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

• Market Cap: ¥40.82B
• Dividend Yield: 3.28%
• Average Volume (3M): 19.24K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 1.20
• 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: 8,443,776
• 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: 73 Outperform
• Price Target: ¥6,054.00 ▲(27.59% Upside)
• Action: Reiterated Date: 02/13/26
• Date: Action: Reiterated 02/13/26

The score is driven primarily by strengthening financial performance (higher profitability and sharply reduced leverage) and strong technical trend/momentum (price above key moving averages with positive MACD). These positives are partially offset by overbought technical readings (RSI/Stoch) and some financial data gaps plus historical cash flow volatility.

Positive Factors

Rising profitability

A materially higher net profit margin over recent years indicates improved pricing power and operating efficiency. Sustained margin expansion supports internal capital formation, enhances return on equity and cushions the bank against cyclical credit costs, aiding long-term stability and reinvestment.

Very low leverage

A dramatic reduction in debt-to-equity provides the bank with substantial financial flexibility and lower interest burden. Persistently low leverage improves resilience to shocks, creates capacity to lend or invest, and lowers refinancing risk, which supports durable balance-sheet strength over months.

Strong revenue and cash generation

Consistent top-line growth combined with rising free cash flow and a solid operating cash flow to net income ratio indicate the bank can fund operations, lending and dividends internally. This improves capital allocation flexibility and underpins sustainable business expansion.

Negative Factors

Cash flow volatility

Prior periods of negative cash flow reveal operational or timing risks that can strain liquidity in downturns. Even with recent improvements, volatility complicates planning for provisioning, dividends and lending growth, and increases reliance on external funding under stress.

Missing capital and margin metrics

Absence of key metrics like the equity ratio and gross margin limits assessment of capital adequacy and core cost structure. This data gap increases uncertainty when modeling long-term solvency, regulatory buffers and comparative peer analysis critical for durable risk assessment.

Negative EPS growth

Declining EPS despite revenue gains suggests share dilution, non-recurring charges or uneven profitability across businesses. Persisting EPS weakness can constrain dividends and investor confidence, and may indicate underlying issues in translating revenue into per-share earnings.

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

Financial statements indicate improving profitability (net profit margin rising from 10.14% in 2022 to 16.17% in 2025) and better operating efficiency (higher EBIT margin). Leverage has materially improved (debt-to-equity down to 0.015 in 2025). Cash generation is generally strong with free cash flow growth and a solid operating cash flow to net income ratio, but prior periods of negative cash flow and missing key metrics (e.g., equity ratio, gross margin) temper the score.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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 5114.75, below the 50-day MA of 4865.80, and above the 200-day MA of 3836.35, indicating a neutral trend. The MACD of 79.61 indicates Positive momentum. The RSI at 49.27 is Neutral, neither overbought nor oversold. The STOCH value of 43.08 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	¥42.67B	7.35	―	2.87%	16.42%	119.62%
8551	73 Outperform	¥40.82B	12.54	―	3.28%	22.26%	-12.68%
8349	72 Outperform	¥15.31B	10.05	―	3.58%	13.77%	19.08%
8537	72 Outperform	¥25.94B	10.85	―	3.50%	16.60%	-5.51%
8542	69 Neutral	¥19.21B	10.12	―	3.37%	3.70%	24.98%
8338	68 Neutral	¥54.88B	8.05	―	1.20%	8.45%	168.74%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%