ScoreWhy is The Towa Bank, Ltd. ?
1
Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 10.25% 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 9.30%
- Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 10.25% signifying inadequate buffers against its risk based assets
- The bank has been able to generate a Return on Assets (avg) of 0.10% signifying low profitability per unit of total assets
2
Poor long term growth as Net Interest Income (ex other income) has grown by an annual rate of 0% and Net profit at 9.30%
3
The company has declared positive results in Mar'2025 after 2 consecutive negative quarters
- NET PROFIT(HY) At JPY 3,707.04 MM has Grown at 176.85%
- NET SALES(HY) At JPY 13,570 MM has Grown at 22.19%
- ROCE(HY) Highest at 0.24%
4
With ROA of 0.19%, it has a very attractive valuation with a 0.29 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 54.20%, its profits have risen by 28% ; the PEG ratio of the company is 0.2
- At the current price, the company has a high dividend yield of 0.1
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to The Towa 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 Towa Bank, Ltd. for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
The Towa Bank, Ltd.
50.99%
1.19
36.55%
Japan Nikkei 225
28.54%
1.14
25.81%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-0.70%
EBIT Growth (5y)
-1.95%
EBIT to Interest (avg)
0
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0
Tax Ratio
0
Dividend Payout Ratio
28.61%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0
ROE (avg)
0
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
6
Industry P/E
Price to Book Value
0.29
EV to EBIT
-5.60
EV to EBITDA
-3.74
EV to Capital Employed
-0.57
EV to Sales
-0.98
PEG Ratio
0.21
Dividend Yield
0.07%
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
4.99%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend20What is working for the Company
NET PROFIT(HY)
At JPY 3,707.04 MM has Grown at 176.85%
NET SALES(HY)
At JPY 13,570 MM has Grown at 22.19%
ROCE(HY)
Highest at 0.24%
NII(Q)
Highest at JPY 6,294 MM
CREDIT DEPOSIT RATIO(HY)
Highest at 74.4%
OPERATING PROFIT(Q)
Highest at JPY 1,386 MM
-7What is not working for the Company
INTEREST(9M)
At JPY 2,006 MM has Grown at 1,080%
ROCE(HY)
Lowest at 0.24%
CASH AND EQV(HY)
Lowest at JPY 351,527 MM
Here's what is working for The Towa Bank, Ltd.
Net Profit
At JPY 3,707.04 MM has Grown at 176.85%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (JPY MM)
NII
Highest at JPY 6,294 MM
in the last five periodsMOJO Watch
The bank's income from core business is increasing
NII (JPY MM)
Net Profit
Higher at JPY 3,707.04 MM
than preceding 12 month period ended Jun 2025MOJO Watch
In the half year the company has already crossed Net Profit of the previous twelve months
Net Profit (JPY MM)
Net Sales
Highest at JPY 7,234 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Net Sales
At JPY 7,234 MM has Grown at 22.13%
over average net sales of the previous four periods of JPY 5,923 MMMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 1,386 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Credit Deposit Ratio
Highest at 74.4%
in the last four Semi-Annual periodsMOJO Watch
Bank has been creating proportionately higher loans against its deposits, thereby creating higher revenue generating assets
Credit Deposit Ratio (%)
Here's what is not working for The Towa Bank, Ltd.
Interest
At JPY 2,006 MM has Grown at 1,080%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Cash and Eqv
Lowest at JPY 351,527 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
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