Bank of Toyama Ltd. (8365) AI Stock Analysis

• Market Cap: ¥13.78B
• Dividend Yield: 2.68%
• Average Volume (3M): 12.60K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.61
• Revenue Growth: 5.57%
• EPS Growth: -23.26%
• Country: JP
• Employees: 332
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 22.64
• Shares Outstanding: 5,444,400
• 10 Day Avg. Volume: 15,140
• 30 Day Avg. Volume: 12,600
• PEG Ratio: 0.17
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.89
• P/FCF Ratio: 6.08
• 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: 66 Neutral
• Price Target: ¥2,643.00 ▲(29.24% Upside)
• Action: Reiterated Date: 02/05/26
• Date: Action: Reiterated 02/05/26

Overall score reflects stable fundamentals but uneven quality: a solid balance sheet is offset by weak recent revenue growth and volatile cash flows. Technicals are supportive due to a strong uptrend, but overbought readings raise near-term downside risk. Reasonable valuation and a moderate dividend yield provide additional support.

Positive Factors

Strong balance sheet

Decreasing debt-to-equity and a strong equity ratio indicate durable capital strength and improved leverage management. This structural solidity supports regulatory cushions, sustained lending capacity to the local economy, and the ability to weather credit stress without needing frequent recapitalization.

Community franchise & partnerships

A regional, community-focused business model and embedded partnerships create durable deposit access and origination pipelines. Local government and business ties deepen customer relationships, lowering acquisition costs and supporting steady core lending volumes over multi-quarter horizons.

High gross margin and improving ROE

Very high gross margins and rising ROE reflect efficient cost structure and improving returns on shareholder capital. These structural profitability traits allow reinvestment, dividend support and resilience to modest revenue shocks, underpinning long-term earnings capacity.

Negative Factors

Recent revenue decline

Sustained or recurring revenue declines indicate weakening core top-line momentum that can erode margins and limit scale benefits. For a regional bank, shrinking revenues constrain loan growth, fee income expansion and the ability to absorb rising costs over the coming quarters.

Volatile operating cash flow

Material volatility in operating cash flows and weak conversion to net income reduce predictability of internal funding for lending and capital returns. This elevates refinancing and liquidity management risks, forcing reliance on balance sheet buffers or external funding in stress scenarios.

Revenue concentration in interest income

High dependence on interest income concentrates exposure to credit cycles and interest rate shifts. Limited diversification from fees or non-interest streams can amplify earnings variability if loan demand or margins weaken, constraining steady income generation across economic cycles.

Bank of Toyama Ltd. Business Overview & Revenue Model

Company Description

The Bank of Toyama, Ltd. provides various banking products and services to individual and business customers in Japan. It offers ordinary, time, savings, and term deposits, as well as housing, car, and education loans. The company also provides pension and insurance, NISA products, financial products brokerage, government bonds, and investment trust services; safe deposit boxes; automatic transfer and foreign currency services; and debit cards. In addition, it offers direct, internet, and mobile banking services, as well as operates 39 stores. The company was formerly known as Toyama Industrial Bank and changed its name to The Bank of Toyama, Ltd. in August 1967. The company was founded in 1954 and is headquartered in Takaoka, Japan.

How the Company Makes Money

The Bank of Toyama generates revenue primarily through interest income from its lending activities, which includes personal loans, mortgages, and corporate loans. The bank also earns money from fees associated with account maintenance, transaction processing, and financial advisory services. Additionally, it benefits from investment income derived from its securities portfolio. The bank's strategic partnerships with local businesses and government entities enhance its lending capabilities and facilitate growth in the region, contributing to its overall earnings. Furthermore, the bank may engage in treasury operations and foreign exchange transactions, which can provide additional revenue streams.

Bank of Toyama Ltd. Financial Statement Overview

Summary

Financials are mixed: the balance sheet is stable with improving leverage and ROE (Balance Sheet 70), but revenue growth has been negative recently and margins show some volatility (Income Statement 65). Cash flow is the key weakness due to large fluctuations and low operating cash flow conversion despite good free-cash-flow-to-net-income conversion (Cash Flow 55).

Income Statement

The Bank of Toyama Ltd. has shown a strong gross profit margin, consistently near 100%, indicating effective cost management. However, the revenue growth rate has been negative in recent years, with a significant decline in the most recent year. Net profit margins have improved, but remain moderate. The EBIT and EBITDA margins have shown some volatility, reflecting challenges in maintaining operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a decreasing debt-to-equity ratio, indicating improved leverage management. Return on equity has shown a gradual increase, suggesting better profitability from shareholders' equity. The equity ratio remains strong, highlighting a solid capital structure.

Cash Flow

Cash flow analysis reveals significant volatility, with operating cash flow and free cash flow showing large fluctuations. The free cash flow to net income ratio indicates a strong conversion of earnings into cash, but the operating cash flow to net income ratio is low, suggesting potential issues in cash generation from operations.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	9.76B	9.28B	9.74B	10.43B	8.05B	8.89B
Gross Profit	9.76B	8.95B	9.72B	10.40B	8.01B	8.83B
EBITDA	403.00M	1.79B	1.26B	2.01B	809.00M	1.53B
Net Income	1.03B	954.00M	632.00M	972.00M	333.00M	559.00M
Balance Sheet
Total Assets	561.17B	548.42B	552.20B	551.29B	569.87B	552.49B
Cash, Cash Equivalents and Short-Term Investments	0.00	30.67B	33.31B	30.16B	36.79B	40.12B
Total Debt	14.77B	11.56B	18.27B	18.73B	35.23B	25.38B
Total Liabilities	531.16B	519.07B	520.89B	521.04B	537.55B	518.90B
Stockholders Equity	29.11B	28.45B	30.43B	29.40B	31.48B	32.79B
Cash Flow
Free Cash Flow	0.00	1.35B	-2.16B	-19.88B	11.13B	11.56B
Operating Cash Flow	0.00	1.65B	2.64B	-19.22B	11.28B	11.69B
Investing Cash Flow	0.00	1.87B	972.00M	13.79B	-13.30B	-19.21B
Financing Cash Flow	0.00	2.92B	-272.00M	-272.00M	-341.00M	-273.00M

Bank of Toyama Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2045.00
• 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:8365, the sentiment is Positive. The current price of 2045 is below the 20-day moving average (MA) of 2456.45, below the 50-day MA of 2210.62, and above the 200-day MA of 1778.33, indicating a bullish trend. The MACD of 79.90 indicates Positive momentum. The RSI at 62.07 is Neutral, neither overbought nor oversold. The STOCH value of 30.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8365.

Bank of Toyama Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8349	72 Outperform	¥15.84B	10.05	―	3.58%	13.77%	19.08%
8563	69 Neutral	¥15.26B	10.41	―	3.74%	5.91%	5.03%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8365	66 Neutral	¥13.78B	12.10	―	2.68%	5.57%	-23.26%
8416	65 Neutral	¥12.24B	2,527.73	―	2.74%	7.74%	-92.49%
7161	64 Neutral	¥15.97B	7.42	―	1.24%	5.92%	―
8562	53 Neutral	¥14.33B	79.09	―	1.89%	8.11%	68.98%