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

• Market Cap: ¥29.77B
• Dividend Yield: 3.35%
• Average Volume (3M): 19.24K
• Price to Earnings (P/E): 7.5
• Beta (1Y): 1.08
• Revenue Growth: 10.71%
• EPS Growth: 14.40%
• Country: JP
• Employees: 773
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 136.00
• 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): 1.07
• 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: ¥3,901.00
• Price Target Upside: 4.44% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: ¥3,901.00 ▲(4.44% Upside)

Kita-Nippon Bank's strong financial performance and attractive valuation are key strengths, suggesting potential for long-term growth. However, current technical indicators reflect bearish momentum, which may pose short-term challenges. The absence of recent earnings call insights and corporate events limits further analysis.

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 from loans extended to retail and corporate customers. The bank charges interest on various loan products, including personal loans, mortgages, and business loans, which constitutes a significant portion of its earnings. Additionally, the bank earns income from fees for services such as account maintenance, transaction processing, and investment advisory services. Other revenue streams include income from its investment portfolio, which may consist of government bonds, corporate bonds, and equities. Partnerships with local businesses and community organizations also play a role in attracting deposits and loans, further contributing to the bank's financial performance.

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	25.28B	24.71B	21.49B	20.98B	20.97B
Gross Profit	25.52B	25.28B	27.25B	22.34B	20.83B	20.97B
EBITDA	5.27B	6.20B	4.67B	4.08B	3.25B	2.53B
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: Positive
• Last Price: 3735.00
• 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 Positive. The current price of 3735 is above the 20-day moving average (MA) of 3730.17, above the 50-day MA of 3682.85, and above the 200-day MA of 3158.75, indicating a bullish trend. The MACD of -11.39 indicates Positive momentum. The RSI at 52.74 is Neutral, neither overbought nor oversold. The STOCH value of 56.92 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
8349	72 Outperform	¥12.30B	10.64	―	3.86%	7.67%	-26.27%
8537	72 Outperform	¥15.74B	6.42	―	3.90%	14.06%	20.87%
8558	71 Outperform	¥33.73B	5.82	―	3.28%	12.18%	62.82%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8551	67 Neutral	¥29.77B	7.49	―	3.35%	10.71%	14.40%
8542	64 Neutral	¥15.28B	10.62	―	3.73%	2.61%	-7.91%
8338	60 Neutral	¥23.93B	5.37	―	1.72%	1.45%	73.78%

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.