The Tochigi Bank, Ltd. (8550) 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

The Miyazaki Bank Ltd.

Okinawa Financial Group, Inc.

Bank of The Ryukyus, Ltd.

The Tochigi Bank, Ltd.

The Shikoku Bank, Ltd.

The Bank of Iwate Ltd.

Oita Bank, Ltd.

The Yamagata Bank, Ltd.

San ju San Financial Group, Inc.

The Ehime Bank, Ltd.

HS Holdings Co., Ltd.

Why is The Tochigi Bank, Ltd. ?

Poor Management Efficiency with a low ROA of -0.03%

The bank has been able to generate a Return on Assets (avg) of -0.03% signifying low profitability per unit of total assets

Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 11.47% 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 -265.10%
Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 11.47% signifying inadequate buffers against its risk based assets
The bank has been able to generate a Return on Assets (avg) of -0.03% 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 -265.10%

The company has declared Positive results for the last 4 consecutive quarters

NII(Q) Highest at JPY 7,882 MM
NET PROFIT(HY) Higher at JPY 3,447.9 MM
ROCE(HY) Highest at 0.25%

With ROA of -0.58%, it has a fair valuation with a 0.67 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 140.14%, its profits have fallen by -1163%
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 Tochigi 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 Tochigi Bank, Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

The Tochigi Bank, Ltd.

129.98%

4.05

46.78%

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)

0.40%

EBIT Growth (5y)

-262.25%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

32.62%

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

NA (Loss Making)

Industry P/E

Price to Book Value

0.67

EV to EBIT

12.51

EV to EBITDA

13.20

EV to Capital Employed

1.19

EV to Sales

-12.12

PEG Ratio

Dividend Yield

ROCE (Latest)

9.50%

ROE (Latest)

-14.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

Bullish

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

23What is working for the Company

NII(Q)

Highest at JPY 7,882 MM

NET PROFIT(HY)

Higher at JPY 3,447.9 MM

ROCE(HY)

Highest at 0.25%

NET SALES(Q)

Highest at JPY 10,360 MM

CREDIT DEPOSIT RATIO(Q)

Highest at 2.03%

OPERATING PROFIT(Q)

Highest at JPY 2,753 MM

-7What is not working for the Company

INTEREST(9M)

At JPY 6,746 MM has Grown at 92.63%

ROCE(HY)

Lowest at 0.25%

CASH AND EQV(HY)

Lowest at JPY 872,190 MM

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

NII

Highest at JPY 7,882 MM and Grown

In each period in the last five periods

MOJO Watch

The bank's income from core business is increasing

Net NPA

Net Sales

Highest at JPY 10,360 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Credit Deposit Ratio

Highest at 2.03% and Grown

In each half year in the last four Semi-Annual periods

MOJO Watch

Bank has been creating proportionately higher loans against its deposits, thereby creating higher revenue generating assets

Credit Deposit Ratio (%)

Net Profit

Higher at JPY 3,447.9 MM

than preceding 12 month period ended Jun 2026

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (JPY MM)

Net Profit

At JPY 3,447.9 MM has Grown at 114.14%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Sales

At JPY 10,360 MM has Grown at 13.62%

over average net sales of the previous four periods of JPY 9,117.75 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 2,753 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 Tochigi Bank, Ltd.

Interest

At JPY 6,746 MM has Grown at 92.63%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 872,190 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents