| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 4721.74 | 176 |
| Intrinsic value (DCF) | 491.37 | -71 |
| Graham-Dodd Method | 5081.78 | 197 |
| Graham Formula | 2697.08 | 58 |
The Tottori Bank, Ltd. (8383.T) is a regional banking institution headquartered in Tottori, Japan, offering a comprehensive suite of financial services primarily through its Banking and Card Business segments. Established in 1921, the bank operates 65 branches across Japan, providing deposit and lending services, securities investment, foreign exchange, and credit card solutions. As a key player in Japan's regional banking sector, The Tottori Bank serves local businesses and individuals, contributing to regional economic development. With a market capitalization of approximately ¥11.85 billion, the bank maintains a stable financial position, supported by a conservative beta of 0.26, indicating lower volatility compared to the broader market. The bank's focus on traditional banking services and regional customer relationships positions it as a reliable financial partner in Japan's competitive banking landscape.
The Tottori Bank presents a conservative investment opportunity with stable revenue streams and a strong regional presence. The bank reported ¥12.93 billion in revenue and ¥1.06 billion in net income for the fiscal year ending March 2024, with a diluted EPS of ¥112.82. Its low beta suggests resilience during market downturns, appealing to risk-averse investors. However, the bank operates in a highly competitive and low-interest-rate environment, which may limit growth prospects. The dividend yield, with a payout of ¥50 per share, adds income appeal, but investors should weigh the bank's regional focus against larger national and digital banking competitors. The Tottori Bank's solid cash position (¥124.76 billion) and manageable debt (¥43.35 billion) provide financial stability, though long-term growth may depend on expanding digital services and regional economic conditions.
The Tottori Bank competes in Japan's crowded regional banking sector, where differentiation is challenging due to homogeneous services and regulatory constraints. Its competitive advantage lies in deep regional roots, personalized customer relationships, and a stable deposit base. However, the bank faces intense competition from larger national banks (e.g., MUFG, SMFG) with greater resources and digital capabilities, as well as emerging online banks disrupting traditional models. The Tottori Bank's conservative approach—evidenced by its low beta and focus on core banking services—limits risk but also innovation. Its Card Business segment provides ancillary revenue, though it lags behind specialized credit card firms. The bank's regional focus insulates it somewhat from national competitors but exposes it to local economic fluctuations. To remain competitive, The Tottori Bank must balance traditional strengths with investments in digital transformation and operational efficiency, while navigating Japan's demographic challenges (aging population, rural depopulation) that impact regional banks disproportionately.