Tochigi Bank, Ltd. (8550) AI Stock Analysis

• Market Cap: ¥87.33B
• Dividend Yield: 2.12%
• Average Volume (3M): 703.38K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.39
• Revenue Growth: 10.91%
• EPS Growth: -1225.48%
• Country: JP
• Employees: 1,544
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 26.11
• Shares Outstanding: 109,608,000
• 10 Day Avg. Volume: 816,970
• 30 Day Avg. Volume: 703,383
• PEG Ratio: <0.01
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 0.81
• P/FCF Ratio: 2.52
• 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: 52 Neutral
• Price Target: ¥924.00 ▲(16.52% Upside)

The score is held back primarily by weak financial performance (loss-making profitability and negative ROE) despite a stable, low-leverage balance sheet and decent operating cash generation. Technicals are supportive with a strong uptrend, but overbought signals add near-term risk. Valuation provides limited support given the negative P/E and only modest dividend yield.

Positive Factors

Low leverage balance sheet

A low debt-to-equity ratio (0.22) indicates conservative leverage and a strong equity base. This structural balance-sheet strength supports resilience to credit stress, preserves lending capacity, and provides flexibility to support regional clients without immediate need for external financing over the medium term.

Operating cash generation

Strong operating cash flow relative to reported earnings shows the bank converts core business activity into cash. Durable cash generation helps fund lending, meet deposit liquidity needs, and reduces short-term reliance on capital markets, improving the bank's ability to manage through periodic earnings volatility.

Sustained revenue growth

Double-digit revenue growth reflects ongoing demand for loans and banking services in its regional market. Over the medium term, sustained top-line expansion supports scale economics, cross-selling opportunities, and diversification of fee income, which can underpin recovery in profitability if cost trends are controlled.

Negative Factors

Negative profitability and ROE

The bank's negative net margin and negative return on equity show it is not generating adequate returns on capital. Persistent losses erode capital buffers, limit capacity to expand lending or pay dividends, and may necessitate capital measures or strategic restructuring to restore sustainable profitability.

Negative EBIT/EBITDA margins

Negative operating margins point to structural cost or revenue-mix issues that impair the bank's ability to convert revenue growth into profits. Without meaningful cost control or higher-yielding assets, margin recovery will be difficult and could require multi-month operational fixes or strategic repricing.

Free cash flow shortfall

Free cash flow that does not cover net losses indicates cash generation is insufficient to offset operating deficits. This structural weakness can force reliance on capital injections, asset sales, or reduced lending, constraining growth and balance-sheet flexibility until profitability and FCF normalize.

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 generates revenue primarily through interest income from loans and advances provided to both individual and corporate clients. The bank charges interest on various types of loans, including personal loans, mortgages, and business loans, which contribute significantly to its earnings. Additionally, the bank earns fee income from services such as account maintenance, transaction processing, and investment advisory services. Another key revenue stream includes income from securities trading and investments in government bonds and equities. The bank's focus on local businesses and community development has led to partnerships with regional enterprises, enhancing its customer base and deposit inflow, which further supports its lending activities and overall profitability.

Tochigi Bank, Ltd. Financial Statement Overview

Summary

Income statement weakness drives the score down: profitability has deteriorated with negative net margin and negative EBIT/EBITDA margins despite recent revenue growth. The balance sheet is comparatively steady with low leverage (debt-to-equity 0.22), but negative ROE signals poor returns on capital. Cash flow is mixed—operating cash flow is strong relative to net income, yet free cash flow metrics do not clearly cover losses.

Income Statement

Tochigi Bank's income statement shows a concerning trend with a significant decline in profitability. The net profit margin has turned negative in the latest period, indicating substantial losses. Although there was a revenue growth of 11.92% in the most recent year, the negative EBIT and EBITDA margins highlight operational inefficiencies and challenges in cost management.

