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Hyakujushi Bank (TSE:8386) Stock Rises On Profit Strength And Rich Valuation

Simply Wall St · 2d ago

Hyakujushi Bank stock has been grinding higher in recent months, yet today’s earnings jolt gave investors a fresh reason to question how much is already priced in. The headline is simple. Profitability is running hot while the stock already trades on a relatively full P/E and above a discounted cash flow estimate of ¥1,688.87 versus the ¥2,930 share price.

The real story sits on a longer time horizon. Net profit margin of 20.3% and multi year earnings growth of 13.8% a year set up a tension between an efficient regional lender and a valuation that leaves less room for error.

Love Hyakujushi Bank’s strong 20.3% net margin and solid multi year earnings growth but uneasy about paying up for a stock trading above its discounted cash flow estimate? Compare it with a curated list of resilient, lower risk ideas in our 56 resilient stocks with low risk scores.

Q1 2027 Earnings Summary

  • Revenue Q1 2027: ¥35,979 million vs. Q1 2026: ¥20,602 million (very large increase)
  • Net Income Q1 2027: ¥6,179 million vs. Q1 2026: ¥4,472 million (up 38.2%)
  • Basic EPS Q1 2027: ¥54.64 per share vs. Q1 2026: ¥39.32 per share (up 39.0%)
  • Net Interest Margin (NIM), trailing 12 months to Q1 2027: 0.92% vs. trailing 12 months to Q4 2025: 0.76% (higher margin level)

Prefer clean charts over scrolling through walls of text and raw figures on Hyakujushi Bank? You can see the bank’s valuation picture in an easy visual dashboard in our company report for Hyakujushi Bank.

TSE:8386 Trailing 12-Month Revenue & Expenses Breakdown as at Aug 2026
TSE:8386 Trailing 12-Month Revenue & Expenses Breakdown as at Aug 2026

Hyakujushi Bank earnings tilt toward the bulls

For bullish investors, Hyakujushi Bank’s latest quarter lines up with the idea of a solid regional franchise that is currently executing well. Revenue in Q1 2027 is far above Q1 2026 and net income has moved higher too, with basic EPS up from ¥39.32 to ¥54.64. Net interest margin at 0.92% versus 0.76% in the prior period also points to a more profitable core lending book. Taken together, these shifts support the view that the bank’s business model is holding up in the current rate and credit backdrop.

Hyakujushi Bank risks remain despite stronger print

For the more cautious view on Hyakujushi Bank, the latest figures do not remove structural questions that surround regional Japanese lenders. Profit and EPS are higher and net interest margin has improved, which softens immediate earnings risk. However, these numbers sit within a sector that still faces pressure from demographics, competition and interest rate conditions. The recent 90 day share price gain of 24.15% shows investors have rewarded this earnings profile, so anyone worried about regional bank headwinds may still see limited cushion if the operating environment turns less friendly.

After a 24.15% move in 90 days, and with questions on dividend stability and bad loan coverage, it is worth asking if these are isolated issues or hints of deeper fragility. Review our independent risk analysis for Hyakujushi Bank which shows 2 important warning signs

Take Control Of Your Next Move

If Hyakujushi Bank’s strong 20.3% net margin and recent 24.15% share price move in 90 days have caught your eye, register for free with Simply Wall St and add it to a Watchlist so you can track the share price against fair value and watch for a more comfortable entry point. After you decide to build or adjust a position, keep your focus on what really matters by managing all your holdings through the Portfolio Command Center that surfaces only the most important updates. For longer term context and fresh angles on Hyakujushi Bank and peers, tap into the crowd insights inside the Community. By spotting potential catalysts and risks early, you give yourself a better chance of staying ahead of the market rather than reacting to it.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.