Toho Bank, Ltd. (8346) AI Stock Analysis

• Market Cap: ¥108.38B
• Dividend Yield: 2.09%
• Average Volume (3M): 674.07K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 1.02
• Revenue Growth: 25.01%
• EPS Growth: 51.67%
• Country: JP
• Employees: 1,958
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 13.62
• Shares Outstanding: 252,500,000
• 10 Day Avg. Volume: 646,310
• 30 Day Avg. Volume: 674,066
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥450.00
• Price Target Upside: -1.32% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥450.00 ▼(-1.32% Downside)

Toho Bank, Ltd. receives a solid overall stock score of 75, driven primarily by its strong financial performance and positive technical indicators. The bank's reasonable valuation further supports the score. However, increased leverage on the balance sheet and the need for improved operational efficiency are areas to monitor.

Toho Bank, Ltd. Business Overview & Revenue Model

Company Description

Toho Bank, Ltd. (8346) is a prominent regional bank based in Japan, primarily serving the Tohoku region. The bank offers a comprehensive range of financial services, including retail banking, corporate banking, and various investment services. Its core products encompass deposit accounts, loans, foreign exchange services, and asset management solutions, catering to individuals, small to medium-sized enterprises, and larger corporations. Toho Bank is dedicated to supporting local economic development and fostering community growth through its financial offerings.

How the Company Makes Money

Toho Bank generates revenue primarily through the interest income from loans and advances provided to its clients. The bank lends money to individuals and businesses at a higher interest rate than what it pays on deposits, creating a profit margin. Additionally, Toho Bank earns fees from various financial services, including account maintenance, transaction fees, and investment advisory services. The bank may also derive income from foreign exchange transactions and trading activities. Significant partnerships with local businesses and government entities further enhance its revenue streams by providing tailored financial solutions to meet the needs of the community.

Toho Bank, Ltd. Financial Statement Overview

Summary

Toho Bank, Ltd. demonstrates solid financial performance with strong revenue growth and improved profitability. The balance sheet shows increased leverage, which requires careful management. Cash flow metrics indicate robust cash generation, though the conversion of net income to free cash flow could be improved.

Income Statement

Toho Bank, Ltd. has shown a consistent increase in revenue over the past few years, with a notable revenue growth rate of 3.72% in the most recent year. The net profit margin has improved to 10.96%, indicating enhanced profitability. However, the EBIT and EBITDA margins have slightly decreased compared to previous years, suggesting some operational challenges.

Balance Sheet

The bank's debt-to-equity ratio has increased to 1.13, indicating higher leverage, which could pose a risk if not managed properly. Return on equity has improved to 3.77%, reflecting better utilization of equity. The equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Operating cash flow has significantly improved, providing a strong coverage ratio of 3.52. Free cash flow has also grown, indicating better cash management. However, the free cash flow to net income ratio of 0.88 suggests that not all net income is translating into free cash flow, which could be a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	64.13B	64.86B	53.67B	54.72B	57.35B	52.99B
Gross Profit	63.86B	64.13B	56.98B	52.91B	57.35B	43.78B
EBITDA	47.86B	9.79B	10.95B	9.52B	12.01B	-3.81B
Net Income	7.45B	7.45B	5.25B	4.49B	6.75B	-4.66B
Balance Sheet
Total Assets	6.65T	6.65T	6.76T	6.61T	7.14T	6.79T
Cash, Cash Equivalents and Short-Term Investments	1.24T	1.24T	1.80T	1.99T	2.80T	2.34T
Total Debt	222.05B	222.05B	198.94B	182.47B	690.05B	426.81B
Total Liabilities	6.46T	6.46T	6.55T	6.42T	6.94T	6.60T
Stockholders Equity	197.23B	197.23B	206.18B	191.01B	192.74B	191.39B
Cash Flow
Free Cash Flow	0.00	24.24B	1.75B	-768.00B	40.07B	852.74B
Operating Cash Flow	0.00	27.62B	6.71B	-759.85B	42.75B	856.01B
Investing Cash Flow	0.00	-350.27B	-302.83B	-49.66B	-44.37B	-133.56B
Financing Cash Flow	0.00	-143.11B	101.56B	-1.90B	-1.27B	-1.27B

Toho Bank, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 456.00
• 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:8346, the sentiment is Positive. The current price of 456 is above the 20-day moving average (MA) of 418.00, above the 50-day MA of 392.54, and above the 200-day MA of 336.72, indicating a bullish trend. The MACD of 11.60 indicates Positive momentum. The RSI at 67.29 is Neutral, neither overbought nor oversold. The STOCH value of 75.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8346.

Toho Bank, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8336	78 Outperform	135.35B	9.77	4.91%	2.81%	5.74%	10.39%
7322	77 Outperform	94.32B	10.35	4.20%	2.76%	15.39%	24.95%
8346	75 Outperform	¥108.38B	12.66	―	2.09%	25.01%	51.67%
8361	74 Outperform	145.06B	8.99	4.62%	2.58%	-7.59%	76.05%
8360	73 Outperform	103.92B	12.35	3.60%	2.34%	8.18%	25.89%
8388	70 Outperform	142.32B	11.20	―	2.45%	3.78%	1.63%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Toho Bank, Ltd. Corporate Events

Toho Bank Revises Financial and Dividend Forecasts Upward

The Toho Bank, Ltd. has revised its financial results and dividend forecasts for the fiscal year ending March 31, 2025, due to improved performance. The bank has increased its consolidated and non-consolidated financial forecasts, citing growth in net interest income. Additionally, it has raised its year-end dividend forecast, reflecting its commitment to enhancing shareholder returns and aligning with its long-term management plan, ‘TX PLAN 2030.’

Toho Bank Announces Executive Leadership Changes

The Toho Bank, Ltd. announced provisional changes in its executive leadership, including new appointments and retirements among its directors and executive officers, to be formalized at the upcoming Annual General Meeting. These changes are expected to impact the bank’s strategic direction and operational management, potentially influencing its market positioning and stakeholder relations.