ¥3.3 billion in the latest fiscal year, with negative EPS (-¥286.1) and operating cash flow (-¥62.8 billion), raising concerns about profitability and liquidity. The dividend yield, at ¥60 per share, offers some income appeal, but investors should weigh this against the bank's financial challenges. Given its regional niche, Shimizu Bank's performance is closely tied to Japan's economic conditions, particularly in its operating regions.
The Shimizu Bank operates in Japan's highly competitive regional banking sector, where it faces pressure from both larger national banks and other regional players. Its competitive advantage lies in its deep regional roots and localized service offerings, which allow it to build strong relationships with local businesses and individuals. The bank's diversified services, including real estate management and leasing, provide additional revenue streams beyond traditional banking. However, its small scale (market cap ~¥15.2 billion) limits its ability to compete with larger banks in terms of technology investments and nationwide reach. The negative net income and operating cash flow highlight operational challenges, possibly due to margin compression in Japan's low-interest-rate environment or higher credit costs. Shimizu Bank's ability to maintain its regional focus while improving efficiency will be critical to its competitive positioning. Its real estate and leasing operations could differentiate it if managed effectively, but these also expose the bank to Japan's property market risks.