Balance Sheet

The balance sheet reflects a relatively stable financial position with a low debt-to-equity ratio of 0.22, suggesting conservative leverage. However, the negative return on equity indicates that the company is not generating sufficient returns on its equity base, which could be a concern for investors. The equity ratio remains strong, showing a solid equity base relative to total assets.

Cash Flow

Cash flow analysis reveals mixed results. The operating cash flow to net income ratio is strong, indicating good cash generation relative to reported earnings. However, the free cash flow growth rate is not meaningful due to prior negative values, and the free cash flow to net income ratio suggests that cash flow is not fully covering net losses, which could impact future liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.35B	40.31B	41.04B	41.33B	37.76B	36.47B
Gross Profit	1.35B	37.89B	40.93B	41.19B	37.52B	36.06B
EBITDA	-21.48B	-22.22B	4.43B	5.29B	5.67B	5.49B
Net Income	-21.65B	-22.33B	2.10B	2.65B	3.63B	2.08B
Balance Sheet
Total Assets	3.58T	3.33T	3.31T	3.28T	3.52T	3.26T
Cash, Cash Equivalents and Short-Term Investments	0.00	699.67B	585.71B	572.44B	895.52B	658.86B
Total Debt	229.30B	33.36B	34.13B	41.75B	313.80B	132.73B
Total Liabilities	3.42T	3.18T	3.16T	3.12T	3.35T	3.09T
Stockholders Equity	154.12B	151.49B	150.20B	153.41B	161.29B	167.16B
Cash Flow
Free Cash Flow	0.00	13.03B	-1.36B	-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	217.17B	-35.63B	-32.44B	-42.96B	-43.85B
Financing Cash Flow	0.00	5.82B	51.05B	-904.00M	-545.00M	-1.68B

Tochigi Bank, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 793.00
• 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:8550, the sentiment is Positive. The current price of 793 is below the 20-day moving average (MA) of 835.75, above the 50-day MA of 756.60, and above the 200-day MA of 510.56, indicating a bullish trend. The MACD of 34.01 indicates Positive momentum. The RSI at 54.73 is Neutral, neither overbought nor oversold. The STOCH value of 27.32 is Neutral, 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
8387	78 Outperform	¥83.65B	12.95	―	3.05%	8.75%	-12.68%
8395	78 Outperform	¥76.08B	9.45	―	2.29%	7.97%	20.44%
8344	74 Outperform	¥67.89B	13.89	―	2.89%	-0.24%	95.49%
8362	73 Outperform	¥68.24B	16.91	―	2.49%	7.08%	-46.44%
8541	72 Outperform	¥66.34B	10.76	―	2.34%	-0.97%	27.62%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8550	52 Neutral	¥87.33B	-4.54	―	2.12%	10.91%	-1225.48%

Tochigi Bank, Ltd. Corporate Events

Tochigi Bank Reports Strong Financial Performance for H1 2025

Tochigi Bank, Ltd. reported a significant improvement in its financial performance for the six months ended September 30, 2025, with a 13.5% increase in ordinary income and a substantial rise in profits. The bank’s strategic initiatives have resulted in a strong equity-to-asset ratio, indicating a stable financial position and positive outlook for stakeholders.

The most recent analyst rating on (JP:8550) stock is a Hold with a Yen561.00 price target. To see the full list of analyst forecasts on Tochigi Bank, Ltd. stock, see the JP:8550 Stock Forecast page.

Tochigi Bank Revises Financial Forecasts Upward for FY 2026

Tochigi Bank, Ltd. has announced an upward revision of its financial results and dividend forecasts for the fiscal year ending March 31, 2026. The revision is attributed to an expected increase in net interest income, surpassing initial projections, which reflects positively on the bank’s operational performance and financial health. This adjustment indicates a stronger financial outlook for the bank, potentially enhancing its market position and providing positive implications for stakeholders.

The most recent analyst rating on (JP:8550) stock is a Hold with a Yen461.00 price target. To see the full list of analyst forecasts on Tochigi Bank, Ltd. stock, see the JP:8550 Stock Forecast page.