Ehime Bank, Ltd. (8541) AI Stock Analysis

• Market Cap: ¥49.11B
• Dividend Yield: 2.73%
• Average Volume (3M): 70.85K
• Price to Earnings (P/E): 8.5
• Beta (1Y): 0.89
• Revenue Growth: -0.97%
• EPS Growth: 27.62%
• Country: JP
• Employees: 1,342
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 24.28
• Shares Outstanding: 39,426,777
• 10 Day Avg. Volume: 67,690
• 30 Day Avg. Volume: 70,846
• PEG Ratio: 0.55
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.69
• P/FCF Ratio: 3.22
• 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: 71 Outperform
• Price Target: ¥1,322.00 ▲(3.93% Upside)

Ehime Bank's strong valuation and revenue growth are key strengths, but challenges in profitability and limited technical momentum moderate the overall score.

Positive Factors

Revenue Growth

The robust top-line expansion indicates successful business operations and market penetration, supporting long-term growth prospects.

Cash Flow Improvement

Improved cash flow enhances financial flexibility, allowing for potential reinvestment in growth initiatives and stability in operations.

Stable Capital Structure

A stable capital structure provides a strong foundation for the bank, ensuring resilience against economic fluctuations and supporting sustainable growth.

Negative Factors

Profitability Challenges

Decreasing profit margins indicate pressure on profitability, which could affect the bank's ability to generate returns and invest in future growth.

Operational Efficiency

Declining operational efficiency may hinder the bank's ability to optimize costs and improve profitability, impacting long-term competitiveness.

Limited Reinvestment Capacity

Limited reinvestment capacity could constrain the bank's ability to fund new projects or expand operations, affecting future growth potential.

Ehime Bank, Ltd. Business Overview & Revenue Model

Company Description

Ehime Bank, Ltd. is a regional bank based in Ehime Prefecture, Japan. Established in 1943, the bank primarily serves the local community and businesses by providing a range of financial services. Its core offerings include retail banking services such as savings accounts, loans, and credit cards, as well as corporate banking solutions including business loans and investment services. The bank also engages in asset management and financial planning services to cater to individual and corporate clients.

How the Company Makes Money

Ehime Bank generates revenue primarily through the interest income earned from loans issued to individuals and businesses. This is complemented by fees collected from various banking services, including account maintenance, transaction fees, and advisory services. The bank also earns income through its investment activities, including securities trading and asset management. Furthermore, partnerships with local businesses and government institutions enhance its service offerings and contribute to its earnings through cooperative financial products tailored for specific sectors within the community.

Ehime Bank, Ltd. Financial Statement Overview

Summary

Ehime Bank shows strong revenue growth and a stable balance sheet, but faces challenges in profitability margins. The cash flow situation has improved, but operational efficiency and profitability need enhancement.

Income Statement

Ehime Bank has shown a strong revenue growth rate of 20.83% in the most recent year, indicating robust top-line expansion. However, the net profit margin has decreased from 11.73% to 9.36%, suggesting some pressure on profitability. The EBIT and EBITDA margins have also declined, reflecting potential challenges in operational efficiency.

Balance Sheet

The bank maintains a moderate debt-to-equity ratio of 0.67, indicating a balanced approach to leveraging. However, the return on equity has slightly decreased to 4.22%, which may point to challenges in generating returns for shareholders. The equity ratio remains stable, suggesting a solid capital structure.

Cash Flow

Ehime Bank's cash flow position has improved significantly, with a positive free cash flow growth rate. The operating cash flow to net income ratio is 0.39, indicating a reasonable conversion of income to cash. However, the free cash flow to net income ratio of 0.96 suggests that most of the net income is being converted into free cash flow, leaving limited room for reinvestment.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	46.91B	60.60B	59.74B	46.78B	36.93B	37.69B
Gross Profit	46.91B	43.84B	43.09B	38.18B	35.45B	35.55B
EBITDA	5.99B	9.41B	8.76B	9.99B	10.48B	9.48B
Net Income	5.80B	5.71B	5.05B	5.39B	5.78B	5.45B
Balance Sheet
Total Assets	2.84T	2.96T	2.89T	2.89T	2.89T	2.77T
Cash, Cash Equivalents and Short-Term Investments	0.00	269.08B	204.90B	218.00B	339.77B	286.27B
Total Debt	105.95B	71.00B	72.74B	95.58B	128.39B	78.16B
Total Liabilities	2.71T	2.83T	2.75T	2.76T	2.75T	2.61T
Stockholders Equity	138.57B	135.45B	137.16B	127.54B	134.69B	153.50B
Cash Flow
Free Cash Flow	0.00	13.00B	-15.28B	-76.84B	82.33B	37.91B
Operating Cash Flow	0.00	13.61B	-24.97B	-74.62B	84.61B	38.90B
Investing Cash Flow	0.00	20.82B	13.02B	-45.95B	-24.34B	-39.45B
Financing Cash Flow	0.00	55.73B	-1.29B	-1.17B	-7.03B	-4.69B

Ehime Bank, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1272.00
• 50DMA: Positive
• 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:8541, the sentiment is Positive. The current price of 1272 is above the 20-day moving average (MA) of 1255.50, above the 50-day MA of 1217.42, and above the 200-day MA of 1093.62, indicating a bullish trend. The MACD of 10.80 indicates Positive momentum. The RSI at 58.61 is Neutral, neither overbought nor oversold. The STOCH value of 66.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8541.

Ehime Bank, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8387	78 Outperform	¥60.59B	8.64	―	3.35%	8.75%	-12.68%
8395	78 Outperform	¥53.54B	8.72	―	2.80%	7.97%	20.44%
8344	74 Outperform	¥52.30B	12.20	―	3.17%	-0.24%	95.49%
8362	73 Outperform	¥55.68B	13.80	―	2.64%	7.08%	-46.44%
8541	71 Outperform	¥49.11B	8.46	―	2.73%	-0.97%	27.62%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8550	56 Neutral	¥58.60B	-2.69	―	2.69%	10.91%	-1225.48%

Ehime Bank, Ltd. Corporate Events

Ehime Bank Reports Q1 2025 Financial Results with Increased Profit

Ehime Bank, Ltd. reported its consolidated financial results for the three months ending June 30, 2025, showing a decrease in ordinary revenues by 5.7% compared to the previous year, but an increase in ordinary profit by 20.8%. The bank’s total assets decreased slightly, while net assets and the capital adequacy ratio improved. The company maintained its dividend forecast, indicating stable financial health and a commitment to shareholder returns.