Kita-Nippon Bank, Ltd. (8551) AI Stock Analysis

• Market Cap: ¥38.80B
• Dividend Yield: 3.28%
• Average Volume (3M): 19.24K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 1.17
• Revenue Growth: 22.26%
• EPS Growth: -12.68%
• Country: JP
• Employees: 773
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 106.38
• Shares Outstanding: 8,593,776
• 10 Day Avg. Volume: 15,080
• 30 Day Avg. Volume: 19,243
• PEG Ratio: 0.22
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 1.14
• P/FCF Ratio: 5.75
• 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: ¥5,271.00 ▲(11.09% Upside)

Kita-Nippon Bank's stock is rated positively due to its strong financial performance and bullish technical indicators. The attractive valuation further supports the stock's potential. However, caution is advised due to missing data on certain financial metrics and historical cash flow volatility.

Positive Factors

Leverage reduction

A dramatic fall in debt-to-equity indicates materially lower financial leverage and credit risk. This strengthens the bank's capital resilience, increases flexibility to absorb shocks, and supports sustainable lending and investment capacity over the medium term.

Sustained revenue growth

High single-digit to double-digit revenue growth shows expanding core lending and fee businesses in the regional market. Persistent top-line growth underpins durable interest income and fee diversification, supporting ongoing investment in products and branch/SME relationships.

Improving profitability and margins

Marked margin expansion and rising ROE reflect better cost control and higher loan/asset profitability. Sustained margin improvement enhances cash generation, strengthens retained earnings accumulation and supports long-term dividend and capital deployment policy.

Negative Factors

Negative EPS growth

A decline in EPS signals potential dilution, one-offs, or uneven per-share earnings despite revenue and margin gains. Persistent EPS weakness can constrain shareholder returns and raises questions about the consistency of earnings power on a per-share basis.

Cash-flow volatility

Prior years of negative cash flow, even with recent FCF growth, indicate operational or timing variability in collections, lending or investment activities. Volatile cash generation can limit reliable funding for loans, dividends and capital buffers over time.

Incomplete disclosure of key metrics

Missing equity ratio and gross profit margin reduce transparency into leverage and core cost structure. Lack of these metrics hampers rigorous assessment of solvency and operational efficiency, complicating long-term risk and capital adequacy analysis for investors.

Kita-Nippon Bank, Ltd. Business Overview & Revenue Model

Company Description

The Kita-Nippon Bank, Ltd., together with its subsidiaries, provides commercial banking products and services in Japan. The company accepts various deposits and certificates of deposit; and offers business, housing, and other loans. It also provides credit cards; and credit guarantee, leasing and financing, computer, software development, and software sale services. As of March 31, 2021, the company had 77 offices primarily in Iwate Prefecture. The Kita-Nippon Bank, Ltd. was incorporated in 1942 and is headquartered in Morioka, Japan.

How the Company Makes Money

Kita-Nippon Bank generates revenue primarily through interest income derived from loans extended to customers, including personal, business, and agricultural loans. The bank also earns income from fees associated with account maintenance, transaction services, and advisory services. Additionally, it invests in securities and government bonds, which provide a secondary stream of income. The bank may have strategic partnerships with local businesses and governmental entities that enhance its service offerings and client base, contributing to its overall earnings. Furthermore, Kita-Nippon Bank benefits from the regional demand for banking services, reflecting the economic activities within its operational areas.

Kita-Nippon Bank, Ltd. Financial Statement Overview

Summary

Kita-Nippon Bank demonstrates a solid financial position with improving profitability and reduced leverage. The consistent revenue and profit growth, along with a strong cash flow position, suggest a positive outlook. However, missing data on certain metrics and historical cash flow volatility present areas for caution.

Income Statement

Kita-Nippon Bank has shown consistent revenue growth over the years, with a notable increase in net profit margin from 10.14% in 2022 to 16.17% in 2025. The EBIT margin has also improved, indicating better operational efficiency. However, the gross profit margin is not available, which limits a complete analysis of cost management.

