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

Improved cash generation

Free cash flow turning positive and an operating cash flow to net income ratio of 5.22 indicate the bank has strengthened its ability to convert earnings into cash. Over a multi-month horizon this improves funding flexibility for lending, reserves and strategic uses, reducing reliance on volatile wholesale funding.

Stable equity base and asset foundation

A stable equity base and an asset base described as strong provide structural resilience for a regional bank. Manageable D/E around 1.07 supports regulatory buffers and ongoing lending capacity, helping sustain core operations and absorb moderate credit stress over the coming months.

Ongoing positive profitability

A positive net margin of 3.85% shows the bank’s core lending and fee activities are generating surplus income. While modest, persistent profitability supports retained earnings accumulation and capital preservation, enabling continued operations and incremental business investment over the medium term.

Negative Factors

Declining revenue and weakening margins

A year-over-year revenue decline of 1.23% alongside deteriorating net and EBIT margins signals weakening top-line momentum and compression of operating efficiency. Persisting declines would erode earnings capacity, limit internal capital generation and constrain strategic initiatives over the next several months.

Rising leverage and low return on equity

Leverage that has increased to a D/E of 1.07 combined with a low ROE of 1.70% limits the bank’s ability to drive shareholder returns and absorb shocks. Elevated leverage reduces strategic optionality and heightens sensitivity to funding costs and credit losses over the medium term.

Volatile historical cash flows

Significant historical cash flow volatility undermines predictability for provisioning, capital planning and dividend policy. Even with recent improvement, inconsistent cash generation increases execution risk for growth plans and makes stress scenarios more challenging to manage over the coming months.

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%