Tohoku Bank, Ltd. (8349) AI Stock Analysis

• Market Cap: ¥14.42B
• Dividend Yield: 3.58%
• Average Volume (3M): 23.40K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.67
• Revenue Growth: 13.77%
• EPS Growth: 19.08%
• Country: JP
• Employees: 559
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 38.42
• Shares Outstanding: 9,509,963
• 10 Day Avg. Volume: 24,640
• 30 Day Avg. Volume: 23,396
• PEG Ratio: -0.44
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 0.74
• P/FCF Ratio: 0.41
• 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: ¥1,655.00 ▲(10.85% Upside)
• Action: Upgraded Date: 08/29/25
• Date: Action: Upgraded 08/29/25

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.

Positive Factors

Low leverage / strong equity

A very low debt-to-equity ratio and strong equity base provide a durable capital buffer against credit losses and regulatory shocks. This financial strength supports measured loan growth, preserves liquidity flexibility, and lowers structural interest-cost sensitivity over the medium term.

Improved free cash flow

A marked improvement in free cash flow and an FCF-to-net-income ratio near one indicate the bank converts earnings into cash efficiently. Strong cash generation enhances the ability to fund dividends, reinvest in business lines, and absorb loan losses without relying heavily on external financing.

Stable operating margins and core revenue mix

Consistent EBIT/EBITDA margins around 14% combined with a traditional net-interest-income plus fees business model suggest durable operating efficiency. Stable margins across cycles support predictable earnings and make it easier to absorb localized loan demand fluctuations in the regional market.

Negative Factors

Low and falling ROE

A ROE near 3% is low for a bank and the recent decline signals limited ability to convert equity into profitable growth. Persistently weak ROE constrains shareholder returns, limits internally generated capital for expansion, and may indicate structural pressure on margins or asset yields.

Revenue contraction

A negative year-over-year revenue change points to weakening top-line momentum, which can erode profitability and restrict reinvestment capacity. If structural, sustained revenue declines will force tighter cost control or strategic shifts to restore lending growth and diversify non‑interest income.

Cash-flow volatility and disclosure gap

Historical negative cash flows and the missing operating-cash-flow-to-net-income metric limit visibility on earnings quality. Cash-flow volatility raises concerns about dividend sustainability and the bank's reliance on deposits or capital markets during stress, increasing medium-term funding risk.

Tohoku Bank, Ltd. Business Overview & Revenue Model

Company Description

The Tohoku Bank, Ltd. provides various banking and financial services for individual and corporate customers in Japan. The company also provides saving/general accounts, time deposits, investment trust, and government bonds; debit and credit cards; payment collection services; and internet and mobile banking services. It offers various loans, such as housing, car, card, free, education, remodeling, travel, bridal, mortgage, reconstruction support, medical/long-term, and agricultural loans. In addition, the company provides medical/ cancer, personal annuity, whole life, term, and income security insurance products; and pension services. As of March 31, 2020, it operated 55 stores and 2 branch offices. The company was founded in 1950 and is headquartered in Morioka, Japan.

How the Company Makes Money

Tohoku Bank, Ltd. makes money mainly through traditional commercial banking activities. The primary revenue stream is net interest income: the bank earns interest on loans and other interest-bearing assets (e.g., loans to households and businesses, and interest from securities portfolios) and pays interest on funding sources such as customer deposits and borrowed funds; the spread between these drives earnings. A second major stream is fee and commission income from financial services, which can include fees related to remittances and settlement, account and transaction services, credit-related services, and commissions from distributing third-party financial products (e.g., investment trusts and insurance) when applicable. The bank may also generate trading and investment-related income (such as gains/losses and interest/dividend income from securities holdings), though the magnitude depends on portfolio composition and market conditions. Profitability is influenced by local loan demand, credit costs (loan loss provisions tied to borrower performance), the interest-rate environment affecting deposit/loan spreads, and operating efficiency across its branch and service network. Specific significant partnerships or named counterparties contributing to earnings: null.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	13.49B	14.23B	13.98B	12.72B	13.05B	12.73B
Gross Profit	13.49B	13.62B	13.95B	12.69B	13.02B	12.64B
EBITDA	3.05B	2.10B	2.43B	2.59B	2.40B	2.29B
Net Income	1.16B	1.07B	1.38B	1.53B	1.34B	1.15B
Balance Sheet
Total Assets	1.05T	1.01T	1.01T	968.13B	1.03T	1.02T
Cash, Cash Equivalents and Short-Term Investments	0.00	63.41B	84.02B	43.69B	167.68B	157.50B
Total Debt	54.23B	40.40B	34.44B	8.86B	79.36B	71.98B
Total Liabilities	1.01T	974.24B	973.26B	929.39B	987.05B	981.42B
Stockholders Equity	36.75B	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	-534.00M	20.40B	-475.00M	-474.00M	-474.00M

Tohoku Bank, Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1493.00
• 50DMA: Negative
• 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 Negative. The current price of 1493 is below the 20-day moving average (MA) of 1618.40, below the 50-day MA of 1561.56, and above the 200-day MA of 1319.56, indicating a neutral trend. The MACD of -12.74 indicates Positive momentum. The RSI at 43.24 is Neutral, neither overbought nor oversold. The STOCH value of 31.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8349.

Tohoku Bank, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8349	72 Outperform	¥14.42B	9.31	―	3.58%	13.77%	19.08%
8537	72 Outperform	¥24.77B	7.08	―	3.50%	16.60%	-5.51%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8365	66 Neutral	¥12.92B	21.28	―	2.68%	5.57%	-23.26%
8563	66 Neutral	¥13.67B	7.04	―	3.74%	5.91%	5.03%
8383	64 Neutral	¥16.63B	4.33	―	3.30%	11.93%	36.32%
8562	53 Neutral	¥13.43B	8.11	―	1.89%	8.11%	68.98%