Daito Bank, Ltd. (8563) AI Stock Analysis

• Market Cap: ¥10.14B
• Dividend Yield: 4.01%
• Average Volume (3M): 30.74K
• Price to Earnings (P/E): 7.2
• Beta (1Y): 0.67
• Revenue Growth: 2.44%
• EPS Growth: 10.20%
• Country: JP
• Employees: 428
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 50.46
• Shares Outstanding: 12,701,462
• 10 Day Avg. Volume: 33,190
• 30 Day Avg. Volume: 30,743
• 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: ¥894.00
• Price Target Upside: 11.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: ¥894.00 ▲(11.89% Upside)

Daito Bank's stock is rated positively due to strong technical indicators and attractive valuation. Financial performance is stable but faces challenges in revenue growth and cash flow volatility.

Daito Bank, Ltd. Business Overview & Revenue Model

Company Description

Daito Bank, Ltd. (8563) is a regional bank based in Japan, primarily serving the financial needs of individuals and businesses in the local community. The bank operates in the financial services sector, offering a range of products including personal banking services, corporate banking solutions, and investment services. Its core offerings include savings and checking accounts, loans, mortgages, and wealth management services, aimed at fostering economic growth within its service areas.

How the Company Makes Money

Daito Bank generates revenue primarily through interest income from loans and mortgages provided to customers, which constitutes a significant portion of its earnings. The bank also earns fees from various services, including account maintenance, transaction services, and investment advising. Additionally, Daito Bank engages in treasury operations and asset management, which contribute to its income. Partnerships with local businesses and government entities help enhance its service offerings, while strategic investments in financial technology are aimed at increasing efficiencies and expanding its customer base, further driving revenue growth.

Daito Bank, Ltd. Financial Statement Overview

Summary

Daito Bank's financial performance is stable with consistent net profit margins and a strong equity position. However, revenue growth challenges and cash flow volatility are concerns.

Income Statement

Daito Bank's income statement shows a mixed performance. The net profit margin is relatively stable at around 10%, indicating consistent profitability. However, the revenue growth rate has been negative in recent years, suggesting challenges in expanding revenue. The EBIT and EBITDA margins have also seen a decline, indicating potential pressure on operational efficiency.

Balance Sheet

The balance sheet reflects a strong equity position with a low debt-to-equity ratio of 0.14 in the latest year, showing improved financial stability. Return on equity has improved slightly, indicating better utilization of equity. However, the equity ratio is low, suggesting a high reliance on liabilities to finance assets.

Cash Flow

Cash flow analysis reveals significant volatility. While the free cash flow to net income ratio is healthy, indicating good cash conversion, the operating cash flow has been negative in previous years, which could pose liquidity challenges. The recent positive free cash flow growth is a positive sign, but sustainability remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.27B	11.72B	11.82B	12.69B	11.61B	12.02B
Gross Profit	12.16B	11.14B	11.82B	11.52B	12.50B	12.14B
EBITDA	2.31B	1.77B	2.31B	2.40B	2.30B	2.43B
Net Income	1.33B	1.33B	1.25B	1.28B	1.20B	990.00M
Balance Sheet
Total Assets	851.06B	851.06B	876.89B	895.00B	970.15B	963.50B
Cash, Cash Equivalents and Short-Term Investments	35.32B	35.32B	72.28B	72.49B	135.22B	166.10B
Total Debt	4.50B	4.50B	40.22B	50.65B	114.29B	105.34B
Total Liabilities	818.35B	818.35B	838.38B	858.23B	930.51B	922.75B
Stockholders Equity	31.84B	31.84B	37.64B	35.91B	38.77B	39.91B
Cash Flow
Free Cash Flow	0.00	5.38B	-10.18B	-93.42B	-34.14B	113.18B
Operating Cash Flow	0.00	5.57B	-9.11B	-92.83B	-33.87B	113.44B
Investing Cash Flow	0.00	-18.74B	9.42B	31.35B	4.58B	2.13B
Financing Cash Flow	0.00	-23.73B	-6.89B	-384.00M	-378.00M	-378.00M

Daito Bank, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 799.00
• 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:8563, the sentiment is Positive. The current price of 799 is above the 20-day moving average (MA) of 783.90, above the 50-day MA of 748.36, and above the 200-day MA of 707.48, indicating a bullish trend. The MACD of 16.48 indicates Positive momentum. The RSI at 60.86 is Neutral, neither overbought nor oversold. The STOCH value of 50.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8563.

Daito Bank, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8563	75 Outperform	¥10.14B	7.15		4.01%	2.44%	10.20%
8383	73 Outperform	¥12.69B	9.82		3.71%	9.46%	9.41%
7161	73 Outperform	¥12.19B	6.94		1.10%	2.20%	―
8349	72 Outperform	¥12.89B	11.15		3.68%	7.67%	-26.27%
Sector *	68 Neutral	$17.80B	11.94	9.89%	3.74%	9.69%	1.17%
8365	61 Neutral	¥9.14B	8.74		2.99%	-9.75%	81.65%
8562	57 Neutral	¥8.58B	―		2.02%	2.60%	-246.98%