Nanto Bank Ltd. (8367) AI Stock Analysis

• Market Cap: ¥157.24B
• Dividend Yield: 3.52%
• Average Volume (3M): 100.36K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 1.20
• Revenue Growth: 15.80%
• EPS Growth: 1.72%
• Country: JP
• Employees: 2,336
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 119.96
• Shares Outstanding: 33,025,658
• 10 Day Avg. Volume: 138,980
• 30 Day Avg. Volume: 100,363
• PEG Ratio: 0.70
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 1.42
• P/FCF Ratio: 5.26
• 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: ¥5,475.00
• Price Target Upside: 13.35% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: ¥5,475.00 ▲(13.35% Upside)

Nanto Bank Ltd. receives a score of 69, driven by strong technical indicators and a fair valuation. However, financial performance is mixed due to high leverage and modest returns, which are potential risks.

Nanto Bank Ltd. Business Overview & Revenue Model

Company Description

The Nanto Bank, Ltd., together with its subsidiaries, engages in banking, securities, leasing, and credit guarantee businesses in Japan. Its banking services include the acceptance of deposits, lending services, bills discounting, and remittance; and guarantee of debt, acceptance of bills, and other services related to banking business. The company's securities business activities comprise underwriting and dealing in securities; over-the-counter derivative transactions; and other related services, including security index future transactions. The company also provides management and leasing of commercial real estate, as well as outsourcing and employee placement services; guarantee services for personal loans; leases OA equipment, large industrial equipment, and automobiles; computer system development and sales, consultations on computer introduction and use, and outsourcing of various calculation tasks; credit cards; invests in venture companies and business successor companies; and securities services. The Nanto Bank, Ltd. was incorporated in 1934 and is headquartered in Nara, Japan.

How the Company Makes Money

Nanto Bank generates revenue through various channels, primarily by earning interest on loans provided to individual and corporate customers. The bank offers personal loans, mortgages, and business loans, which are significant contributors to its interest income. Additional revenue streams include fees from account maintenance, transaction fees, and advisory services related to asset management and investment products. The bank also earns income from securities and investment activities. Partnerships with local businesses and organizations enhance its customer base and facilitate cross-selling opportunities, further contributing to its financial performance.

Nanto Bank Ltd. Financial Statement Overview

Summary

Nanto Bank Ltd. demonstrates a mixed financial performance. Positive revenue growth and improved cash flow are offset by high leverage and modest return on equity, indicating potential risks.

Income Statement

Nanto Bank Ltd. has shown a positive revenue growth rate of 1.163% in the latest year, indicating a recovery from previous declines. The net profit margin of 13.88% is healthy, although it has decreased from the previous year. The EBIT margin is stable at 17.58%, reflecting efficient cost management. However, the decline in EBITDA margin suggests potential pressure on operational efficiency.

Balance Sheet

The debt-to-equity ratio of 2.18 indicates a high level of leverage, which could pose risks if interest rates rise. Return on equity is modest at 4.86%, showing room for improvement in generating returns for shareholders. The equity ratio is not provided, but the high debt levels suggest a need for careful financial management.

Cash Flow

The company has shown significant improvement in free cash flow, with a growth rate labeled as 'Infinity' due to a previous negative base. The operating cash flow to net income ratio is positive, indicating good cash generation relative to earnings. However, the free cash flow to net income ratio of 0.70 suggests that not all earnings are translating into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	93.39B	87.43B	70.19B	64.42B	64.90B	70.08B
Gross Profit	93.39B	85.29B	75.89B	61.27B	64.00B	67.11B
EBITDA	18.81B	23.78B	20.13B	9.73B	21.21B	14.72B
Net Income	13.12B	13.51B	12.04B	4.73B	11.87B	10.86B
Balance Sheet
Total Assets	6.78T	6.85T	6.79T	6.54T	7.00T	6.56T
Cash, Cash Equivalents and Short-Term Investments	0.00	678.27B	963.53B	1.09T	1.50T	1.19T
Total Debt	392.38B	606.02B	612.90B	500.31B	1.01T	632.97B
Total Liabilities	6.49T	6.58T	6.49T	6.28T	6.71T	6.27T
Stockholders Equity	289.17B	277.80B	298.63B	262.80B	286.47B	293.44B
Cash Flow
Free Cash Flow	0.00	23.64B	6.52B	-520.15B	364.62B	530.23B
Operating Cash Flow	0.00	33.76B	9.61B	-513.86B	367.58B	532.08B
Investing Cash Flow	0.00	-111.62B	-91.87B	108.36B	-59.37B	-32.47B
Financing Cash Flow	0.00	-5.45B	-3.59B	-5.17B	-2.76B	-2.61B

Nanto Bank Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4830.00
• 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:8367, the sentiment is Positive. The current price of 4830 is below the 20-day moving average (MA) of 4873.70, above the 50-day MA of 4820.80, and above the 200-day MA of 3973.09, indicating a neutral trend. The MACD of 1.06 indicates Positive momentum. The RSI at 49.29 is Neutral, neither overbought nor oversold. The STOCH value of 41.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8367.

Nanto Bank Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8544	76 Outperform	¥150.85B	13.31	―	2.72%	6.37%	-11.55%
8386	71 Outperform	¥139.21B	10.06	―	2.99%	-6.76%	34.71%
7389	70 Outperform	¥181.83B	22.98	―	2.70%	1.98%	-10.03%
8388	70 Outperform	¥137.47B	11.08	―	2.68%	3.78%	1.63%
8367	69 Neutral	¥157.24B	11.56	―	3.52%	15.80%	1.72%
7381	69 Neutral	¥143.80B	12.66	―	2.52%	-4.66%	144.51%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Nanto Bank Ltd. Corporate Events

Nanto Bank Reports Strong Financial Growth for 2024

Nanto Bank Ltd. reported a significant increase in its consolidated financial results for the nine months ending December 31, 2024, with ordinary revenues rising by 17.7% and ordinary profit by 33.4% compared to the previous year. Despite a slight decrease in the capital adequacy ratio, the bank’s forecast for the fiscal year ending March 31, 2025, indicates continued growth in ordinary profit and profit attributable to owners, highlighting a robust financial performance that strengthens its market position.