Toumei Co. Ltd. (4439) AI Stock Analysis

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Toumei Co. Ltd.

(TSE/TYO:4439)

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Rating:70Outperform

Price Target:JPY 1,115.00▲(7.31% Upside)

Action:reiterated

Date:10/16/26

Overall score is driven by strong profitability and a conservatively financed balance sheet, partially offset by a sharp deterioration in 2026 operating/free cash flow. Technicals show a strong uptrend but with overbought momentum signals, while valuation remains reasonable with a moderate P/E and modest yield.

Positive Factors

Revenue GrowthRevenue has scaled materially and growth accelerated in the latest annual period, indicating improving commercial momentum and broader service adoption. Continued top-line expansion can support operating leverage, strengthen the company’s market position, and provide a foundation for sustained earnings growth.

Negative Factors

Cash GenerationThe reversal to negative operating and free cash flow is a material weakness because accounting profitability is not currently translating reliably into cash. If the deterioration persists, Toumei may have less flexibility to fund growth, absorb volatility, or return capital without relying on its balance sheet.

Toumei Co. Ltd. (4439) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 31.65B
Dividend Yield: 1.25%
Average Volume (3M): 25.24K
Price to Earnings (P/E): 12.7
Beta (1Y): 0.22
Revenue Growth: 12.07%
EPS Growth: 2.23%
Country: Japan
Employees: 586
Sector: Industrials
Sector Strength: 63
Industry: Conglomerates

Toumei Co. Ltd. Business Overview & Revenue Model

Company Description

Toumei Co., Ltd. is a Japanese enterprise primarily focused on establishing telecommunications infrastructure, particularly for optical fiber internet services, offices, and retail outlets across the country. The company supports small and medium-siz...

How the Company Makes Money

Toumei Co., Ltd. primarily makes money by charging customers recurring fees and usage-based fees for telecommunications and communication-related services, alongside one-time fees for setup, installation, and related implementation work. Key revenue...

Toumei Co. Ltd. Financial Statement Overview

Summary

Income statement (82) and balance sheet (88) are strong with improving revenue growth, solid margins, low leverage, and high ROE. However, cash flow (42) materially weakens the picture as 2026 operating and free cash flow turned negative after multiple positive years, raising cash-generation reliability risk.

Income Statement

82Very Positive

Balance Sheet

88Very Positive

Cash Flow

42Neutral

Financial statement breakdown
Breakdown	TTM	Aug 2026	Aug 2025	Aug 2024	Aug 2023	Aug 2022
Income Statement
Total Revenue	32.58B	32.58B	29.07B	23.92B	20.53B	17.70B
Gross Profit	10.75B	10.75B	9.84B	7.83B	6.43B	4.34B
EBITDA	3.83B	3.83B	3.62B	2.43B	1.87B	469.70M
Net Income	2.47B	2.47B	2.43B	1.55B	1.15B	269.16M
Balance Sheet
Total Assets	18.23B	18.23B	16.60B	14.19B	11.55B	9.37B
Cash, Cash Equivalents and Short-Term Investments	5.34B	5.34B	7.88B	6.64B	4.41B	1.61B
Total Debt	1.22B	1.22B	1.52B	2.03B	2.20B	2.00B
Total Liabilities	6.22B	6.22B	6.80B	6.55B	5.37B	4.29B
Stockholders Equity	12.01B	12.01B	9.80B	7.64B	6.18B	5.08B
Cash Flow
Free Cash Flow	0	-1.03B	2.39B	2.87B	3.29B	-2.56B
Operating Cash Flow	0	-819.08M	2.42B	2.90B	3.32B	-2.54B
Investing Cash Flow	0	-1.07B	-367.82M	-369.46M	-662.11M	138.87M
Financing Cash Flow	0	-660.60M	-808.78M	-298.98M	143.71M	1.02B

Toumei Co. Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price1039.00

Price Trends

50DMA882.94Positive

100DMA823.11Positive

200DMA869.21Positive

Market Momentum

MACD43.75Positive

RSI71.93Negative

STOCH52.94Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4439, the sentiment is Positive. The current price of 1039.00 is above the 20-day moving average (MA) of 997.20, above the 50-day MA of 882.94, and above the 200-day MA of 869.21, indicating a bullish trend. The MACD of 43.75 indicates Positive momentum. The RSI at 71.93 is Negative, neither overbought nor oversold. The STOCH value of 52.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4439.

Toumei Co. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

JP:4439 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:8081	82Outperform	JPY 50.67B	12.92	―	3.51%	13.18%	2.22%
JP:3106	80Outperform	JPY 185.79B	15.54	―	15.02%	-3.25%	-0.51%
JP:8014	74Outperform	JPY 104.83B	8.44	―	3.76%	2.92%	28.84%
JP:8078	73Outperform	JPY 377.31B	8.92	9.62%	3.67%	11.09%	9.57%
JP:4439	70Outperform	JPY 31.31B	12.71	―	1.25%	12.07%	2.23%
JP:8285	68Neutral	JPY 40.45B	11.07	―	2.13%	6.05%	22.61%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

* Industrials Sector Average

Performance Comparison

JP:4439 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4439	Toumei Co. Ltd.	1039.00	37.11	3.70%
JP:8078	Hanwa Co., Ltd.	1797.00	494.21	37.93%
JP:3106	KURABO INDUSTRIES LTD.	2211.00	862.21	63.93%
JP:8014	Chori Co., Ltd.	4260.00	489.94	13.00%
JP:8081	Kanaden Corporation	2449.00	447.08	22.33%
JP:8285	Mitani Sangyo Co., Ltd.	657.00	133.13	25.41%

Toumei Co. Ltd. Corporate Events

Toumei Co. Ltd. Posts Solid 2026 Results and Projects Strong Profit Growth for 2027

Oct 15, 2026

Toumei Co. Ltd. reported consolidated net sales of ¥32.6 billion for the fiscal year ended August 31, 2026, up 12.1% year on year, while operating profit rose 8.4% and profit attributable to owners of the parent edged up 1.5% to ¥2.47 billion. Despit...

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.

Date of analysis: Oct 16, 2026

Toumei Co. Ltd. AI Stock Analysis