Nanto Bank Ltd. (8367) AI Stock Analysis

• Market Cap: ¥132.98B
• Dividend Yield: 4.16%
• Average Volume (3M): 103.88K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 1.15
• Revenue Growth: 38.28%
• EPS Growth: 247.94%
• Country: JP
• Employees: 2,336
• Sector: Financial
• Sector Strength: 82
• Industry: Banks - Regional
• EPS (TTM): 86.89
• Shares Outstanding: 33,025,658
• 10 Day Avg. Volume: 88,940
• 30 Day Avg. Volume: 103,880
• PEG Ratio: 0.83
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 72 Outperform
• Price Target: ―

Nanto Bank Ltd.'s strong financial performance, characterized by high profitability and operational efficiency, is slightly offset by inconsistent revenue growth and cash flow challenges. Despite these issues, its valuation is attractive due to a low P/E ratio and high dividend yield. Technical indicators suggest short-term caution but long-term stability. The lack of recent earnings call data and corporate events leaves the focus on fundamental and technical factors.

Nanto Bank Ltd. Business Overview & Revenue Model

Company Description

Nanto Bank Ltd. is a regional bank based in Japan, primarily serving the Nara Prefecture and surrounding areas. The bank offers a comprehensive range of financial services, including retail and corporate banking, asset management, and lending solutions. With a strong emphasis on local community engagement, Nanto Bank focuses on meeting the financial needs of both individuals and businesses through personalized banking services and financial advisory.

How the Company Makes Money

Nanto Bank Ltd. generates revenue through a variety of financial services. Key revenue streams include interest income from loans and mortgages provided to individual and corporate clients, as well as fees from banking services like account management, transaction processing, and financial advisory. The bank also earns income through investments in securities and by offering asset management services. Nanto Bank's strategic partnerships with local businesses and its focus on relationship banking help maintain a stable customer base, further contributing to its profitability.

Nanto Bank Ltd. Financial Statement Overview

Summary

Nanto Bank Ltd. demonstrates strong profitability and operational efficiency with high gross and EBIT margins. However, revenue growth inconsistency and cash flow challenges are notable. The balance sheet shows a positive decrease in leverage, maintaining a stable equity base. Overall, while the company is financially stable, enhancing cash flow management could improve its financial health further.

Income Statement

Nanto Bank Ltd. shows a strong gross profit margin of approximately 100% consistently over recent years, indicating efficient management of costs relative to revenue. The net profit margin for TTM (Trailing-Twelve-Months) is 15.33%, which is healthy for a regional bank, although it has fluctuated over the years. Revenue growth has been inconsistent, with a significant increase from 2023 to 2024 (TTM) but a decline in the prior period. The EBIT margin is robust at 43.85% for TTM, reflecting strong operational efficiency.

Balance Sheet

The company maintains a solid equity base with an equity ratio of 4.25% for TTM, slightly improving from prior periods. The debt-to-equity ratio has decreased significantly, indicating effective deleveraging, with a TTM ratio of 1.06. Return on Equity (ROE) for TTM is 4.79%, which is reasonable but shows room for improvement. Overall, the balance sheet reflects stability with a focus on maintaining equity levels.

Cash Flow

Cash flow statements reveal challenges, with no reported operating cash flow in TTM, indicating potential difficulties in cash generation from core operations. Historical data shows fluctuations, with large negative free cash flow in previous years due to high operating costs. The lack of free cash flow data in TTM makes it challenging to assess the current cash position effectively.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
90.85B	62.33B	60.68B	64.00B	67.08B	66.86B
	Gross Profit
91.39B	62.33B	60.68B	64.00B	67.08B	66.86B
	EBIT
39.83B	15.41B	2.90B	14.61B	11.76B	2.08B
	EBITDA
11.65B	0.00	9.73B	21.21B	18.93B	0.00
	Net Income Common Stockholders
13.93B	12.04B	4.73B	11.87B	10.86B	3.18B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
736.87B	963.53B	1.09T	1.50T	1.19T	693.80B
	Total Assets
6.84T	6.79T	6.54T	7.00T	6.56T	5.67T
	Total Debt
308.10B	612.90B	361.15B	891.53B	632.97B	147.74B
	Net Debt
-428.77B	-963.53B	-723.86B	-604.07B	-558.24B	-546.06B
	Total Liabilities
6.55T	6.49T	500.31B	6.71T	6.27T	5.42T
	Stockholders Equity
290.84B	298.63B	262.80B	286.47B	293.44B	255.05B
Cash Flow		Free Cash Flow
0.00	-30.98B	-520.15B	364.62B	530.23B	-157.45B
	Operating Cash Flow
0.00	-26.10B	-513.86B	367.58B	532.08B	-153.29B
	Investing Cash Flow
0.00	-91.87B	108.36B	-59.37B	-32.47B	18.07B
	Financing Cash Flow
0.00	-3.59B	-5.17B	-2.76B	-2.61B	-2.61B

Nanto Bank Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4085.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 4085 is above the 20-day moving average (MA) of 4005.50, above the 50-day MA of 3809.82, and above the 200-day MA of 3332.57, indicating a bullish trend. The MACD of 89.24 indicates Negative momentum. The RSI at 59.44 is Neutral, neither overbought nor oversold. The STOCH value of 67.26 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
8331	73 Outperform	¥926.10B	12.44	6.30%	2.93%	9.28%	20.48%
8367	72 Outperform	¥132.98B	9.52		4.16%	38.28%	247.94%
8377	71 Outperform	¥341.20B	8.93		1.80%	21.04%	20.47%
8368	71 Outperform	$180.55B	9.77	3.81%	3.52%	7.03%	8.58%
8334	69 Neutral	¥465.79B	10.48	7.63%	3.62%	-4.47%	30.59%
Sector *	64 Neutral	$12.87B	9.81	7.76%	16985.65%	12.28%	-7.83%

Nanto Bank Ltd. Corporate Events

Nanto Bank Reports Strong Financial Growth for 2024

Nanto Bank Ltd. reported a significant increase in its consolidated financial results for the nine months ending December 31, 2024, with ordinary revenues rising by 17.7% and ordinary profit by 33.4% compared to the previous year. Despite a slight decrease in the capital adequacy ratio, the bank’s forecast for the fiscal year ending March 31, 2025, indicates continued growth in ordinary profit and profit attributable to owners, highlighting a robust financial performance that strengthens its market position.