Toho Bank, Ltd. (8346) AI Stock Analysis

• Market Cap: ¥183.25B
• Dividend Yield: 2.23%
• Average Volume (3M): 618.99K
• Price to Earnings (P/E): 16.7
• Beta (1Y): 1.17
• Revenue Growth: 29.06%
• EPS Growth: 40.95%
• Country: JP
• Employees: 1,958
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 14.82
• 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): 1.37
• 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: 70 Outperform
• Price Target: ¥735.00 ▲(31.48% Upside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is driven primarily by solid financial performance (revenue and profitability improvement plus stronger operating cash flow), with additional support from strong technical momentum. The main offsets are higher leverage on the balance sheet, stretched momentum indicators that raise pullback risk, and only moderate valuation support (P/E 17.73 and ~1.85% yield).

Positive Factors

Revenue & Margin Improvement

Consistent revenue growth alongside an improved net profit margin indicates durable earning power from lending and fee businesses. Over the next 2–6 months this strengthens internal funding for lending, supports provisioning, and provides a more resilient profit buffer against cyclical credit shocks.

Stronger Operating Cash Flow

Significantly improved operating cash flow and rising free cash flow enhance financial flexibility for capital allocation, loan growth and reserve building. Reliable cash generation reduces reliance on external funding and supports strategic investments and shareholder returns over the medium term.

Regional Franchise & Product Breadth

A longstanding regional franchise with an extensive branch network and full-service offerings creates structural advantages: stable deposit base, strong SME and retail customer relationships, and cross-sell opportunities. These local ties support steady core lending and fee income over time.

Negative Factors

Rising Leverage

Higher leverage elevates financial risk and reduces buffer against credit shocks or funding stress. A debt-to-equity around 1.13 constrains capital flexibility, increases interest expense sensitivity, and could limit capacity for organic growth or require tighter risk controls and capital management over coming quarters.

Easing Operating Margins

A decline in EBIT/EBITDA margins suggests rising operating costs or lower core spread, which erodes the bank's ability to absorb provisioning or invest in growth. If persistent, margin compression will weaken long-term profitability and constrain reinvestment in digitalization or branch modernization.

Sub‑Full Cash Conversion

FCF converting at 0.88x of net income shows not all accounting profits become cash, limiting internally available funds for lending, buybacks or dividend growth. Sustained shortfalls may force greater reliance on external funding or slower balance sheet expansion, raising structural financing risk.

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

Income statement trends are constructive with steady revenue growth (3.72%) and improved net margin (10.96%), supported by stronger operating cash flow and growing free cash flow. Offsetting this, EBIT/EBITDA margins have eased and leverage has risen (debt-to-equity 1.13), which adds balance-sheet risk.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	66.84B	64.86B	53.67B	53.54B	55.04B	52.99B
Gross Profit	66.84B	59.63B	53.46B	52.91B	54.78B	52.63B
EBITDA	47.88B	15.06B	10.95B	9.52B	12.01B	-3.81B
Net Income	8.48B	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: 559.00
• 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 559 is below the 20-day moving average (MA) of 701.75, below the 50-day MA of 621.98, and above the 200-day MA of 457.24, indicating a bullish trend. The MACD of 28.27 indicates Positive momentum. The RSI at 63.02 is Neutral, neither overbought nor oversold. The STOCH value of 40.80 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	71 Outperform	¥232.28B	15.28	―	2.53%	7.67%	11.03%
8346	70 Outperform	¥183.25B	16.74	―	2.23%	29.06%	40.95%
7322	70 Outperform	¥164.19B	14.02	―	2.96%	14.85%	21.17%
8336	70 Outperform	¥215.77B	13.68	―	3.00%	10.56%	16.02%
8360	69 Neutral	¥176.19B	16.81	―	2.56%	17.66%	49.06%
8361	68 Neutral	¥284.71B	14.85	―	2.27%	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 to Boost Stake in Daito Bank to Strengthen Fukushima Regional Banking Ties

The Toho Bank, Ltd. has resolved to acquire shares of fellow Fukushima-based regional lender THE DAITO BANK, LTD. from major shareholder HS Holdings Co., Ltd., and has entered into a share purchase agreement that qualifies as a “buying up” transaction under Japan’s Financial Instruments and Exchange Act. By increasing its stake in Daito Bank, which it views as having a solid business base and growth potential, Toho Bank aims to deepen collaboration between the two institutions amid ongoing population decline in Fukushima Prefecture, with a view to strengthening their relationship, supporting local economic development, and enhancing the corporate value of both banks while maintaining healthy competition in the regional financial market.

The most recent analyst rating on (JP:8346) stock is a Buy with a Yen503.00 price target. To see the full list of analyst forecasts on Toho Bank, Ltd. stock, see the JP:8346 Stock Forecast page.

Toho Bank Revises Shareholder Return Policy to Enhance Returns

Toho Bank has revised its shareholder return policy for fiscal year 2026 and beyond, increasing the target payout ratio from 30% to 40% of profit attributable to owners of the parent. This change is part of the bank’s long-term management plan ‘TX PLAN 2030,’ which has already seen profits exceed initial expectations, indicating a positive business environment and growth potential. The revised policy aims to enhance shareholder returns by providing more flexible profit returns in line with profit growth.

The most recent analyst rating on (JP:8346) stock is a Buy with a Yen503.00 price target. To see the full list of analyst forecasts on Toho Bank, Ltd. stock, see the JP:8346 Stock Forecast page.

Toho Bank Increases Dividend Forecast Amid Strong Financial Performance

Toho Bank has announced an increase in its interim and year-end dividend forecasts, raising each by 2.00 yen per share to 7.00 yen per share, resulting in an annual dividend of 14.00 yen per share. This decision reflects the bank’s strategy to improve shareholder returns, supported by an upward revision of its full-year financial results forecast due to increased net interest income.

The most recent analyst rating on (JP:8346) stock is a Buy with a Yen503.00 price target. To see the full list of analyst forecasts on Toho Bank, Ltd. stock, see the JP:8346 Stock Forecast page.

Toho Bank Revises Financial Forecasts Upward for Fiscal Year 2026

The Toho Bank, Ltd. has revised its financial forecasts for the fiscal year ending March 31, 2026, showing an increase in expected ordinary income, ordinary profit, and profit attributable to owners of the parent. This upward revision is largely due to higher than anticipated interest income and gains related to securities, indicating a positive impact on the bank’s financial performance and potentially enhancing its market position.

The most recent analyst rating on (JP:8346) stock is a Buy with a Yen503.00 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 Strong Financial Growth and Dividend Forecast Revision

Toho Bank, Ltd. reported a significant increase in its financial performance for the six months ended September 30, 2025, with ordinary income rising by 36.1% and profit attributable to owners increasing by 37.1% compared to the previous year. The bank also announced a revision in its cash dividend forecast, reflecting a positive outlook for the fiscal year ending March 31, 2026, which may enhance shareholder value and market confidence.

The most recent analyst rating on (JP:8346) stock is a Buy with a Yen503.00 price target. To see the full list of analyst forecasts on Toho Bank, Ltd. stock, see the JP:8346 Stock Forecast page.