Daito Bank, Ltd. (8563) AI Stock Analysis

• Market Cap: ¥9.44B
• Dividend Yield: 4.3%
• Average Volume (3M): 17.21K
• Price to Earnings (P/E): 6.7
• Beta (1Y): 0.68
• Revenue Growth: 2.44%
• EPS Growth: 10.20%
• Country: JP
• Employees: 428
• Sector: Financial
• Sector Strength: 65
• Industry: Banks - Regional
• EPS (TTM): 50.42
• Shares Outstanding: 12,701,462
• 10 Day Avg. Volume: 17,700
• 30 Day Avg. Volume: 17,206
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 62 Neutral
• Price Target: ―

Daito Bank's overall score reflects its strong balance sheet and attractive valuation, offset by cash flow difficulties and bearish technical indicators. The low P/E ratio and high dividend yield provide a solid valuation base, but ongoing cash flow issues and technical weaknesses necessitate caution.

Daito Bank, Ltd. Business Overview & Revenue Model

Company Description

Daito Bank, Ltd. (8563) is a regional bank headquartered in Japan, primarily serving the Tohoku region. The bank offers a range of financial services, including personal and corporate banking, loans, mortgages, credit cards, investment services, and insurance products. Daito Bank focuses on providing community-oriented financial solutions to individuals, small and medium-sized enterprises (SMEs), and local governments.

How the Company Makes Money

Daito Bank, Ltd. generates revenue through a variety of financial services. The primary source of income is interest from loans and mortgages offered to individual and corporate clients. The bank also earns through fees and commissions from services such as account maintenance, transaction processing, and investment product sales. Additionally, Daito Bank profits from its treasury operations, which involve the management of its investment portfolio and trading activities. Collaborations with local businesses and government entities further contribute to its revenue by fostering economic growth and expanding service offerings in the region.

Daito Bank, Ltd. Financial Statement Overview

Summary

The income statement shows a stable revenue base with strong gross profit margins but moderate net profit margins, indicating room for cost optimization. The balance sheet is strong, with low debt-to-equity ratios and a solid cash position. However, cash flow challenges, particularly negative operating cash flow, are concerning.

Income Statement

The income statement shows a stable revenue base with a slight decline in total revenue from the previous year. Gross profit margin is strong, indicating efficient operations relative to revenue. However, the EBIT margin shows room for improvement, and the net profit margin is moderate, suggesting potential areas for cost optimization.

Balance Sheet

The balance sheet reflects a strong cash position with significant cash and short-term investments. The debt-to-equity ratio is low, indicating conservative leverage, which is typically favorable for regional banks. However, the equity ratio is moderate, suggesting a balanced approach to asset financing.

Cash Flow

Cash flow analysis indicates challenges in generating positive operating cash flow, with substantial free cash flow deficits in recent periods. The lack of positive cash flow from operations is a concern, despite previous periods showing strong cash positions.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	12.84B	11.82B	11.52B	11.54B	11.92B	11.20B
Gross Profit	12.95B	11.82B	11.52B	11.54B	11.92B	11.20B
EBITDA	1.97B	0.00	2.40B	2.30B	2.43B	2.43B
Net Income	1.38B	1.25B	1.28B	1.20B	990.00M	1.06B
Balance Sheet
Total Assets	871.90B	876.89B	895.00B	970.15B	963.50B	790.65B
Cash, Cash Equivalents and Short-Term Investments	48.86B	72.28B	72.49B	135.22B	166.10B	49.81B
Total Debt	200.00M	40.68B	50.65B	114.29B	105.34B	470.00M
Total Liabilities	836.01B	838.38B	50.65B	930.51B	922.75B	751.57B
Stockholders Equity	35.00B	37.64B	35.91B	38.77B	39.91B	38.27B
Cash Flow
Free Cash Flow	0.00	-10.18B	-93.42B	-34.14B	113.18B	-2.49B
Operating Cash Flow	0.00	-9.11B	-92.83B	-33.87B	113.44B	-2.26B
Investing Cash Flow	0.00	9.42B	31.35B	4.58B	2.13B	13.88B
Financing Cash Flow	0.00	-6.89B	-384.00M	-378.00M	-378.00M	-380.00M

Daito Bank, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 765.00
• 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 765 is above the 20-day moving average (MA) of 736.05, above the 50-day MA of 724.44, and above the 200-day MA of 697.85, indicating a bullish trend. The MACD of 7.73 indicates Negative momentum. The RSI at 74.62 is Negative, neither overbought nor oversold. The STOCH value of 93.33 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
8377	71 Outperform	¥435.76B	9.74		1.16%	33.00%	80.88%
8354	70 Outperform	¥856.06B	11.38	7.77%	3.03%	10.63%	12.90%
Sector *	67 Neutral	¥836.32B	13.01	9.24%	3.02%	7.93%	10.80%
8563	62 Neutral	¥9.44B	6.66		4.30%	2.44%	10.20%