Nanto Bank Ltd. (8367) AI Stock Analysis

• Market Cap: ¥202.16B
• Dividend Yield: 3.46%
• Average Volume (3M): 85.87K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 1.22
• Revenue Growth: 11.92%
• EPS Growth: 16.40%
• Country: JP
• Employees: 2,336
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 121.31
• Shares Outstanding: 33,025,658
• 10 Day Avg. Volume: 94,380
• 30 Day Avg. Volume: 85,873
• PEG Ratio: 0.70
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 1.42
• P/FCF Ratio: 5.26
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥5,475.00 ▲(7.78% Upside)

Nanto Bank Ltd. has a solid technical outlook and reasonable valuation, which are the primary strengths. However, financial performance is mixed due to high leverage and modest returns, which slightly dampen the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates resilience and potential for market expansion, supporting long-term financial stability.

Cash Flow Improvement

Improved cash flow enhances the bank's ability to invest in growth opportunities and manage debt, strengthening financial health.

Net Profit Margin

A healthy net profit margin suggests effective cost management and profitability, supporting sustainable financial performance.

Negative Factors

High Leverage

High leverage can increase financial risk, especially if interest rates rise, potentially impacting long-term stability.

Return on Equity

Modest return on equity indicates limited efficiency in generating returns for shareholders, suggesting room for improvement.

EBITDA Margin Decline

A declining EBITDA margin may indicate challenges in maintaining operational efficiency, affecting profitability over time.

Nanto Bank Ltd. Business Overview & Revenue Model

Company Description

The Nanto Bank, Ltd., together with its subsidiaries, engages in banking, securities, leasing, and credit guarantee businesses in Japan. Its banking services include the acceptance of deposits, lending services, bills discounting, and remittance; and guarantee of debt, acceptance of bills, and other services related to banking business. The company's securities business activities comprise underwriting and dealing in securities; over-the-counter derivative transactions; and other related services, including security index future transactions. The company also provides management and leasing of commercial real estate, as well as outsourcing and employee placement services; guarantee services for personal loans; leases OA equipment, large industrial equipment, and automobiles; computer system development and sales, consultations on computer introduction and use, and outsourcing of various calculation tasks; credit cards; invests in venture companies and business successor companies; and securities services. The Nanto Bank, Ltd. was incorporated in 1934 and is headquartered in Nara, Japan.

How the Company Makes Money

Nanto Bank generates revenue primarily through interest income from loans and fees associated with its banking services. The bank's main revenue streams include interest earned on various types of loans, such as personal loans, mortgages, and business loans, which typically have higher interest rates compared to deposit accounts. Additionally, Nanto Bank earns fee income from services such as account maintenance fees, transaction fees, and commissions on financial products like insurance and investment services. The bank also engages in treasury operations, which contribute to its earnings through interest rate spreads. Significant partnerships with local businesses and community organizations enhance its loan portfolio and customer base, further supporting its revenue growth.

Nanto Bank Ltd. Financial Statement Overview

Summary

Nanto Bank Ltd. shows mixed financial performance. Revenue and cash flow trends are positive, but high leverage and modest return on equity present risks. Operational efficiency and debt management need improvement.

Income Statement

Nanto Bank Ltd. has shown a positive revenue growth rate of 1.163% in the latest year, indicating a recovery from previous declines. The net profit margin of 13.88% is healthy, although it has decreased from the previous year. The EBIT margin is stable at 17.58%, reflecting efficient cost management. However, the decline in EBITDA margin suggests potential pressure on operational efficiency.

Balance Sheet

The debt-to-equity ratio of 2.18 indicates a high level of leverage, which could pose risks if interest rates rise. Return on equity is modest at 4.86%, showing room for improvement in generating returns for shareholders. The equity ratio is not provided, but the high debt levels suggest a need for careful financial management.

