Tochigi Bank, Ltd. (8550) AI Stock Analysis

2 Followers

Tochigi Bank, Ltd.

(TSE/TYO:8550)

Select Model

Rating:82Outperform

Price Target:JPY 1,008.00▲(16.00% Upside)

Action:reiterated

Date:08/17/26

Tochigi Bank earns a strong score of 82, primarily driven by its remarkable financial turnaround, return to profitability, and stellar cash flow generation. The stock is further supported by powerful bullish technical momentum across all major moving averages and an attractive valuation profile featuring a modest 13.4x P/E ratio.

Positive Factors

Revenue reboundRevenue rose to about ¥51.4B in 2026 from ¥40.3B in 2025, showing the bank can restore top-line activity after a weak year. If maintained, that scale supports lending and fee-generating capacity, although the accompanying earnings volatility warrants caution.

Negative Factors

Earnings volatilityNet income swung from a ¥22.3B loss in 2025 to an ¥8.3B profit in 2026, while earlier profits were only ¥2.1B–¥3.6B. Such large changes make earnings power difficult to underwrite and weaken confidence that the rebound represents a stable profit base.

Tochigi Bank, Ltd. (8550) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 90.49B
Dividend Yield: 3.34%
Average Volume (3M): 701.21K
Price to Earnings (P/E): 12.1
Beta (1Y): 1.66
Revenue Growth: 24.87%
EPS Growth: ―
Country: Japan
Employees: 1,501
Sector: Financial
Sector Strength: 68
Industry: Banks - Regional

Tochigi Bank, Ltd. Business Overview & Revenue Model

Company Description

The Tochigi Bank, Ltd. delivers a comprehensive range of banking products and financial services to both individual and business customers throughout Japan. Its diverse deposit portfolio includes everyday options like ordinary, savings, and general a...

How the Company Makes Money

Tochigi Bank’s earnings are primarily generated through traditional commercial banking activities. The main revenue stream is interest income: the bank accepts customer deposits and other funding and deploys those funds into interest-earning assets s...

Tochigi Bank, Ltd. Financial Statement Overview

Summary

Tochigi Bank demonstrated a robust turnaround, with revenue growing to ¥51.39 billion and net income surging to ¥8.28 billion. A stable balance sheet featuring low leverage (0.28x debt-to-equity) and massive improvements in free cash flow (¥7.78 billion) underscore a highly encouraging recovery and solid operational resilience.

Income Statement

82Very Positive

Balance Sheet

78Positive

Cash Flow

85Very Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	55.90B	51.40B	40.31B	41.04B	41.33B	37.76B
Gross Profit	46.26B	43.14B	37.89B	40.93B	41.19B	37.52B
EBITDA	9.77B	11.34B	-22.22B	4.43B	5.29B	5.67B
Net Income	7.47B	8.29B	-22.33B	2.10B	2.65B	3.63B
Balance Sheet
Total Assets	3.43T	3.42T	3.33T	3.31T	3.28T	3.52T
Cash, Cash Equivalents and Short-Term Investments	359.86B	466.15B	699.67B	585.71B	572.44B	895.52B
Total Debt	45.65B	45.81B	33.36B	34.13B	41.75B	313.80B
Total Liabilities	3.27T	3.25T	3.18T	3.16T	3.12T	3.35T
Stockholders Equity	165.00B	163.24B	151.49B	150.20B	153.41B	161.29B
Cash Flow
Free Cash Flow	0	7.79B	0	-1.36B	-292.20B	278.43B
Operating Cash Flow	0	14.92B	0	1.10B	-290.89B	279.58B
Investing Cash Flow	0	-300.99B	217.17B	-35.63B	-32.44B	-42.96B
Financing Cash Flow	0	63.19B	5.82B	51.05B	-904.00M	-545.00M

Tochigi Bank, Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price869.00

Price Trends

50DMA1034.26Negative

100DMA1009.35Negative

200DMA965.68Negative

Market Momentum

MACD-57.60Positive

RSI39.67Neutral

STOCH44.57Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8550, the sentiment is Negative. The current price of 869.00 is below the 20-day moving average (MA) of 917.75, below the 50-day MA of 1034.26, and below the 200-day MA of 965.68, indicating a bearish trend. The MACD of -57.60 indicates Positive momentum. The RSI at 39.67 is Neutral, neither overbought nor oversold. The STOCH value of 44.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8550.

Tochigi Bank, Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

JP:8550 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:8387	82Outperform	JPY 147.77B	8.27	―	2.07%	39.23%	178.34%
JP:8550	82Outperform	JPY 89.62B	12.12	―	3.34%	24.87%	―
JP:7167	81Outperform	JPY 1.32T	14.25	―	2.51%	20.96%	46.10%
JP:8399	78Outperform	JPY 112.96B	11.52	―	4.14%	18.94%	26.15%
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
JP:8343	63Neutral	JPY 131.07B	14.17	―	14.18%	31.51%	25.98%
JP:8334	61Neutral	JPY 977.76B	14.51	10.64%	2.73%	18.61%	36.01%

* Financial Sector Average

Performance Comparison

JP:8550 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:8550	Tochigi Bank, Ltd.	869.00	272.02	45.57%
JP:8334	Gunma Bank	2528.00	915.03	56.73%
JP:7167	Mebuki Financial Group, Inc.	1513.00	571.33	60.67%
JP:8343	Akita Bank, Ltd.	1410.00	691.39	96.21%
JP:8387	Shikoku Bank Ltd.	3615.00	2134.06	144.10%
JP:8399	Bank Of The Ryukyus,Limited	2660.00	1140.47	75.05%

Tochigi Bank, Ltd. Corporate Events

Tochigi Bank Reports Higher Income but Lower Interim Profit

Nov 6, 2026

The Tochigi Bank, a Japanese regional bank serving customers and businesses in Tochigi Prefecture, reported six-month ordinary income of ¥31.269 billion, up 24.4% year on year. However, ordinary profit fell 9.3% to ¥4.475 billion, while profit attrib...

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.

Date of analysis: Aug 17, 2026

Tochigi Bank, Ltd. AI Stock Analysis