Tokai Holdings Corporation (3167) AI Stock Analysis

• Market Cap: ¥131.52B
• Dividend Yield: 3.37%
• Average Volume (3M): 237.39K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 0.32
• Revenue Growth: 4.08%
• EPS Growth: 7.13%
• Country: JP
• Employees: 4,732
• Sector: Industrials
• Sector Strength: 83
• Industry: Conglomerates
• EPS (TTM): 27.34
• Shares Outstanding: 139,679,980
• 10 Day Avg. Volume: 157,510
• 30 Day Avg. Volume: 237,393
• PEG Ratio: 2.31
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.36
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Tokai Holdings Corporation exhibits strong financial performance with solid revenue growth and cash flow generation, supporting its stability and future potential. Despite a downward technical trend, the stock is reasonably valued with an attractive dividend yield. Overall, the company's financial health and valuation offer a balanced investment opportunity, though monitoring of technical indicators and debt levels is recommended.

Tokai Holdings Corporation Business Overview & Revenue Model

Company Description

TOKAI Holdings Corporation engages in energy, information and communications, and related businesses in Japan and internationally. The company supplies liquefied petroleum gas for individuals, automotive, and corporations; solar power; piped natural gas; and other high-pressure gases; provides electricity to individuals and corporations; and offers water-related facility renovation services under the TOKAI WiLL brand, as well as directly operates two service stations and 13 wholesale service stations. It also offers Internet access services under the @T COM and TOKAI Network Club names, and mobile phone communications services, as well as operates 15 mobile shops; outsourcing services, such as co-location, mailing system, back-up, and cloud platforms; system development services, including consulting, construction, operation, and maintenance to various industries and fields; and mobile virtual network operator services. In addition, the company provides CATV services, as well as fiber-optic internet and telephone services; bottled water delivery services under the Ulunom and Fujishigen brands; security services ranging from monitoring services for senior citizens to surveillance services for factories, stores, and offices; life and property insurance agency services; office furniture, photocopiers, etc.; management systems for buildings and condominiums; wedding, reception, and restaurant facilities; and nursing care, ship repair, and bridal services. Further, it constructs detached and single-family homes, apartment complexes, and office buildings; engages in real estate business; design, constructs, sells, and installs housing equipment for home builders and construction companies; leases shops and offices; and designs, installs, and maintains air conditioning and sanitation equipment. TOKAI Holdings Corporation was founded in 1950 and is headquartered in Shizuoka, Japan.

How the Company Makes Money

Tokai Holdings Corporation generates revenue through a diversified portfolio of business operations. The company's primary revenue stream is from its energy division, where it provides liquefied petroleum gas (LPG) to residential and commercial customers. In addition to energy, Tokai Holdings earns money through its information and communications segment, which offers broadband internet, cable TV, and mobile communication services. The real estate division contributes to earnings through the development, sale, and leasing of residential and commercial properties. Additionally, the aqua business unit generates income by selling bottled water. These key revenue streams are supported by significant infrastructure investments and strategic partnerships, enabling the company to maintain steady growth and market presence.

Tokai Holdings Corporation Financial Statement Overview

Summary

Tokai Holdings Corporation presents a solid financial position with strong revenue growth and consistent profitability. The company maintains a healthy balance sheet with manageable leverage and a strong equity base. Robust cash flow generation further supports its financial stability, enabling potential for future growth and strategic investments. However, vigilance in managing debt levels remains essential to mitigate potential risks.

Income Statement

Tokai Holdings Corporation demonstrates strong revenue growth with a TTM increase of 3.68% compared to the previous annual period. Gross Profit Margin remains stable at 38.73% for TTM, reflecting efficient cost management. Net Profit Margin is commendable at 3.83%, indicating consistent profitability. The EBIT Margin at 6.84% and EBITDA Margin at 13.99% show solid operational performance, further supporting the company's profitability.

Balance Sheet

The company's Debt-to-Equity Ratio has improved to 0.60, indicating manageable leverage. Return on Equity is robust at 10.20%, reflecting effective use of shareholders' equity to generate profits. The Equity Ratio stands at 42.90%, suggesting a strong capital structure with a healthy proportion of equity financing. However, total debt remains significant at 54.34 trillion JPY, which could pose a risk if not effectively managed.

