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TOCALO Co., Ltd.
(3433)
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Rating:69Neutral
Price Target:
¥3,477.00
▲(56.34% Upside)
Action:Downgraded
Date:08/01/26
The score is driven primarily by strong financial fundamentals—especially robust margins and a very low-leverage balance sheet—tempered by weaker cash flow quality (negative free cash flow in 2026). Technicals are a secondary headwind with the stock trading below key short-to-medium-term moving averages, while valuation is broadly reasonable with a moderate P/E and a ~2.9% dividend yield.
Positive Factors
Strong Profitability
Sustained high EBIT margins and an improving net margin indicate that TOCALO converts revenue into profit efficiently. This profitability provides internal funding for engineering, capacity, and customer service investments while creating resilience if industrial demand softens over the next several quarters.
Negative Factors
Negative Free Cash Flow
The shift to negative free cash flow weakens near-term cash generation even though reported profitability remains strong. If this pattern persists, TOCALO may have less internally generated cash available for investment, shareholder distributions, or protection against changes in working capital and spending needs.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Profitability
Sustained high EBIT margins and an improving net margin indicate that TOCALO converts revenue into profit efficiently. This profitability provides internal funding for engineering, capacity, and customer service investments while creating resilience if industrial demand softens over the next several quarters.
Read all positive factors
TOCALO Co., Ltd. (3433) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥156.05B
Dividend Yield3.47%
Average Volume (3M)211.49K
Price to Earnings (P/E)15.6
Beta (1Y)1.26
Revenue Growth6.16%
EPS Growth15.40%
CountryJP
Employees1,573
SectorIndustrials
Sector Strength72
IndustryIndustrial - Specialties
Share Statistics
EPS (TTM)169.77
Shares Outstanding61,200,000
10 Day Avg. Volume259,210
30 Day Avg. Volume211,490
Financial Highlights & Ratios
PEG Ratio0.59
Price to Book (P/B)2.23
Price to Sales (P/S)2.54
P/FCF Ratio-74.03
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)197
Revenue Forecast (FY)¥71.50B
TOCALO Co., Ltd. Business Overview & Revenue Model
Company Description
TOCALO Co.,Ltd., a Japanese company with its headquarters in Kobe, specializes in pioneering surface modification technologies for both domestic and international markets. The firm produces a variety of high-performance functional coatings, employ...
How the Company Makes Money
TOCALO primarily makes money by selling surface processing services (and associated technical solutions) to corporate customers that need to protect or refurbish components used in harsh operating conditions. Revenue is generated mainly through: (...
TOCALO Co., Ltd. Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
63
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 60.00B | 58.49B | 54.23B | 46.73B | 48.14B | 43.81B |
| Gross Profit | 22.25B | 22.10B | 20.29B | 16.27B | 17.38B | 16.59B |
| EBITDA | 17.43B | 14.79B | 15.51B | 12.71B | 13.98B | 13.24B |
| Net Income | 10.10B | 10.06B | 8.05B | 6.33B | 7.35B | 6.91B |
Balance Sheet | ||||||
| Total Assets | 95.61B | 89.29B | 82.78B | 77.94B | 74.90B | 70.07B |
| Cash, Cash Equivalents and Short-Term Investments | 15.51B | 14.73B | 17.98B | 20.91B | 20.91B | 20.11B |
| Total Debt | 12.05B | 7.57B | 3.88B | 5.10B | 2.94B | 4.29B |
| Total Liabilities | 22.91B | 16.63B | 17.05B | 18.01B | 17.25B | 17.61B |
| Stockholders Equity | 66.79B | 66.76B | 60.65B | 55.46B | 53.84B | 49.10B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -2.01B | 3.55B | 3.09B | 5.28B | 5.31B |
| Operating Cash Flow | 0.00 | 7.75B | 9.08B | 7.88B | 9.89B | 9.87B |
| Investing Cash Flow | 0.00 | -9.96B | -6.19B | -4.63B | -5.09B | -5.04B |
| Financing Cash Flow | 0.00 | -1.16B | -5.12B | -3.24B | -4.56B | -4.55B |
TOCALO Co., Ltd. Technical Analysis
Negative
2224.00
Price Trends
2840.71
Negative
2944.06
Negative
2829.01
Negative
Market Momentum
-20.81
Positive
34.05
Neutral
7.83
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3433, the sentiment is Negative. The current price of 2224 is below the 20-day moving average (MA) of 2951.54, below the 50-day MA of 2840.71, and below the 200-day MA of 2829.01, indicating a bearish trend. The MACD of -20.81 indicates Positive momentum. The RSI at 34.05 is Neutral, neither overbought nor oversold. The STOCH value of 7.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3433.
TOCALO Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥108.58B | 9.91 | ― | 5.03% | 6.10% | 397.23% | |
74 Outperform | ¥116.70B | 14.85 | ― | 4.57% | 5.29% | 20.13% | |
73 Outperform | ¥231.00B | 21.06 | ― | 2.01% | 10.09% | 30.15% | |
69 Neutral | ¥156.05B | 15.63 | ― | 3.47% | 6.16% | 15.40% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | ¥157.48B | 13.10 | 10.16% | 3.36% | 7.97% | -1.68% | |
54 Neutral | ¥110.52B | 15.41 | ― | 2.56% | 5.04% | 53.89% |
* Industrials Sector Average
JP:3433
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TOCALO Co., Ltd. Corporate Events
TOCALO Completes Restricted Stock Treasury Share Disposition for Directors
Aug 7, 2026
TOCALO Co., Ltd. has completed the payment procedures for a previously approved disposition of treasury stock under its restricted stock award program. The transaction involves issuing 9,311 ordinary shares at 3,055 yen per share, for a total of 2...
Tocalo Lifts Earnings and Dividend Forecasts on Robust Semiconductor Demand
Aug 5, 2026
Tocalo Co., Ltd. has raised its consolidated earnings forecasts for the fiscal year ending March 31, 2027, citing stronger-than-expected demand, particularly in semiconductor-related businesses. The company now expects higher net sales, operating ...
TOCALO Raises Full-Year Outlook as Q1 Sales Climb and Dividends Set to Increase
Aug 5, 2026
TOCALO Co., Ltd. reported consolidated net sales of ¥16.66 billion for the three months ended June 30, 2026, up 9.9% year on year, while operating and ordinary profit slipped marginally and profit attributable to owners of parent rose 1.4% to...
Tocalo to Grant Restricted Treasury Shares to Directors Under Long-Term Incentive Plan
Jul 17, 2026
Tocalo Co., Ltd. has approved the disposition of 9,311 treasury shares as restricted stock awards to five internal directors, at a price of 3,055 yen per share, totaling 28,445,105 yen. The move is part of a compensation program first adopted in 2...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.