Keiyo Bank, Ltd. (8544) AI Stock Analysis

• Market Cap: ¥260.94B
• Dividend Yield: 2.13%
• Average Volume (3M): 282.25K
• Price to Earnings (P/E): 20.7
• Beta (1Y): 1.23
• Revenue Growth: 7.77%
• EPS Growth: 5.80%
• Country: JP
• Employees: 1,832
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 28.79
• 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: 71 Outperform
• Price Target: ¥2,491.00 ▲(43.74% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is driven primarily by solid fundamentals (profitability and improved cash generation) tempered by balance-sheet leverage and modest ROE. Technicals add support due to a strong uptrend and positive MACD, though overbought signals increase near-term risk. Valuation is neutral based on the provided P/E and dividend yield.

Positive Factors

Consistent revenue growth

A steady revenue increase demonstrates expanding core banking activity across loans, deposits, and fees. Persistent top-line growth supports sustainable net interest income and fee generation, enabling reinvestment in branches and digital channels and underpinning earnings stability over months.

Strong cash generation and margins

Healthy net margin and near-par free cash flow conversion signal robust cash conversion from operations. Positive operating cash flow after a prior negative year strengthens liquidity and funds lending, dividends, and capital needs without over-reliance on market funding for several quarters.

Diversified business model and partnerships

A multi-channel franchise—retail, corporate, wealth, and fee-based businesses—reduces reliance on any single income stream. Strategic partnerships and fee income diversify revenue sensitivity to interest cycles, supporting more stable earnings and customer acquisition over the medium term.

Negative Factors

High balance-sheet leverage

A 2.26 debt-to-equity ratio implies elevated leverage that increases vulnerability to credit losses and interest-rate swings. High leverage constrains capital flexibility, raises regulatory and refinancing risk, and makes the bank more sensitive to macro shocks over the coming quarters.

Modest return on equity

ROE near 4.2% indicates limited efficiency in converting equity into profits. Persistently low ROE can hinder long-term shareholder value creation and limit capacity for internal capital generation to fund growth or absorb losses without raising external capital.

Margin pressure and cash-flow volatility

Declining operating margins alongside volatile free cash flow point to structural cost or competitive pressures that could persist. Margin erosion reduces earnings resilience while cash-flow swings complicate capital planning, dividend consistency, and balance-sheet management over medium term.

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

Income statement strength (revenue up 4.77% and a healthy 18.37% net profit margin) is partly offset by balance-sheet risk from high leverage (debt-to-equity 2.26) and only modest ROE (4.20%). Cash flow improved notably (operating cash flow turned positive; FCF/net income 0.93), but historical free-cash-flow volatility adds risk.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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 2111.85, below the 50-day MA of 1893.02, and above the 200-day MA of 1370.48, indicating a bullish trend. The MACD of 85.22 indicates Positive momentum. The RSI at 68.13 is Neutral, neither overbought nor oversold. The STOCH value of 67.93 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	71 Outperform	¥232.28B	15.28	―	2.53%	7.67%	11.03%
8544	71 Outperform	¥260.94B	20.66	―	2.13%	7.77%	5.80%
8336	70 Outperform	¥215.77B	13.68	―	3.00%	10.56%	16.02%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7389	67 Neutral	¥323.91B	18.75	―	2.14%	5.99%	21.09%
7381	65 Neutral	¥238.32B	16.51	―	2.38%	8.43%	38.21%
8386	59 Neutral	¥274.77B	16.25	―	2.55%	-0.36%	41.38%

Keiyo Bank, Ltd. Corporate Events

Keiyo Bank to Adopt Audit and Supervisory Committee Structure to Strengthen Governance

The Keiyo Bank, Ltd. plans to transition from a company with a board of corporate auditors to a company with an audit and supervisory committee, subject to shareholder approval at its June 24, 2026 annual meeting. The move is intended to strengthen governance as the bank seeks sustainable growth and higher corporate value over the medium and long term.

Under the new structure, an Audit and Supervisory Committee will be established with a majority of outside directors, who will hold voting rights on the board to reinforce oversight. The bank also aims to improve board effectiveness through greater diversity and deeper debate on strategy, while delegating more business execution authority to directors to accelerate management decision-making and execution.

The transition is contingent on amendments to the Articles of Incorporation, which will be voted on at the upcoming shareholders’ meeting. Details on the revised governance framework, including officer structure and board composition, will be disclosed once finalized, signaling an ongoing refinement of the bank’s management and oversight systems.

