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

• Market Cap: ¥252.52B
• Dividend Yield: 2.77%
• Average Volume (3M): 2.26M
• Price to Earnings (P/E): 12.3
• Beta (1Y): 1.33
• Revenue Growth: 15.11%
• EPS Growth: 44.89%
• Country: JP
• Employees: 2,799
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 15.69
• Shares Outstanding: 378,060,180
• 10 Day Avg. Volume: 2,266,280
• 30 Day Avg. Volume: 2,258,533
• 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: ¥735.00
• Price Target Upside: 6.99% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: ¥735.00 ▲(6.99% Upside)

The overall stock score of 64 reflects strong financial performance and reasonable valuation, offset by weak technical indicators. The bank's robust revenue growth and high gross profit margins are significant strengths, while the bearish technical trends and cash flow concerns present risks.

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 high gross profit margins. However, the bank's heavy reliance on liabilities and the sharp decline in free cash flow highlight areas needing improvement in cash flow management and operational efficiency.

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	143.40B	138.57B	126.53B	118.95B	112.98B	116.99B
Gross Profit	143.40B	129.87B	126.53B	118.95B	112.10B	115.08B
EBITDA	26.30B	37.59B	28.03B	23.25B	25.20B	15.16B
Net Income	21.28B	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: Negative
• Last Price: 687.00
• 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:8524, the sentiment is Negative. The current price of 687 is below the 20-day moving average (MA) of 714.79, below the 50-day MA of 698.43, and above the 200-day MA of 559.33, indicating a neutral trend. The MACD of -0.51 indicates Positive momentum. The RSI at 43.38 is Neutral, neither overbought nor oversold. The STOCH value of 31.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
8358	77 Outperform	¥279.96B	14.35	6.41%	2.27%	19.98%	10.24%
8368	73 Outperform	¥236.09B	13.92	3.62%	2.68%	3.23%	15.53%
7380	72 Outperform	¥201.48B	9.39	―	3.34%	-3.29%	3.26%
7173	72 Outperform	¥214.15B	7.00	―	2.20%	10.75%	16.98%
8370	69 Neutral	¥181.47B	9.01	8.71%	4.34%	15.05%	32.29%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8524	64 Neutral	¥252.52B	12.28	―	2.77%	15.11%	44.89%

North Pacific Bank, Ltd. Corporate Events

North Pacific Bank Revises Stock Compensation Plan to Enhance Sustainability

North Pacific Bank, Ltd. announced a revision to its performance-linked stock compensation plan for directors and executive officers, aiming to align their remuneration with the bank’s business performance and shareholder value. The revision includes the addition of non-financial indicators to promote sustainability and corporate value enhancement, reflecting the bank’s commitment to sustainable growth and operational efficiency.

North Pacific Bank Announces Board Restructuring

North Pacific Bank, Ltd. announced changes to its board of directors, effective June 26, 2025. These changes include the appointment of Shirou Kurio as a new director and audit and supervisory committee member, reflecting the bank’s commitment to strengthening its governance structure. The restructured board aims to enhance strategic oversight and operational efficiency, potentially impacting the bank’s market positioning and stakeholder relations positively.