Bank of Toyama Ltd. (8365) AI Stock Analysis

• Market Cap: ¥11.75B
• Dividend Yield: 2.68%
• Average Volume (3M): 12.60K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.57
• 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: 68 Neutral
• Price Target: ¥2,354.00 ▲(15.11% Upside)

The Bank of Toyama Ltd. receives a solid score driven by its strong technical indicators and attractive valuation. While financial performance shows strengths in profitability and leverage, challenges in revenue growth and cash flow stability are notable concerns. The absence of recent earnings call data and corporate events limits further insights.

Positive Factors

Capital structure and leverage

A decreasing debt-to-equity ratio and strong equity ratio indicate improved leverage management and capital resilience. Over the next several months this supports lending capacity, regulatory headroom and lower financing risk, enabling steadier operations and strategic flexibility.

High gross profit margins

Consistently high gross margins imply the bank sustains a stable interest spread or low direct costs. This durability supports long-term profitability even if top-line growth slows, helping preserve net income and capacity to fund dividends and reinvestment over the coming months.

Strong free cash flow conversion

High conversion of net income into free cash flow enhances financial flexibility, enabling the bank to fund lending, maintain dividends and meet regulatory requirements without immediate capital raises. This steadiness is a durable source of resilience over 2–6 months.

Negative Factors

Operating cash flow volatility

Large fluctuations in operating cash flow undermine reliable internal funding for loans and operations. Over the medium term this raises refinancing and liquidity risks, complicates balance sheet planning and can force precautionary limits on credit growth or capital return policies.

Weak revenue trend

Sustained negative revenue growth signals structural pressure on core lending or fee businesses. Over the next several months this erodes scale, limits margin recovery, and constrains earnings upside, making it harder to absorb costs or expand market share in the regional banking franchise.

Declining EPS

A sharp decline in EPS indicates weakening profitability or one-off hits that reduce shareholder returns and internal retained earnings. Persisting EPS declines over months can pressure capital accumulation, dividend sustainability and management's ability to invest in growth initiatives.

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

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: 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 2118.65, above the 50-day MA of 1954.74, and above the 200-day MA of 1680.94, indicating a bullish trend. The MACD of 66.64 indicates Positive momentum. The RSI at 64.35 is Neutral, neither overbought nor oversold. The STOCH value of 32.06 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	¥14.47B	9.19	―	3.58%	13.77%	19.08%
8365	68 Neutral	¥11.75B	11.00	―	2.68%	5.57%	-23.26%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7161	64 Neutral	¥12.22B	7.50	―	1.24%	5.92%	―
8563	63 Neutral	¥12.67B	9.17	―	3.74%	5.91%	5.03%
8416	61 Neutral	¥11.87B	119.27	―	2.74%	7.74%	-92.49%
8562	55 Neutral	¥11.23B	-77.44	―	1.89%	8.11%	68.98%