Stable ProfitabilityA consistent net profit margin near 10% provides a durable earnings base for the bank. It supports internal capital generation, dividend capacity, and loss-absorbing ability through credit cycles, helping sustain core operations and creditor confidence over the medium term.

Low LeverageA debt-to-equity ratio of 0.14 signals conservative leverage and greater balance-sheet flexibility. Low external leverage reduces interest burden and default risk, gives room to expand lending or absorb asset shocks, and supports compliance with regulatory capital standards.

Healthy Free Cash Flow ConversionStrong free cash flow conversion indicates the bank turns accounting profits into actual cash, enabling investments in digital initiatives, branch operations, or repayment of liabilities without heavy external funding, which supports sustainable operations and strategic flexibility.

Bears Say

Negative Revenue TrendSustained negative revenue growth is a structural concern: it limits scale economies, pressures per-unit profitability, and suggests the bank may be losing market share or facing pricing compression. That constrains reinvestment and long-term franchise growth unless reversed.

Volatile Operating Cash FlowHistoric negative and volatile operating cash flow raises liquidity and funding risks, potentially forcing reliance on wholesale financing or asset sales. For a regional bank, irregular cash generation complicates lending plans and capital allocation over multiple quarters.

Declining Operational MarginsFalling EBIT/EBITDA margins point to weakening operational efficiency or adverse revenue mix. Over time this erodes the cushion against credit losses and increases the need for cost reductions or higher pricing, both of which are difficult in competitive regional banking markets.

8563 FAQ

What was Daito Bank, Ltd.’s price range in the past 12 months?

Daito Bank, Ltd. lowest stock price was ¥582.00 and its highest was ¥1204.00 in the past 12 months.

What is Daito Bank, Ltd.’s market cap?

Daito Bank, Ltd.’s market cap is ¥14.34B.

When is Daito Bank, Ltd.’s upcoming earnings report date?

Daito Bank, Ltd.’s upcoming earnings report date is May 08, 2026 which is in 65 days.

How were Daito Bank, Ltd.’s earnings last quarter?

Daito Bank, Ltd. released its earnings results on Feb 06, 2026. The company reported ¥32.21 earnings per share for the quarter, beating the consensus estimate of N/A by ¥32.21.

Is Daito Bank, Ltd. overvalued?

According to Wall Street analysts Daito Bank, Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Daito Bank, Ltd. pay dividends?

Daito Bank, Ltd. pays a Annually dividend of ¥32 which represents an annual dividend yield of 3.74%. See more information on Daito Bank, Ltd. dividends here

What is Daito Bank, Ltd.’s EPS estimate?

Daito Bank, Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Daito Bank, Ltd. have?

Daito Bank, Ltd. has 12,701,462 shares outstanding.

What happened to Daito Bank, Ltd.’s price movement after its last earnings report?

Daito Bank, Ltd. reported an EPS of ¥32.21 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 0.94%.

Which hedge fund is a major shareholder of Daito Bank, Ltd.?

Currently, no hedge funds are holding shares in JP:8563

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Daito Bank, Ltd.

The Daito Bank, Ltd. provides various banking products and services to individual and corporate customers in Japan. The company accepts time, savings, and foreign currency deposits; and offers mutual fund and government bonds. It also provides housing, car, education, card, free, expansion and renovation, and business and institutional loans; and pension and insurance, as well as financial product brokerage, investment trust, web account transfer reception, online payment/electronic money charge, and pay-easy fund transfer reception services. In addition, the company offers credit and debit cards, mail orders, safe-deposit boxes, and credit guarantees, as well as foreign currency exchange, automatic remittance, ATM, and Internet banking services. It operates through 58 branches. The company was formerly known as Daito Mutual Bank and changed its name to The Daito Bank, Ltd. in 1989. The Daito Bank, Ltd. was founded in 1942 and is headquartered in Koriyama, Japan.