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 declared positive results in Mar'25 after negative results in Dec'24
- NII(Q) Highest at JPY 6,692 MM
- ROCE(HY) Highest at 0.25%
- NET SALES(Q) Highest at JPY 7,858 MM
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 55.62%, 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, Medium Return
Absolute
Risk Adjusted
Volatility
The Towa Bank, Ltd.
55.62%
1.05
43.57%
Japan Nikkei 225
36.73%
1.30
28.24%
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
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend13What is working for the Company
NII(Q)
Highest at JPY 6,692 MM
ROCE(HY)
Highest at 0.25%
NET SALES(Q)
Highest at JPY 7,858 MM
CREDIT DEPOSIT RATIO(HY)
Highest at 74.68%
-16What is not working for the Company
INTEREST(9M)
At JPY 3,174 MM has Grown at 314.36%
ROCE(HY)
Lowest at 0.25%
CASH AND EQV(HY)
Lowest at JPY 375,694 MM
PRE-TAX PROFIT(Q)
Lowest at JPY 482 MM
NET PROFIT(Q)
Lowest at JPY 396 MM
EPS(Q)
Lowest at JPY 11.17
Here's what is working for The Towa Bank, Ltd.
NII
Highest at JPY 6,692 MM and Grown
In each period in the last five periodsMOJO Watch
The bank's income from core business is increasing
Net NPA
Net Sales
Highest at JPY 7,858 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (JPY MM)
Net Sales
At JPY 7,858 MM has Grown at 16.36%
over average net sales of the previous four periods of JPY 6,753.25 MMMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Credit Deposit Ratio
Highest at 74.68%
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 3,174 MM has Grown at 314.36%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Pre-Tax Profit
At JPY 482 MM has Fallen at -73.7%
over average net sales of the previous four periods of JPY 1,833 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 396 MM has Fallen at -71.29%
over average net sales of the previous four periods of JPY 1,379.4 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Pre-Tax Profit
Lowest at JPY 482 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Net Profit
Lowest at JPY 396 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
EPS
Lowest at JPY 11.17
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
Cash and Eqv
Lowest at JPY 375,694 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
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