| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1381.50 | -12 |
| Intrinsic value (DCF) | 810.26 | -49 |
| Graham-Dodd Method | 1983.07 | 26 |
| Graham Formula | 2480.40 | 57 |
The San-in Godo Bank, Ltd. (8381.T) is a regional banking institution headquartered in Matsue, Japan, with a history dating back to 1878. Operating primarily in the Shimane and Tottori prefectures, the bank provides a comprehensive suite of financial services, including deposits, loans, leasing, securities investment, and currency exchange. It also offers specialized services such as real estate leasing, credit guarantees, and corporate consulting. With a network of 70 branches and 79 sub-branches, including offices in Tokyo, Osaka, and international locations like Dalian, Shanghai, and Bangkok, the bank serves both individual and corporate clients. As a key player in Japan's regional banking sector, San-in Godo Bank plays a vital role in supporting local economies while maintaining a conservative risk profile. The bank's diversified revenue streams and strong regional presence position it as a stable financial services provider in Japan's competitive banking landscape.
The San-in Godo Bank presents a conservative investment opportunity with its strong regional presence and stable financial performance. With a market capitalization of approximately ¥194.3 billion and a low beta of 0.065, the bank exhibits lower volatility compared to broader markets. The bank reported ¥109 billion in revenue and ¥16.8 billion in net income for the fiscal year, with a diluted EPS of ¥109.24. However, investors should note the negative operating cash flow of -¥519.9 billion, which may reflect significant lending activities or other operational factors. The bank maintains a solid liquidity position with ¥886.4 billion in cash and equivalents, though its total debt stands at ¥700.4 billion. A dividend of ¥48 per share offers modest yield potential. Given its regional focus and conservative risk management, San-in Godo Bank may appeal to income-focused investors seeking exposure to Japan's regional banking sector.
The San-in Godo Bank operates in Japan's highly competitive regional banking sector, where it competes with both larger national banks and smaller regional players. Its primary competitive advantage lies in its deep-rooted presence in the Shimane and Tottori prefectures, where it has established strong relationships with local businesses and individuals. The bank's diversified service offerings, including leasing and consulting services, provide additional revenue streams beyond traditional banking. However, its regional focus also limits growth opportunities compared to nationwide banks with greater scale and resources. The bank's conservative risk profile, evidenced by its low beta, may appeal to risk-averse investors but could also constrain profitability in a low-interest-rate environment. Its international representative offices in Dalian, Shanghai, and Bangkok provide limited overseas exposure, primarily serving Japanese clients with regional business interests. While the bank's strong liquidity position supports stability, its relatively high debt load and negative operating cash flow warrant careful monitoring. In comparison to larger peers, San-in Godo Bank may lack the technological innovation and digital banking capabilities that are increasingly important in Japan's evolving financial landscape.