Toho Bank, Ltd. (8346) AI Stock Analysis

• Market Cap: ¥126.53B
• Dividend Yield: 2.32%
• Average Volume (3M): 618.99K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 1.03
• Revenue Growth: 29.06%
• EPS Growth: 40.95%
• Country: JP
• Employees: 1,958
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 11.48
• Shares Outstanding: 252,500,000
• 10 Day Avg. Volume: 564,190
• 30 Day Avg. Volume: 618,990
• PEG Ratio: 0.28
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 1.39
• P/FCF Ratio: 3.67
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥503.00 ▼(-2.71% Downside)

Toho Bank, Ltd. receives a strong overall score driven by solid financial performance and bullish technical indicators. The stock's valuation is reasonable, with a fair P/E ratio and a moderate dividend yield. While the technical analysis shows strong upward momentum, caution is advised due to overbought signals. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability and expansion.

Profitability Improvement

Improved profitability reflects effective cost management and pricing strategies, enhancing the company's ability to reinvest in growth opportunities.

Cash Flow Management

Strong cash flow management ensures liquidity and financial flexibility, enabling the company to meet obligations and invest in strategic initiatives.

Negative Factors

Increased Leverage

Higher leverage can increase financial risk, potentially impacting the bank's ability to weather economic downturns and limiting future borrowing capacity.

Operational Challenges

Decreasing operational margins suggest potential inefficiencies or increased costs, which could pressure profitability if not addressed.

Free Cash Flow Conversion

Limited conversion of net income to free cash flow may restrict the company's ability to fund growth initiatives and return capital to shareholders.

Toho Bank, Ltd. Business Overview & Revenue Model

Company Description

The Toho Bank, Ltd. provides various banking products and services in Japan. Its products include individual and institutional deposits, negotiable certificates of deposit, etc.; credit cards; leasing products; commercial and mortgage loans; and bills discounted, as well as credit guaranteeing service. The company is also involved in investing in marketable securities; printing and binding of business forms, etc.; and calculation and software development operations. As of March 31, 2021, it operated 122 branches. The Toho Bank, Ltd. was incorporated in 1941 and is headquartered in Fukushima, Japan.

How the Company Makes Money

Toho Bank generates revenue primarily through interest income from loans and advances, which constitute a significant portion of its earnings. The bank provides various lending products, including personal loans, mortgages, and business loans, earning interest from these loans. Additionally, Toho Bank earns fees from various banking services, such as account maintenance, transaction fees, and wealth management services. The bank's investment portfolio, which includes securities and bonds, also contributes to its income through investment returns. Furthermore, strategic partnerships with local businesses and community initiatives enhance the bank's revenue by fostering customer loyalty and attracting new clients.

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. Overall, the bank is on a positive trajectory but should monitor leverage and operational efficiency closely.

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	48.28B	64.86B	53.67B	53.54B	55.04B	52.99B
Gross Profit	48.28B	59.63B	53.46B	52.91B	54.78B	52.63B
EBITDA	43.47B	15.06B	10.95B	9.52B	12.01B	-3.81B
Net Income	5.08B	7.45B	5.25B	4.49B	6.75B	-4.66B
Balance Sheet
Total Assets	6.76T	6.65T	6.76T	6.61T	7.14T	6.79T
Cash, Cash Equivalents and Short-Term Investments	0.00	1.24T	1.80T	1.99T	2.80T	2.34T
Total Debt	221.96B	222.05B	198.94B	182.47B	690.05B	426.81B
Total Liabilities	6.56T	6.46T	6.55T	6.42T	6.94T	6.60T
Stockholders Equity	204.69B	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	-1.73B	-1.90B	81.65B	-1.27B

Toho Bank, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 517.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 517 is above the 20-day moving average (MA) of 485.00, above the 50-day MA of 461.61, and above the 200-day MA of 375.36, indicating a bullish trend. The MACD of 16.83 indicates Negative momentum. The RSI at 67.87 is Neutral, neither overbought nor oversold. The STOCH value of 74.42 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
8388	77 Outperform	¥163.64B	11.70	―	2.61%	7.67%	11.03%
7322	75 Outperform	¥96.41B	10.88	―	3.12%	14.85%	21.17%
8346	72 Outperform	¥126.53B	13.71	―	2.32%	29.06%	40.95%
8336	72 Outperform	¥154.55B	10.86	―	3.10%	10.56%	16.02%
8360	72 Outperform	¥106.80B	13.10	―	2.63%	17.66%	49.06%
8361	72 Outperform	¥152.35B	9.70	―	2.51%	2.68%	74.80%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Toho Bank, Ltd. Corporate Events

Toho Bank Revises Financial Forecasts Upward Amid Improved Earnings

Toho Bank, Ltd. has revised its financial forecasts for the six months ending March 31, 2026, due to higher-than-expected interest income and gains related to securities, alongside lower credit-related expenses. These adjustments reflect a significant increase in expected profits and earnings per share, indicating a stronger financial performance than initially projected.

The most recent analyst rating on (JP:8346) stock is a Buy with a Yen450.00 price target. To see the full list of analyst forecasts on Toho Bank, Ltd. stock, see the JP:8346 Stock Forecast page.

Toho Bank Reports Improved Capital Adequacy Ratio for Q1 2026

The Toho Bank, Ltd. announced its capital adequacy ratio for the end of the first quarter of the fiscal year ending March 31, 2026. The bank reported a consolidated capital adequacy ratio of 10.97%, showing an increase from the previous quarter. This improvement in the capital adequacy ratio indicates a stronger financial position, which could positively impact the bank’s operations and reassure stakeholders about its stability.

Toho Bank Reports Strong Financial Growth in Q1 2025

Toho Bank, Ltd. reported significant financial growth for the three months ended June 30, 2025, with a notable increase in ordinary income, ordinary profit, and profit attributable to owners compared to the previous year. The bank’s total assets and net assets also saw an increase, indicating a strong financial position. The announcement reflects the bank’s solid operational performance and its ability to generate shareholder value, with implications for continued growth and stability in the financial sector.

Toho Bank to Dissolve Subsidiary Toho Securities

The Toho Bank, Ltd. has announced the dissolution and liquidation of its wholly-owned subsidiary, Toho Securities Co., Ltd., following a business alliance with Nomura Securities Co., Ltd. This strategic move is expected to have minimal impact on the bank’s consolidated financial results for the fiscal year ending March 31, 2026.