Daito Bank, Ltd. (8563) AI Stock Analysis

• Market Cap: ¥12.67B
• Dividend Yield: 3.74%
• Average Volume (3M): 24.48K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.71
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ¥1,065.00 ▲(12.58% 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

Diversified revenue mix and local partnerships

Daito Bank earns from loans, fees and investment income and leverages local business and government partnerships. This diversified, community-focused model supports stable deposit and loan pipelines, enhances customer retention, and reduces single-source revenue risk over the medium term.

Low leverage and improved financial stability

A debt-to-equity ratio of 0.14 signals conservatively levered funding and provides capacity to absorb shocks, support lending growth, and meet regulatory requirements without immediate capital raises. This structural strength bolsters resilience across economic cycles.

Consistent net profit margins around 10%

Sustained ~10% net margins demonstrate ongoing core profitability and internal cash generation. Durable margins help fund dividends, internal investments in digital and service capabilities, and provide a buffer if revenue growth stalls or credit costs rise.

Negative Factors

Cash flow volatility and past negative operating cash flow

Historic negative operating cash flow and overall volatility undermine predictable funding for lending and operations. Even with healthy free-cash-flow-to-net-income ratios recently, inconsistent cash generation can force reliance on external funding and constrain capital allocation decisions.

Revenue growth challenges

Declining top-line trends imply structural pressure on market share, pricing, or product uptake. Persistent revenue contraction hampers scale economics, limits margin recovery, and requires strategic initiatives or new product adoption to restore sustainable growth over the medium term.

Low equity ratio and reliance on liabilities

A low equity ratio increases sensitivity to credit losses and regulatory capital shifts, reducing flexibility to expand lending without raising capital. This structural funding profile elevates risk in downturns and could necessitate costly recapitalization if asset quality weakens.

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

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: 946.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 960.10, above the 50-day MA of 879.96, and above the 200-day MA of 773.11, indicating a bullish trend. The MACD of 29.60 indicates Positive momentum. The RSI at 74.76 is Negative, neither overbought nor oversold. The STOCH value of 89.07 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	¥14.47B	9.19	―	3.58%	13.77%	19.08%
8383	70 Outperform	¥16.02B	9.10	―	3.30%	11.93%	36.32%
8365	68 Neutral	¥11.75B	11.00	―	2.68%	5.57%	-23.26%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7161	64 Neutral	¥12.22B	7.50	―	1.24%	5.92%	―
8563	63 Neutral	¥12.67B	9.17	―	3.74%	5.91%	5.03%
8562	55 Neutral	¥11.23B	-77.44	―	1.89%	8.11%	68.98%