Toho Bank, Ltd. (8346) AI Stock Analysis

• Market Cap: ¥114.18B
• Dividend Yield: 1.97%
• Average Volume (3M): 761.32K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 1.03
• Revenue Growth: 25.01%
• EPS Growth: 51.67%
• Country: JP
• Employees: 1,958
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 13.62
• Shares Outstanding: 252,500,000
• 10 Day Avg. Volume: 645,250
• 30 Day Avg. Volume: 761,323
• PEG Ratio: 0.28
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 1.37
• P/FCF Ratio: 3.67
• 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: 72 Outperform
• Price Target: ¥503.00 ▲(14.32% Upside)

Toho Bank, Ltd. receives a strong overall score driven by solid financial performance and positive technical indicators. The stock's valuation is reasonable, providing a balanced investment opportunity. The absence of recent earnings call insights or notable corporate events does not detract from the positive outlook.

Toho Bank, Ltd. Business Overview & Revenue Model

Company Description

Toho Bank, Ltd. (8346) is a prominent regional bank based in Japan, primarily serving the Tohoku region. The bank offers a comprehensive range of financial services, including retail banking, corporate banking, and various investment services. Its core products encompass deposit accounts, loans, foreign exchange services, and asset management solutions, catering to individuals, small to medium-sized enterprises, and larger corporations. Toho Bank is dedicated to supporting local economic development and fostering community growth through its financial offerings.

How the Company Makes Money

Toho Bank generates revenue primarily through the interest income from loans and advances provided to its clients. The bank lends money to individuals and businesses at a higher interest rate than what it pays on deposits, creating a profit margin. Additionally, Toho Bank earns fees from various financial services, including account maintenance, transaction fees, and investment advisory services. The bank may also derive income from foreign exchange transactions and trading activities. Significant partnerships with local businesses and government entities further enhance its revenue streams by providing tailored financial solutions to meet the needs of the community.

Toho Bank, Ltd. Financial Statement Overview

Summary

Toho Bank, Ltd. demonstrates solid financial performance with strong revenue growth and improved profitability. The balance sheet shows increased leverage, which requires careful management. Cash flow metrics indicate robust cash generation, though the conversion of net income to free cash flow could be improved.

Income Statement

Toho Bank, Ltd. has shown a consistent increase in revenue over the past few years, with a notable revenue growth rate of 3.72% in the most recent year. The net profit margin has improved to 10.96%, indicating enhanced profitability. However, the EBIT and EBITDA margins have slightly decreased compared to previous years, suggesting some operational challenges.

Balance Sheet

The bank's debt-to-equity ratio has increased to 1.13, indicating higher leverage, which could pose a risk if not managed properly. Return on equity has improved to 3.77%, reflecting better utilization of equity. The equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Operating cash flow has significantly improved, providing a strong coverage ratio of 3.52. Free cash flow has also grown, indicating better cash management. However, the free cash flow to net income ratio of 0.88 suggests that not all net income is translating into free cash flow, which could be a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	66.84B	64.86B	53.67B	54.72B	57.35B	52.99B
Gross Profit	66.84B	64.13B	56.98B	52.91B	57.35B	43.78B
EBITDA	47.88B	9.79B	10.95B	9.52B	12.01B	-3.81B
Net Income	8.48B	7.45B	5.25B	4.49B	6.75B	-4.66B
Balance Sheet
Total Assets	6.76T	6.65T	6.76T	6.61T	7.14T	6.79T
Cash, Cash Equivalents and Short-Term Investments	0.00	1.24T	1.80T	1.99T	2.80T	2.34T
Total Debt	221.96B	222.05B	198.94B	182.47B	690.05B	426.81B
Total Liabilities	6.56T	6.46T	6.55T	6.42T	6.94T	6.60T
Stockholders Equity	204.69B	197.23B	206.18B	191.01B	192.74B	191.39B
Cash Flow
Free Cash Flow	0.00	24.24B	1.75B	-768.00B	40.07B	852.74B
Operating Cash Flow	0.00	27.62B	6.71B	-759.85B	42.75B	856.01B
Investing Cash Flow	0.00	-350.27B	-302.83B	-49.66B	-44.37B	-133.56B
Financing Cash Flow	0.00	-143.11B	101.56B	-1.90B	-1.27B	-1.27B

Toho Bank, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 440.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8346, the sentiment is Positive. The current price of 440 is below the 20-day moving average (MA) of 440.49, above the 50-day MA of 417.34, and above the 200-day MA of 346.97, indicating a bullish trend. The MACD of 8.52 indicates Positive momentum. The RSI at 60.05 is Neutral, neither overbought nor oversold. The STOCH value of 85.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8346.

Toho Bank, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8336	78 Outperform	¥134.53B	9.95	―	3.08%	5.74%	10.39%
7322	77 Outperform	¥92.24B	10.41	―	3.45%	15.39%	24.95%
8360	73 Outperform	¥106.00B	12.43	―	3.05%	8.18%	25.89%
8361	73 Outperform	¥146.10B	9.31	―	2.74%	-7.59%	76.05%
8346	72 Outperform	¥114.18B	13.34	―	1.97%	25.01%	51.67%
8388	70 Outperform	¥140.76B	11.35	―	2.62%	3.78%	1.63%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Toho Bank, Ltd. Corporate Events

Toho Bank Revises Financial Forecasts Upward Amid Improved Earnings

Toho Bank, Ltd. has revised its financial forecasts for the six months ending March 31, 2026, due to higher-than-expected interest income and gains related to securities, alongside lower credit-related expenses. These adjustments reflect a significant increase in expected profits and earnings per share, indicating a stronger financial performance than initially projected.

The most recent analyst rating on (JP:8346) stock is a Buy with a Yen450.00 price target. To see the full list of analyst forecasts on Toho Bank, Ltd. stock, see the JP:8346 Stock Forecast page.

Toho Bank Reports Improved Capital Adequacy Ratio for Q1 2026

The Toho Bank, Ltd. announced its capital adequacy ratio for the end of the first quarter of the fiscal year ending March 31, 2026. The bank reported a consolidated capital adequacy ratio of 10.97%, showing an increase from the previous quarter. This improvement in the capital adequacy ratio indicates a stronger financial position, which could positively impact the bank’s operations and reassure stakeholders about its stability.

Toho Bank Reports Strong Financial Growth in Q1 2025

Toho Bank, Ltd. reported significant financial growth for the three months ended June 30, 2025, with a notable increase in ordinary income, ordinary profit, and profit attributable to owners compared to the previous year. The bank’s total assets and net assets also saw an increase, indicating a strong financial position. The announcement reflects the bank’s solid operational performance and its ability to generate shareholder value, with implications for continued growth and stability in the financial sector.

Toho Bank to Dissolve Subsidiary Toho Securities

The Toho Bank, Ltd. has announced the dissolution and liquidation of its wholly-owned subsidiary, Toho Securities Co., Ltd., following a business alliance with Nomura Securities Co., Ltd. This strategic move is expected to have minimal impact on the bank’s consolidated financial results for the fiscal year ending March 31, 2026.

Toho Bank Completes Treasury Share Disposal for Stock Remuneration

The Toho Bank, Ltd. has completed the payment procedures for the disposal of treasury shares as restricted stock remuneration, which was resolved at a Board of Directors meeting on June 26, 2025. This disposal involved 182,571 shares of the bank’s common stock at a price of 326 yen per share, totaling 59,518,146 yen, and was allocated to directors and executive officers of the bank. This move could have implications for the bank’s financial strategies and stakeholder interests.