Risk factor
Critical default risk
Profitability factor
Weak margins and returns
About
North Pacific Bank, Ltd. delivers a broad spectrum of financial services and banking solutions to individual clients and corporate entities throughout Japan. Its primary services encompass deposit accounts, negotiable certificates of deposit, and various loan products. The bank further extends its offerings to include ATM access, foreign currency exchange, investment trusts, financial advisory services, and trust management. As of March 31, 2021, the institution maintained a significant operational footprint with 171 branches and an additional three overseas offices. The company, which was incorporated in 1917 and is headquartered in Sapporo, Japan, was previously known as Hokuyo Sogo Bank, Ltd. before adopting its current name, North Pacific Bank, Ltd., in 1989.
Company Valuation
Based on key historical and expected multiples, the stock is fairly valued relative to its peers. Specifically, the stock is fairly valued on P/E, overpriced on P/FC.
Target Price
The average target price of 8524.T is 1000 and suggests 17.4% downside potential. Usually, this means a SELL recommendation among investment firms, or a recommendation to