TOCALO Co., Ltd. (3433) AI Stock Analysis

• Market Cap: ¥133.22B
• Dividend Yield: 3%
• Average Volume (3M): 169.44K
• Price to Earnings (P/E): 15.4
• Beta (1Y): 1.05
• Revenue Growth: 18.21%
• EPS Growth: 31.40%
• Country: JP
• Employees: 1,389
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 43.42
• Shares Outstanding: 61,200,000
• 10 Day Avg. Volume: 202,670
• 30 Day Avg. Volume: 169,436
• PEG Ratio: 0.43
• Price to Book (P/B): 1.63
• Price to Sales (P/S): 1.82
• P/FCF Ratio: 27.78
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: ¥2,490.00 ▲(9.93% Upside)

TOCALO Co., Ltd. demonstrates strong financial performance with consistent growth and stability, which is the most significant factor in its overall score. The technical analysis supports a positive outlook with bullish momentum, while the valuation is reasonable with an attractive dividend yield. The absence of earnings call and corporate events data did not impact the score.

TOCALO Co., Ltd. Business Overview & Revenue Model

Company Description

TOCALO Co.,Ltd. develops surface modifying technologies in Japan and internationally. It produces functional coatings through thermal spraying technology, including vacuum and atmospheric plasma, electric arc, high velocity oxy-fuel spraying, suspension plasma spraying, and SDC thick coatings, as well as powder, rod, and wire flame spraying processes. The company also provides other surface modification technologies, such as CDC-ZAC coating, TD process, PTA process, WIN KOTE, PVD process, and laser cladding process. Its products are used in the semiconductor and PFD, iron and steel, medical equipment, power generation, transportation and industrial machineries, pulp and paper, petrochemical plants, plastic and films, construction, food production, and cutting tool applications. The company was formerly known as Toyo Calorizing Industry Co., Ltd. and changed its name to TOCALO Co.,Ltd. in 1981. TOCALO Co.,Ltd. was founded in 1951 and is headquartered in Kobe, Japan.

How the Company Makes Money

TOCALO Co., Ltd. generates revenue through the sale of its precision cutting tools and machinery to various industries. The company has a diversified revenue model that includes direct sales to manufacturers, distribution partnerships, and export activities. Key revenue streams consist of product sales, maintenance services, and technical support. Additionally, TOCALO has established significant partnerships with major industrial firms, which provide stable demand for its products, contributing to consistent earnings growth.

TOCALO Co., Ltd. Financial Statement Overview

Summary

TOCALO Co., Ltd. exhibits strong financial health with consistent revenue and profit growth, robust margins, and a stable balance sheet. The low leverage and high equity ratio provide financial stability, and effective cash flow management supports operational efficiency.

Income Statement

TOCALO Co., Ltd. has demonstrated strong financial performance with consistent revenue growth, increasing from 39,073 million yen in 2021 to 54,231 million yen in 2025. The company maintains a robust gross profit margin, averaging around 36-37% over the years. Net profit margin has also improved, reaching approximately 14.9% in 2025. EBIT and EBITDA margins are healthy, showing operational efficiency improvements. The revenue growth rate from 2024 to 2025 was substantial at 16%, indicating a positive growth trajectory.

Balance Sheet

TOCALO Co., Ltd.'s balance sheet is strong, with a low debt-to-equity ratio of 0.06, reflecting low leverage. The company has a high equity ratio of around 74.3% in 2025, showcasing financial stability. The return on equity is solid at approximately 13.3%, indicating effective use of shareholder capital. However, the slight increase in total liabilities over the years requires monitoring.

