Bank of Toyama Ltd. (8365) AI Stock Analysis

• Market Cap: ¥9.71B
• Dividend Yield: 2.98%
• Average Volume (3M): 12.60K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.49
• Revenue Growth: 5.57%
• EPS Growth: -23.26%
• Country: JP
• Employees: 332
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 43.18
• 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: 72 Outperform
• Price Target: ¥1,929.00 ▲(15.86% Upside)

The Bank of Toyama Ltd. scores well due to its strong valuation metrics, with a low P/E ratio and attractive dividend yield. Technical analysis supports a positive trend, with the stock trading above key moving averages. However, financial performance is mixed, with strong profitability but challenges in revenue growth and cash flow stability, which slightly dampens the overall score.

Positive Factors

Strong Gross Margins

The high gross margin indicates efficient cost management, allowing the bank to maintain profitability despite revenue challenges.

Low Financial Leverage

Low financial leverage reduces risk and enhances financial stability, providing resilience against economic fluctuations.

Stable Balance Sheet

A strong equity ratio ensures a stable capital base, supporting the bank's ability to weather financial uncertainties and invest in growth.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in maintaining market share and customer engagement, potentially impacting long-term growth prospects.

Cash Flow Challenges

Lack of positive operating cash flow suggests difficulties in generating sufficient cash from core operations, affecting financial sustainability.

Modest Profitability

Low net profit margins indicate limited profitability, which could constrain reinvestment opportunities and shareholder returns over time.

Bank of Toyama Ltd. Business Overview & Revenue Model

Company Description

Bank of Toyama Ltd. (8365) is a regional financial institution based in Toyama Prefecture, Japan. The bank primarily operates in the banking sector, providing a range of financial services including personal and corporate banking, loans, deposits, investment services, and asset management. As a community-oriented bank, it focuses on supporting local businesses and promoting economic development in the region, while also offering services such as foreign exchange and securities trading.

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

The Bank of Toyama Ltd. demonstrates strong profitability margins and a stable balance sheet, but faces challenges in revenue growth and cash flow stability. The company has managed to improve its leverage and return on equity, but needs to address the volatility in cash flows to ensure sustainable financial health.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: 1665.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 1665 is below the 20-day moving average (MA) of 1717.15, below the 50-day MA of 1709.07, and above the 200-day MA of 1570.19, indicating a bullish trend. The MACD of 11.42 indicates Negative momentum. The RSI at 56.02 is Neutral, neither overbought nor oversold. The STOCH value of 49.20 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
8365	72 Outperform	¥9.71B	9.10	―	2.98%	5.57%	-23.26%
8349	72 Outperform	¥12.66B	7.90	―	3.73%	13.77%	19.08%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7161	64 Neutral	¥10.88B	6.20	―	1.28%	5.92%	―
8563	63 Neutral	¥9.86B	6.96	―	4.09%	5.91%	5.03%
8416	60 Neutral	¥8.90B	89.45	―	2.92%	7.74%	-92.49%
8562	48 Neutral	¥8.16B	―	―	2.11%	8.11%	68.98%