8421 (Shinkin Central Bank) vs Nikkei 225 Comparison

8421

Nikkei 225

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8421

Nikkei 225

Difference

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8421

Nikkei 225

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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Nikkei 225

8421

IRFC

PFC

RECLTD

8593

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Shinkin Central Bank
Glance View

Market Cap

1.9T JPY

Industry

Financial Services

Amid Japan's bustling financial landscape stands the Shinkin Central Bank, a pivotal institution that serves as the backbone for a network of regional cooperative banks known as 'shinkin banks.' Formed in 1950, Shinkin Central Bank operates as a cooperative itself, offering a sturdy bridge between local economies and the nation's extensive financial ecosystem. Unlike commercial banks that serve individual consumer needs, Shinkin Central Bank primarily focuses on supporting the mutual interests of these shinkin banks. Through this cooperative relationship, the Shinkin Central Bank enhances the liquidity management of its members by offering deposit-taking and lending services, thereby ensuring these community-oriented banks can provide consistent financial support to small and medium-sized enterprises—often the lifeblood of local Japanese economies. Revenue generation for Shinkin Central Bank is multifaceted. It earns from interest on loans extended to member shinkin banks, who channel these funds into local enterprises and infrastructure projects. Moreover, the bank invests in government and private sector securities, ensuring a diversified income stream bolstered by a traditionally conservative investment strategy. Its business model relies on the circulation of capital through its member banks, supporting a sustainable financial ecosystem that aligns with mutual and community-focused banking ideals. By prioritizing stable growth over aggressive expansion, Shinkin Central Bank exemplifies a unique blend of traditional banking prudence and cooperative solidarity, creating a platform where regional financial health translates into national economic stability.

View Shinkin Central Bank Analysis

Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

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IN		Indian Railway Finance Corp Ltd NSE:IRFC	Select
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JP		Mitsubishi HC Capital Inc TSE:8593	Select
CA		Element Fleet Management Corp TSX:EFN	Select
IN	I	Indian Renewable Energy Development Agency Ltd NSE:IREDA	Select
TW		Chailease Holding Company Ltd TWSE:5871	Select
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JP		Tokyo Century Corp TSE:8439	Select
CN	J	Jiangsu Financial Leasing Co Ltd SSE:600901	Select

IN		Indian Railway Finance Corp Ltd NSE:IRFC	Add
IN		Power Finance Corporation Ltd NSE:PFC	Add
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JP		Mitsubishi HC Capital Inc TSE:8593	Add
CA		Element Fleet Management Corp TSX:EFN	Add
IN	I	Indian Renewable Energy Development Agency Ltd NSE:IREDA	Add
TW		Chailease Holding Company Ltd TWSE:5871	Add
IN		Housing and Urban Development Corporation Ltd NSE:HUDCO	Add
JP		Tokyo Century Corp TSE:8439	Add
CN	J	Jiangsu Financial Leasing Co Ltd SSE:600901	Add

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8421

vs

Nikkei 225

Stocks Performance
8421 vs Nikkei 225

Performance Gap
8421 vs Nikkei 225

Performance By Year
8421 vs Nikkei 225

Competitors Performance
Shinkin Central Bank vs Peers

Shinkin Central Bank
Glance View

Company

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8421 vs Nikkei 225

Stocks Performance 8421 vs Nikkei 225

Performance Gap 8421 vs Nikkei 225

Performance By Year 8421 vs Nikkei 225

Competitors Performance Shinkin Central Bank vs Peers

Shinkin Central Bank Glance View

Company

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Stocks

8421

vs

Nikkei 225

Stocks Performance
8421 vs Nikkei 225

Performance Gap
8421 vs Nikkei 225

Performance By Year
8421 vs Nikkei 225

Competitors Performance
Shinkin Central Bank vs Peers

Shinkin Central Bank
Glance View