Ehime Bank, Ltd. (8541) AI Stock Analysis

• Market Cap: ¥54.43B
• Dividend Yield: 2.43%
• Average Volume (3M): 70.85K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.88
• 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: 78 Outperform
• Price Target: ¥1,498.00 ▲(7.54% Upside)

Ehime Bank's strong technical indicators and attractive valuation are the primary drivers of its overall score. The financial performance is solid, with strong revenue growth, but challenges in profitability margins and operational efficiency need addressing. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

The robust revenue growth indicates successful market penetration and product demand, supporting long-term business expansion and stability.

Stable Balance Sheet

A stable balance sheet with moderate leverage supports financial health, providing flexibility for future investments and growth opportunities.

Improved Cash Flow

Improved cash flow enhances the bank's ability to fund operations, invest in growth, and return value to shareholders, underpinning long-term financial stability.

Negative Factors

Profitability Challenges

Decreasing profit margins indicate rising costs or pricing pressures, which could hinder profitability and shareholder returns if not addressed.

Operational Efficiency

Declining operational efficiency suggests potential cost management issues, impacting profitability and requiring strategic focus to improve margins.

Return on Equity

A decline in return on equity indicates challenges in generating shareholder value, which could affect investor confidence and capital raising ability.

Ehime Bank, Ltd. Business Overview & Revenue Model

Company Description

Ehime Bank, Ltd. (8541) is a regional bank based in Ehime Prefecture, Japan, primarily engaged in providing financial services including deposit-taking, lending, and investment services. The bank serves individual customers, small and medium-sized enterprises (SMEs), and local governments, focusing on promoting the economic growth of the region. Its core products include personal and business loans, savings accounts, and various financial products designed to meet the needs of its clientele.

How the Company Makes Money

Ehime Bank generates revenue primarily through interest income from loans and advances. The bank lends to individuals and businesses, charging interest on these loans, which constitutes a significant portion of its earnings. Additionally, the bank earns income from fees and commissions associated with various financial services, including account maintenance, transaction fees, and investment services. The bank also invests in securities and generates revenue from interest on these investments. Significant partnerships with local businesses and government agencies further enhance its lending portfolio and community engagement, contributing to its overall financial performance.

Ehime Bank, Ltd. Financial Statement Overview

Summary

Ehime Bank demonstrates strong revenue growth and a stable balance sheet, but faces challenges in maintaining profitability margins. The cash flow situation has improved, but the bank needs to focus on enhancing operational efficiency and profitability to sustain growth and shareholder returns.

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: 1393.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 1393 is above the 20-day moving average (MA) of 1347.05, above the 50-day MA of 1273.02, and above the 200-day MA of 1116.98, indicating a bullish trend. The MACD of 37.62 indicates Negative momentum. The RSI at 64.55 is Neutral, neither overbought nor oversold. The STOCH value of 55.46 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	¥68.77B	10.65	―	3.17%	8.75%	-12.68%
8395	78 Outperform	¥62.65B	7.78	―	2.38%	7.97%	20.44%
8541	78 Outperform	¥54.43B	8.83	―	2.43%	-0.97%	27.62%
8344	74 Outperform	¥57.06B	11.67	―	2.99%	-0.24%	95.49%
8362	73 Outperform	¥56.04B	13.89	―	2.61%	7.08%	-46.44%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8550	56 Neutral	¥74.06B	-3.73	―	2.14%	10.91%	-1225.48%

Ehime Bank, Ltd. Corporate Events

Ehime Bank Reports Strong Financial Performance for H1 2025

Ehime Bank, Ltd. reported a significant improvement in its financial performance for the six months ending September 30, 2025, with a 6% increase in ordinary income and a 19.9% rise in profit attributable to owners compared to the previous year. The bank’s comprehensive income more than doubled, indicating strong operational performance and positive market conditions. The equity-to-asset ratio slightly improved, reflecting a stable financial position, and the bank maintained its dividend forecast, signaling confidence in its ongoing financial health.