Keiyo Bank, Ltd. (8544) AI Stock Analysis

• Market Cap: ¥146.50B
• Dividend Yield: 2.39%
• Average Volume (3M): 334.69K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 1.13
• Revenue Growth: 6.37%
• EPS Growth: -11.55%
• Country: JP
• Employees: 1,832
• Sector: Financial
• Sector Strength: 78
• Industry: Banks - Regional
• EPS (TTM): 33.93
• Shares Outstanding: 131,427,860
• 10 Day Avg. Volume: 244,600
• 30 Day Avg. Volume: 334,693
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,385.00
• Price Target Upside: 14.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: ¥1,385.00 ▲(14.27% Upside)

Keiyo Bank's stock is supported by strong technical momentum and reasonable valuation, making it an attractive option for investors. However, financial performance highlights the need for improved operational efficiency and debt management to mitigate risks.

Keiyo Bank, Ltd. Business Overview & Revenue Model

Company Description

Keiyo Bank, Ltd. (8544) is a Japan-based banking institution primarily engaged in providing a range of financial services. The bank operates through various segments, including retail banking, corporate banking, and asset management, catering to individual customers, small and medium-sized enterprises, and large corporations. Its core products include deposit accounts, loans, credit cards, foreign exchange services, and investment products, aimed at facilitating personal and business financial needs.

How the Company Makes Money

Keiyo Bank generates revenue primarily through net interest income, which is earned from the difference between interest rates on loans and deposits. The bank provides various types of loans, including personal loans, business loans, and mortgages, which contribute significantly to its earnings. Additionally, the bank earns fee-based income from services such as account maintenance fees, transaction fees, and investment advisory services. Significant partnerships with local businesses and government entities also enhance its revenue through increased lending opportunities and fee income from collaborative financial solutions. Furthermore, the bank may engage in securities trading and investment, providing an additional revenue stream through capital gains and dividends.

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	73.62B	75.31B	64.75B	64.88B	61.24B	58.58B
Gross Profit	75.16B	70.56B	64.75B	58.17B	61.79B	57.53B
EBITDA	7.02B	11.07B	18.91B	18.63B	19.80B	14.59B
Net Income	12.76B	12.76B	10.88B	10.39B	11.19B	7.38B
Balance Sheet
Total Assets	6.56T	6.56T	6.55T	6.58T	6.90T	5.55T
Cash, Cash Equivalents and Short-Term Investments	917.71B	917.71B	1.05T	1.23T	1.72T	514.41B
Total Debt	685.98B	685.98B	737.66B	908.79B	1.38T	216.60B
Total Liabilities	6.25T	6.25T	6.22T	6.28T	6.61T	5.25T
Stockholders Equity	303.98B	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: 1212.00
• 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 1212 is above the 20-day moving average (MA) of 1187.65, above the 50-day MA of 1119.62, and above the 200-day MA of 895.88, indicating a bullish trend. The MACD of 29.73 indicates Positive momentum. The RSI at 61.14 is Neutral, neither overbought nor oversold. The STOCH value of 53.44 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
8336	78 Outperform	¥127.91B	9.46		2.98%	5.74%	10.39%
8544	76 Outperform	¥146.50B	12.92		2.39%	6.37%	-11.55%
8386	71 Outperform	¥140.34B	10.14		2.20%	-6.76%	34.71%
7389	70 Outperform	¥143.70B	18.16		3.42%	1.98%	-10.03%
8388	70 Outperform	¥134.56B	10.85		2.59%	3.78%	1.63%
7381	69 Neutral	¥137.87B	12.28		1.94%	-4.66%	144.51%
Sector *	68 Neutral	$17.90B	11.86	10.29%	3.72%	9.74%	1.66%

Keiyo Bank, Ltd. Corporate Events

Keiyo Bank Proposes Amendment to Strengthen Governance

Keiyo Bank, Ltd. announced a proposed amendment to its Articles of Incorporation, reducing the term of office for directors from two years to one year. This change aims to enhance corporate governance and enable the bank to respond more swiftly to shifts in the business landscape, reflecting a proactive approach to management and stakeholder engagement.

Keiyo Bank Reports Robust Financial Growth for Nine Months Ending December 2024

Keiyo Bank reported a significant increase in its financial performance for the nine months ending December 31, 2024, with a 35% rise in profit attributable to owners and a 34.5% increase in ordinary profit compared to the same period in the previous year. The bank’s assets grew to 6.689 trillion yen, and it anticipates continued profitability with a forecasted 14.1% increase in ordinary profit for the full fiscal year ending March 31, 2025.