Daito Bank, Ltd. (8563) AI Stock Analysis

• Market Cap: ¥14.70B
• Dividend Yield: 3.74%
• Average Volume (3M): 24.48K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.77
• Revenue Growth: 5.91%
• EPS Growth: 5.03%
• Country: JP
• Employees: 428
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 32.21
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥1,292.00 ▲(36.58% Upside)
• Action: Reiterated Date: 02/05/26
• Date: Action: Reiterated 02/05/26

The score is driven primarily by mixed fundamentals (stable profitability and improved leverage, but negative revenue growth and cash flow volatility). Technicals add support given a strong uptrend with positive MACD, though overbought signals temper the outlook. Valuation and dividend yield provide an additional cushion.

Positive Factors

Stable net profit margin

A consistent net profit margin near 10% underpins earnings resilience across cycles. That stability supports internal capital generation for loan growth and provisioning, helps sustain dividends and investor confidence, and cushions the bank during regional economic slowdowns.

Low leverage / improved balance sheet

A low debt-to-equity ratio (0.14) reduces financial risk and increases capital flexibility. This stronger leverage profile broadens room to absorb shocks, supports regulatory capital buffers, and permits measured lending expansion without relying on volatile wholesale funding sources.

Diversified revenue mix & local franchise

Multiple income streams—interest, fees, investment returns—plus local SME and retail relationships and fintech partnerships create durable earnings sources. Digital and partner-driven efficiency lowers costs, improves retention, and supports cross-sell potential over the medium term.

Negative Factors

Weak revenue growth and margin pressure

Sustained negative revenue growth and falling operating margins signal structural pressure on top-line expansion and efficiency. This erodes scale economics, limits reinvestment capacity in technology or branches, and raises the risk that profitability will be harder to sustain without strategic change.

Volatile operating cash flow

Historic OCF volatility and past negative operating cash flow weaken liquidity predictability and constrain strategic flexibility. Persistent swings can force reliance on balance-sheet adjustments or market funding, complicating dividend policy and limiting sustainable loan growth.

Low equity ratio / funding reliance

A low equity ratio despite low D/E implies heavy reliance on liabilities to fund assets, increasing sensitivity to funding cost shifts and deposit stability. This reduces capital buffers in stress scenarios and can constrain regulatory leeway for growth or unexpected losses.

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 through various streams, with interest income being the primary source. This includes interest earned from loans provided to individuals and businesses, which typically carry higher rates compared to the interest paid on customer deposits. Additionally, the bank earns fee income from services such as account maintenance fees, transaction fees, and advisory services for corporate clients. Investment income from securities and other financial instruments also contributes to its earnings. Strategic partnerships with local businesses and governments enhance its ability to offer competitive loan products and foster community relationships, ultimately driving customer retention and growth. Furthermore, the bank’s focus on digital banking solutions and financial technology partnerships helps to reduce operational costs and improve service efficiency, which positively impacts profitability.

Daito Bank, Ltd. Financial Statement Overview

Summary

Financial performance is mixed: stable net profit margin around 10% supports profitability, and leverage has improved with a low debt-to-equity ratio (0.14). Offsetting this, revenue growth has been negative in recent years, margins (EBIT/EBITDA) have declined, and cash flow has been volatile with prior negative operating cash flow, raising sustainability and liquidity risk.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: 946.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 946 is below the 20-day moving average (MA) of 1094.70, below the 50-day MA of 987.46, and above the 200-day MA of 812.51, indicating a bullish trend. The MACD of 56.77 indicates Negative momentum. The RSI at 71.07 is Negative, neither overbought nor oversold. The STOCH value of 84.77 is Negative, 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
8349	72 Outperform	¥15.79B	10.19	―	3.58%	13.77%	19.08%
8563	69 Neutral	¥14.70B	10.21	―	3.74%	5.91%	5.03%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8365	66 Neutral	¥13.41B	12.31	―	2.68%	5.57%	-23.26%
7161	64 Neutral	¥15.46B	7.55	―	1.24%	5.92%	―
8383	64 Neutral	¥17.23B	10.24	―	3.30%	11.93%	36.32%
8562	53 Neutral	¥13.98B	80.62	―	1.89%	8.11%	68.98%