Fact based stock research
The Bank of Kyoto (TSE:8369)

JP3251200006

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

The Bank of Kyoto stock research in summary

kyotobank.co.jp

ANALYSIS: With an Obermatt Combined Rank of 14 (worse than 86% compared with investment alternatives), The Bank of Kyoto (Regional Banks, Japan) shares have lower financial characteristics compared with similar stocks. Shares of The Bank of Kyoto are low in value (priced high) with a consolidated Value Rank of 19 (worse than 81% of alternatives) and show below-average growth (Growth Rank of 25) but are safely financed (Safety Rank of 58), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 14, is a sell recommendation based on The Bank of Kyoto's financial characteristics. As the company The Bank of Kyoto's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 19) and low growth (Obermatt Growth Rank of 25), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. In this case, good financing practices (Obermatt Safety Rank of 58) are a positive sign, because it may allow the company to weather challenging times until the hoped-for cash flows materialize. This may be true for high-tech or biotechnology companies with enough cash to sustain prolonged business development. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and unattractive today. In such cases, the Obermatt Method has limited value, as it is based on facts we can observe today. If the facts lie all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that account for a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	19
Growth Rank	25
Safety Rank	58
Combined Rank	14

Country	Japan
Industry	Regional Banks
Index	SDG 11, SDG 5, SDG 8, SDG 9
Size class	XX-Large

This stock has achievements: Top 10 Stock.

28-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: The Bank of Kyoto

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	20	21	16	19
GROWTH
GROWTH	7	49	65	25
SAFETY
SAFETY	88	65	66	58
SENTIMENT
SENTIMENT	n/a	10	18	^new
360° VIEW
360° VIEW	n/a	15	30	^new

Most recent update of the stock research: 28-Nov-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better The Bank of Kyoto is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	20	21	16	19
GROWTH
GROWTH	7	49	65	25
SAFETY
SAFETY	88	65	66	58
COMBINED
COMBINED	44	36	49	14

Last update of combined financial performance: 28-Nov-2024. Stock analysis on combined financial performance: The higher the rank of The Bank of Kyoto the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 19 (worse than 81% compared with alternatives), The Bank of Kyoto shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators where three out of four are below average for The Bank of Kyoto. Only the Price-to-Book Capital ratio (also referred to as market-to-book ratio) indicates good stock value with a Price-to-Book Rank of 83, which means that the stock price is lower compared with invested capital than for 83% of comparable investments. All other value indicators are below the market median. Price-to-Sales is 28 which means the stock price compared with what market professionals expect for future profits is higher than 72% of comparable companies, indicating a low value concerning The Bank of Kyoto's revenue levels. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Book Rank of 83 and for the dividend yields rank which is lower than for 88% of comparable companies, making the stock more expensive as regards to with the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 19, is a sell recommendation based on The Bank of Kyoto's stock price compared with the company's operational size and dividend yields. Why are market participants paying such a high price for The Bank of Kyoto, where three out of four value indicators are below par? One reason could be that the company is well financed, indicated by the high book capital level, and has a promising future that is not yet visible in reported revenues and profits. That would also explain the low dividend yield because the company needs the cash to invest in its future. If investors can verify a picture in this sense, the stock may still be a good investment, even though current company-reported financials don't fully explain current stock prices. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	17	28	25	28
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	7	10	12	19
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	96	85	61	83
DIVIDEND YIELD
DIVIDEND YIELD	4	6	8	12
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	20	21	16	19

Last update of Value Rank: 28-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of The Bank of Kyoto; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 25 (better than 25% compared with alternatives), The Bank of Kyoto shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for The Bank of Kyoto. Sales Growth has a rank of 54 which means that currently, professionals expect the company to grow more than 54% of its competitors. Capital Growth is also above 40% of competitors with a rank of 65. But Profit Growth only has a rank of 40, which means that currently professionals expect the company to grow its profits less than 60% of its competitors. And Stock Returns have also been below average with a rank of only 15. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 25, is a hold recommendation for growth and momentum investors. Profits are sometimes low if the company invests in the future. The positive revenue and capital investment outlook confirms such an interpretation. Both revenues and capital are solid growth indicators, and lower profits in such a case would be encouraging. But the investors see it differently by punishing the share price. Sometimes, Mister Market is not very reliable, because it is not uncommon for it to be volatile. Investors should look out for signs of growth expenditure that could justify low profit growth, and they may also find reasons why recent stock price developments don't confirm the growth outlook of operations. While operating growth indicators are not perfect, they are more reliable indicators for future performance than stock prices that can repeatedly surprise investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	23	50	56	54
PROFIT GROWTH
PROFIT GROWTH	33	49	56	40
CAPITAL GROWTH
CAPITAL GROWTH	n/a	97	13	65
STOCK RETURNS
STOCK RETURNS	26	3	91	15
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	7	49	65	25

Last update of Growth Rank: 28-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of The Bank of Kyoto.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 58 (better than 58% compared with alternatives), the company The Bank of Kyoto has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of The Bank of Kyoto is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for The Bank of Kyoto. Liquidity is at 93, meaning the company generates more profit to service its debt than 93% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 27, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 73% of its competitors. Leverage is also high at a rank of 48, which means that the company has an above-average debt-to-equity ratio. It has more debt than 52% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 58 (better than 58% compared with alternatives), The Bank of Kyoto has a financing structure that is safer than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	96	63	58	48
REFINANCING
REFINANCING	50	46	27	27
LIQUIDITY
LIQUIDITY	86	71	95	93
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	88	65	66	58

Last update of Safety Rank: 28-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of The Bank of Kyoto and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	7	64	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	48	16	^new
MARKET PULSE
MARKET PULSE	n/a	34	29	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	10	18	^new

Last update of Sentiment Rank: 28-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for The Bank of Kyoto.
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