Daito Bank, Ltd. (8563) AI Stock Analysis

• Market Cap: ¥9.86B
• Dividend Yield: 4.09%
• Average Volume (3M): 24.48K
• Price to Earnings (P/E): 7.0
• Beta (1Y): 0.69
• Revenue Growth: 5.91%
• EPS Growth: 5.03%
• Country: JP
• Employees: 428
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 26.02
• Shares Outstanding: 12,701,462
• 10 Day Avg. Volume: 30,860
• 30 Day Avg. Volume: 24,476
• PEG Ratio: 1.10
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 0.77
• P/FCF Ratio: 1.67
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ¥816.00 ▲(4.88% Upside)

Daito Bank's overall stock score is driven by its stable financial performance and attractive valuation. However, technical indicators suggest potential bearish momentum, and cash flow volatility poses a risk. The lack of earnings call and corporate events data limits further insights.

Positive Factors

Financial Stability

A low debt-to-equity ratio indicates financial stability, reducing risk and enhancing the bank's ability to manage economic downturns.

Profitability

Consistent net profit margins demonstrate the bank's ability to maintain profitability, supporting long-term financial health and shareholder value.

Cash Conversion

A healthy cash conversion ratio suggests efficient operations and the ability to generate cash, which is crucial for funding growth and paying dividends.

Negative Factors

Revenue Growth Challenges

Negative revenue growth indicates difficulties in expanding market share, which could hinder long-term competitiveness and profitability.

Cash Flow Volatility

Volatile cash flows can lead to liquidity issues, affecting the bank's ability to invest in growth opportunities and meet financial obligations.

Low Equity Ratio

A low equity ratio indicates potential financial risk, as the bank relies heavily on debt, which could impact its resilience to economic shocks.

Daito Bank, Ltd. Business Overview & Revenue Model

Company Description

The Daito Bank, Ltd. provides various banking products and services to individual and corporate customers in Japan. The company accepts time, savings, and foreign currency deposits; and offers mutual fund and government bonds. It also provides housing, car, education, card, free, expansion and renovation, and business and institutional loans; and pension and insurance, as well as financial product brokerage, investment trust, web account transfer reception, online payment/electronic money charge, and pay-easy fund transfer reception services. In addition, the company offers credit and debit cards, mail orders, safe-deposit boxes, and credit guarantees, as well as foreign currency exchange, automatic remittance, ATM, and Internet banking services. It operates through 58 branches. The company was formerly known as Daito Mutual Bank and changed its name to The Daito Bank, Ltd. in 1989. The Daito Bank, Ltd. was founded in 1942 and is headquartered in Koriyama, Japan.

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 shows stable profitability with consistent net profit margins and improved financial stability due to a low debt-to-equity ratio. However, revenue growth challenges, low equity ratio, 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	12.35B	11.72B	11.85B	11.56B	11.61B	12.02B
Gross Profit	12.35B	11.14B	11.82B	11.52B	11.54B	11.92B
EBITDA	2.00B	2.60B	2.31B	2.40B	2.30B	2.43B
Net Income	1.42B	1.33B	1.25B	1.28B	1.20B	990.00M
Balance Sheet
Total Assets	863.68B	851.06B	876.89B	895.00B	970.15B	963.50B
Cash, Cash Equivalents and Short-Term Investments	0.00	35.32B	72.28B	72.49B	135.22B	166.10B
Total Debt	200.00M	4.50B	40.22B	50.65B	114.29B	105.34B
Total Liabilities	830.42B	818.35B	838.38B	858.23B	930.51B	922.75B
Stockholders Equity	32.38B	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: 778.00
• 50DMA: Negative
• 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 778 is above the 20-day moving average (MA) of 776.85, above the 50-day MA of 777.64, and above the 200-day MA of 728.97, indicating a neutral trend. The MACD of -1.20 indicates Positive momentum. The RSI at 50.24 is Neutral, neither overbought nor oversold. The STOCH value of 27.78 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
8383	73 Outperform	¥12.66B	9.80	―	3.65%	11.93%	36.32%
8349	72 Outperform	¥12.66B	7.90	―	3.73%	13.77%	19.08%
8365	72 Outperform	¥9.71B	9.10	―	2.98%	5.57%	-23.26%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7161	64 Neutral	¥10.88B	6.20	―	1.28%	5.92%	―
8563	63 Neutral	¥9.86B	6.96	―	4.09%	5.91%	5.03%
8562	48 Neutral	¥8.16B	―	―	2.11%	8.11%	68.98%