Towa Bank, Ltd. (JP:8558)
:8558
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Towa Bank, Ltd.
(8558)
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Rating:58Neutral
Price Target:
¥1,263.00
▲(9.73% Upside)
Action:Downgraded
Date:05/14/26
The score is held back primarily by weak financial performance driven by the latest year’s large net loss and unstable cash-flow history. This is partially offset by strong technical momentum (price above key moving averages with positive MACD) and moderate support from the dividend, though the negative P/E reflects recent losses.
Positive Factors
Revenue Growth
A ~543% revenue increase in 2026 materially expanded the bank’s earning base. Sustained higher top-line scale can improve net interest income and fee capture, enable operating leverage to restore margins, and strengthen regional positioning over multiple quarters.
Negative Factors
Profitability Collapse
A swing to a large net loss with a ~-63% margin is a material impairment of earnings power. Persistent or repeated losses will erode retained capital, weaken return on equity, constrain lending capacity, and likely force cost cuts or capital measures to restore long‑term profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
A ~543% revenue increase in 2026 materially expanded the bank’s earning base. Sustained higher top-line scale can improve net interest income and fee capture, enable operating leverage to restore margins, and strengthen regional positioning over multiple quarters.
Read all positive factors
Towa Bank, Ltd. (8558) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥45.44B
Dividend Yield2.87%
Average Volume (3M)144.98K
Price to Earnings (P/E)―
Beta (1Y)1.05
Revenue Growth26.62%
EPS Growth-660.86%
CountryJP
Employees1,257
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)157.17
Shares Outstanding35,775,870
10 Day Avg. Volume109,450
30 Day Avg. Volume144,976
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.39
Price to Sales (P/S)0.90
P/FCF Ratio6.85
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Towa Bank, Ltd. Business Overview & Revenue Model
Company Description
The Towa Bank, Ltd. provides various banking products and services. The company was founded in 1917 and is based in Maebashi, Japan....
How the Company Makes Money
Towa Bank primarily makes money through (1) net interest income and (2) non-interest income (fees and commissions), with other income sources contributing depending on market conditions.
1) Net interest income (core earnings driver): The bank rai...
Towa Bank, Ltd. Financial Statement Overview
Summary
Income Statement
27
Negative
Balance Sheet
58
Neutral
Cash Flow
41
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 37.11B | 39.13B | 31.14B | 29.88B | 29.49B | 32.88B |
| Gross Profit | 37.11B | 33.68B | 29.75B | 29.74B | 29.34B | 32.67B |
| EBITDA | 3.90B | -26.18B | 8.22B | 5.92B | 6.55B | 4.85B |
| Net Income | 5.76B | -24.46B | 4.52B | 3.53B | 4.09B | 1.75B |
Balance Sheet | ||||||
| Total Assets | 2.40T | 2.42T | 2.38T | 2.41T | 2.39T | 2.57T |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 282.49B | 167.71B | 195.49B | 188.35B | 376.58B |
| Total Debt | 125.19B | 140.30B | 121.49B | 120.39B | 115.89B | 292.99B |
| Total Liabilities | 2.30T | 2.33T | 2.29T | 2.29T | 2.27T | 2.44T |
| Stockholders Equity | 92.06B | 90.00B | 90.64B | 118.07B | 117.16B | 124.69B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 5.15B | 0.00 | -1.61B | -211.22B | 3.50B |
| Operating Cash Flow | 0.00 | 6.98B | 0.00 | 941.00M | -209.39B | 5.00B |
| Investing Cash Flow | 0.00 | 73.12B | 6.16B | 7.42B | 22.39B | -10.91B |
| Financing Cash Flow | 0.00 | 31.86B | -15.21B | -1.12B | -169.78B | -1.30B |
Towa Bank, Ltd. Technical Analysis
Positive
1151.00
Price Trends
1115.00
Positive
1114.51
Positive
1010.19
Positive
Market Momentum
50.92
Negative
64.01
Neutral
57.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8558, the sentiment is Positive. The current price of 1151 is below the 20-day moving average (MA) of 1188.75, above the 50-day MA of 1115.00, and above the 200-day MA of 1010.19, indicating a bullish trend. The MACD of 50.92 indicates Negative momentum. The RSI at 64.01 is Neutral, neither overbought nor oversold. The STOCH value of 57.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8558.
Towa Bank, Ltd. Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥26.77B | 9.65 | ― | 3.50% | 1.03% | 12.15% | |
70 Outperform | ¥44.24B | 10.24 | ― | 3.28% | 17.02% | 10.99% | |
68 Neutral | ¥50.34B | 7.54 | ― | 1.20% | 30.84% | 60.48% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | ¥28.96B | 14.07 | ― | 2.59% | 17.44% | 9.26% | |
59 Neutral | ¥17.13B | 14.62 | ― | 3.37% | 6.15% | -0.87% | |
58 Neutral | ¥45.44B | -1.87 | ― | 2.87% | 26.62% | -660.86% |
* Financial Sector Average
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Towa Bank, Ltd. Corporate Events
Towa Bank Announces Leadership Reshuffle and New President
May 12, 2026
The Towa Bank, Ltd. has announced a management reshuffle, with current President and CEO Hiroshi Ebara set to retire from the board and become Senior Advisor (Chairman), as part of a move to renew its management structure. The changes, subject to ...
Towa Bank Posts Double-Digit Gain in Ordinary Income for FY2026
May 12, 2026
The Towa Bank, Ltd. reported a notable rise in both consolidated and non-consolidated ordinary income for the fiscal year ended March 31, 2026, compared with the previous year. Consolidated ordinary income climbed to ¥43.5 billion, while non-...
Towa Bank Swings to Loss but Signals Dividend Hike and Profit Rebound
May 12, 2026
The Towa Bank, Ltd., a regional lender listed in Tokyo, reported consolidated ordinary income of ¥43.5 billion for the fiscal year ended March 31, 2026, up 15% year on year, but swung to a steep loss with an ordinary deficit of ¥29.8 bil...
Towa Bank Discloses Significant Unrealized Losses on Held-to-Maturity Securities
May 8, 2026
The Towa Bank, Ltd. reported unrealized losses of ¥7,170 million on its held-to-maturity debt securities portfolio as of March 31, 2026, against a book value of ¥47,816 million and a market value of ¥40,645 million. The unrealized l...
Towa Bank Swings to Projected ¥26 Billion Loss on Aggressive Portfolio Reshuffle
Mar 13, 2026
The Towa Bank, Ltd. has sharply revised its full-year forecast for the fiscal year ending March 31, 2026, moving from an expected ordinary profit to a substantial consolidated net loss of ¥26 billion, with ordinary profit now projected at a &...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.