Keiyo Bank, Ltd. (8544) AI Stock Analysis

• Market Cap: ¥214.71B
• Dividend Yield: 2.13%
• Average Volume (3M): 282.25K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 1.19
• Revenue Growth: 7.77%
• EPS Growth: 5.80%
• Country: JP
• Employees: 1,832
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 41.66
• Shares Outstanding: 126,427,860
• 10 Day Avg. Volume: 328,530
• 30 Day Avg. Volume: 282,250
• PEG Ratio: 0.44
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 1.46
• P/FCF Ratio: 3.69
• 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: 75 Outperform
• Price Target: ¥2,085.00 ▲(20.31% Upside)

Keiyo Bank's overall stock score is driven by strong technical analysis and a fair valuation. The financial performance is solid, but high leverage and cash flow volatility pose risks. Investors should be cautious of the overbought technical indicators, which may lead to short-term corrections.

Positive Factors

High Net Profit Margin

An 18.37% net profit margin indicates durable core profitability from lending and fee activities. Sustained margins generate internal capital for loan growth, reserves and shareholder returns, providing a buffer against cyclical pressures in regional banking markets.

Consistent Revenue Growth

Steady top-line growth reflects expanding loan volumes and fee income, supporting scale economics and reinvestment. Over the medium term this helps stabilize earnings, enhances cross-sell opportunities in retail and corporate segments, and strengthens competitive position regionally.

Improved Cash Generation

Positive operating cash flow and a 0.93 FCF/net income ratio show strong cash conversion and liquidity improvement. Durable cash generation reduces reliance on volatile funding, supports capital expenditure, dividends and provisioning, and increases balance sheet resilience over time.

Negative Factors

High Leverage

A debt-to-equity ratio of 2.26 signals significant leverage for a regional bank, increasing exposure to credit stress and interest-rate shifts. Elevated leverage limits shock absorption, may amplify regulatory capital pressure, and constrains strategic flexibility without equity strengthening.

Volatile Free Cash Flow

Marked variability in free cash flow growth complicates medium-term planning for dividend policy, loan origination and reserve building. For a bank, inconsistent FCF can force dependence on market funding in stress periods and undermines predictability of capital deployment.

Modest Return on Equity

ROE of 4.20%, alongside noted declines in EBIT/EBITDA margins, points to limited efficiency in converting equity into profit. Persistently low returns hinder internal capital accumulation, pressure dividend sustainability and reduce investor appeal versus peers with stronger profitability.

Keiyo Bank, Ltd. Business Overview & Revenue Model

Company Description

The Keiyo Bank, Ltd. offers various banking products and services in Japan. It accepts deposits; and offers housing, mortgage, and consumer loans, as well as loans to small and medium-sized companies. As of March 31, 2021, the company operated in 122 locations. The Keiyo Bank, Ltd. was incorporated in 1943 and is headquartered in Chiba, Japan.

How the Company Makes Money

Keiyo Bank generates revenue primarily through net interest income, which is the difference between the interest earned on loans and the interest paid on deposits. The bank offers various loan products, including personal loans, mortgages, and business loans, which contribute significantly to its interest income. Additionally, the bank earns fee-based income from services such as transaction fees, account maintenance fees, and advisory services. Investment income from securities and other financial instruments also plays a role in its revenue stream. The bank maintains strategic partnerships with local businesses and financial institutions, enhancing its service offerings and expanding its customer base, which further contributes to its earnings.

Keiyo Bank, Ltd. Financial Statement Overview

Summary

Keiyo Bank demonstrates solid revenue growth and profitability, with a strong net profit margin. However, the high leverage and fluctuating cash flows present potential risks. The bank needs to focus on improving operational efficiency and managing its debt levels to ensure long-term financial stability.

Income Statement

Keiyo Bank has shown consistent revenue growth with a 4.77% increase in the latest year. The net profit margin is healthy at 18.37%, indicating strong profitability. However, the EBIT and EBITDA margins have declined compared to previous years, which could suggest rising operational costs or other inefficiencies.

Balance Sheet

The bank's debt-to-equity ratio is relatively high at 2.26, indicating significant leverage, which could pose a risk if not managed properly. Return on equity is modest at 4.20%, suggesting moderate efficiency in generating profits from shareholders' equity. The equity ratio is stable, reflecting a balanced asset structure.

