Nanto Bank Ltd. (8367) AI Stock Analysis

• Market Cap: ¥237.97B
• Dividend Yield: 3.46%
• Average Volume (3M): 85.87K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 1.30
• Revenue Growth: 11.92%
• EPS Growth: 16.40%
• Country: JP
• Employees: 2,336
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 181.76
• 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: 65 Neutral
• Price Target: ¥7,729.00 ▲(52.15% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

Overall score reflects mixed financial performance led by improved cash generation and stable profitability, but constrained by high leverage and modest ROE. Technicals are supportive due to a strong uptrend, though overbought signals add near-term risk. Valuation is reasonable with a solid dividend yield.

Positive Factors

Improved cash generation

A meaningful turnaround in free cash flow and a positive operating cash flow to net income ratio indicate stronger, more reliable internal funding. Over 2–6 months this supports loan book growth, reserve building, and capital returns without relying heavily on volatile external funding.

Healthy profitability margins

Sustained net and EBIT margins above typical regional-bank pressures point to efficient cost management and profitable core lending/fee operations. Durable margins provide buffer against cyclical loan loss variability and underpin long-term cash flow and dividend capacity.

Strong regional franchise

A concentrated regional focus builds deep customer relationships and stable deposit franchises, giving competitive advantage in SME and retail lending. Over months this yields stickier deposit funding, predictable loan pipelines, and differentiated product distribution versus national peers.

Negative Factors

High leverage

A D/E above 2x increases sensitivity to interest-rate movements and credit stress, constraining strategic flexibility. Elevated leverage can raise funding and regulatory costs and requires sustained earnings/cash conversion to avoid balance-sheet strain over the medium term.

Modest return on equity

ROE under 5% implies the bank generates limited shareholder returns relative to capital employed. Persistently low ROE can restrict capital accumulation, limit dividend policy upside and make it harder to absorb credit shocks without external capital over a multi-quarter horizon.

Limited FCF conversion

A 0.70 FCF/net income ratio means substantial portions of accounting earnings are tied up in working capital or non‑cash items. This reduces the sustainable cash available for loan growth, reserves or shareholder returns, and limits financial flexibility if earnings fluctuate.

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

Mixed fundamentals: modest revenue growth and healthy net margin support performance, and cash flow improved meaningfully. Offsetting this, leverage is high (debt-to-equity 2.18) and ROE is modest (4.86%), which increases balance-sheet risk and limits overall quality.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Positive
• RSI: Neutral
• STOCH: Neutral

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 7104.00, below the 50-day MA of 6538.60, and below the 200-day MA of 5114.63, indicating a bullish trend. The MACD of 280.35 indicates Positive momentum. The RSI at 65.18 is Neutral, neither overbought nor oversold. The STOCH value of 55.79 is Neutral, 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	71 Outperform	¥223.36B	14.70	―	2.53%	7.67%	11.03%
8544	71 Outperform	¥244.38B	19.35	―	2.13%	7.77%	5.80%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7389	67 Neutral	¥301.33B	17.44	―	2.14%	5.99%	21.09%
8367	65 Neutral	¥237.97B	14.34	―	3.46%	11.92%	16.40%
7381	65 Neutral	¥225.43B	15.62	―	2.38%	8.43%	38.21%
8386	59 Neutral	¥265.49B	15.70	―	2.55%	-0.36%	41.38%

Nanto Bank Ltd. Corporate Events

Nanto Bank Strengthens Capital Adequacy as Risk-Weighted Assets Decline

The Nanto Bank reported an improvement in its consolidated capital adequacy ratio to 12.15% as of December 31, 2025, up from 11.63% at the end of September, driven by an increase in capital to ¥293 billion and a reduction in total risk-weighted assets to ¥2,413 billion. On a non-consolidated basis, the capital adequacy ratio rose to 11.75%, supported by higher capital and lower risk-weighted assets, indicating a strengthened capital position and potentially greater resilience for the bank’s operations and stakeholders under Japan’s domestic regulatory framework.

The most recent analyst rating on (JP:8367) stock is a Hold with a Yen8089.00 price target. To see the full list of analyst forecasts on Nanto Bank Ltd. stock, see the JP:8367 Stock Forecast page.

Nanto Bank Lifts Nine-Month Profit and Plans Higher Dividend on Strong Capital Position

Nanto Bank reported solid growth for the nine months ended December 31, 2025, with ordinary income rising 12.5% year-on-year to ¥84.94 billion and ordinary profit up 14.2% to ¥18.97 billion. Profit attributable to owners of the parent climbed 23.2% to ¥13.29 billion, pushing basic earnings per share to ¥423.03, while comprehensive income swung sharply into positive territory versus the prior year. The bank’s total assets stood at ¥6.77 trillion and equity at ¥305.96 billion, lifting its equity-to-asset ratio to 4.5% from 4.0% at the previous fiscal year-end. Reflecting stronger profitability and capital, Nanto plans to raise its annual dividend for the year ending March 31, 2026 to a projected ¥190 per share, up from ¥170 in the prior year, and is maintaining its full-year earnings forecast that calls for further growth in ordinary profit and profit attributable to owners.

The most recent analyst rating on (JP:8367) stock is a Hold with a Yen7293.00 price target. To see the full list of analyst forecasts on Nanto Bank Ltd. stock, see the JP:8367 Stock Forecast page.