Improving ProfitabilityImproved net and EBIT margins indicate the bank has tightened costs and/or enhanced loan pricing, supporting sustainable profitability. Strong margins provide a buffer against top-line volatility, enabling continued earnings retention, reinvestment, and support for dividends over the medium term.

Reduced LeverageA lower debt-to-equity ratio (0.72) signals reduced financial leverage and improved balance sheet flexibility. This durable improvement lessens refinancing and interest-rate risk, enhances capacity to lend or absorb losses, and supports strategic initiatives without immediate capital raises.

Stronger Cash GenerationA high operating-cash-flow to net-income ratio (2.97) and notable free cash flow growth indicate improved cash conversion and internal funding capacity. Durable cash generation strengthens the bank's ability to fund lending, invest in operations, pay dividends, and manage shocks without relying heavily on external financing.

Bears Say

Declining RevenueA year-over-year revenue decline of 7.65% reduces the top-line base needed to absorb fixed costs and sustain growth. If persistent, shrinking revenue can compress margins, limit reinvestment, and signal market share loss or weaker loan/deposit activity, creating medium-term pressure on strategic initiatives.

Historical Cash-flow VolatilityAlthough recent OCF is strong, historical periods of negative operating cash flow highlight volatility in cash conversion and potential weaknesses in liquidity management. Recurrence of cash-flow stress would constrain lending, capital spending, and dividend policy, raising medium-term execution risk.

Low Return On EquityA low ROE of 3.25% indicates limited profitability relative to equity capital and suggests inefficient capital deployment. Over time, persistently low ROE can hinder the bank's ability to attract new equity, fund growth organically, and justify dividend payouts without improving asset returns or capital efficiency.

8542 FAQ

What was Tomato Bank, Ltd.’s price range in the past 12 months?

Tomato Bank, Ltd. lowest stock price was ¥1020.00 and its highest was ¥1876.00 in the past 12 months.

What is Tomato Bank, Ltd.’s market cap?

Tomato Bank, Ltd.’s market cap is ¥19.06B.

When is Tomato Bank, Ltd.’s upcoming earnings report date?

Tomato Bank, Ltd.’s upcoming earnings report date is May 07, 2026 which is in 59 days.

How were Tomato Bank, Ltd.’s earnings last quarter?

Tomato Bank, Ltd. released its earnings results on Feb 03, 2026. The company reported ¥76.74 earnings per share for the quarter, beating the consensus estimate of N/A by ¥76.74.

Is Tomato Bank, Ltd. overvalued?

According to Wall Street analysts Tomato Bank, Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Tomato Bank, Ltd. pay dividends?

Tomato Bank, Ltd. pays a Semiannually dividend of ¥25 which represents an annual dividend yield of 3.37%. See more information on Tomato Bank, Ltd. dividends here

What is Tomato Bank, Ltd.’s EPS estimate?

Tomato Bank, Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Tomato Bank, Ltd. have?

Tomato Bank, Ltd. has 11,679,030 shares outstanding.

What happened to Tomato Bank, Ltd.’s price movement after its last earnings report?

Tomato Bank, Ltd. reported an EPS of ¥76.74 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 10.133%.

Which hedge fund is a major shareholder of Tomato Bank, Ltd.?

Currently, no hedge funds are holding shares in JP:8542

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Tomato Bank, Ltd.

Tomato Bank, Ltd. provides banking products and services for individual and corporate customers in Japan. It accepts saving, time, reserve, and foreign currency deposits, as well as provides loan products, such as card, housing, remodeling, free, car, education, and other loans. The company also offers debit and credit cards; life and non-life insurance products and services; and bonds. In addition, it provides pension, investment trust, electronic money charge, payment and transfer, safe deposit box, and Internet and mobile banking services. Further, the company provides consulting, business support, fund management, and ATM services. As of June 30, 2021, it operated a network of 61 branches. The company was formerly known as Sanyo Mutual Bank, Ltd. and changed its name to Tomato Bank, Ltd. in April 1989. Tomato Bank, Ltd. was incorporated in 1931 and is headquartered in Okayama, Japan.