Cash Flow

The company shows a positive trend in operating cash flow, increasing to 9,077 million yen in 2025. Free cash flow has grown steadily, with a growth rate of 18.9% from 2024 to 2025. The operating cash flow to net income ratio is 1.13, demonstrating strong cash generation relative to earnings. The free cash flow to net income ratio is 0.44, indicating a moderate level of free cash flow generation. Overall, cash flow management appears solid.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	56.52B	54.23B	46.73B	48.14B	43.81B	39.07B
Gross Profit	21.62B	19.98B	16.24B	17.37B	16.59B	14.59B
EBITDA	16.52B	15.50B	12.71B	13.98B	13.24B	11.35B
Net Income	8.75B	8.05B	6.33B	7.35B	6.91B	5.46B
Balance Sheet
Total Assets	80.15B	81.68B	77.94B	74.26B	69.52B	64.18B
Cash, Cash Equivalents and Short-Term Investments	15.68B	17.98B	20.91B	20.91B	20.11B	19.23B
Total Debt	3.40B	3.88B	5.10B	2.94B	4.29B	6.07B
Total Liabilities	14.83B	15.94B	18.02B	16.62B	17.06B	17.29B
Stockholders Equity	60.43B	60.65B	55.46B	53.84B	49.10B	44.20B
Cash Flow
Free Cash Flow	0.00	3.55B	2.99B	5.19B	5.25B	6.21B
Operating Cash Flow	0.00	9.08B	7.88B	9.89B	9.87B	10.59B
Investing Cash Flow	0.00	-6.19B	-4.63B	-5.09B	-5.04B	-4.62B
Financing Cash Flow	0.00	-5.12B	-3.24B	-4.56B	-4.55B	-3.80B

TOCALO Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2265.00
• 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:3433, the sentiment is Positive. The current price of 2265 is above the 20-day moving average (MA) of 2223.45, above the 50-day MA of 2155.20, and above the 200-day MA of 1856.38, indicating a bullish trend. The MACD of 29.47 indicates Negative momentum. The RSI at 58.20 is Neutral, neither overbought nor oversold. The STOCH value of 52.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3433.

TOCALO Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3433	―	¥133.22B	15.40	―	3.00%	18.21%	31.40%
6407	―	¥217.13B	16.73	―	2.35%	10.27%	35.69%
6490	―	¥114.08B	13.53	―	2.48%	-0.98%	-18.48%
6455	―	¥106.78B	11.08	―	2.49%	12.64%	34.19%
6284	―	¥98.19B	13.06	―	2.92%	15.99%	32.43%
6486	―	¥134.55B	23.64	―	3.84%	>-0.01%	-26.82%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

TOCALO Co., Ltd. Corporate Events

TOCALO Co., Ltd. Expands U.S. Operations with New Arizona Subsidiary

TOCALO Co., Ltd. announced the establishment of a new company, TOCALO USA Arizona LLC, in Tempe City, Arizona, to expand its U.S. operations in the semiconductor manufacturing equipment sector. This strategic move is expected to strengthen TOCALO’s supply chain within the U.S., although the immediate financial impact is projected to be minimal, with operations anticipated to commence around 2027.

The most recent analyst rating on (JP:3433) stock is a Buy with a Yen2194.00 price target. To see the full list of analyst forecasts on TOCALO Co., Ltd. stock, see the JP:3433 Stock Forecast page.

TOCALO Completes Treasury Stock Disposition for Restricted Stock Awards

TOCALO Co., Ltd. has completed the payment procedure for the disposition of treasury stock as restricted stock awards, a decision made by its Board of Directors in July 2025. This move involves the allocation of 13,450 ordinary shares at a price of 1,975 yen per share, totaling 26,563,750 yen, to five company directors, excluding external and non-regular directors, potentially impacting the company’s equity structure and executive incentives.

TOCALO Co., Ltd. Reports Strong Financial Growth in Q1 2025

TOCALO Co., Ltd. reported a significant increase in its financial performance for the three months ended June 30, 2025, with net sales rising by 17.8% and operating profit by 42.8% compared to the previous year. The company’s robust financial results reflect its strong market positioning and operational efficiency, indicating positive implications for stakeholders and potential growth in the fiscal year ending March 31, 2026.