Ehime Bank, Ltd. (8541) AI Stock Analysis

• Market Cap: ¥73.96B
• Dividend Yield: 2.34%
• Average Volume (3M): 70.85K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.94
• Revenue Growth: -0.97%
• EPS Growth: 27.62%
• Country: JP
• Employees: 1,342
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 59.07
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥2,168.00 ▲(38.18% Upside)
• Action: Reiterated Date: 01/24/26
• Date: Action: Reiterated 01/24/26

The score is driven primarily by solid financial performance fundamentals (strong revenue growth and balanced leverage) but tempered by weaker profitability/ROE and margin pressure. Technicals add support due to a clear uptrend, though overbought signals raise pullback risk. Valuation is reasonable with a moderate dividend yield, providing additional support.

Positive Factors

Revenue Growth

A 20.83% revenue increase demonstrates durable top-line momentum driven by lending, fees and securities income. Sustained revenue growth expands scale, supports higher loan origination capacity and provides recurring cash flow that can fund investment and buffers over the next several months.

Moderate Leverage

A debt-to-equity of 0.67 reflects a balanced approach to leverage for a regional bank. Moderate gearing preserves regulatory headroom and funding flexibility, enabling continued lending to households and SMEs while limiting solvency risk in stress scenarios over the medium term.

Strong Cash Generation

Near-complete conversion of net income into free cash flow and improved operating cash flow show reliable cash generation. Consistent FCF supports dividends, necessary loan book maintenance and selective reinvestment, providing a durable liquidity buffer against cyclical shocks.

Negative Factors

Margin Compression

A fall in net profit margin from 11.73% to 9.36% indicates sustained pressure on profitability. Persistent margin compression erodes earnings leverage from revenue growth, constrains internal capital generation, and reduces the bank's ability to expand profitability without improving efficiency or pricing.

Low ROE

An ROE of 4.22% is low for a bank and signals limited returns on shareholder capital. If ROE remains subdued, it restricts equity value creation and may force management to pursue higher risk lending, cost cuts, or capital actions to lift returns, which can be challenging in a regional franchise.

Regional Concentration

Concentration in Ehime Prefecture and reliance on SME and municipal clients expose the bank to local economic cycles and demographic trends. Limited geographic diversification increases vulnerability to regional downturns or industry-specific shocks over the medium term.

Ehime Bank, Ltd. Business Overview & Revenue Model

Company Description

The Ehime Bank, Ltd. provides banking products and financial services in Japan. It offers savings, interest-free-bearing savings, checking, foreign currency savings, notification, automatic savings time, super time, large time, negotiable, certificate of deposit, and foreign currency time deposit products, as well as various loans. The company also provides business support, corporate association/tax accountant collaboration, and shipping and shipbuilding loans; and guarantee/institutional financing and co-financing services. In addition, it offers pension, life, non-life, medical, and cancer insurance products; asset management, fund management, trust agency, and management/business support services, as well as farm and internet banking; and e-net payment collection services. As of March 31, 2020, the company operated through 112 branches. The Ehime Bank, Ltd. was founded in 1915 and is headquartered in Matsuyama, Japan.

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

Strong revenue growth (20.83%) supports the score, and leverage appears moderate (debt-to-equity 0.67) with a stable capital structure. Offsetting this, profitability and efficiency are under pressure as net profit margin fell (11.73% to 9.36%) and ROE is modest at 4.22%. Cash flow improved, but operating cash flow conversion (OCF/net income 0.39) is only reasonable.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: 1569.00
• 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:8541, the sentiment is Positive. The current price of 1569 is below the 20-day moving average (MA) of 1860.30, below the 50-day MA of 1684.94, and above the 200-day MA of 1277.58, indicating a neutral trend. The MACD of 52.64 indicates Positive momentum. The RSI at 55.49 is Neutral, neither overbought nor oversold. The STOCH value of 18.38 is Positive, 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	74 Outperform	¥100.83B	6.00	―	3.05%	8.75%	-12.68%
8395	74 Outperform	¥85.86B	10.29	―	2.29%	7.97%	20.44%
8541	72 Outperform	¥73.96B	10.46	―	2.34%	-0.97%	27.62%
8362	69 Neutral	¥82.66B	12.07	―	2.49%	7.08%	-46.44%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8344	67 Neutral	¥83.94B	16.93	―	2.89%	-0.24%	95.49%
8550	52 Neutral	¥106.23B	-5.53	―	2.12%	10.91%	-1225.48%

Ehime Bank, Ltd. Corporate Events

Ehime Bank Delivers Strong Nine-Month Profit Growth and Lifts Dividend Outlook

The Ehime Bank reported solid earnings growth for the nine months ended 31 December 2025, with ordinary income rising 6.6% year on year to ¥50.3 billion, ordinary profit climbing 34.4% to ¥7.3 billion, and profit attributable to owners of the parent jumping 37.2% to ¥5.0 billion, driving basic earnings per share up to ¥127.97. Despite a slight decline in total assets to ¥2.95 trillion, net assets increased to ¥145.0 billion and the equity-to-asset ratio improved to 4.9%, while the bank maintained its dividend plan and flagged a modest increase in total annual dividends for the year ending March 2026, signaling steady capital strength and a continued commitment to shareholder returns amid stable full-year profit forecasts.

The most recent analyst rating on (JP:8541) stock is a Buy with a Yen1941.00 price target. To see the full list of analyst forecasts on Ehime Bank, Ltd. stock, see the JP:8541 Stock Forecast page.