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

• Market Cap: ¥7.46B
• Dividend Yield: 3.36%
• Average Volume (3M): 34.87K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.86
• Revenue Growth: -1.88%
• EPS Growth: -57.55%
• Country: JP
• Employees: 726
• Sector: Financial
• Sector Strength: 87
• Industry: Banks - Regional
• EPS (TTM): -51.83
• Shares Outstanding: 10,244,800
• 10 Day Avg. Volume: 22,750
• 30 Day Avg. Volume: 34,870
• PEG Ratio: -0.27
• Price to Book (P/B): 0.22
• 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

The Bank of Kochi's financial performance reveals a resilient gross profit margin, but it is counterbalanced by fluctuating net profits and revenue. High leverage is a risk, although substantial liquidity offers some protection. Technical analysis indicates a bearish trend, with the stock trading below key moving averages. Valuation metrics are favorable, with a reasonable P/E ratio and attractive dividend yield, providing some support to the stock's score.

Bank of Kochi, Ltd. Business Overview & Revenue Model

Company Description

Bank of Kochi, Ltd. (8416) is a regional financial institution headquartered in Kochi, Japan. It operates primarily in the banking sector, providing a wide range of financial services including personal and corporate banking, loans, deposits, and investment services. The bank serves individuals, small to medium-sized enterprises, and corporate clients, focusing on meeting the financial needs of the local community while contributing to regional economic development.

How the Company Makes Money

Bank of Kochi, Ltd. generates revenue primarily through interest income derived from its lending activities. This includes loans to individuals, such as mortgages and personal loans, as well as business loans to small and medium-sized enterprises. Additionally, the bank earns money from fees associated with its various financial services, including transaction fees, account maintenance fees, and charges for investment advisory services. The bank may also engage in investment activities, earning income from securities and other financial instruments. Strategic partnerships with other financial institutions and businesses can enhance service offerings and contribute to revenue growth. Overall, the bank's earnings are influenced by factors such as interest rate fluctuations, economic conditions, and regulatory changes within the banking sector.

Bank of Kochi, Ltd. Financial Statement Overview

Summary

Bank of Kochi maintains a strong gross profit margin, typical for banks, but faces challenges with fluctuating net profits and revenue growth. The balance sheet shows high leverage, mitigated by substantial liquidity. Cash flow volatility is a concern, particularly with recent negative operating cash flows, indicating potential inefficiencies in cash management.

Income Statement

The Bank of Kochi shows strong gross profit margins consistently close to 100% due to its nature of operations. However, net profit margins have fluctuated, with a decline in the latest TTM (Trailing-Twelve-Months) period to 3.73%. Revenue growth has been modest, with recent periods showing slight decreases. EBIT and EBITDA margins indicate stable operating efficiency but highlight a significant drop in EBITDA in the TTM period.

Balance Sheet

The balance sheet reflects a strong equity ratio of approximately 4.84% in the latest TTM period, showing a highly leveraged position typical for banks. The debt-to-equity ratio remains high, indicating potential risk, but the bank maintains a strong cash position with negative net debt, which provides a cushion against liabilities.

Cash Flow

Cash flow analysis shows volatility, with free cash flow turning negative in recent years. The operating cash flow to net income ratio is not calculable due to negative operating cash flows in recent periods, suggesting potential issues in cash generation from core operations. The bank's ability to generate positive free cash flow has been inconsistent.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
22.29B	21.20B	21.01B	20.30B	20.73B	20.72B
	Gross Profit
22.14B	21.20B	21.01B	20.30B	20.73B	20.72B
	EBIT
4.75B	2.07B	2.54B	2.46B	1.82B	2.62B
	EBITDA
1.93B	2.72B	3.33B	3.21B	2.64B	3.32B
	Net Income Common Stockholders
832.00M	1.25B	1.60B	1.61B	877.00M	1.35B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
57.26B	64.52B	108.97B	128.42B	160.63B	81.07B
	Total Assets
1.15T	1.14T	1.19T	1.21T	1.24T	1.12T
	Total Debt
51.44B	43.35B	66.05B	102.52B	105.81B	66.97B
	Net Debt
-5.82B	-64.52B	-42.92B	-25.90B	-54.82B	-14.09B
	Total Liabilities
1.09T	1.08T	1.11T	1.14T	1.17T	1.05T
	Stockholders Equity
55.51B	58.65B	73.77B	71.32B	72.55B	66.80B
Cash Flow		Free Cash Flow
0.00	-23.71B	-32.97B	-35.05B	79.31B	17.73B
	Operating Cash Flow
0.00	-21.82B	-31.98B	-34.28B	80.49B	18.19B
	Investing Cash Flow
0.00	-5.94B	6.11B	2.49B	-513.00M	-3.03B
	Financing Cash Flow
0.00	-17.96B	6.35B	-462.00M	-442.00M	-447.00M

Bank of Kochi, Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 750.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 750 is above the 20-day moving average (MA) of 732.85, below the 50-day MA of 763.97, and below the 200-day MA of 798.20, indicating a neutral trend. The MACD of -3.66 indicates Negative momentum. The RSI at 48.24 is Neutral, neither overbought nor oversold. The STOCH value of 33.19 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
8331	73 Outperform	$903.59B	12.14	6.30%	3.04%	9.55%	9.39%
8354	70 Outperform	$727.43B	11.98	7.30%	3.43%	15.35%	-1.62%
8360	66 Neutral	¥68.33B	10.55		3.09%	-6.07%	21.28%
Sector *	64 Neutral	$12.73B	9.82	7.91%	17015.08%	12.18%	-5.69%
8416	62 Neutral	¥7.46B	10.03		3.36%	-1.88%	-57.55%