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Toyo Gosei Co., Ltd.
(4970)
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Rating:61Neutral
Price Target:
¥9,601.00
▼(-23.86% Downside)
Action:Reiterated
Date:10/16/26
The score is supported primarily by improved fundamentals—especially the sharp reduction in debt and the return to strongly positive free cash flow—despite softer margins and net income. The main drag is the weak technical picture, with the stock trading below all key moving averages and bearish momentum indicators. Valuation offers only modest support given the mid-range P/E and low dividend yield.
Positive Factors
Revenue Growth
Higher revenue through 2026 indicates recovering demand for the company’s specialty materials and supports broader customer activity. Continued top-line expansion can improve operating leverage and provide a foundation for reinvestment in differentiated formulations and qualified product grades.
Negative Factors
Margin Pressure
Flat gross profit alongside higher revenue signals weaker margin conversion and limits the earnings benefit from sales growth. If this pressure persists, the company may have less cash available for research, capacity expansion, and other investments supporting long-term competitiveness.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Higher revenue through 2026 indicates recovering demand for the company’s specialty materials and supports broader customer activity. Continued top-line expansion can improve operating leverage and provide a foundation for reinvestment in differentiated formulations and qualified product grades.
Read all positive factors
Toyo Gosei Co., Ltd. (4970) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥68.66B
Dividend Yield0.52%
Average Volume (3M)60.41K
Price to Earnings (P/E)18.2
Beta (1Y)1.24
Revenue Growth16.43%
EPS Growth50.52%
CountryJP
Employees503
SectorGeneral
Sector StrengthN/A
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)353.56
Shares Outstanding8,143,390
10 Day Avg. Volume98,250
30 Day Avg. Volume60,406
Financial Highlights & Ratios
PEG Ratio-1.65
Price to Book (P/B)2.89
Price to Sales (P/S)1.89
P/FCF Ratio21.31
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥13,650.00Price Target Upside8.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)560.75
Revenue Forecast (FY)¥50.50B
Toyo Gosei Co., Ltd. Business Overview & Revenue Model
Company Description
Headquartered in Tokyo, Japan, Toyo Gosei Co., Ltd. has operated in the chemical sector since its establishment in 1954, initially as Nihon Acetylene Chemical Engineering Co., Ltd. before adopting its current name in 1961. The company primarily sp...
How the Company Makes Money
Toyo Gosei makes money primarily by manufacturing and selling specialty chemical products (functional materials) to business customers. A key revenue stream comes from supplying materials used in electronics manufacturing processes—particularly pr...
Toyo Gosei Co., Ltd. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 31.50B | 41.96B | 38.66B | 31.96B | 34.16B | 33.14B |
| Gross Profit | 7.77B | 9.05B | 9.06B | 7.60B | 9.03B | 8.39B |
| EBITDA | 6.59B | 8.75B | 7.79B | 6.29B | 7.96B | 7.44B |
| Net Income | 2.81B | 2.69B | 3.28B | 2.40B | 3.83B | 3.46B |
Balance Sheet | ||||||
| Total Assets | 56.83B | 66.95B | 66.10B | 59.72B | 51.28B | 47.05B |
| Cash, Cash Equivalents and Short-Term Investments | 3.52B | 3.68B | 3.60B | 3.65B | 3.25B | 3.68B |
| Total Debt | 21.18B | 27.15B | 28.55B | 22.80B | 18.33B | 18.55B |
| Total Liabilities | 35.73B | 39.49B | 41.26B | 37.90B | 31.63B | 30.99B |
| Stockholders Equity | 21.10B | 27.45B | 24.83B | 21.82B | 19.64B | 16.06B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 3.73B | -4.12B | -3.02B | -29.69M | 2.39B |
| Operating Cash Flow | 0.00 | 7.49B | 6.79B | 4.57B | 3.66B | 5.81B |
| Investing Cash Flow | 0.00 | -4.87B | -11.97B | -7.59B | -3.27B | -3.42B |
| Financing Cash Flow | 0.00 | -2.55B | 5.19B | 3.60B | -406.16M | -2.56B |
Toyo Gosei Co., Ltd. Technical Analysis
Negative
12610.00
Price Trends
10606.64
Negative
12967.26
Negative
12086.43
Negative
Market Momentum
-509.44
Positive
33.71
Neutral
15.90
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4970, the sentiment is Negative. The current price of 12610 is above the 20-day moving average (MA) of 10053.00, above the 50-day MA of 10606.64, and above the 200-day MA of 12086.43, indicating a bearish trend. The MACD of -509.44 indicates Positive momentum. The RSI at 33.71 is Neutral, neither overbought nor oversold. The STOCH value of 15.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4970.
Toyo Gosei Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ¥195.04B | 15.01 | 6.11% | 3.74% | -1.20% | 29.04% | |
75 Outperform | ¥811.91B | 14.57 | 6.64% | 3.92% | -0.63% | 15.92% | |
65 Neutral | ¥936.23B | 8.82 | 10.37% | 2.72% | -5.54% | 995.46% | |
61 Neutral | ¥68.66B | 18.16 | ― | 0.52% | 16.43% | 50.52% | |
55 Neutral | ¥549.27B | 67.38 | 1.03% | 2.90% | 2.93% | -46.99% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
48 Neutral | ¥257.54B | 19.03 | 4.48% | 3.35% | -2.99% | ― |
* General Sector Average
JP:4970
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8,650.00
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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.