North Pacific Bank, Ltd. (8524) AI Stock Analysis

• Market Cap: ¥292.22B
• Dividend Yield: 2.56%
• Average Volume (3M): 2.36M
• Price to Earnings (P/E): 12.2
• Beta (1Y): 1.33
• Revenue Growth: 19.69%
• EPS Growth: 70.91%
• Country: JP
• Employees: 2,799
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 17.70
• Shares Outstanding: 378,060,180
• 10 Day Avg. Volume: 2,370,950
• 30 Day Avg. Volume: 2,361,940
• PEG Ratio: 0.16
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 1.43
• P/FCF Ratio: 5.87
• 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): 11,024.24
• Revenue Forecast (FY): ¥16.48T

• Rating: 76 Outperform
• Price Target: ¥898.00 ▲(25.24% Upside)

The overall stock score of 75.9 reflects strong technical momentum and solid financial performance. The stock's valuation is reasonable, supported by a healthy dividend yield. While financial performance is stable, improvements in cash flow management could enhance the bank's financial health further.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and effective customer acquisition strategies, supporting long-term business sustainability.

Cost Management

Efficient cost management enhances profitability and allows for reinvestment in growth initiatives, contributing to competitive positioning.

Cash Generation

Strong cash generation supports operational needs and strategic investments, ensuring financial flexibility and resilience.

Negative Factors

Free Cash Flow Decline

A sharp decline in free cash flow may limit the bank's ability to fund new projects or return capital to shareholders, affecting growth prospects.

Leverage Management

High leverage can increase financial risk, particularly if interest rates rise or economic conditions worsen, impacting long-term stability.

Net Profit Margin

Improving net profit margins is crucial for enhancing shareholder value and ensuring the bank's competitive edge in a cost-sensitive industry.

North Pacific Bank, Ltd. Business Overview & Revenue Model

Company Description

North Pacific Bank, Ltd. (8524) is a financial institution based in Japan that offers a wide range of banking services, including personal banking, commercial banking, and investment services. The bank primarily serves individuals, small to medium-sized enterprises (SMEs), and corporate clients, providing products such as savings and checking accounts, loans, mortgages, and wealth management services. North Pacific Bank is committed to fostering economic growth in its local communities by offering tailored financial solutions to meet the diverse needs of its customers.

How the Company Makes Money

North Pacific Bank generates revenue primarily through the interest spread between the rates it pays on deposits and the rates it earns on loans and other financial products. Key revenue streams include interest income from personal and commercial loans, fees from account services, transaction fees, and investment income from its portfolio of securities. Additionally, the bank may engage in wealth management and advisory services for high-net-worth individuals and businesses, generating management fees and commissions. Strategic partnerships with local businesses and community organizations further enhance its customer base and service offerings, contributing to its overall earnings.

North Pacific Bank, Ltd. Financial Statement Overview

Summary

North Pacific Bank, Ltd. demonstrates solid financial performance with strong revenue growth and efficient cost management, as evidenced by high gross profit margins. However, the decline in free cash flow highlights a need for improved cash flow management. The bank's leverage is typical for the industry, but careful management is required to avoid potential risks.

Income Statement

North Pacific Bank, Ltd. shows robust revenue growth, with the latest annual revenue increasing by 15.9% compared to the previous year. The gross profit margin remains high at 93.71%, reflecting efficient cost management. However, the net profit margin of 14.87% suggests room for improvement in operational efficiency and cost control.

Balance Sheet

The bank maintains a stable equity position with a debt-to-equity ratio of 4.47, indicating manageable leverage. The equity ratio is 2.83%, suggesting a heavy reliance on liabilities, which is typical for banks but could pose risks if not managed carefully. The return on equity is solid at 5.42%, though there is potential for higher returns.

Cash Flow

Operating cash flow remains strong, but there was a significant decline in free cash flow compared to the previous year, with a decrease of 96.58%. The operating cash flow to net income ratio is 1.89, showing sufficient cash generation relative to earnings. Nevertheless, the sharp drop in free cash flow growth raises concerns about cash allocation and capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	105.16B	138.57B	120.67B	115.38B	112.98B	116.99B
Gross Profit	105.16B	129.87B	119.60B	113.76B	112.10B	115.08B
EBITDA	19.53B	37.59B	28.03B	23.25B	25.20B	22.03B
Net Income	15.37B	20.61B	12.83B	9.65B	11.76B	9.42B
Balance Sheet
Total Assets	13.28T	13.45T	13.24T	12.52T	13.54T	11.86T
Cash, Cash Equivalents and Short-Term Investments	0.00	2.65T	3.06T	2.80T	4.34T	2.63T
Total Debt	1.69T	1.70T	1.53T	941.78B	2.00T	1.30T
Total Liabilities	12.88T	13.06T	12.80T	12.11T	13.12T	11.42T
Stockholders Equity	393.16B	380.48B	442.68B	403.35B	416.81B	436.05B
Cash Flow
Free Cash Flow	33.66B	33.66B	983.81B	-1.37T	1.73T	1.16T
Operating Cash Flow	39.05B	39.05B	988.14B	-1.36T	1.74T	1.17T
Investing Cash Flow	-328.51B	-328.51B	-703.01B	-172.00B	-16.14B	-171.64B
Financing Cash Flow	-9.05B	-9.05B	-19.16B	-4.82B	-4.03B	-32.28B

North Pacific Bank, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 717.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8524, the sentiment is Positive. The current price of 717 is below the 20-day moving average (MA) of 745.90, below the 50-day MA of 728.32, and above the 200-day MA of 599.08, indicating a bullish trend. The MACD of 17.26 indicates Negative momentum. The RSI at 70.42 is Negative, neither overbought nor oversold. The STOCH value of 92.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8524.

North Pacific Bank, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8370	77 Outperform	$194.66B	10.28	7.61%	4.01%	17.68%	20.15%
7173	76 Outperform	¥254.19B	6.78	―	2.24%	19.69%	50.61%
8524	76 Outperform	¥292.22B	12.20	―	2.56%	19.69%	70.91%
8368	73 Outperform	¥258.40B	13.10	3.95%	2.52%	9.29%	28.34%
7380	73 Outperform	¥234.38B	10.30	―	3.37%	1.91%	9.73%
8358	70 Outperform	$315.20B	11.91	8.13%	2.34%	22.44%	59.32%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%