| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1246.38 | -44 |
| Intrinsic value (DCF) | 1157.71 | -48 |
| Graham-Dodd Method | 3013.35 | 36 |
| Graham Formula | 6895.14 | 210 |
The First Bank of Toyama, Ltd. (7184.T) is a regional banking institution headquartered in Toyama, Japan, offering a comprehensive suite of financial services to individuals, businesses, and corporate clients. Established in 1944, the bank operates 66 branches, providing deposit accounts, loans (including housing, auto, and education loans), investment trusts, public bonds, brokerage services, pension and insurance products, and internet banking solutions. As a key player in Japan's regional banking sector, The First Bank of Toyama plays a vital role in supporting local economic growth and financial inclusion. With a market capitalization of approximately ¥61.3 billion, the bank maintains a stable financial position, underscored by its conservative beta of 0.189, reflecting lower volatility compared to broader markets. The bank's focus on traditional banking services, combined with digital offerings like internet banking, positions it well in Japan's competitive financial landscape.
The First Bank of Toyama presents a stable investment opportunity within Japan's regional banking sector, characterized by its conservative risk profile (beta: 0.189) and consistent profitability (net income: ¥5.28 billion in FY2024). The bank's strong liquidity position (cash and equivalents: ¥68.6 billion) and moderate dividend yield (¥34 per share) may appeal to income-focused investors. However, regional banks in Japan face structural challenges, including demographic pressures (aging population, rural depopulation) and ultra-low interest rates, which could constrain net interest margins. The bank's reliance on domestic operations also limits geographic diversification. Investors should weigh its stability against slower growth prospects compared to larger, globally active Japanese banks.
The First Bank of Toyama competes in Japan's crowded regional banking sector, where differentiation is challenging due to homogeneous product offerings and regulatory constraints. Its competitive advantage lies in deep regional roots, with 66 branches providing localized service—a critical factor in relationship-driven SME and retail banking. The bank's conservative balance sheet (debt-to-equity ratio appears manageable given ¥53.2 billion total debt against ¥68.6 billion cash) provides stability but may limit aggressive expansion. Unlike megabanks, it lacks scale advantages in technology investment, though its internet banking services help retain digitally savvy customers. Competitive positioning is further pressured by Japan's shrinking regional economies and competition from non-bank fintechs. The bank's niche is serving Toyama Prefecture's aging population (strong in pensions/insurance) and small businesses, but this also creates concentration risks. Its profitability metrics (ROE ~8-9% based on net income/market cap) are typical for regional peers, suggesting no standout operational efficiency.