The most recent analyst rating on (JP:8544) stock is a Hold with a Yen2209.00 price target. To see the full list of analyst forecasts on Keiyo Bank, Ltd. stock, see the JP:8544 Stock Forecast page.

Keiyo Bank Again Lifts Profit and ROE Targets in Medium-Term Plan and Long-Term Vision

Keiyo Bank has revised upward the financial KPIs in its 20th Medium-term Business Plan and long-term vision after steady progress since April 2024 and a stronger-than-expected domestic financial environment. The lender now targets higher consolidated ROE and profit levels for fiscal 2026 and 2032, signaling improved earnings expectations while maintaining its consolidated capital adequacy ratio at the 10% level.

For the 20th Medium-term Business Plan ending in fiscal 2026, the bank raised its consolidated ROE goal from 5.5% to 6.5% and its profit target from ¥16.0 billion to ¥19.0 billion. Under its long-term vision for fiscal 2032, Keiyo Bank is lifting its consolidated ROE target to 10% or higher and profit to ¥35.0 billion or more, reflecting confidence in sustained performance amid an assumed policy rate rising to 1.0% from October 2026.

The most recent analyst rating on (JP:8544) stock is a Hold with a Yen2209.00 price target. To see the full list of analyst forecasts on Keiyo Bank, Ltd. stock, see the JP:8544 Stock Forecast page.

Keiyo Bank Launches ¥11 Billion Share Buyback to Boost Capital Efficiency

Keiyo Bank has authorized a share repurchase program aimed at enhancing shareholder returns and improving capital efficiency, under provisions of Japan’s Companies Act. The planned buyback targets up to 6.5 million common shares, representing about 5.40% of its outstanding shares excluding treasury stock.

The bank will allocate up to ¥11 billion for this program, with purchases conducted on the Tokyo Stock Exchange between February 10, 2026, and January 29, 2027. The move underscores management’s focus on capital discipline and may support earnings per share and share price, adding to the existing treasury share base already on the bank’s balance sheet.

The most recent analyst rating on (JP:8544) stock is a Hold with a Yen2209.00 price target. To see the full list of analyst forecasts on Keiyo Bank, Ltd. stock, see the JP:8544 Stock Forecast page.

Keiyo Bank Lifts Year-End Dividend Forecast, Signals Stronger Shareholder Returns

The Keiyo Bank, Ltd. has revised its dividend forecast for the fiscal year ending March 31, 2026, raising the planned year-end dividend from ¥19.00 to ¥21.00 per share. Combined with the interim dividend of ¥19.00 already paid, the annual dividend is now expected to total ¥40.00 per share, up from the previous forecast of ¥38.00 and significantly higher than the ¥30.00 paid in the prior fiscal year.

Management said the increase reflects its policy of balancing stable dividends with sound capital, while honoring the public nature of its banking business and the trust of regional customers. The move aligns with the bank’s medium-term plan to target a total shareholder return ratio of around 40%, using both cash dividends and share buybacks, underscoring a stronger commitment to shareholder returns amid improved business performance and financial position.

The most recent analyst rating on (JP:8544) stock is a Hold with a Yen2209.00 price target. To see the full list of analyst forecasts on Keiyo Bank, Ltd. stock, see the JP:8544 Stock Forecast page.

Keiyo Bank Lifts Income and Dividends as Assets and Earnings Grow

Keiyo Bank reported strong growth in consolidated ordinary income for the nine months to December 31, 2025, with revenue up 33.4% year on year to ¥79.99 billion, while ordinary profit and profit attributable to owners of the parent edged higher by 1.2% and 3.6%, respectively. Total assets rose to ¥6.74 trillion and equity improved, supporting a higher equity-to-asset ratio, and the bank upgraded its dividend plan to ¥40 per share for the full fiscal year, reflecting solid earnings and a shareholder‑return focus.

Basic earnings per share increased to ¥104.38, aided by profit growth and a reduced average share count, while comprehensive income swung sharply into positive territory from a loss a year earlier. The bank maintained its full-year forecast, targeting a 19.1% rise in ordinary profit and a 17.5% gain in profit attributable to owners, signaling management confidence in ongoing performance amid a stable consolidation scope and unchanged accounting policies.

The most recent analyst rating on (JP:8544) stock is a Hold with a Yen2209.00 price target. To see the full list of analyst forecasts on Keiyo Bank, Ltd. stock, see the JP:8544 Stock Forecast page.

Keiyo Bank 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.