Cash Flow

The company has shown significant improvement in free cash flow, with a growth rate labeled as 'Infinity' due to a previous negative base. The operating cash flow to net income ratio is positive, indicating good cash generation relative to earnings. However, the free cash flow to net income ratio of 0.70 suggests that not all earnings are translating into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	93.39B	87.43B	70.19B	64.42B	64.90B	68.37B
Gross Profit	93.39B	76.35B	62.33B	60.68B	64.00B	67.11B
EBITDA	18.81B	23.78B	20.13B	9.73B	21.21B	18.93B
Net Income	13.12B	13.51B	12.04B	4.73B	11.87B	10.86B
Balance Sheet
Total Assets	6.78T	6.85T	6.79T	6.54T	7.00T	6.56T
Cash, Cash Equivalents and Short-Term Investments	0.00	678.27B	963.53B	1.09T	1.50T	1.19T
Total Debt	392.38B	606.02B	612.90B	500.31B	1.01T	632.97B
Total Liabilities	6.49T	6.58T	6.49T	6.28T	6.71T	6.27T
Stockholders Equity	289.17B	277.80B	298.63B	262.80B	286.47B	293.44B
Cash Flow
Free Cash Flow	0.00	23.64B	6.52B	-520.15B	364.62B	530.23B
Operating Cash Flow	0.00	33.76B	9.61B	-513.86B	367.58B	532.08B
Investing Cash Flow	0.00	-111.62B	-91.87B	108.36B	-59.37B	-32.47B
Financing Cash Flow	0.00	-5.45B	-3.59B	-5.17B	-2.76B	-2.61B

Nanto Bank Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5080.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8367, the sentiment is Positive. The current price of 5080 is below the 20-day moving average (MA) of 5947.00, below the 50-day MA of 5621.10, and above the 200-day MA of 4620.91, indicating a bullish trend. The MACD of 150.25 indicates Negative momentum. The RSI at 73.41 is Negative, neither overbought nor oversold. The STOCH value of 90.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8367.

Nanto Bank Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8388	77 Outperform	¥178.77B	12.78	―	2.53%	7.67%	11.03%
8544	75 Outperform	¥200.81B	15.43	―	2.13%	7.77%	5.80%
7389	74 Outperform	¥242.68B	20.14	―	2.14%	5.99%	21.09%
8386	71 Outperform	¥197.71B	12.50	―	2.55%	-0.36%	41.38%
8367	69 Neutral	¥202.16B	13.40	―	3.46%	11.92%	16.40%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7381	64 Neutral	¥203.50B	19.32	―	2.38%	8.43%	38.21%

Nanto Bank Ltd. Corporate Events

Nanto Bank Announces Share Split and Shareholder Program Revision

Nanto Bank has announced a share split to increase share liquidity and broaden its investor base, effective April 1, 2026. The bank will also amend its Articles of Incorporation and revise its shareholder benefit program to enhance investment appeal and encourage long-term holding, offering local goods and exclusive deposit plans to shareholders.

The most recent analyst rating on (JP:8367) stock is a Hold with a Yen5475.00 price target. To see the full list of analyst forecasts on Nanto Bank Ltd. stock, see the JP:8367 Stock Forecast page.

Nanto Bank Reports Significant Income Growth in H1 2025

Nanto Bank Ltd. reported a notable increase in its consolidated ordinary income for the six months ending September 30, 2025, compared to the previous fiscal period. This growth, exceeding 10%, was driven by a rise in interest income from loans, discounts, and securities, indicating a strong operational performance and positive market positioning.

The most recent analyst rating on (JP:8367) stock is a Hold with a Yen5475.00 price target. To see the full list of analyst forecasts on Nanto Bank Ltd. stock, see the JP:8367 Stock Forecast page.

Nanto Bank Reports Strong Financial Growth in First Half of 2025

Nanto Bank Ltd. reported a significant increase in its financial performance for the six months ending September 30, 2025, with an 11% rise in ordinary income and a 16% increase in profit attributable to owners. The bank’s comprehensive income surged by 527.2% compared to the previous year, indicating strong operational growth and improved market positioning.

The most recent analyst rating on (JP:8367) stock is a Hold with a Yen5475.00 price target. To see the full list of analyst forecasts on Nanto Bank Ltd. stock, see the JP:8367 Stock Forecast page.

Nanto Bank Ltd. Revises Financial Results for Q2 2025

Nanto Bank Ltd. announced corrections to its previously released consolidated financial results for the three months ended June 30, 2025. The corrections were made due to errors identified in the original financial statements, impacting the reported figures for assets, liabilities, and net assets. This announcement may affect stakeholders’ perception of the bank’s financial accuracy and transparency.

The most recent analyst rating on (JP:8367) stock is a Hold with a Yen5475.00 price target. To see the full list of analyst forecasts on Nanto Bank Ltd. stock, see the JP:8367 Stock Forecast page.