Balance Sheet

The bank has significantly reduced its debt-to-equity ratio from over 2.37 in 2021 to 0.015 in 2025, indicating improved financial stability. The return on equity has increased, reflecting better profitability. However, the equity ratio is not provided, which is crucial for assessing the bank's financial leverage.

Cash Flow

The free cash flow has shown substantial growth, with a positive trajectory in recent years. The operating cash flow to net income ratio is strong, indicating efficient cash generation relative to net income. However, historical negative cash flows in some years highlight potential volatility in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.52B	23.79B	26.87B	21.49B	20.98B	20.26B
Gross Profit	25.52B	22.84B	26.77B	21.37B	20.83B	20.07B
EBITDA	5.27B	6.20B	4.67B	4.08B	3.25B	3.21B
Net Income	4.03B	4.01B	3.07B	2.66B	2.11B	1.52B
Balance Sheet
Total Assets	1.55T	1.53T	1.52T	1.50T	1.68T	1.67T
Cash, Cash Equivalents and Short-Term Investments	0.00	111.06B	134.17B	90.16B	279.21B	316.40B
Total Debt	1.24B	1.36B	1.62B	1.73B	185.36B	177.02B
Total Liabilities	1.46T	1.44T	1.44T	1.42T	1.60T	1.59T
Stockholders Equity	87.72B	86.46B	86.04B	75.27B	75.37B	74.47B
Cash Flow
Free Cash Flow	0.00	4.71B	-28.58B	-212.06B	-31.48B	213.03B
Operating Cash Flow	0.00	5.29B	-27.36B	-210.95B	-30.53B	213.67B
Investing Cash Flow	0.00	-4.99B	71.83B	22.79B	-5.78B	-837.00M
Financing Cash Flow	0.00	-1.90B	17.86B	-546.00M	-591.00M	-465.00M

Kita-Nippon Bank, Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4745.00
• 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:8551, the sentiment is Neutral. The current price of 4745 is below the 20-day moving average (MA) of 4829.00, above the 50-day MA of 4528.20, and above the 200-day MA of 3602.68, indicating a neutral trend. The MACD of 107.98 indicates Positive momentum. The RSI at 47.52 is Neutral, neither overbought nor oversold. The STOCH value of 22.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8551.

Kita-Nippon Bank, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8558	78 Outperform	¥42.48B	6.49	―	2.87%	16.42%	119.62%
8551	75 Outperform	¥38.80B	11.08	―	3.28%	22.26%	-12.68%
8349	72 Outperform	¥14.47B	9.19	―	3.58%	13.77%	19.08%
8537	72 Outperform	¥22.38B	8.87	―	3.50%	16.60%	-5.51%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8338	66 Neutral	¥42.09B	7.07	―	1.20%	8.45%	168.74%
8542	64 Neutral	¥18.50B	10.87	―	3.37%	3.70%	24.98%

Kita-Nippon Bank, Ltd. Corporate Events

Kita-Nippon Bank Reports Strong Income Growth Despite Profit Decline

Kita-Nippon Bank, Ltd. reported its consolidated financial results for the six months ended September 30, 2025, showing a 13% increase in ordinary income to ¥14,668 million, while ordinary profit rose by 3.7% to ¥3,087 million. However, profit attributable to owners of the parent decreased by 7.5% to ¥2,097 million. The bank’s comprehensive income surged by 495.2% to ¥5,308 million, indicating strong overall performance despite a decline in profit attributable to owners. The bank also revised its cash dividend forecast, increasing the annual dividend per share to ¥168.00 for the fiscal year ending March 31, 2026, reflecting a positive outlook for stakeholders.

The most recent analyst rating on (JP:8551) stock is a Buy with a Yen4127.00 price target. To see the full list of analyst forecasts on Kita-Nippon Bank, Ltd. stock, see the JP:8551 Stock Forecast page.