Tosoh (4042) AI Stock Analysis

• Market Cap: $697.83B
• Dividend Yield: 4.55%
• Average Volume (3M): 1.17M
• Price to Earnings (P/E): 17.3
• Beta (1Y): 0.72
• Revenue Growth: -1.21%
• EPS Growth: -27.20%
• Country: JP
• Employees: 14,394
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 2.71
• Shares Outstanding: 325,080,960
• 10 Day Avg. Volume: 1,230,340
• 30 Day Avg. Volume: 1,167,703
• PEG Ratio: 9.67
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.62
• P/FCF Ratio: 24.82
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 0.75
• Enterprise Value/Gross Profit: 3.08
• Enterprise Value/Ebitda: 6.08
• 1Y Price Target: $2,315.51
• Price Target Upside: 3.44% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥2,448.00 ▲(9.36% Upside)

Tosoh's overall stock score is driven by its solid financial performance and attractive valuation, despite some challenges in cash flow management. Technical indicators suggest potential for recovery, but current momentum is slightly bearish.

Tosoh Business Overview & Revenue Model

Company Description

Tosoh Corporation manufactures and sells basic chemicals, petrochemicals, specialty products, and fine chemicals worldwide. It operates through four segments: Petrochemical, Chlor-Alkali, Specialty, and Engineering. The company provides materials, including battery, fabricated quartzware, silica glass, thin film depositions, zeolites for catalysts and molecular sieves, zirconia injection mold components and compounds, zirconia grinding and dispersion media, and zirconia fine beads and powders. It also offers chromatographic columns, and media and diagnostic systems; clinical diagnostic systems; Portland cement and blast-furnace slag cement; and caustic soda, vinyl chloride monomer, calcium hypochlorite, and sodium bicarbonate. In addition, the company provides ethylene, propylene, C4 fraction, tertiary butyl alcohol, cumene, and aromatic compounds; and ethyleneamines, bromine, hydrobromic acids, flame retardants, non-aqueous solvents, chelating agents, ethylene dichloride, and sodium styrenesulfonate. Further, it offers polymers, such as ethylene vinyl-acetate copolymers, adhesive polymers, low and high-density polyethylene products, synthetic rubbers, functional polymers, and polyvinyl chloride pastes; and polyurethanes (PU), including methylene diphenyl diisocyanate, toluene diisocyanate, hexamethylene diisocyanate, adhesives, coating resins, elastomers, polyisocyanates for PU paints, and polyols. Additionally, it manufactures and sells water treatment systems; and engages in the construction and repair businesses. It also offers logistics, analytic, personnel management, and information technology services.

How the Company Makes Money

Tosoh generates revenue primarily through the sale of its chemical products across different sectors. The company's key revenue streams include the production and distribution of specialty chemicals, petrochemicals, and advanced materials, which are utilized in various industries such as electronics and healthcare. Significant partnerships with other companies in the chemical and electronics sectors enhance its market reach and product development capabilities. Additionally, Tosoh capitalizes on its research and development efforts to create high-value products that meet the evolving needs of its customers, contributing to its overall earnings.

Tosoh Financial Statement Overview

Summary

Tosoh demonstrates solid financial health with consistent revenue growth and stable profitability margins. The balance sheet is strong, with moderate leverage and a healthy equity base. However, the decline in free cash flow signals potential challenges in cash management.

Income Statement

Tosoh's financial performance shows robust revenue growth from 2024 to 2025, with a 5.75% increase. The company maintains a healthy gross profit margin of around 24.4% and a net profit margin of 5.46% for 2025. However, the net profit margin has slightly decreased compared to the previous year. EBIT and EBITDA margins are stable, indicating consistent operational profitability.

Balance Sheet

Tosoh's balance sheet reveals a reasonable debt-to-equity ratio of 0.22, reflecting moderate leverage that is typical for the industry. The equity ratio of 62.32% indicates a strong equity base supporting its assets. Return on equity stands at 7.01%, showing profitability, though it has room for improvement.

Cash Flow

The cash flow analysis highlights a significant decrease in free cash flow from 2024 to 2025, with a negative growth rate. Operating cash flow remains strong, although free cash flow to net income ratio is lower, indicating higher capital expenditures. The operating cash flow to net income ratio of 1.83 shows efficient cash generation relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.06T	1.06T	1.01T	1.06T	918.58B	732.85B
Gross Profit	256.95B	259.01B	226.23B	219.18B	272.02B	204.39B
EBITDA	130.10B	151.69B	140.48B	126.11B	201.40B	136.86B
Net Income	48.30B	58.00B	57.32B	50.34B	107.94B	63.28B
Balance Sheet
Total Assets	1.31T	1.33T	1.29T	1.19T	1.09T	982.78B
Cash, Cash Equivalents and Short-Term Investments	146.24B	141.55B	149.81B	120.15B	161.52B	149.16B
Total Debt	191.16B	179.10B	176.34B	176.73B	91.91B	126.53B
Total Liabilities	424.23B	424.88B	431.19B	400.06B	327.94B	321.10B
Stockholders Equity	811.63B	827.11B	794.56B	738.89B	709.09B	615.78B
Cash Flow
Free Cash Flow	36.44B	26.35B	58.26B	-95.86B	64.13B	44.95B
Operating Cash Flow	119.72B	106.24B	116.97B	-16.24B	108.61B	95.11B
Investing Cash Flow	-81.43B	-81.57B	-59.94B	-78.73B	-43.52B	-46.35B
Financing Cash Flow	-38.58B	-37.92B	-31.22B	50.17B	-57.85B	1.58B

