Tochigi Bank, Ltd. (8550) AI Stock Analysis

• Market Cap: ¥50.77B
• Dividend Yield: 1.44%
• Average Volume (3M): 564.51K
• Price to Earnings (P/E): 7.4
• Beta (1Y): 1.25
• Revenue Growth: 3.90%
• EPS Growth: -935.77%
• Country: JP
• Employees: 1,544
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 16.66
• Shares Outstanding: 109,608,000
• 10 Day Avg. Volume: 644,480
• 30 Day Avg. Volume: 564,513
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 61 Neutral
• Price Target: ―

Tochigi Bank, Ltd. has a stable financial position with strong cost management and low leverage, but faces challenges with declining revenue and incomplete cash flow data, indicating potential liquidity issues. The stock's technical indicators suggest bearish momentum, while its low P/E ratio and reasonable dividend yield present a compelling valuation opportunity. Overall, the stock score reflects these mixed signals.

Tochigi Bank, Ltd. Business Overview & Revenue Model

Company Description

The Tochigi Bank, Ltd. provides various banking products and services for individual and corporate customers in Japan. It offers various deposits, including ordinary deposits, savings deposits, time deposits, foreign currency time deposits, property accumulation deposits, WEB accounts, and general accounts. The company also provides mortgage loans, remodeling loans, school loans, housing loans, car loans, and bank card loans; asset management services; and insurance and pension products. As of March 31, 2021, it operated through a network of 86 offices and 6 loan plazas, and 335 ATMs in 199 locations. The company was formerly known as Tochigi Mutual Bank Co., Ltd. and changed its name to The Tochigi Bank, Ltd. in 1989. The Tochigi Bank, Ltd. was incorporated in 1942 and is headquartered in Utsunomiya, Japan.

How the Company Makes Money

Tochigi Bank, Ltd. generates revenue primarily through interest income from loans and credit products offered to individuals and businesses. The bank also earns money from fees and commissions associated with various banking services such as asset management, account maintenance, and financial advisory services. In addition, Tochigi Bank engages in investment activities, where it earns income from its portfolio of securities. The bank's revenue model is further supported by strategic partnerships with other financial institutions and businesses that enhance its service offerings, contributing to its overall earnings.

Tochigi Bank, Ltd. Financial Statement Overview

Summary

Tochigi Bank, Ltd. shows strong cost management with a high gross profit margin of 98.33%, and a healthy net profit margin of 11.45%. However, declining revenue and net income growth are concerning. The balance sheet is stable with low leverage, reflected in a debt-to-equity ratio of 0.22, but low ROE of 2.91% suggests inefficient use of equity. Cash flow analysis is hindered by incomplete data, indicating potential liquidity issues.

Income Statement

The income statement shows a consistent revenue performance with some fluctuations. The gross profit margin is strong at 98.33% for TTM, indicating efficient cost management. However, the recent revenue decline in TTM compared to the previous annual period indicates potential challenges in sustaining growth. The net profit margin is healthy at 11.45% in TTM, showing profitability, but the decreasing trend in revenue growth raises concerns.

Balance Sheet

The balance sheet reflects a solid equity position with an equity ratio of 4.24% for TTM, which is typical for the banking industry. The debt-to-equity ratio is low at 0.22, suggesting prudent leverage management. However, the low return on equity of 2.91% in TTM indicates that the company might not be efficiently using its equity to generate profits.

Cash Flow

Cash flow analysis reveals challenges with no free cash flow or operating cash flow in the most recent TTM period. Historically, the company had strong operating cash flows, but recent data shows zeroes, indicating potential liquidity issues or data-reporting inconsistencies. The absence of recent cash flow data prevents a thorough analysis of cash-generating efficiency.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	38.20B	38.98B	40.93B	41.19B	37.52B	36.06B
Gross Profit	37.56B	0.00	40.93B	41.19B	37.52B	36.06B
EBITDA	6.46B	-21.49B	4.43B	5.29B	5.67B	5.49B
Net Income	4.37B	-22.33B	2.10B	2.65B	3.63B	2.08B
Balance Sheet
Total Assets	3.36T	3.33T	3.31T	3.28T	3.52T	3.26T
Cash, Cash Equivalents and Short-Term Investments	655.84B	0.00	585.71B	572.44B	895.52B	658.86B
Total Debt	34.27B	33.36B	34.13B	41.75B	313.80B	132.73B
Total Liabilities	3.21T	3.18T	3.16T	3.12T	3.35T	3.09T
Stockholders Equity	147.75B	151.49B	150.20B	153.41B	161.29B	167.16B
Cash Flow
Free Cash Flow	0.00	13.03B	-2.11B	-292.20B	278.43B	316.46B
Operating Cash Flow	0.00	19.01B	1.10B	-290.89B	279.58B	317.90B
Investing Cash Flow	0.00	87.03B	-35.63B	-32.44B	-42.96B	-43.85B
Financing Cash Flow	0.00	6.06B	43.43B	-904.00M	-545.00M	-1.68B

Tochigi Bank, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 486.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8550, the sentiment is Positive. The current price of 486 is above the 20-day moving average (MA) of 451.00, above the 50-day MA of 427.96, and above the 200-day MA of 330.93, indicating a bullish trend. The MACD of 13.53 indicates Negative momentum. The RSI at 68.67 is Neutral, neither overbought nor oversold. The STOCH value of 89.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8550.

Tochigi Bank, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8395	72 Outperform	¥47.97B	7.81		2.76%	5.00%	-10.64%
8362	72 Outperform	¥47.16B	7.88		2.85%	10.04%	-16.66%
Sector *	68 Neutral	$17.60B	11.93	10.30%	3.77%	9.67%	0.38%
8387	66 Neutral	¥58.94B	8.41		3.14%	7.21%	-3.97%
8550	61 Neutral	¥50.77B	7.44		1.44%	3.90%	-935.77%
8541	60 Neutral	¥48.21B	8.25		2.76%	-3.02%	7.28%
8344	52 Neutral	¥50.42B	11.77		2.74%	-12.00%	28.81%

Tochigi Bank, Ltd. Corporate Events

Tochigi Bank Revises Financial Forecasts Amid Strategic Restructuring

Tochigi Bank has revised its financial forecasts for the fiscal year ending March 31, 2025, anticipating a significant loss due to strategic portfolio restructuring amidst changing interest rate environments. The bank plans to enhance profitability and corporate value by improving loan yields and securities reinvestment, despite recording substantial losses from securities sales.