Taiko Bank, Ltd. (8537) AI Stock Analysis

• Market Cap: ¥13.26B
• Dividend Yield: 4.99%
• Average Volume (3M): 24.05K
• Price to Earnings (P/E): 5.4
• Beta (1Y): 0.83
• Revenue Growth: 8.63%
• EPS Growth: 17.45%
• Country: JP
• Employees: 793
• Sector: Financial
• Sector Strength: 77
• Industry: Banks - Regional
• EPS (TTM): 35.69
• Shares Outstanding: 9,671,400
• 10 Day Avg. Volume: 25,270
• 30 Day Avg. Volume: 24,053
• PEG Ratio: -0.22
• Price to Book (P/B): 0.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.08
• 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

• Rating: 62 Neutral
• Price Target: ―

Taiko Bank shows robust revenue growth and profitability, but is offset by cash flow volatility and moderate balance sheet leverage. While technical indicators show mixed signals, the attractive valuation with a low P/E ratio and solid dividend yield enhances its investment appeal. Overall, the stock merits a moderate score, reflecting a balanced opportunity with some risks.

Taiko Bank, Ltd. Business Overview & Revenue Model

Company Description

Taiko Bank, Ltd. (8537) is a regional bank based in Japan, providing a range of financial services primarily to individual and small to medium-sized enterprise (SME) clients. The bank offers core banking products such as savings and checking accounts, loans, and mortgages, along with additional services like investment consulting, insurance products, and foreign exchange services to serve the diverse needs of its customer base.

How the Company Makes Money

Taiko Bank, Ltd. generates revenue primarily through interest income from its lending activities, including personal loans, mortgages, and business loans offered to SMEs. The bank also earns income from service fees associated with account maintenance, transaction processing, and advisory services. Additionally, Taiko Bank benefits from investment income derived from its holdings in securities and other financial instruments. Strategic partnerships with insurance companies and investment firms further contribute to its revenue by enabling the bank to offer a wider array of financial products and services to its customers.

Taiko Bank, Ltd. Financial Statement Overview

Summary

Taiko Bank displays strong profitability with a 95.93% gross profit margin and a 9.79% net profit margin, driven by a 17.23% revenue growth. However, the balance sheet shows moderate leverage with a debt-to-equity ratio of 1.55, and a low equity ratio of 4.44%, posing potential risk if liabilities rise. Cash flow volatility, marked by a negative operating cash flow in 2023, is a concern, highlighting the need for improved cash flow stability.

Income Statement

The TTM data shows a strong gross profit margin of 95.93% and a healthy net profit margin of 9.79%, indicating robust cost management and profitability. The revenue growth from the previous year is significant at 17.23%, highlighting positive momentum. However, the lack of EBITDA data for the TTM period limits a comprehensive assessment of operational efficiency.

Balance Sheet

The company has a moderate debt-to-equity ratio of 1.55, which signals a balanced leverage position. The return on equity (ROE) is 2.74%, showing modest profitability for shareholders. An equity ratio of 4.44% suggests a low proportion of equity financing, which may pose risks if liabilities increase.

Cash Flow

The cash flow statement lacks TTM data, but historical figures show fluctuations, with a significant negative operating cash flow in 2023. The absence of free cash flow in the TTM limits the ability to assess cash generation effectively. The company must stabilize its cash flow to improve financial health.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
21.22B	21.00B	18.10B	19.42B	18.81B	19.54B
	Gross Profit
20.36B	0.00	18.10B	19.42B	18.81B	19.54B
	EBIT
6.95B	4.57B	6.47B	1.19B	2.05B	1.59B
	EBITDA
2.77B	4.57B	3.26B	2.53B	3.57B	3.12B
	Net Income Common Stockholders
2.08B	2.50B	1.72B	1.28B	2.04B	1.57B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
141.09B	0.00	85.98B	104.37B	237.74B	231.90B
	Total Assets
1.71T	1.68T	1.63T	1.61T	1.70T	1.71T
	Total Debt
117.54B	116.85B	94.47B	52.10B	138.00B	117.34B
	Net Debt
-23.55B	116.85B	-85.98B	-52.27B	-99.74B	-114.56B
	Total Liabilities
1.63T	1.60T	1.55T	63.97B	1.62T	1.63T
	Stockholders Equity
75.91B	74.98B	77.65B	73.11B	76.98B	79.23B
Cash Flow		Free Cash Flow
0.00	13.54B	10.89B	-139.63B	-4.52B	142.68B
	Operating Cash Flow
0.00	14.19B	1.60B	-139.40B	-4.19B	143.44B
	Investing Cash Flow
0.00	-21.80B	-19.40B	6.62B	10.63B	-1.67B
	Financing Cash Flow
0.00	48.74B	-592.00M	-589.00M	-592.00M	-736.00M

Taiko Bank, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1404.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8537, the sentiment is Positive. The current price of 1404 is below the 20-day moving average (MA) of 1407.65, above the 50-day MA of 1381.22, and above the 200-day MA of 1380.33, indicating a neutral trend. The MACD of 4.95 indicates Positive momentum. The RSI at 50.26 is Neutral, neither overbought nor oversold. The STOCH value of 19.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8537.

Taiko Bank, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8331	73 Outperform	$921.10B	12.37	6.30%	3.41%	9.28%	20.48%
8377	71 Outperform	¥330.96B	8.66		1.48%	21.04%	20.47%
Sector *	67 Neutral	$16.17B	10.98	9.72%	4.07%	11.95%	-10.49%
8537	62 Neutral	¥13.26B	5.36		4.99%	8.63%	17.45%
8344	52 Neutral	¥44.89B	10.57		3.77%	-16.07%	43.79%