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Towa Bank, Ltd.
(8558)
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Rating:53Neutral
Price Target:
¥1,327.00
▲(15.29% Upside)
Action:Reiterated
Date:10/08/26
The score is held back primarily by weak financial performance, driven by the latest year’s severe earnings breakdown and unstable multi-year cash flow consistency, despite a generally serviceable balance sheet. Offsetting this, technical indicators show a moderately positive trend with neutral momentum, and valuation is supported by a modest dividend yield but constrained by loss-driven negative earnings.
Positive Factors
Strong Revenue Growth
The sharp increase in revenue indicates substantial expansion in the bank’s reported business base and customer activity. While earnings conversion was weak, a larger revenue platform can support future operating leverage if management restores margins and improves the quality of growth.
Negative Factors
Severe Profitability Breakdown
The swing from prior profitability to a large net loss is a major deterioration in earnings quality and suggests revenue growth is not currently translating into sustainable returns. Persistently weak margins would limit capital generation, constrain lending capacity, and weaken resilience.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
The sharp increase in revenue indicates substantial expansion in the bank’s reported business base and customer activity. While earnings conversion was weak, a larger revenue platform can support future operating leverage if management restores margins and improves the quality of growth.
Read all positive factors
Towa Bank, Ltd. (8558) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥46.40B
Dividend Yield2.68%
Average Volume (3M)166.09K
Price to Earnings (P/E)―
Beta (1Y)1.16
Revenue Growth25.84%
EPS Growth-628.29%
CountryJP
Employees1,207
SectorGeneral
Sector StrengthN/A
IndustryBanks - Regional
Share Statistics
EPS (TTM)-825.30
Shares Outstanding35,775,870
10 Day Avg. Volume170,570
30 Day Avg. Volume166,086
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. It offers deposit, lending, ancillary, securities investment, entrustment of corporate bonds, domestic exchange, and foreign exchange services, as well as credit cards. The compan...
How the Company Makes Money
Towa Bank primarily makes money through (1) net interest income and (2) non-interest income. Net interest income is generated from the spread between interest earned on interest-bearing assets—most notably loans to corporate and retail customers a...
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 | 35.46B | 39.13B | 31.14B | 29.88B | 29.49B | 32.88B |
| Gross Profit | 30.54B | 33.68B | 29.75B | 29.74B | 29.34B | 32.67B |
| EBITDA | -35.24B | -26.18B | 8.22B | 5.92B | 6.55B | 4.85B |
| Net Income | -29.38B | -24.46B | 4.52B | 3.53B | 4.09B | 1.75B |
Balance Sheet | ||||||
| Total Assets | 2.42T | 2.42T | 2.38T | 2.41T | 2.39T | 2.57T |
| Cash, Cash Equivalents and Short-Term Investments | 230.46B | 282.49B | 167.71B | 195.49B | 188.35B | 376.58B |
| Total Debt | 108.80B | 140.30B | 121.49B | 120.39B | 115.89B | 292.99B |
| Total Liabilities | 2.33T | 2.33T | 2.29T | 2.29T | 2.27T | 2.44T |
| Stockholders Equity | 85.53B | 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
Negative
1151.00
Price Trends
1470.76
Negative
1435.32
Negative
1270.97
Positive
Market Momentum
-46.24
Positive
36.03
Neutral
12.40
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8558, the sentiment is Negative. The current price of 1151 is below the 20-day moving average (MA) of 1473.40, below the 50-day MA of 1470.76, and below the 200-day MA of 1270.97, indicating a neutral trend. The MACD of -46.24 indicates Positive momentum. The RSI at 36.03 is Neutral, neither overbought nor oversold. The STOCH value of 12.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8558.
Towa Bank, Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ¥63.18B | 12.59 | ― | 7.67% | 17.34% | 27.36% | |
69 Neutral | ¥54.63B | 8.02 | ― | 0.76% | 19.48% | 57.42% | |
69 Neutral | ¥20.35B | 8.95 | ― | 2.76% | 9.09% | 70.21% | |
66 Neutral | ¥26.76B | 12.13 | ― | 3.67% | 19.65% | -7.81% | |
60 Neutral | ¥31.72B | 3.76 | ― | 2.14% | 21.18% | 10.36% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
53 Neutral | ¥46.40B | -1.60 | ― | 2.68% | 25.84% | -628.29% |
* General Sector Average
JP:8558
Towa Bank, Ltd.
1,254.00
348.67
38.51%
JP:8338
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102.43%
Towa Bank, Ltd. Corporate Events
Towa Bank Corrects Disclosure on Executive Pay Reductions
Aug 13, 2026
Towa Bank has issued a correction to its previously disclosed consolidated financial results digest for the quarter ended June 30, 2026, clarifying the titles and levels of executive pay reductions. The revisions adjust the nomenclature of top man...
Towa Bank Finalizes Terms for 17th Share-Based Stock Option Issuance
Aug 7, 2026
Towa Bank, Ltd., a regional Japanese financial institution listed on the TSE Prime Market, provides banking and financial services to retail and corporate clients in its domestic market. The bank operates under a conventional governance structure ...
Towa Bank Reports Q1 Unrealized Securities Losses, Keeps Earnings and Dividend Outlook Intact
Aug 4, 2026
Towa Bank, Ltd., a regional commercial bank listed on the Tokyo Stock Exchange Prime Market, has disclosed the valuation status of its held-to-maturity debt securities at the end of the first quarter of its fiscal year ending March 31, 2027. The i...
Towa Bank Swings to Quarterly Loss but Signals Confidence with Higher Dividend Forecast
Aug 4, 2026
Towa Bank reported a sharp year-on-year rise in ordinary income to ¥15,516 million for the quarter ended June 30, 2026, but swung to an ordinary loss and a net loss attributable to owners of the parent of ¥3,017 million, resulting in neg...
Towa Bank Corrects Capital Adequacy Data in FY2026 Results
Aug 4, 2026
Towa Bank has issued a correction to its previously released summary of consolidated financial results for the year ended March 31, 2026, identifying errors in reported numerical data. The bank clarified that the corrections are limited mainly to ...
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.