Tosoh Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2238.50
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4042, the sentiment is Positive. The current price of 2238.5 is above the 20-day moving average (MA) of 2232.50, below the 50-day MA of 2251.29, and above the 200-day MA of 2095.12, indicating a neutral trend. The MACD of -4.73 indicates Positive momentum. The RSI at 50.72 is Neutral, neither overbought nor oversold. The STOCH value of 32.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4042.

Tosoh Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4021	72 Outperform	¥700.01B	15.50	20.91%	3.45%	13.93%	23.19%
4042	71 Outperform	$697.83B	17.27	4.79%	4.55%	-1.21%	-27.20%
4004	70 Outperform	$1.06T	29.00	5.90%	1.12%	1.60%	-6.74%
3405	62 Neutral	¥535.51B	35.16	2.06%	3.26%	0.55%	-69.21%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4005	60 Neutral	$703.12B	8.29	8.79%	2.64%	-1.64%	―
4188	54 Neutral	$1.10T	10.09	1.09%	3.97%	-11.50%	25.86%

Tosoh Corporate Events

Tosoh Corporation Revises Financial Forecast Amid Impairment Loss

Tosoh Corporation announced it will record an impairment loss on the fixed assets of its subsidiary Tosoh SMD, Inc. due to decreased shipments in the U.S. semiconductor market, leading to a revised financial forecast. Despite challenges such as a weaker yen and rising raw material costs, the company expects improved operating and ordinary income due to increased sales in its Engineering Group and better trade terms for its Specialty Group, although net income will fall due to the impairment loss.

The most recent analyst rating on (JP:4042) stock is a Hold with a Yen2417.00 price target. To see the full list of analyst forecasts on Tosoh stock, see the JP:4042 Stock Forecast page.

Tosoh Corporation Advances Share Buyback Program

Tosoh Corporation has announced the acquisition of its own shares, purchasing 1,232,000 common shares at a total cost of 2,891,846,000 yen from September 1 to September 30, 2025. This move is part of a larger plan approved by the Board of Directors to acquire up to 17,000,000 shares, with a maximum budget of 25 billion yen, aimed at enhancing shareholder value and optimizing capital structure.

The most recent analyst rating on (JP:4042) stock is a Hold with a Yen2472.00 price target. To see the full list of analyst forecasts on Tosoh stock, see the JP:4042 Stock Forecast page.

Tosoh Corporation Acquires 1.56 Million Shares in Strategic Buyback

Tosoh Corporation announced the acquisition of 1,562,000 of its own common shares, with a total acquisition cost of approximately 3.6 billion yen. This move is part of a larger plan approved by the Board of Directors to acquire up to 17 million shares by March 2026, aiming to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:4042) stock is a Hold with a Yen2120.00 price target. To see the full list of analyst forecasts on Tosoh stock, see the JP:4042 Stock Forecast page.

Tosoh Corporation Reports Decline in Quarterly Earnings

Tosoh Corporation is a diversified chemical and specialty materials company based in Japan, operating primarily in the petrochemical, chlor-alkali, specialty, and engineering sectors. It is known for its comprehensive range of products and services, including petrochemicals, advanced materials, and engineering solutions.

Tosoh Corporation Announces Share Buyback Plan to Enhance Shareholder Returns

Tosoh Corporation announced a plan to acquire up to 17 million of its own shares, representing 5.34% of its total issued shares, with a maximum acquisition cost of 25 billion yen. This strategic move aims to enhance shareholder returns and improve capital efficiency, indicating a focus on strengthening its financial structure and market position.

The most recent analyst rating on (JP:4042) stock is a Hold with a Yen1910.00 price target. To see the full list of analyst forecasts on Tosoh stock, see the JP:4042 Stock Forecast page.

Tosoh Corporation Reports Decline in Q1 2025 Financial Results

Tosoh Corporation reported a decline in its financial performance for the three months ended June 30, 2025, with net sales decreasing by 3.1% and income attributable to owners of the parent dropping by 59.8% compared to the same period in the previous year. Despite the downturn, the company maintains a stable equity ratio and has not revised its dividend forecast for the fiscal year ending March 31, 2026, indicating a commitment to shareholder returns.

The most recent analyst rating on (JP:4042) stock is a Hold with a Yen1910.00 price target. To see the full list of analyst forecasts on Tosoh stock, see the JP:4042 Stock Forecast page.