Cash Flow

Free Cash Flow grew by 46.82% in the TTM period, indicating stronger cash generation capabilities. The Operating Cash Flow to Net Income Ratio is high at 2.84, implying efficient conversion of income into cash. The Free Cash Flow to Net Income Ratio at 1.16 signifies a healthy cash flow position supporting net income. These positive trends highlight the company's robust cash flow management, providing flexibility for future investments and debt servicing.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
240.02B	231.51B	230.19B	210.69B	196.73B	195.95B
	Gross Profit
92.97B	89.95B	86.06B	85.21B	82.87B	79.29B
	EBIT
16.43B	15.51B	14.92B	15.79B	15.23B	14.22B
	EBITDA
33.58B	30.84B	31.14B	31.73B	31.03B	29.65B
	Net Income Common Stockholders
9.19B	8.48B	6.46B	8.97B	8.81B	8.24B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.13B	5.76B	4.36B	4.74B	5.58B	4.63B
	Total Assets
209.88B	205.30B	193.34B	184.47B	178.97B	169.97B
	Total Debt
54.34B	65.53B	64.91B	61.25B	57.41B	62.82B
	Net Debt
48.20B	59.77B	60.55B	56.51B	51.83B	58.19B
	Total Liabilities
117.46B	114.00B	111.04B	105.53B	102.92B	103.99B
	Stockholders Equity
90.04B	89.08B	80.22B	77.24B	74.51B	64.59B
Cash Flow		Free Cash Flow
10.68B	13.70B	7.23B	7.46B	19.30B	10.94B
	Operating Cash Flow
26.13B	30.07B	21.19B	20.81B	32.22B	22.54B
	Investing Cash Flow
-18.31B	-18.83B	-14.15B	-14.59B	-17.07B	-12.13B
	Financing Cash Flow
-7.00B	-9.67B	-7.46B	-6.91B	-14.06B	-10.38B

Tokai Holdings Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1010.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3167, the sentiment is Positive. The current price of 1010 is above the 20-day moving average (MA) of 992.30, above the 50-day MA of 966.40, and above the 200-day MA of 938.99, indicating a bullish trend. The MACD of 13.71 indicates Negative momentum. The RSI at 58.73 is Neutral, neither overbought nor oversold. The STOCH value of 61.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3167.

Tokai Holdings Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3167	76 Outperform	¥131.52B	14.23		3.37%	4.08%	7.13%
9534	76 Outperform	¥48.53B	4.64		3.47%	-2.06%	-10.54%
Sector *	64 Neutral	$4.36B	12.05	5.23%	249.94%	4.13%	-10.23%

Tokai Holdings Corporation Corporate Events

TOKAI Holdings Advances Decarbonization with Philippine Hydropower Project

TOKAI Holdings Corporation’s subsidiary, TOKAI Corporation, has announced a collaboration with REPOWER ENERGY DEVELOPMENT CORPORATION to develop a 4.5MW mini hydropower plant in Luzon Island, Philippines. The project, selected for Japan’s Joint Crediting Mechanism financing program, aims to supply electricity to 20,000 households and reduce greenhouse gas emissions, aligning with TOKAI’s commitment to sustainable growth and decarbonization efforts.

TOKAI Holdings Invests in Atomis Inc. to Boost Green Transformation Efforts

TOKAI Holdings Corporation has invested in Atomis Inc., a startup specializing in solving environmental and energy issues through innovative gas control technologies. This strategic investment aligns with TOKAI’s goals of advancing green transformation and achieving carbon neutrality by 2050, potentially enhancing its market position and contributing to sustainable development.

Tokai Holdings Reports Strong Financial Performance and Strategic Expansion

Tokai Holdings Corporation reported a notable increase in financial performance for the nine months ending December 31, 2024, with net sales rising by 5.2% and profit attributable to owners by 14.4% year-on-year. The company has expanded its scope by acquiring five new subsidiaries, indicating strategic growth and improved market positioning, although comprehensive income saw a decline of 18.2%.