Taiko Bank, Ltd. (8537) AI Stock Analysis

• Market Cap: ¥16.54B
• Dividend Yield: 3.77%
• Average Volume (3M): 29.90K
• Price to Earnings (P/E): 6.7
• Beta (1Y): 0.84
• Revenue Growth: 16.60%
• EPS Growth: -5.51%
• Country: JP
• Employees: 793
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 67.89
• Shares Outstanding: 9,671,400
• 10 Day Avg. Volume: 33,270
• 30 Day Avg. Volume: 29,900
• PEG Ratio: 0.12
• Price to Book (P/B): 0.18
• Price to Sales (P/S): 0.68
• P/FCF Ratio: 1.01
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: ¥2,013.00 ▲(11.34% Upside)

Taiko Bank, Ltd. scores well due to its strong technical indicators and attractive valuation, suggesting potential undervaluation and positive market momentum. Financial performance is solid, though concerns about revenue growth consistency and equity ratio slightly temper the overall score.

Positive Factors

Cash Generation Ability

Strong free cash flow growth indicates efficient cash operations, enhancing the bank's ability to invest in growth opportunities and weather economic fluctuations.

Profitability

Improved net profit margin reflects enhanced profitability, suggesting effective cost management and pricing strategies that can sustain long-term financial health.

Operational Efficiency

Healthy EBIT and EBITDA margins indicate effective operational management, which supports sustained profitability and competitive positioning in the market.

Negative Factors

Equity Ratio Concerns

A low equity ratio suggests potential risks in asset financing, which could limit the bank's ability to absorb financial shocks and invest in growth.

Revenue Growth Inconsistency

Inconsistent revenue growth may indicate challenges in market expansion or product adoption, potentially affecting long-term financial stability and investor confidence.

Leverage Concerns

While leverage is moderate, the combination with a low equity ratio could strain financial flexibility, impacting the bank's ability to manage debt effectively.

Taiko Bank, Ltd. Business Overview & Revenue Model

Company Description

The Taiko Bank,Ltd. provides various banking products and services in Japan. The company offers loans, credit card and guarantee, general leasing, foreign exchange, and Internet banking services. It operates through a network of 71 branches. The company was founded in 1942 and is headquartered in Nagaoka, Japan.

How the Company Makes Money

Taiko Bank generates revenue primarily through interest income from loans and mortgages, which is a significant portion of its earnings. The bank charges interest on various loan products, including personal loans, business loans, and home mortgages, while also providing credit card services that contribute to interest income and fees. Additionally, Taiko Bank earns fee-based income from services such as account maintenance, transaction fees, and investment advisory services. The bank may also engage in wealth management and asset management services, generating revenue through management fees and commissions. Strategic partnerships with local businesses and government entities may enhance its loan portfolio and increase customer deposits, further contributing to its overall financial performance.

Taiko Bank, Ltd. Financial Statement Overview

Summary

Taiko Bank, Ltd. demonstrates strong profitability with a solid gross profit margin and improved net profit margin. The balance sheet shows moderate leverage, but the low equity ratio poses potential risks. Cash flow is robust, indicating efficient cash operations, though revenue growth inconsistency and low equity ratio are concerns.

Income Statement

The income statement shows a solid gross profit margin of 94.24%, indicating strong revenue retention. The net profit margin improved significantly to 12.51%, reflecting enhanced profitability. Although the revenue grew by 10.21% from 2024 to 2025, this growth has been inconsistent over the years. The EBIT and EBITDA margins are healthy at 22.89%, showing effective operational management.

Balance Sheet

The balance sheet is stable with a moderate debt-to-equity ratio of 1.56, suggesting prudent financial leverage. However, the equity ratio is relatively low at 4.47%, which may indicate potential risks in asset financing. Return on equity is commendable at 3.33%, showing decent returns for shareholders.

Cash Flow

Cash flow analysis reveals strong free cash flow growth of 24.26%, indicating improved cash generation. The operating cash flow to net income ratio is robust at 5.68, reflecting efficient cash operations. However, the free cash flow to net income ratio is significantly higher at 5.43, highlighting a potential emphasis on cash over profit.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.83B	19.95B	19.82B	19.64B	19.06B	19.87B
Gross Profit	20.32B	18.80B	19.58B	19.42B	18.81B	19.54B
EBITDA	17.35B	4.62B	3.26B	2.53B	3.57B	3.12B
Net Income	2.47B	2.50B	1.72B	1.28B	2.04B	1.57B
Balance Sheet
Total Assets	1.70T	1.68T	1.63T	1.61T	1.70T	1.71T
Cash, Cash Equivalents and Short-Term Investments	0.00	127.11B	85.98B	104.37B	237.74B	231.90B
Total Debt	112.83B	88.10B	70.20B	52.10B	138.00B	117.34B
Total Liabilities	1.62T	1.60T	1.55T	1.53T	1.62T	1.63T
Stockholders Equity	78.15B	74.98B	77.65B	73.11B	76.98B	79.23B
Cash Flow
Free Cash Flow	0.00	13.54B	11.56B	-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	846.00M	-19.40B	6.62B	10.63B	-1.67B
Financing Cash Flow	0.00	-649.00M	-592.00M	-589.00M	-592.00M	-736.00M

Taiko Bank, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1808.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1808 is above the 20-day moving average (MA) of 1736.75, above the 50-day MA of 1717.91, and above the 200-day MA of 1521.34, indicating a bullish trend. The MACD of 18.37 indicates Negative momentum. The RSI at 68.14 is Neutral, neither overbought nor oversold. The STOCH value of 98.88 is Negative, 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
8537	77 Outperform	¥16.54B	6.75	―	3.77%	16.60%	-5.51%
8383	73 Outperform	¥12.66B	9.80	―	3.65%	11.93%	36.32%
8349	72 Outperform	¥12.66B	7.90	―	3.73%	13.77%	19.08%
8364	68 Neutral	¥23.77B	10.78	―	2.92%	4.90%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8542	64 Neutral	¥15.94B	11.09	―	3.55%	3.70%	24.98%
8563	63 Neutral	¥9.86B	6.96	―	4.09%	5.91%	5.03%