Ehime Bank, Ltd. (8541) AI Stock Analysis

• Market Cap: ¥66.34B
• Dividend Yield: 2.34%
• Average Volume (3M): 70.85K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.92
• 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: ¥1,933.00 ▲(23.20% Upside)

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

Strong revenue growth

A 20.8% top-line expansion is a durable indicator of growing lending and fee activity in the regional franchise. Sustained revenue growth strengthens earnings resilience, funds loan book expansion, and supports capital accumulation versus peers over the next several quarters.

Moderate leverage and stable capital

A D/E of 0.67 and a stable equity ratio point to conservative balance sheet management for a regional bank. This provides regulatory cushion, limits refinancing strain in stress periods, and preserves capacity to support local lending and absorb credit cycles long-term.

High free cash flow conversion

Near‑one free cash flow conversion shows the bank effectively turns accounting profits into distributable cash. This durable cash generation underpins dividend capacity, deleveraging or targeted reinvestment, improving financial flexibility across multiple quarters.

Negative Factors

Declining net profit margin

A falling net margin signals squeeze on interest spreads or rising cost pressure that erodes long-term earnings power. If margin compression persists, the bank will need higher volumes or efficiency gains to maintain profits, posing a structural profitability risk.

Modest return on equity

An ROE around 4.2% is low for banks and limits shareholder value creation. Even with revenue growth, weak ROE suggests the bank struggles to generate returns above capital costs, constraining its ability to attract capital or justify longer‑term growth investments.

Low operating cash conversion

Only 39% conversion of net income to operating cash implies earnings are not fully cash-backed, increasing reliance on balance sheet management for funding. This structural gap can limit sustainable reinvestment and make the bank more vulnerable to liquidity stress.

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	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: 1569.00
• 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 1569 is below the 20-day moving average (MA) of 1636.60, above the 50-day MA of 1485.74, and above the 200-day MA of 1194.58, indicating a bullish trend. The MACD of 64.20 indicates Positive momentum. The RSI at 67.04 is Neutral, neither overbought nor oversold. The STOCH value of 39.55 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	¥83.65B	12.95	―	3.05%	8.75%	-12.68%
8395	78 Outperform	¥76.08B	9.45	―	2.29%	7.97%	20.44%
8344	74 Outperform	¥67.89B	13.89	―	2.89%	-0.24%	95.49%
8362	73 Outperform	¥68.24B	16.91	―	2.49%	7.08%	-46.44%
8541	72 Outperform	¥66.34B	10.76	―	2.34%	-0.97%	27.62%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8550	52 Neutral	¥87.33B	-4.54	―	2.12%	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.

The most recent analyst rating on (JP:8541) stock is a Buy with a Yen1322.00 price target. To see the full list of analyst forecasts on Ehime Bank, Ltd. stock, see the JP:8541 Stock Forecast page.