Tomoku Co., Ltd. (3946) AI Stock Analysis

• Market Cap: ¥58.84B
• Dividend Yield: 2.79%
• Average Volume (3M): 24.43K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.70
• Revenue Growth: 4.17%
• EPS Growth: 22.27%
• Country: JP
• Employees: 3,783
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 46.15
• Shares Outstanding: 19,341,568
• 10 Day Avg. Volume: 23,820
• 30 Day Avg. Volume: 24,426
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥3,504.00
• Price Target Upside: -2.26% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: ¥3,504.00 ▼(-2.26% Downside)

Tomoku Co., Ltd. receives a strong overall score due to its solid financial performance and attractive valuation. The stock's technical indicators show strong bullish momentum, although caution is advised due to potential overbought conditions. These factors combine to present an appealing investment opportunity in the Packaging & Containers industry.

Tomoku Co., Ltd. Business Overview & Revenue Model

Company Description

Tomoku Co., Ltd. manufactures and sells corrugated packaging, paper containers, and other forms of packaging indispensables for logistics and distribution businesses in Japan and internationally. The company also engages in the construction and sale of Swedish style houses; provision of logistics and insurance brokerage services; and sale of domestic and overseas materials and machinery. In addition, the company imports-exports housing-related materials; renovates, extends, and reconstructs general houses and condominiums; provides wooden truss of roofs and floors for small houses; and transports, warehouses, operates, and recycles food containers. Further, it provides automobile-inspection services, as well as warehousing, factory works, and worker dispatching services; manages food and beverage distribution center, and delivery operation; and manufactures housing components for Sweden house. The company was formerly known as Toyo Wood Products Co., Ltd. and changed its name to Tomoku Co., Ltd. in January 1971. Tomoku Co., Ltd. was founded in 1940 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Tomoku Co., Ltd. generates revenue through the production and sale of corrugated paper products, which are used primarily for packaging purposes across various industries. The company's key revenue streams include the sale of corrugated sheets and boxes, which are essential for packaging solutions. Additionally, Tomoku earns income from its paperboard segment, further contributing to its revenue. The company may also benefit from its real estate leasing activities, although this represents a smaller portion of its overall income. Partnerships with businesses requiring packaging solutions and a stable demand for paper products in domestic markets significantly contribute to Tomoku's earnings.

Tomoku Co., Ltd. Financial Statement Overview

Summary

Tomoku Co., Ltd. demonstrated strong financial performance with improvements in revenue, profitability, and cash flow. The company effectively managed its leverage and capital structure, ensuring stable financial health. Continued focus on sustainable growth and strategic investments will be crucial to maintaining momentum.

Income Statement

Tomoku Co., Ltd. showed solid revenue growth with a 3.82% increase in 2025 compared to 2024. The gross profit margin improved to 16.82%, and the net profit margin rose to 2.96%, indicating enhanced profitability. EBIT and EBITDA margins also showed positive trends, with EBIT margin at 4.26% and EBITDA margin at 8.26%. This indicates efficient cost management and operational performance.

Balance Sheet

The company's debt-to-equity ratio decreased to 0.73, reflecting a stable capital structure and reduced leverage. Return on Equity (ROE) improved to 7.02%, suggesting effective use of shareholder equity. The equity ratio remained robust at 44.84%, indicating strong financial stability. However, total assets slightly decreased, which could signal capital investment constraints.

Cash Flow

Operating cash flow increased significantly by 63.16% in 2025, leading to a strong free cash flow of 7.8 billion yen. Free cash flow to net income ratio improved, signifying better cash conversion. However, the company experienced negative investing cash flow, potentially indicating high capital expenditures or investment activities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	219.61B	219.61B	211.53B	212.82B	206.01B	175.65B
Gross Profit	36.94B	36.94B	34.80B	33.58B	33.89B	30.48B
EBITDA	16.97B	18.14B	17.05B	15.80B	16.53B	13.64B
Net Income	6.51B	6.51B	5.31B	5.25B	5.98B	4.89B
Balance Sheet
Total Assets	206.82B	206.82B	213.37B	195.38B	190.02B	179.74B
Cash, Cash Equivalents and Short-Term Investments	21.00B	21.00B	18.13B	15.02B	16.70B	14.05B
Total Debt	67.66B	67.66B	72.98B	69.59B	67.17B	61.52B
Total Liabilities	113.45B	113.45B	124.16B	114.67B	113.89B	108.53B
Stockholders Equity	92.73B	92.73B	88.62B	80.19B	75.66B	70.73B
Cash Flow
Free Cash Flow	0.00	7.80B	4.03B	-2.47B	-1.07B	1.30B
Operating Cash Flow	0.00	18.14B	11.12B	7.01B	16.70B	11.07B
Investing Cash Flow	0.00	-8.26B	-9.29B	-9.39B	-18.22B	-13.45B
Financing Cash Flow	0.00	-7.05B	1.05B	535.00M	4.12B	5.83B

