Tomato Bank, Ltd. (8542) AI Stock Analysis

• Market Cap: ¥18.50B
• Dividend Yield: 3.37%
• Average Volume (3M): 18.46K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.60
• Revenue Growth: 3.70%
• EPS Growth: 24.98%
• Country: JP
• Employees: 768
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 25.47
• Shares Outstanding: 11,679,030
• 10 Day Avg. Volume: 21,960
• 30 Day Avg. Volume: 18,460
• PEG Ratio: 0.63
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 1.02
• P/FCF Ratio: 1.59
• 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: 64 Neutral
• Price Target: ¥1,722.00 ▲(14.49% Upside)

Tomato Bank, Ltd. has a balanced overall stock score driven by favorable valuation metrics and a stable financial position. However, technical analysis indicates potential short-term weakness, and past cash flow issues pose risks. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Retail / SME business model

A focused retail and SME franchise provides durable deposit funding and recurring interest income. Community-oriented regional banks often retain stable customer relationships, enabling predictable lending volumes and cross-sell of fee products that support earnings over multiple quarters.

Lower leverage

A reduced debt-to-equity ratio to 0.72 signals improved balance-sheet resilience. Lower leverage increases shock absorption, eases regulatory and funding pressure, and creates flexibility for measured loan growth or capital returns without materially raising default or refinancing risk over the medium term.

Cash conversion strength

A high operating cash flow to net income ratio and rising free cash flow indicate strong cash conversion. Reliable cash generation supports dividend sustainability, internal lending capacity and reduces reliance on market funding, bolstering medium-term financial stability.

Negative Factors

Top-line weakness

A notable revenue decline undermines long-term earnings momentum: weaker loan or fee growth compresses future net interest and non-interest income, limiting the bank's ability to expand margins or reinvest in customer initiatives, and could necessitate cost or product strategy shifts.

Low profitability

ROE near 3.25% points to limited returns on shareholder capital. Persistently low ROE constrains capacity to attract capital and deliver shareholder value, forcing trade-offs between growth, capital buffers and dividends, and may signal tight net interest margins or inefficient capital deployment.

Historical cash flow volatility

Prior episodes of negative operating cash flow highlight potential ALM or earnings-quality issues. Even with recent FCF growth, historical volatility implies execution or cycle sensitivity risk, which can hamper credit growth, stress liquidity under pressure, and require greater capital conservatism.

Tomato Bank, Ltd. Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Tomato Bank generates revenue through several key streams. Primarily, the bank earns interest income from loans issued to customers, which include personal loans, mortgages, and business financing. This interest represents a significant portion of the bank's earnings. Additionally, Tomato Bank collects fees for various services such as account maintenance, transaction fees, and advisory services, contributing to its non-interest income. The bank may also engage in investment activities, where it invests in securities and other financial instruments to generate additional returns. Strategic partnerships with local businesses and community organizations enhance its customer base, driving deposits and lending activity, which further supports the bank's revenue growth.

Tomato Bank, Ltd. Financial Statement Overview

Summary

Tomato Bank, Ltd. presents a stable yet cautious financial outlook. Profitability metrics have improved, but revenue decline and past cash flow issues pose risks. The balance sheet is moderately leveraged, providing some stability.

Income Statement

Tomato Bank, Ltd. shows a mixed performance in its income statement. The net profit margin has improved to 7.33% in the latest year, indicating better profitability. However, the revenue growth rate has declined by 7.65%, which is a concern. The EBIT margin is stable at 11.09%, suggesting efficient operations, but the EBITDA margin has decreased, indicating potential cost pressures.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio has improved to 0.72, showing a reduction in leverage. Return on equity is relatively low at 3.25%, indicating limited profitability from equity. The equity ratio is stable, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis reveals challenges. Although free cash flow has grown significantly, the operating cash flow to net income ratio is strong at 2.97, indicating good cash generation relative to earnings. However, past negative operating cash flows raise concerns about cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.49B	23.16B	21.55B	20.71B	20.41B	20.01B
Gross Profit	23.49B	22.21B	21.30B	20.29B	20.14B	19.57B
EBITDA	3.03B	3.33B	3.06B	3.50B	3.20B	2.97B
Net Income	1.52B	1.82B	1.53B	1.88B	1.66B	1.52B
Balance Sheet
Total Assets	1.38T	1.36T	1.34T	1.31T	1.40T	1.30T
Cash, Cash Equivalents and Short-Term Investments	0.00	108.83B	101.97B	86.56B	196.34B	103.46B
Total Debt	40.03B	39.98B	39.34B	25.44B	120.55B	26.77B
Total Liabilities	1.32T	1.31T	1.29T	1.26T	1.35T	1.25T
Stockholders Equity	56.45B	55.86B	56.83B	54.20B	54.75B	51.81B
Cash Flow
Free Cash Flow	0.00	14.90B	-3.37B	-110.62B	90.10B	46.66B
Operating Cash Flow	0.00	15.32B	-3.02B	-110.25B	90.73B	47.32B
Investing Cash Flow	0.00	-26.13B	8.86B	2.06B	-13.00M	-10.85B
Financing Cash Flow	0.00	17.39B	17.55B	-828.00M	2.17B	-806.00M

Tomato Bank, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1504.00
• 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:8542, the sentiment is Positive. The current price of 1504 is below the 20-day moving average (MA) of 1575.25, below the 50-day MA of 1505.86, and above the 200-day MA of 1325.83, indicating a bullish trend. The MACD of 27.98 indicates Positive momentum. The RSI at 61.23 is Neutral, neither overbought nor oversold. The STOCH value of 31.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8542.

Tomato Bank, 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%
8537	72 Outperform	¥22.38B	8.87	―	3.50%	16.60%	-5.51%
8383	70 Outperform	¥16.02B	9.10	―	3.30%	11.93%	36.32%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8542	64 Neutral	¥18.50B	10.87	―	3.37%	3.70%	24.98%
8364	64 Neutral	¥29.08B	13.29	―	2.59%	4.90%	―
8563	63 Neutral	¥12.67B	9.17	―	3.74%	5.91%	5.03%