Toho Bank, Ltd. (8346) AI Stock Analysis

• Market Cap: ¥173.67B
• Dividend Yield: 2.23%
• Average Volume (3M): 618.99K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 1.16
• 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: 68 Neutral
• Price Target: ¥678.00 ▲(21.29% Upside)
• Action: Downgraded Date: 03/05/26
• Date: Action: Downgraded 03/05/26

The score is driven mainly by solid financial performance (revenue and margin improvement) and favorable valuation (low P/E with a dividend). Technicals temper the outlook due to near-term weakness versus the 20-day average despite support from longer-term moving averages and generally neutral momentum indicators.

Positive Factors

Revenue & Margin Improvement

Sustained revenue growth and an improved net profit margin indicate durable core profitability from lending and fee businesses. This trend supports internal capital generation, enhances resilience to cyclical shocks, and underpins the bank's ability to fund lending and steady shareholder distributions over the medium term.

Improving Cash Generation

Stronger operating cash flow and growing free cash flow signal better conversion of earnings to liquid resources. Higher cash coverage bolsters the bank’s capacity to absorb loan losses, support lending, invest in operations, and maintain dividends without relying heavily on external financing.

Local Franchise & Branch Network

A deep regional franchise with an extensive branch network creates a stable deposit base, strong customer relationships and local market knowledge. These structural advantages support low-cost funding, cross-sell opportunities, and competitive insulation versus nonlocal entrants over the medium term.

Negative Factors

Rising Leverage

Higher debt-to-equity raises financial leverage and reduces capital cushion, increasing vulnerability to credit shocks and regulatory constraints. Persistent leverage growth can strain flexibility for dividend payouts, reserve increases, and loan growth without raising fresh equity or cutting risk-weighted assets.

Weaker Operating Efficiency

Declining EBIT/EBITDA margins point to weakening operating efficiency or rising costs relative to revenue. If structural, margin pressure will erode profitability leverage, limit internal funding for growth, and reduce the bank’s buffer to absorb margin compression from competition or rate shifts.

Suboptimal FCF Conversion

A free cash flow to net income ratio below 1 means not all reported profit converts into spendable cash. This limits sustainable distributable cash for dividends, reduces reinvestment capacity, and can force reliance on wholesale funding when pursuing balance-sheet growth or absorbing loan losses.

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

Solid fundamentals supported by steady revenue growth (3.72%) and improved net profit margin (10.96%). Offsetting this, leverage has risen (debt-to-equity 1.13) and operating efficiency weakened slightly (EBIT/EBITDA margin decline), while free-cash-flow conversion to net income (0.88) is not fully robust.

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: Neutral
• 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 Neutral. The current price of 559 is below the 20-day moving average (MA) of 709.70, below the 50-day MA of 628.16, and above the 200-day MA of 460.85, indicating a neutral trend. The MACD of 21.74 indicates Positive momentum. The RSI at 52.16 is Neutral, neither overbought nor oversold. The STOCH value of 38.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8346.

Toho Bank, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7322	71 Outperform	¥146.76B	7.21	―	2.96%	14.85%	21.17%
8336	70 Outperform	¥204.85B	8.55	―	3.00%	10.56%	16.02%
8360	69 Neutral	¥165.63B	9.79	―	2.56%	17.66%	49.06%
8346	68 Neutral	¥173.67B	9.13	―	2.23%	29.06%	40.95%
8361	68 Neutral	¥253.91B	9.68	―	2.27%	2.68%	74.80%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8388	65 Neutral	¥221.03B	10.90	―	2.53%	7.67%	11.03%

Toho Bank, Ltd. Corporate Events

Toho Bank’s Capital Adequacy Ratio Edges Lower as Risk Assets Grow

The Toho Bank reported its capital adequacy ratios at the end of the third quarter of the fiscal year ending March 31, 2026, showing a slight decline despite modest growth in capital. On a consolidated basis, capital rose to ¥195.7 billion while risk-weighted assets increased to ¥1.79 trillion, resulting in a capital adequacy ratio of 10.94%, down from 11.06% as higher risk assets outpaced capital growth.

On a non-consolidated basis, capital reached ¥185.7 billion against ¥1.77 trillion in risk-weighted assets, producing a capital adequacy ratio of 10.47%, marginally below 10.55% in the prior quarter. The figures indicate that while Toho Bank’s capital base is increasing, its expanding risk assets are exerting slight downward pressure on regulatory capital ratios, a development that stakeholders may watch for implications on future risk-taking and regulatory buffer levels.

The most recent analyst rating on (JP:8346) stock is a Hold with a Yen701.00 price target. To see the full list of analyst forecasts on Toho Bank, Ltd. stock, see the JP:8346 Stock Forecast page.

Toho Bank Lifts FY2026 Earnings Outlook and Hikes Dividend Forecast

Toho Bank has raised its full-year consolidated and non-consolidated forecasts for the fiscal year ending March 31, 2026, citing higher-than-expected interest income and lower credit costs over the nine months to December 31, 2025. The bank now expects consolidated ordinary income of ¥89.8 billion and profit attributable to owners of parent of ¥11.2 billion, implying year-on-year growth and a significant uplift in basic earnings per share.

Alongside the earnings upgrade, Toho Bank revised its dividend policy for the current fiscal year, increasing the forecast year-end dividend by ¥2 to ¥9 per share and lifting the expected full-year dividend to ¥16 per share. The higher payout, which corresponds to a 35.6% payout ratio, underscores management’s focus on enhancing shareholder returns as a core pillar of its long-term value creation plan and reflects confidence in the bank’s earnings trajectory.

The most recent analyst rating on (JP:8346) stock is a Hold with a Yen701.00 price target. To see the full list of analyst forecasts on Toho Bank, Ltd. stock, see the JP:8346 Stock Forecast page.

Toho Bank Lifts Earnings and Dividend Outlook on Strong Nine-Month Results

Toho Bank reported strong consolidated results for the nine months ended Dec. 31, 2025, with ordinary income rising 35.2% year on year to ¥68.3 billion and profit attributable to owners of the parent climbing 51.9% to ¥10.0 billion, driving basic earnings per share up to ¥39.92. The bank’s equity-to-asset ratio improved to 3.1% as net assets increased to ¥212.2 billion, and management upgraded both its full-year earnings forecast and dividend outlook, signaling confidence in capital strength while modestly reshaping its group structure through the addition of Toho IT Human Solutions and removal of Toho Credit Service.

For the full year to March 31, 2026, Toho Bank now projects ordinary income of ¥89.8 billion and profit attributable to owners of the parent of ¥11.2 billion, implying gains of around 27.5% and 50.4% respectively from the prior year. Alongside the earnings upgrade, the bank revised its annual dividend forecast sharply higher to ¥16 per share, up from ¥9 in the previous fiscal year, underscoring a stronger shareholder-return stance backed by improved profitability and a slightly higher capital adequacy ratio.

The most recent analyst rating on (JP:8346) stock is a Hold with a Yen701.00 price target. To see the full list of analyst forecasts on Toho Bank, Ltd. stock, see the JP:8346 Stock Forecast page.

Toho Bank 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.