Ehime Bank, Ltd. (8541) AI Stock Analysis

• Market Cap: ¥45.17B
• Dividend Yield: 2.84%
• Average Volume (3M): 70.85K
• Price to Earnings (P/E): 7.8
• Beta (1Y): 0.84
• Revenue Growth: -3.02%
• EPS Growth: 7.28%
• Country: JP
• Employees: 1,342
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 44.62
• 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: ¥1,322.00
• Price Target Upside: 10.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ¥1,322.00 ▲(10.54% Upside)

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

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 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 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	47.31B	47.56B	42.24B	35.45B	39.15B
EBITDA	5.99B	9.41B	8.76B	9.99B	10.48B	7.79B
Net Income	5.80B	5.72B	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	91.13B	72.74B	95.58B	129.63B	79.31B
Total Liabilities	2.71T	2.83T	2.75T	2.76T	2.75T	2.61T
Stockholders Equity	138.57B	135.46B	137.17B	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: 1196.00
• 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 1196 is above the 20-day moving average (MA) of 1182.98, above the 50-day MA of 1177.61, and above the 200-day MA of 1072.95, indicating a bullish trend. The MACD of -4.35 indicates Positive momentum. The RSI at 54.95 is Neutral, neither overbought nor oversold. The STOCH value of 64.98 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	79 Outperform	¥58.82B	8.18	―	3.58%	7.21%	-3.97%
8395	78 Outperform	¥51.88B	8.30	―	2.73%	5.00%	-10.64%
8362	73 Outperform	¥49.24B	8.00	―	2.80%	10.04%	-16.66%
8344	72 Outperform	¥48.67B	11.36	―	3.41%	-12.00%	28.81%
8541	71 Outperform	¥45.17B	7.78	―	2.84%	-3.02%	7.28%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8550	47 Neutral	¥52.12B	7.44	―	1.46%	3.90%	-935.77%

Ehime Bank, Ltd. Corporate Events

Ehime Bank Announces Leadership Restructuring to Enhance Corporate Value

Ehime Bank, Ltd. announced a series of leadership changes aimed at enhancing its corporate value through a new management structure. These changes, which include the appointment of a new Representative Director and other key officers, are expected to be finalized at the upcoming Annual General Meeting. The restructuring reflects the bank’s strategic focus on strengthening its management team to better position itself in the competitive financial sector.