The Taiko Bank, Ltd. (8537) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Shimizu Bank, Ltd.

The Yamagata Bank, Ltd.

The Taiko Bank, Ltd.

The Towa Bank, Ltd.

Why is The Taiko Bank, Ltd. ?

Poor Management Efficiency with a low ROA of 0.08%

The bank has been able to generate a Return on Assets (avg) of 0.08% signifying low profitability per unit of total assets

Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 8.71% signifying inadequate buffers against its risk based assets

Poor long term growth as Net Interest Income (ex other income) has grown by an annual rate of 0% and Net profit at 16.80%
Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 8.71% signifying inadequate buffers against its risk based assets
The bank has been able to generate a Return on Assets (avg) of 0.08% signifying low profitability per unit of total assets

Poor long term growth as Net Interest Income (ex other income) has grown by an annual rate of 0% and Net profit at 16.80%

Negative results in Jun 26

INTEREST(9M) At JPY 3,235 MM has Grown at 105.27%
PRE-TAX PROFIT(Q) Lowest at JPY 491 MM
NET PROFIT(Q) Lowest at JPY 344 MM

With ROA of 0.14%, it has a very attractive valuation with a 0.34 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 64.24%, its profits have risen by 45% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to The Taiko Bank, Ltd. should be less than 10%
Overall Portfolio exposure to Regional Banks should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Regional Banks)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is The Taiko Bank, Ltd. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

The Taiko Bank, Ltd.

63.33%

1.62

38.49%

Japan Nikkei 225

59.79%

2.06

29.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.00%

EBIT Growth (5y)

5.74%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

30.30%

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.34

EV to EBIT

-19.60

EV to EBITDA

-15.44

EV to Capital Employed

10.43

EV to Sales

-3.47

PEG Ratio

0.24

Dividend Yield

ROCE (Latest)

-53.18%

ROE (Latest)

3.08%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

NII(Q)

Highest at JPY 4,657 MM

NET SALES(Q)

Highest at JPY 5,942 MM

OPERATING PROFIT(Q)

Highest at JPY 1,474 MM

-14What is not working for the Company

INTEREST(9M)

At JPY 3,235 MM has Grown at 105.27%

PRE-TAX PROFIT(Q)

Lowest at JPY 491 MM

NET PROFIT(Q)

Lowest at JPY 344 MM

EPS(Q)

Lowest at JPY 35.49

Here's what is working for The Taiko Bank, Ltd.

NII

Highest at JPY 4,657 MM

in the last five periods

MOJO Watch

The bank's income from core business is increasing

NII (JPY MM)

Net Sales

Highest at JPY 5,942 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 5,942 MM has Grown at 14.6%

over average net sales of the previous four periods of JPY 5,185 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 1,474 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Here's what is not working for The Taiko Bank, Ltd.

Interest

At JPY 3,235 MM has Grown at 105.27%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY 491 MM has Fallen at -50.89%

over average net sales of the previous four periods of JPY 999.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

Lowest at JPY 491 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 344 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Profit

At JPY 344 MM has Fallen at -51.71%

over average net sales of the previous four periods of JPY 712.37 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

EPS

Lowest at JPY 35.49

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)