Tochigi Bank, Ltd. (8550) AI Stock Analysis

• Market Cap: ¥58.60B
• Dividend Yield: 2.69%
• Average Volume (3M): 703.38K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.24
• Revenue Growth: 10.91%
• EPS Growth: -1225.48%
• Country: JP
• Employees: 1,544
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 25.17
• 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): 5.44
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ¥561.00 ▼(-3.77% Downside)

Tochigi Bank's overall stock score is primarily impacted by its financial performance challenges, including declining profitability and negative net income. While technical analysis shows bullish momentum, valuation concerns due to a negative P/E ratio weigh heavily. The absence of earnings call data and corporate events means these factors do not influence the score.

Tochigi Bank, Ltd. Business Overview & Revenue Model

Company Description

Tochigi Bank, Ltd. (8550) is a regional bank based in Tochigi Prefecture, Japan, primarily engaged in providing a wide range of financial services. The bank offers various products including personal and corporate banking services, loans, deposits, and asset management services. It serves individual customers, small and medium-sized enterprises, and local governments, focusing on contributing to the regional economy and fostering community development.

How the Company Makes Money

Tochigi Bank generates revenue primarily through interest income from loans and advances to customers, as well as interest earned on securities investments. The bank's key revenue streams include personal loans, mortgage loans, corporate loans, and credit card services. Additionally, it earns fee income from various financial services such as wealth management, insurance products, and transaction services. The bank also engages in treasury operations, managing its investment portfolio to optimize returns. Strategic partnerships with local businesses and government entities further enhance its revenue potential by fostering community ties and promoting regional economic growth.

Tochigi Bank, Ltd. Financial Statement Overview

Summary

Tochigi Bank faces significant challenges with declining profitability and negative net income, despite revenue growth. The balance sheet remains stable with low leverage, but the negative return on equity is concerning. Cash flow generation is strong relative to net income, but the bank needs to address its operational inefficiencies and improve profitability to ensure long-term financial health.

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	6.04B	40.93B	41.19B	37.76B	36.47B
Gross Profit	1.35B	6.04B	40.93B	41.58B	37.52B	36.06B
EBITDA	-21.48B	-22.22B	4.43B	5.29B	5.67B	3.31B
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: 583.00
• 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 583 is above the 20-day moving average (MA) of 523.10, above the 50-day MA of 499.31, and above the 200-day MA of 384.86, indicating a bullish trend. The MACD of 23.76 indicates Negative momentum. The RSI at 67.75 is Neutral, neither overbought nor oversold. The STOCH value of 89.18 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
8387	79 Outperform	¥60.59B	8.64	―	3.35%	7.21%	-3.97%
8395	79 Outperform	¥53.54B	8.72	―	2.80%	7.97%	20.43%
8344	74 Outperform	¥52.30B	12.20	―	3.26%	-12.00%	28.81%
8362	74 Outperform	¥51.21B	8.56	―	2.65%	10.04%	-16.66%
8541	71 Outperform	¥49.11B	8.46	―	2.73%	-3.02%	7.28%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8550	54 Neutral	¥58.60B	-2.69	―	2.69%	10.91%	-1225.48%

Tochigi Bank, Ltd. Corporate Events

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.