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

• Market Cap: ¥8.90B
• Dividend Yield: 2.83%
• Average Volume (3M): 15.03K
• Price to Earnings (P/E): 89.5
• Beta (1Y): 0.99
• Revenue Growth: 7.74%
• EPS Growth: -92.49%
• Country: JP
• Employees: 726
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): -21.59
• 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: 60 Neutral
• Price Target: ¥919.00 ▲(4.55% Upside)

The overall stock score of 60 reflects a stable but cautious outlook for Bank of Kochi, Ltd. The financial performance shows stability but highlights concerns in revenue growth and cash flow volatility. Technical analysis indicates short-term bearish sentiment, while valuation metrics suggest potential overvaluation despite a decent dividend yield. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Stable Financial Position

A stable financial position indicates the bank's ability to withstand economic fluctuations and maintain operations, which is crucial for long-term success.

Positive Cash Flow Management

Effective cash flow management enhances the bank's ability to invest in growth opportunities and meet financial obligations, supporting sustainable operations.

Interest Income Dominance

Interest income dominance ensures a steady revenue stream, providing a reliable foundation for financial stability and growth in the banking sector.

Negative Factors

Declining Revenue Growth

A decline in revenue growth indicates potential challenges in market competitiveness and customer retention, which could impact long-term profitability.

Rising Leverage

Increased leverage can strain financial flexibility and elevate risk, potentially limiting the bank's ability to respond to economic changes.

Cash Flow Volatility

Volatile cash flows pose a risk to financial stability, making it challenging to plan for long-term investments and operational needs.

Bank of Kochi, Ltd. Business Overview & Revenue Model

Company Description

Bank of Kochi, Ltd. (8416) is a regional bank located in Kochi, Japan, primarily serving the local community and businesses. The bank offers a comprehensive range of financial services including personal and corporate banking, loans, deposits, investment services, and foreign exchange. With a focus on enhancing customer relationships and supporting local economic development, Bank of Kochi plays a vital role in the financial ecosystem of the region, catering to both individual and business clients.

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

Bank of Kochi, Ltd. demonstrates a stable financial position with areas of concern in revenue growth and cash flow stability. While profitability metrics are positive, the declining revenue and increased leverage warrant attention. The bank's ability to manage cash flows effectively will be crucial for sustaining its financial health in the future.

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	21.01B	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: Positive
• Last Price: 879.00
• 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:8416, the sentiment is Positive. The current price of 879 is below the 20-day moving average (MA) of 879.20, above the 50-day MA of 872.94, and above the 200-day MA of 813.23, indicating a bullish trend. The MACD of 4.66 indicates Positive momentum. The RSI at 51.77 is Neutral, neither overbought nor oversold. The STOCH value of 29.30 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
8349	72 Outperform	¥13.17B	8.22	―	3.63%	13.77%	19.08%
8365	68 Neutral	¥9.95B	9.32	―	2.73%	5.57%	-23.26%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7161	64 Neutral	¥10.06B	6.17	―	1.32%	5.92%	―
8563	63 Neutral	¥10.52B	7.61	―	3.86%	5.91%	5.03%
8416	60 Neutral	¥8.90B	89.45	―	2.83%	7.74%	-92.49%
8562	54 Neutral	¥9.28B	-63.25	―	1.88%	8.11%	68.98%