Cash Flow

Operating cash flow has improved significantly, turning positive after a negative previous year, which is a positive sign for liquidity. The free cash flow to net income ratio is strong at 0.93, indicating good cash generation relative to net income. However, the volatility in free cash flow growth rates over the years suggests potential instability in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	72.40B	75.31B	65.37B	58.81B	61.24B	58.58B
Gross Profit	72.42B	70.56B	64.75B	58.17B	60.61B	57.82B
EBITDA	11.99B	22.24B	18.91B	18.63B	19.80B	14.59B
Net Income	11.45B	12.76B	10.88B	10.39B	11.19B	7.38B
Balance Sheet
Total Assets	6.60T	6.56T	6.55T	6.58T	6.90T	5.55T
Cash, Cash Equivalents and Short-Term Investments	0.00	917.71B	1.05T	1.23T	1.72T	514.41B
Total Debt	664.14B	685.98B	737.66B	495.90B	1.38T	216.60B
Total Liabilities	6.28T	6.25T	6.22T	6.28T	6.61T	5.25T
Stockholders Equity	311.99B	303.98B	322.75B	290.54B	290.77B	293.10B
Cash Flow
Free Cash Flow	0.00	29.78B	1.84B	-517.96B	1.33T	361.81B
Operating Cash Flow	0.00	32.08B	-181.72B	-510.17B	1.33T	366.40B
Investing Cash Flow	0.00	-232.97B	-1.38B	26.68B	-118.57B	-99.75B
Financing Cash Flow	0.00	72.00B	-4.35B	-3.72B	-4.27B	-2.25B

Keiyo Bank, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1733.00
• 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:8544, the sentiment is Positive. The current price of 1733 is below the 20-day moving average (MA) of 1802.10, above the 50-day MA of 1679.96, and above the 200-day MA of 1238.06, indicating a bullish trend. The MACD of 53.73 indicates Positive momentum. The RSI at 64.88 is Neutral, neither overbought nor oversold. The STOCH value of 46.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8544.

Keiyo Bank, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8388	77 Outperform	¥201.26B	13.24	―	2.53%	7.67%	11.03%
8544	75 Outperform	¥214.71B	16.50	―	2.13%	7.77%	5.80%
7389	74 Outperform	¥268.45B	22.28	―	2.14%	5.99%	21.09%
8336	72 Outperform	¥182.01B	11.54	―	3.00%	10.56%	16.02%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8386	66 Neutral	¥234.84B	14.85	―	2.55%	-0.36%	41.38%
7381	64 Neutral	¥209.15B	14.49	―	2.38%	8.43%	38.21%

Keiyo Bank, Ltd. Corporate Events

Keiyo Bank Completes Share Buyback Program, Reaching Authorized Monetary Limit

The Keiyo Bank, Ltd. announced that it has completed a share repurchase program authorized by its board on November 10, 2025, acquiring a total of 521,900 common shares between December 1 and December 23, 2025 via market purchases under a discretionary trading contract, at a total cost of approximately ¥850 million. Under the broader November authorization, which allowed up to 1.5 million shares and ¥1.5 billion in expenditures through January 30, 2026, the bank has cumulatively bought back 978,500 shares for about ¥1.5 billion, effectively reaching the monetary ceiling of the program and signaling an active capital management stance aimed at improving shareholder returns and capital efficiency.

The most recent analyst rating on (JP:8544) stock is a Buy with a Yen1484.00 price target. To see the full list of analyst forecasts on Keiyo Bank, Ltd. stock, see the JP:8544 Stock Forecast page.

Keiyo Bank Announces Share Acquisition and Cancellation Plan

Keiyo Bank, Ltd. announced a resolution to acquire and cancel its own shares to enhance shareholder value and improve capital efficiency. The bank plans to acquire up to 1,500,000 common shares and cancel 5,000,000 shares, with the acquisition period running from November 11, 2025, to January 30, 2026.

The most recent analyst rating on (JP:8544) stock is a Buy with a Yen1484.00 price target. To see the full list of analyst forecasts on Keiyo Bank, Ltd. stock, see the JP:8544 Stock Forecast page.

Keiyo Bank Increases Dividend Forecast Amid Strong Fiscal Results

Keiyo Bank, Ltd. announced a revision in its dividend forecast, increasing the interim and year-end dividends per share to ¥19.00, resulting in an expected annual dividend of ¥38.00 per share. This decision follows stronger-than-expected fiscal results for the second quarter and aligns with the bank’s strategy to maintain stable dividends and a total return ratio of approximately 40%.

The most recent analyst rating on (JP:8544) stock is a Buy with a Yen1484.00 price target. To see the full list of analyst forecasts on Keiyo Bank, Ltd. stock, see the JP:8544 Stock Forecast page.

Keiyo Bank Reports Strong Financial Performance and Positive Dividend Outlook

Keiyo Bank, Ltd. reported a significant increase in its consolidated financial results for the six months ended September 30, 2025, with ordinary income rising by 25.4% year-on-year. The bank’s profit attributable to owners of the parent also saw a notable increase of 10.6%, reflecting strong operational performance. Additionally, the bank revised its forecast for cash dividends, indicating a positive outlook for the fiscal year ending March 31, 2026, with an expected increase in ordinary profit and earnings per share.

The most recent analyst rating on (JP:8544) stock is a Buy with a Yen1484.00 price target. To see the full list of analyst forecasts on Keiyo Bank, Ltd. stock, see the JP:8544 Stock Forecast page.