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Towa Bank, Ltd. (8558) AI Stock Analysis
Towa Bank, Ltd.
(TSE/TYO:8558)
The overall score is constrained by a severe net loss driving a negative P/E ratio, which is the most significant risk. Moderately bullish technical trends and a healthy dividend yield provide some offset, but restoring profitability is critical for improvement.
Towa Bank, Ltd. (8558) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 46.35B
- Dividend Yield
- 2.68%
- Average Volume (3M)
- 203.35K
- Price to Earnings (P/E)
- -1.6
- Beta (1Y)
- 1.18
- Revenue Growth
- 25.84%
- EPS Growth
- -628.29%
- Country
- Japan
- Employees
- 1,207
- Sector
- General
- Sector Strength
- 55
- Industry
- Banks - Regional
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 company w...
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 and...
Towa Bank, Ltd. Financial Statement Overview
Summary
Financial performance is mixed. Revenue growth is strong (+25.7%), but a sharp net loss of ¥24.5B (margin -62.5%) severely impacts profitability. Positive operating cash flow (¥7.0B) and adequate balance sheet leverage (D/E 1.56) provide some support, but thin equity and the large loss weigh heavily.
Income Statement
20Very NegativeBalance Sheet
50NeutralCash Flow
60Neutral| 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 | 5.15B | 0 | -1.61B | -211.22B | 3.50B |
| Operating Cash Flow | 0 | 6.98B | 0 | 941.00M | -209.39B | 5.00B |
| Investing Cash Flow | 0 | 73.12B | 6.16B | 7.42B | 22.39B | -10.91B |
| Financing Cash Flow | 0 | 31.86B | -15.21B | -1.12B | -169.78B | -1.30B |
Towa Bank, Ltd. Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8558, the sentiment is Neutral. The current price of 1308.00 is below the 20-day moving average (MA) of 1377.75, below the 50-day MA of 1448.42, and above the 200-day MA of 1279.74, indicating a neutral trend. The MACD of -55.35 indicates Positive momentum. The RSI at 41.34 is Neutral, neither overbought nor oversold. The STOCH value of 67.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8558.
Towa Bank, Ltd. Peers Comparison
Overall Rating
JP:855177Outperform
JP:853776Outperform
JP:833875.1Outperform
JP:854269Neutral
JP:836460.1Neutral- JP:855848Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:8551 | 77Outperform | JPY 60.49B | 12.02 | ― | 8.01% | 17.34% | 27.36% |
| JP:8537 | 76Outperform | JPY 28.81B | 12.74 | ― | 3.51% | 19.65% | -7.81% |
| JP:8338 | 75Outperform | JPY 54.96B | 7.83 | ― | 0.75% | 19.48% | 57.42% |
| JP:8542 | 69Neutral | JPY 20.92B | 8.99 | ― | 2.75% | 9.09% | 70.21% |
| JP:8364 | 60Neutral | JPY 32.87B | 13.52 | ― | 2.29% | 21.18% | 10.36% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| JP:8558 | 48Neutral | JPY 46.44B | -1.58 | ― | 2.68% | 25.84% | -628.29% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:8558 | Towa Bank, Ltd. | 1308.00 | 409.45 | 45.57% | |
| JP:8338 | Tsukuba Bank, Ltd. | 666.00 | 353.59 | 113.18% | |
| JP:8364 | Shimizu Bank, Ltd. | 2837.00 | 863.53 | 43.76% | |
| JP:8537 | Taiko Bank, Ltd. | 3050.00 | 1370.29 | 81.58% | |
| JP:8542 | Tomato Bank, Ltd. | 1820.00 | 477.31 | 35.55% | |
| JP:8551 | Kita-Nippon Bank, Ltd. | 2447.00 | 1228.22 | 100.78% |
Towa Bank, Ltd. Corporate Events
Towa Bank Corrects Disclosure on Executive Pay Reductions
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 manage...
Towa Bank Finalizes Terms for 17th Share-Based Stock Option Issuance
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 wit...
Towa Bank Reports Q1 Unrealized Securities Losses, Keeps Earnings and Dividend Outlook Intact
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 inst...
Towa Bank Swings to Quarterly Loss but Signals Confidence with Higher Dividend Forecast
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 negati...
Towa Bank Corrects Capital Adequacy Data in FY2026 Results
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 its...
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: Oct 08, 2026