Tomoku Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3585.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3946, the sentiment is Positive. The current price of 3585 is above the 20-day moving average (MA) of 3408.25, above the 50-day MA of 3308.40, and above the 200-day MA of 2671.75, indicating a bullish trend. The MACD of 59.25 indicates Negative momentum. The RSI at 76.08 is Negative, neither overbought nor oversold. The STOCH value of 95.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3946.

Tomoku Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3947	82 Outperform	23.17B	9.44	6.51%	3.00%	8.26%	-23.43%
3950	80 Outperform	70.79B	11.82	8.48%	7.09%	2.79%	-10.78%
3946	78 Outperform	¥58.84B	8.80	―	2.79%	4.17%	22.27%
7482	77 Outperform	29.75B	13.67	5.95%	4.11%	5.69%	4.45%
7923	75 Outperform	4.56B	7.45	5.47%	1.93%	6.34%	-10.00%
3951	72 Outperform	19.67B	12.57	4.97%	4.16%	3.78%	-2.21%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Tomoku Co., Ltd. Corporate Events

Tomoku Co., Ltd. Reports Q1 2025 Financial Results and Expansion

Tomoku Co., Ltd. reported a 3.1% increase in net sales for the three months ending June 30, 2025, with significant growth in operating profit and ordinary profit compared to the previous year. The company also announced the inclusion of two new subsidiaries, Nichiei Shikou Co., Ltd. and Enshu Kami Kogyo Co., Ltd., which may impact its future financial performance and market positioning.

Tomoku Co., Ltd. Reports Q1 2025 Financial Results with Strong Profit Growth

Tomoku Co., Ltd. reported a 3.1% increase in net sales for the three months ending June 30, 2025, with significant growth in operating profit by 73.0% compared to the previous year. The company also announced the inclusion of two new subsidiaries, Nichiei Shikou Co., Ltd. and Enshu Kami Kogyo Co., Ltd., which may impact its market positioning and operational capabilities.

Tomoku Co., Ltd. Completes Treasury Share Disposal for Stock-Based Remuneration

Tomoku Co., Ltd. has completed the payment procedures for the disposal of its treasury shares as transfer-restricted stock-based remuneration, a decision made by the Board of Directors on June 24, 2025. This move involves the disposal of 31,200 common shares at a price of ¥2,808 per share, amounting to a total of ¥87,609,600, and is aimed at incentivizing its directors and executive officers, potentially strengthening the company’s governance and aligning management interests with shareholder value.

Tomoku Co., Ltd. Announces Disposal of Treasury Shares for Stock-Based Remuneration

Tomoku Co., Ltd. announced the disposal of 31,200 treasury shares as part of a transfer-restricted stock-based remuneration plan. This initiative aims to align the interests of its directors and executive officers with shareholders by tying compensation to stock performance, thereby enhancing motivation to increase corporate value.

Tomoku Co., Ltd. Announces Increased Year-End Dividend

Tomoku Co., Ltd. has announced a resolution to pay dividends of surplus, with a record date of March 31, 2025. The company will distribute a year-end dividend of 55 yen per share, resulting in an annual dividend of 100 yen per share, reflecting its progressive dividend policy aimed at aligning with medium- to long-term profit growth. This decision underscores Tomoku’s focus on returning profits to shareholders and enhancing capital efficiency, with a target dividend payout ratio of approximately 30%.

Tomoku Co., Ltd. Reports Strong Financial Performance for Fiscal Year 2025

Tomoku Co., Ltd. reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a notable increase in net sales and profits compared to the previous year. The company achieved a 3.8% rise in net sales and a 22.6% increase in profit attributable to owners of the parent, reflecting a strong operational performance. The company also announced an increase in annual dividends, signaling confidence in its financial health and commitment to shareholder returns.