Tohoku Bank, Ltd. (8349) AI Stock Analysis

• Market Cap: ¥12.89B
• Dividend Yield: 3.68%
• Average Volume (3M): 69.47K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.60
• Revenue Growth: 7.67%
• EPS Growth: -26.27%
• Country: JP
• Employees: 559
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 63.10
• Shares Outstanding: 9,509,963
• 10 Day Avg. Volume: 52,970
• 30 Day Avg. Volume: 69,473
• 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: ¥1,523.00
• Price Target Upside: 12.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: ¥1,523.00 ▲(12.07% Upside)

Tohoku Bank's stock is supported by strong technical indicators and attractive valuation metrics, which are the most significant factors driving the score. Financial performance is stable but shows areas for improvement, particularly in revenue growth and profitability. The absence of earnings call and corporate events data does not impact the overall score.

Tohoku Bank, Ltd. Business Overview & Revenue Model

Company Description

Tohoku Bank, Ltd. (8349) is a regional financial institution based in Japan, primarily serving the Tohoku region. Established to support local economic development, the bank offers a range of financial services including personal and commercial banking, loans, deposits, and investment services. It aims to provide tailored financial solutions to individuals, small and medium-sized enterprises (SMEs), and local governments, contributing to the growth and stability of the regional economy.

How the Company Makes Money

Tohoku Bank generates revenue primarily through interest income from loans, which constitutes a significant portion of its earnings. The bank provides various loan products, including personal loans, mortgages, and business loans to SMEs, charging interest on these loans. Additionally, the bank earns fees from services such as account maintenance, transaction processing, and financial advisory services. Investment income also forms a part of its revenue, derived from the bank's investments in securities and other financial instruments. The bank may have partnerships with local businesses and institutions, enabling it to cross-sell products and enhance customer loyalty, which further contributes to its financial performance.

Tohoku Bank, Ltd. Financial Statement Overview

Summary

Tohoku Bank demonstrates financial stability with low leverage and consistent operational margins. However, challenges in revenue growth and slightly declining profitability metrics suggest areas for improvement. The cash flow position has improved, but previous volatility indicates potential risks. The bank's strong equity base provides a solid foundation for future growth.

Income Statement

Tohoku Bank's income statement shows moderate performance with a declining revenue growth rate of -6.39% in the latest year, indicating potential challenges in revenue generation. The net profit margin stands at 7.58%, which is reasonable but has decreased from previous years. EBIT and EBITDA margins are stable at around 14%, suggesting consistent operational efficiency despite revenue pressures.

Balance Sheet

The balance sheet reflects a strong equity position with a low debt-to-equity ratio of 0.031, indicating low leverage and financial stability. However, the return on equity has slightly decreased to 3.02%, suggesting a need for improved profitability. The equity ratio remains robust, highlighting a solid capital structure.

Cash Flow

Cash flow analysis reveals a significant improvement in free cash flow growth, although the previous year experienced negative cash flows. The free cash flow to net income ratio is close to 1, indicating efficient cash generation relative to net income. However, the operating cash flow to net income ratio is not available, limiting a full assessment of cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.39B	13.39B	13.24B	12.69B	13.02B	13.10B
Gross Profit	13.39B	13.62B	13.95B	13.04B	13.21B	13.10B
EBITDA	2.19B	1.98B	2.43B	2.59B	2.40B	2.29B
Net Income	1.07B	1.07B	1.38B	1.53B	1.34B	1.15B
Balance Sheet
Total Assets	1.01T	1.01T	1.01T	968.13B	1.03T	1.02T
Cash, Cash Equivalents and Short-Term Investments	63.41B	63.41B	84.02B	43.69B	167.68B	157.50B
Total Debt	40.40B	40.10B	34.44B	8.86B	79.36B	71.98B
Total Liabilities	974.24B	974.24B	973.26B	929.39B	987.05B	981.42B
Stockholders Equity	35.38B	35.38B	39.44B	38.74B	39.92B	40.10B
Cash Flow
Free Cash Flow	0.00	25.75B	24.84B	-111.45B	10.89B	127.26B
Operating Cash Flow	0.00	26.16B	25.61B	-110.90B	11.06B	127.67B
Investing Cash Flow	0.00	-30.36B	-2.09B	-11.28B	-916.00M	-3.09B
Financing Cash Flow	0.00	-8.37B	20.40B	-475.00M	-474.00M	-474.00M

Tohoku Bank, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1359.00
• 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:8349, the sentiment is Positive. The current price of 1359 is above the 20-day moving average (MA) of 1307.35, above the 50-day MA of 1199.62, and above the 200-day MA of 1118.79, indicating a bullish trend. The MACD of 52.17 indicates Positive momentum. The RSI at 64.23 is Neutral, neither overbought nor oversold. The STOCH value of 28.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8349.

Tohoku Bank, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8563	75 Outperform	¥10.14B	7.15		4.00%	2.44%	10.20%
8383	73 Outperform	¥12.69B	9.82		3.69%	9.46%	9.41%
8349	72 Outperform	¥12.89B	11.15		3.68%	7.67%	-26.27%
8537	72 Outperform	¥17.06B	6.96		3.60%	14.06%	20.87%
Sector *	68 Neutral	$17.80B	11.87	10.23%	3.74%	9.69%	1.18%
8365	61 Neutral	¥9.14B	8.74		2.97%	-9.75%	81.65%
8562	57 Neutral	¥8.58B	―		2.03%	2.60%	-246.98%