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

• Market Cap: ¥23.69B
• Dividend Yield: 4.2%
• Average Volume (3M): 23.82K
• Price to Earnings (P/E): 6.0
• Beta (1Y): 1.06
• Revenue Growth: -4.52%
• EPS Growth: 85.81%
• Country: JP
• Employees: 773
• Sector: Financial
• Sector Strength: 77
• Industry: Banks - Regional
• EPS (TTM): 63.95
• Shares Outstanding: 8,593,776
• 10 Day Avg. Volume: 15,510
• 30 Day Avg. Volume: 23,816
• PEG Ratio: 0.23
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.08
• 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

• Rating: 72 Outperform
• Price Target: ―

Kita-Nippon Bank demonstrates strong financial stability with a solid equity position and low leverage. However, challenges in cash flow management are a concern. The stock's valuation is attractive, with a low P/E ratio and a healthy dividend yield. Technical indicators are mixed, showing moderate momentum and potential short-term overbought conditions. Overall, the stock presents a balanced investment opportunity with strengths in valuation and financial stability, tempered by cash flow issues and technical uncertainties.

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

Company Description

Kita-Nippon Bank, Ltd. (8551) is a regional financial institution based in Japan, primarily serving the financial needs of individuals and businesses in its local regions. The bank offers a wide range of banking services, including deposits, loans, and investment products. It operates within the financial services sector, focusing on providing community-focused banking solutions to support regional economic growth and development.

How the Company Makes Money

Kita-Nippon Bank, Ltd. generates revenue primarily through interest income from its loan and deposit portfolios. The bank provides various loan products, such as personal loans, business loans, and mortgage loans, earning interest on these financial products. Additionally, it earns non-interest income through service fees charged for account maintenance, transaction services, and other financial products. The bank may also engage in investment activities, generating income from securities and other investment vehicles. As a regional bank, it focuses on building strong relationships with local businesses and individuals, which helps in sustaining its customer base and revenue streams.

Kita-Nippon Bank, Ltd. Financial Statement Overview

Summary

Kita-Nippon Bank demonstrates a solid financial position with strong equity and low leverage, supported by efficient operations. However, cash flow management presents challenges, particularly in generating sustainable operating cash flow. Continued focus on improving cash flow and enhancing revenue growth will be key to maintaining financial health and supporting future growth.

Income Statement

The income statement shows a solid gross profit margin with a TTM (Trailing-Twelve-Months) gross profit exceeding total revenue, indicating efficient cost management. However, the net profit margin is moderate due to lower net income relative to revenue. Revenue growth is positive, although it has fluctuated over the years. The EBIT margin is strong in the TTM, suggesting operational efficiency, but the EBITDA margin is limited due to lower depreciation and amortization benefits in the most recent period.

Balance Sheet

The balance sheet reflects a strong equity position with a high equity ratio, indicating financial stability. The debt-to-equity ratio is low, showing conservative leverage, which is positive for risk management. Return on equity is stable but could be improved to enhance shareholder value. Overall, the balance sheet suggests a sound financial structure with limited debt exposure.

Cash Flow

The cash flow statement reveals challenges in generating positive operating cash flow, with significant variability over recent periods. The free cash flow is negative, reflecting substantial capital expenditures and investments. The operating cash flow to net income ratio indicates efficiency issues, as operating cash flow has been negative in certain periods. Improvement in cash flow generation is necessary to strengthen financial flexibility.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
24.88B	24.81B	26.77B	21.37B	20.83B	20.07B
	Gross Profit
25.58B	0.00	26.77B	21.37B	20.83B	20.07B
	EBIT
10.46B	4.98B	3.47B	2.81B	1.99B	1.91B
	EBITDA
3.47B	4.98B	3.47B	4.08B	3.25B	3.21B
	Net Income Common Stockholders
4.34B	4.01B	3.07B	2.66B	2.11B	1.52B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
156.57B	0.00	134.17B	90.16B	279.21B	316.40B
	Total Assets
1.56T	1.53T	1.52T	1.50T	1.68T	1.67T
	Total Debt
1.48B	1.36B	1.91B	1.73B	185.36B	177.02B
	Net Debt
-155.09B	1.36B	-132.25B	-88.43B	-93.85B	-139.38B
	Total Liabilities
1.47T	1.44T	1.44T	1.73B	1.60T	1.59T
	Stockholders Equity
88.75B	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	-29.11B	71.83B	22.79B	-5.78B	-837.00M
	Financing Cash Flow
0.00	96.00M	17.86B	-546.00M	-591.00M	-465.00M

Kita-Nippon Bank, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2863.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 2863 is above the 20-day moving average (MA) of 2832.10, above the 50-day MA of 2862.56, and above the 200-day MA of 2818.32, indicating a neutral trend. The MACD of -11.84 indicates Negative momentum. The RSI at 50.95 is Neutral, neither overbought nor oversold. The STOCH value of 75.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
8331	73 Outperform	¥921.10B	12.37	6.30%	3.41%	9.28%	20.48%
8551	72 Outperform	¥23.69B	6.01		4.20%	-4.52%	85.81%
8367	72 Outperform	¥128.91B	9.23		5.30%	38.28%	247.94%
Sector *	67 Neutral	¥707.04B	10.84	7.42%	3.37%	7.67%	16.19%
8359	65 Neutral	¥569.29B	11.57	4.55%	4.95%	16.68%	1.73%

Kita-Nippon Bank, Ltd. Corporate Events

Kita-Nippon Bank to Establish Investment Subsidiary for Regional Revitalization

Kita-Nippon Bank, Ltd. has announced the establishment of a wholly-owned subsidiary, Kitagin Capital Partners Co., Ltd., to specialize in investment. This move aligns with the bank’s medium-term management plan to enhance its financial services and support regional revitalization by aiding local businesses in succession planning and value maximization. The subsidiary aims to contribute to the growth of investee companies, maintain local employment, and preserve intangible assets, with its establishment scheduled for July 2025. The financial impact on the bank’s consolidated results is expected to be minimal.