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

• Market Cap: ¥10.55B
• Dividend Yield: 2.74%
• Average Volume (3M): 15.03K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 1.06
• 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: 0.00
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ¥1,119.00 ▲(4.00% 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

Balance sheet stability

A manageable debt-to-equity of 1.07 and a solid equity base provide a durable foundation for a regional bank’s lending and deposit activities. This structural balance supports regulatory buffers, underwriting capacity and resilience to credit shocks over the next several months.

Positive profitability

Sustained positive net margin of 3.85% indicates the bank is generating core earnings from interest and fee income. Persistent profitability bolsters retained earnings, supports capital build-up and enables continued lending or reserve provisioning even amid moderate headwinds.

Improved cash generation

The shift to positive free cash flow and a strong OCF-to-net-income ratio of 5.22 demonstrate improved cash conversion. Reliable cash generation enhances liquidity, funds loan growth or buffers, and reduces reliance on external funding in the medium term.

Negative Factors

Revenue decline

A year-over-year revenue decline of 1.23% suggests pressure on core lending volumes, fees, or deposit spreads. Persistent top-line shrinkage erodes the base for expense absorption and capital generation, limiting organic growth and strategic flexibility over coming quarters.

Margin compression

Weakening net and EBIT margins reduce profitability per unit of business and constrain the bank’s ability to self-fund growth or absorb credit losses. Margin pressure in a regional bank often reflects competitive rate dynamics or rising funding costs, a structural headwind to ROE.

Cash flow volatility

Notable volatility in cash flows creates planning uncertainty and necessitates larger liquidity cushions. For a bank, inconsistent cash generation can raise funding costs, complicate reserve management and limit the pace of sustainable lending or dividend policy over the medium term.

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.

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	0.00	0.00	-32.97B	-35.05B	0.00
Operating Cash Flow	0.00	0.00	0.00	-31.98B	-34.28B	0.00
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: Negative
• Last Price: 1076.00
• 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 Negative. The current price of 1076 is below the 20-day moving average (MA) of 1130.00, below the 50-day MA of 1171.38, and above the 200-day MA of 933.51, indicating a neutral trend. The MACD of -41.66 indicates Positive momentum. The RSI at 40.19 is Neutral, neither overbought nor oversold. The STOCH value of 29.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
8387	75 Outperform	¥94.71B	1.54	―	3.05%	8.75%	-12.68%
8399	69 Neutral	¥96.55B	6.66	―	2.46%	9.12%	43.43%
8541	69 Neutral	¥61.77B	6.31	―	2.34%	-0.97%	27.62%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
5830	67 Neutral	¥887.40B	8.76	―	2.10%	1.39%	52.58%
8416	65 Neutral	¥10.55B	8.64	―	2.74%	7.74%	-92.49%
8388	65 Neutral	¥222.20B	10.90	―	2.53%	7.67%	11.03%