Toho Acetylene Co., Ltd. (4093) AI Stock Analysis

• Market Cap: ¥12.41B
• Dividend Yield: 3.93%
• Average Volume (3M): 33.26K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.49
• Revenue Growth: -1.36%
• EPS Growth: -18.70%
• Country: JP
• Employees: 764
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 8.13
• Shares Outstanding: 35,020,000
• 10 Day Avg. Volume: 27,890
• 30 Day Avg. Volume: 33,256
• PEG Ratio: -1.07
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.36
• P/FCF Ratio: 8.52
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: ¥401.00 ▲(12.96% Upside)

Toho Acetylene Co., Ltd. receives a strong overall score driven by its robust financial performance and attractive valuation. The company's stable financial position and low P/E ratio, coupled with a solid dividend yield, enhance its investment appeal. Technical indicators suggest a neutral market sentiment, with no significant momentum or trend signals.

Toho Acetylene Co., Ltd. Business Overview & Revenue Model

Company Description

Toho Acetylene Co., Ltd. (4093) is a Japanese company that primarily operates in the industrial gas sector. The company specializes in the production and supply of acetylene gas and other industrial gases, serving a diverse range of industries including manufacturing, construction, and healthcare. Toho Acetylene is known for its high-quality products and innovative solutions in gas applications, contributing significantly to various industrial processes.

How the Company Makes Money

Toho Acetylene generates revenue primarily through the production and sale of acetylene gas and other industrial gases. The company has established key revenue streams by serving multiple sectors, including manufacturing, where gases are used in welding and cutting applications, and healthcare, where gases such as oxygen are critical. Additionally, Toho Acetylene may benefit from long-term contracts with industrial clients, ensuring a steady flow of income. The company also explores partnerships with other industry players and invests in research and development to create new products and improve existing ones, which can further enhance its market position and profitability.

Toho Acetylene Co., Ltd. Financial Statement Overview

Summary

Toho Acetylene Co., Ltd. demonstrates strong financial performance with steady growth in revenues and profits, supported by a solid balance sheet and strong cash flows. While profitability margins have experienced some pressure recently, the company's financial position remains stable, with a low leverage risk and effective cash generation capabilities.

Income Statement

Toho Acetylene Co., Ltd. has shown consistent revenue, gross profit, and net income growth over the years, with a slight dip in the most recent year. The gross profit margin remains strong, indicating effective cost management. However, the decline in net profit margin and EBIT margin in the latest year suggests some pressure on profitability.

Balance Sheet

The company exhibits a robust balance sheet with a solid equity base and a low debt-to-equity ratio, indicating financial stability. The equity ratio is healthy, reflecting a strong capital position. The consistent reduction in net debt over the years further enhances the balance sheet's strength.

Cash Flow

Operating cash flow remains strong, supporting a healthy free cash flow. Although there is a slight decrease in free cash flow in the most recent period, the company's ability to generate cash from operations relative to net income is robust, ensuring liquidity. The free cash flow to net income ratio indicates efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	34.95B	34.80B	35.42B	34.09B	31.29B	29.83B
Gross Profit	10.99B	10.97B	11.17B	10.12B	9.60B	9.45B
EBITDA	2.90B	2.89B	3.07B	2.38B	2.08B	1.91B
Net Income	1.23B	1.29B	1.42B	988.73M	823.62M	738.16M
Balance Sheet
Total Assets	33.07B	33.64B	33.66B	31.36B	30.27B	29.53B
Cash, Cash Equivalents and Short-Term Investments	8.89B	9.50B	8.99B	8.54B	8.33B	7.88B
Total Debt	3.34B	3.84B	3.83B	3.61B	3.60B	3.81B
Total Liabilities	12.73B	13.25B	14.18B	13.03B	12.71B	12.61B
Stockholders Equity	18.27B	18.30B	17.50B	16.48B	15.83B	15.24B
Cash Flow
Free Cash Flow	0.00	1.47B	1.37B	639.73M	948.76M	623.27M
Operating Cash Flow	0.00	2.23B	2.41B	1.11B	1.78B	1.21B
Investing Cash Flow	0.00	-993.79M	-1.46B	-443.35M	-684.06M	-568.92M
Financing Cash Flow	0.00	-730.63M	-492.73M	-454.03M	-630.46M	-509.30M

Toho Acetylene Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 355.00
• 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:4093, the sentiment is Positive. The current price of 355 is above the 20-day moving average (MA) of 352.75, above the 50-day MA of 351.95, and above the 200-day MA of 349.10, indicating a bullish trend. The MACD of 1.29 indicates Negative momentum. The RSI at 52.85 is Neutral, neither overbought nor oversold. The STOCH value of 58.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4093.

Toho Acetylene Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4463	81 Outperform	¥23.06B	9.20	―	3.89%	6.99%	-0.30%
4093	77 Outperform	¥12.41B	10.00	―	3.93%	-1.36%	-18.70%
4097	74 Outperform	¥57.08B	12.47	―	2.92%	5.20%	-1.83%
4040	69 Neutral	¥6.30B	6.12	―	2.22%	6.80%	-19.87%
4025	66 Neutral	¥31.89B	11.64	―	0.14%	9.61%	53.78%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Toho Acetylene Co., Ltd. Corporate Events

Toho Acetylene Co., Ltd. Seeks Market Segment Change Amidst Growth Commitment

Toho Acetylene Co., Ltd. has resolved to apply for a change in its market segment from the Prime Market to the Standard Market due to not meeting the required market capitalization criteria for continued listing on the Prime Market. Despite this change, the company remains committed to its growth strategies and aims to enhance corporate governance and investor relations to improve long-term corporate value.

The most recent analyst rating on (JP:4093) stock is a Buy with a Yen395.00 price target. To see the full list of analyst forecasts on Toho Acetylene Co., Ltd. stock, see the JP:4093 Stock Forecast page.

Toho Acetylene Reports Q1 2025 Financial Results with Mixed Performance

Toho Acetylene Co., Ltd. reported its financial results for the three months ended June 30, 2025, showing a slight increase in net sales by 1.8% compared to the previous year. However, the company experienced a decline in operating profit, ordinary profit, and profit attributable to owners of the parent, indicating challenges in maintaining profitability. Despite these challenges, the company maintains a stable equity ratio and has not revised its financial forecast for the fiscal year ending March 31, 2026, suggesting a cautious but steady outlook.

Toho Acetylene Completes Treasury Share Disposal for Compensation Plan

Toho Acetylene Co., Ltd. has completed the payment for the disposal of 19,000 treasury shares under its restricted stock compensation plan, as resolved in a recent board meeting. This move, involving a total transaction value of 6,669,000 yen, is aimed at compensating the company’s directors and senior vice presidents, potentially impacting its financial management and stakeholder relations.