Kiyo Bank (8370) AI Stock Analysis

• Market Cap: $191.39B
• Dividend Yield: 3.68%
• Average Volume (3M): 126.23K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 1.01
• Revenue Growth: 15.05%
• EPS Growth: 32.29%
• Country: JP
• Employees: 2,352
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 98.42
• Shares Outstanding: 67,300,000
• 10 Day Avg. Volume: 135,730
• 30 Day Avg. Volume: 126,226
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.40
• Enterprise Value/Revenue: 0.86
• Enterprise Value/Gross Profit: 0.86
• Enterprise Value/Ebitda: 3.54
• 1Y Price Target: $3,298.38
• Price Target Upside: 10.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: ¥3,299.00 ▲(10.37% Upside)

Kiyo Bank's stock is rated positively due to strong technical indicators and attractive valuation metrics. The financial performance is solid, with robust revenue growth and effective cash management, although high leverage poses a potential risk. The absence of recent earnings call data and corporate events does not impact the overall score.

Kiyo Bank Business Overview & Revenue Model

Company Description

The Kiyo Bank, Ltd. provides various banking products and services to individuals, corporates, and business customers in Japan. It offers Yen, time, and foreign currency deposits; personal, home, mortgage, card, purpose, education-related, and free loans; and life, medical, cancer, student, income security, and term insurance, etc., as well as pension funds. The company also provides securities investment, domestic and foreign exchange, agency, internet banking, and ATM services; and cards, as well as engages in buying and selling government bonds, etc. It operates 112 branches in Japan, including 68 branches in Wakayama; 41 branches in Osaka prefecture; 1 branch in Tokyo; and 2 branches in Nara prefecture. The company was formerly known as Kiyo Bank Co., Ltd. and changed its name to The Kiyo Bank, Ltd. in October 2013. The Kiyo Bank, Ltd. was founded in 1883 and is headquartered in Wakayama, Japan.

How the Company Makes Money

Kiyo Bank generates revenue through several key streams. The primary source of income is the interest earned from loans provided to customers, which includes personal loans, mortgages, and business loans. The bank also earns interest income from its investments in securities and other financial instruments. Additionally, Kiyo Bank generates fee-based income from various services such as account maintenance fees, transaction fees, and advisory services. Strategic partnerships with local businesses and government entities enhance its customer base and create opportunities for cross-selling financial products. Furthermore, the bank's focus on community engagement and customer service helps to retain a loyal client base, contributing to stable revenue growth.

Kiyo Bank Financial Statement Overview

Summary

Kiyo Bank exhibits strong profitability and revenue growth, with a solid income statement performance. However, high leverage on the balance sheet and cash flow challenges highlight potential risks. The bank must focus on improving cash flow management to sustain growth and financial health.

Income Statement

Kiyo Bank's income statement shows strong profitability with a TTM gross profit margin of 99.47% and a net profit margin of 20.25%. The bank's EBIT margin is robust at 51.08%. Revenue growth from the prior year to TTM was 11.86%, indicating healthy improvement. However, the EBITDA margin for TTM is relatively low at 14.17%, which suggests high non-cash expenses or interest costs.

Balance Sheet

The balance sheet of Kiyo Bank shows stability with a debt-to-equity ratio of 3.26, which is typical for banks but indicates high leverage. The return on equity stands at 7.01% for TTM, suggesting moderate profitability for shareholders. The equity ratio is 3.97%, reflecting a stable but low equity base compared to total assets, which is a common trait in the banking industry.

Cash Flow

Kiyo Bank's cash flow statement reveals challenges with cash generation. The operating cash flow and free cash flow for TTM are reported as zero, indicating potential difficulties in cash management. The free cash flow growth rate is unclear due to a lack of data, and the operating cash flow to net income ratio is not available. This poses a risk regarding liquidity and operational funding.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	90.47B	90.18B	68.25B	77.28B	75.19B	72.31B
Gross Profit	89.83B	90.47B	68.25B	72.90B	74.57B	71.10B
EBITDA	21.83B	23.96B	22.92B	7.45B	26.76B	23.38B
Net Income	17.63B	17.62B	15.02B	3.92B	15.46B	13.59B
Balance Sheet
Total Assets	5.93T	5.93T	5.83T	5.48T	5.88T	5.66T
Cash, Cash Equivalents and Short-Term Investments	807.02B	807.02B	983.68B	1.00T	1.38T	1.22T
Total Debt	882.76B	882.76B	803.28B	594.41B	997.05B	894.03B
Total Liabilities	5.69T	5.69T	5.59T	5.26T	5.64T	5.42T
Stockholders Equity	235.19B	235.19B	237.15B	222.02B	241.14B	244.04B
Cash Flow
Free Cash Flow	0.00	45.99B	-5.16B	-585.29B	72.24B	712.94B
Operating Cash Flow	0.00	48.82B	-3.32B	-582.29B	75.53B	715.23B
Investing Cash Flow	0.00	16.95B	-130.55B	214.64B	87.36B	-2.06B
Financing Cash Flow	0.00	45.50B	89.70B	-5.61B	-4.57B	-4.39B

Kiyo Bank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2989.00
• 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:8370, the sentiment is Positive. The current price of 2989 is above the 20-day moving average (MA) of 2966.65, above the 50-day MA of 2855.48, and above the 200-day MA of 2434.42, indicating a bullish trend. The MACD of 31.70 indicates Positive momentum. The RSI at 59.29 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8370.

Kiyo Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8370	77 Outperform	$191.39B	9.43	8.71%	3.68%	15.05%	32.29%
7380	77 Outperform	210.83B	9.58	4.97%	3.19%	-3.29%	3.26%
7173	72 Outperform	224.16B	7.21	8.45%	2.17%	10.75%	16.98%
8368	71 Outperform	233.04B	13.39	―	2.18%	3.23%	15.53%
7389	70 Outperform	155.33B	19.17	2.57%	3.16%	1.98%	-10.03%
8367	69 Neutral	166.68B	11.90	4.86%	3.22%	15.80%	1.72%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Kiyo Bank Corporate Events

Kiyo Bank Upgrades Financial Forecasts for FY 2025

The Kiyo Bank has revised its financial forecasts for the fiscal year ending March 31, 2025, showing an increase in expected ordinary income, ordinary profit, and profit attributable to owners of the parent. This upward revision is driven by anticipated higher net interest income and net fees, alongside lower credit costs, indicating a positive impact on the bank’s financial performance and market positioning.