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

• Market Cap: ¥12.24B
• Dividend Yield: 2.74%
• Average Volume (3M): 15.03K
• Price to Earnings (P/E): 2527.7
• Beta (1Y): 1.04
• Revenue Growth: 7.74%
• EPS Growth: -92.49%
• Country: JP
• Employees: 726
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 28.00
• Shares Outstanding: 10,244,800
• 10 Day Avg. Volume: 12,840
• 30 Day Avg. Volume: 15,030
• PEG Ratio: -0.27
• 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: 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: ¥1,406.00 ▲(30.67% Upside)
• Action: Reiterated Date: 02/10/26
• Date: Action: Reiterated 02/10/26

The score is driven by strong technical momentum and trend strength, partially offset by mixed financial performance (declining revenue/margins and modest ROE). Valuation is a major negative due to the extremely high P/E, limiting the overall score despite the positive price action.

Positive Factors

Manageable leverage / stable balance sheet

A debt-to-equity of 1.07 and a stable equity base provide a durable funding and regulatory buffer. Manageable leverage preserves lending capacity, supports deposit and capital requirements, and helps the bank absorb local shocks while pursuing medium-term loan growth and community lending.

Improved cash generation

Free cash flow turning positive and an operating cash flow to net income ratio of 5.22 show strong cash conversion. Reliable cash generation supports loan originations, provisioning and modest distributions while reducing dependence on external funding over the next several quarters.

Diversified regional banking franchise

A comprehensive product mix—retail and corporate loans, deposits, fees, FX and local partnerships—creates diversified, stable revenue streams. Deep regional customer relationships and cross-selling potential underpin durable deposit funding and recurring fee income in the local economy.

Negative Factors

Declining revenue and weakening margins

A -1.23% revenue decline with compressed EBIT and net margins (3.85%) signals weakening top-line momentum and operating efficiency. Persistent margin pressure limits internal capital formation, reduces buffer for credit losses, and can impair sustainable lending and investment over months ahead.

Low profitability / muted ROE

ROE of 1.70% indicates low returns on shareholders' capital. Such muted profitability constrains retained earnings growth, limits capital accumulation for organic expansion, and reduces capacity to fund strategic initiatives compared with higher-return regional peers.

Earnings/cash-flow volatility and rising leverage

Despite recent FCF improvement, historical cash-flow volatility combined with an increase in leverage raises execution and funding risk. Uneven cash generation plus higher debt levels can strain liquidity and capital buffers during adverse local economic conditions or credit stress.

Bank of Kochi, Ltd. Business Overview & Revenue Model

Company Description

The Bank Of Kochi, Ltd. provides various banking products and services in Japan. The company offers savings and term deposits; mortgage, education, and car loans; insurance products and services; investment trust services; and cards. It operates 72 branches. The company was founded in 1930 and is headquartered in Kochi, Japan.

How the Company Makes Money

Bank of Kochi generates revenue primarily through the interest income earned from loans extended to individuals and businesses. The bank charges interest on various types of loans such as personal loans, mortgages, and commercial loans, which constitutes a significant portion of its revenue. Additionally, the bank earns money from fees associated with deposit accounts, transaction services, and investment products. The bank also benefits from non-interest income through service fees, commissions on financial products, and foreign exchange transactions. Partnerships with local businesses and community organizations further enhance its customer base, allowing for cross-selling of financial services and fostering economic growth in the region, thereby contributing positively to its earnings.

Bank of Kochi, Ltd. Financial Statement Overview

Summary

Mixed fundamentals: revenue declined (-1.23%) and margins (net and EBIT) weakened, while profitability remains positive (3.85% net margin). Balance sheet is stable but leverage has risen (debt-to-equity 1.07) and ROE is modest (1.70%). Cash flow improved with free cash flow turning positive and strong cash conversion (operating cash flow to net income 5.22), but volatility remains a risk.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	22.11B	22.02B	21.40B	21.25B	20.53B	21.14B
Gross Profit	22.11B	21.28B	21.20B	21.01B	20.30B	20.73B
EBITDA	1.15B	2.12B	2.72B	3.33B	3.21B	2.64B
Net Income	404.00M	860.00M	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: Neutral
• Last Price: 1076.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8416, the sentiment is Neutral. The current price of 1076 is below the 20-day moving average (MA) of 1284.75, below the 50-day MA of 1134.92, and above the 200-day MA of 909.53, indicating a neutral trend. The MACD of 24.82 indicates Positive momentum. The RSI at 47.89 is Neutral, neither overbought nor oversold. The STOCH value of 11.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
8349	72 Outperform	¥15.84B	10.05	―	3.58%	13.77%	19.08%
8563	69 Neutral	¥15.26B	10.41	―	3.74%	5.91%	5.03%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8365	66 Neutral	¥13.78B	12.10	―	2.68%	5.57%	-23.26%
8416	65 Neutral	¥12.24B	2,527.73	―	2.74%	7.74%	-92.49%
7161	64 Neutral	¥15.97B	7.42	―	1.24%	5.92%	―
8562	53 Neutral	¥14.33B	79.09	―	1.89%	8.11%	68.98%