Bank of Kochi, Ltd. (8416) AI Stock Analysis

• Market Cap: ¥8.94B
• Dividend Yield: 2.88%
• Average Volume (3M): 23.24K
• Price to Earnings (P/E): 23.5
• Beta (1Y): 0.96
• Revenue Growth: 3.73%
• EPS Growth: -78.83%
• Country: JP
• Employees: 726
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 37.33
• Shares Outstanding: 10,244,800
• 10 Day Avg. Volume: 26,430
• 30 Day Avg. Volume: 23,243
• PEG Ratio: -0.39
• Price to Book (P/B): 0.16
• Price to Sales (P/S): 0.37
• P/FCF Ratio: 0.88
• 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: ¥925.00
• Price Target Upside: 6.57% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: ¥925.00 ▲(6.57% Upside)

The overall score reflects a stable financial position with concerns over revenue growth and cash flow stability. Technical indicators suggest bearish momentum, and the valuation appears stretched with a high P/E ratio. The dividend yield offers some compensation for investors.

Bank of Kochi, Ltd. Business Overview & Revenue Model

Company Description

Bank of Kochi, Ltd. (8416) is a regional bank based in Japan that operates primarily in the financial services sector. The bank provides a wide range of services including retail banking, corporate banking, and investment services. Its core products encompass personal loans, mortgages, savings and checking accounts, investment trusts, and various financial advisory services, catering to both individual and business clients in its local market.

How the Company Makes Money

The Bank of Kochi generates revenue primarily through interest income from loans and advances given to customers, which constitutes a significant portion of its earnings. Additionally, the bank earns fees and commissions from various services, including account maintenance, fund management, and financial advisory services. Income from investment securities also contributes to the bank's overall revenue. Furthermore, the bank may have strategic partnerships with local businesses and financial institutions to enhance its service offerings and expand its customer base, thus playing a crucial role in its financial performance.

Bank of Kochi, Ltd. Financial Statement Overview

Summary

The bank shows a stable financial position with positive profitability metrics. However, declining revenue growth and increased leverage are concerns. Cash flow volatility also poses a risk, despite recent improvements in cash management.

Income Statement

The income statement shows a mixed performance with declining revenue growth at -1.23% in the latest year, indicating potential challenges in revenue generation. However, the bank maintains a positive net profit margin of 3.85%, though it has decreased from previous years. The EBIT margin has also declined, reflecting reduced operational efficiency. Overall, while profitability is present, the downward trend in revenue and margins suggests areas for improvement.

Balance Sheet

The balance sheet reveals a stable equity base with a debt-to-equity ratio of 1.07, which is manageable but has increased from the previous year, indicating rising leverage. The return on equity is modest at 1.70%, suggesting limited profitability from equity investments. The equity ratio is not explicitly calculated, but the overall asset base remains strong, providing a solid foundation for the bank's operations.

Cash Flow

Cash flow analysis highlights significant volatility, with a notable improvement in free cash flow from negative to positive, indicating better cash management. The operating cash flow to net income ratio is strong at 5.22, suggesting efficient conversion of income to cash. However, the historical instability in cash flows poses a risk, and consistent positive cash flow generation remains a challenge.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.11B	22.02B	21.40B	21.25B	20.53B	21.14B
Gross Profit	22.11B	21.28B	21.20B	21.77B	20.30B	20.73B
EBITDA	1.15B	2.12B	2.72B	3.33B	3.21B	2.69B
Net Income	404.00M	861.00M	1.25B	1.60B	1.61B	877.00M
Balance Sheet
Total Assets	1.18T	1.15T	1.14T	1.19T	1.21T	1.24T
Cash, Cash Equivalents and Short-Term Investments	0.00	95.76B	64.52B	108.97B	128.42B	160.63B
Total Debt	54.07B	54.46B	43.34B	66.05B	102.52B	105.81B
Total Liabilities	1.13T	1.10T	1.08T	1.11T	1.14T	1.17T
Stockholders Equity	52.30B	50.70B	58.65B	73.77B	71.32B	72.55B
Cash Flow
Free Cash Flow	0.00	9.13B	-7.23B	-32.97B	-35.05B	79.31B
Operating Cash Flow	0.00	9.37B	-5.77B	-31.98B	-34.28B	2.13B
Investing Cash Flow	0.00	6.28B	-5.94B	6.11B	2.49B	-513.00M
Financing Cash Flow	0.00	2.90B	-17.96B	6.35B	-462.00M	74.66B

Bank of Kochi, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 868.00
• 50DMA: Negative
• 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:8416, the sentiment is Positive. The current price of 868 is below the 20-day moving average (MA) of 885.63, below the 50-day MA of 892.32, and above the 200-day MA of 797.64, indicating a neutral trend. The MACD of -6.39 indicates Positive momentum. The RSI at 49.85 is Neutral, neither overbought nor oversold. The STOCH value of 53.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8416.

Bank of Kochi, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7161	73 Outperform	¥10.59B	6.03	―	1.26%	2.20%	―
8349	72 Outperform	¥12.38B	10.64	―	3.83%	7.67%	-26.27%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8365	61 Neutral	¥9.20B	8.65	―	3.00%	-9.75%	81.65%
8416	61 Neutral	¥8.94B	23.49	―	2.88%	3.73%	-78.83%
8563	60 Neutral	¥9.61B	6.78	―	4.19%	2.44%	10.20%
8562	46 Neutral	¥7.95B	―	―	2.19%	2.60%	-246.98%