Tokai Carbon Co (5301) AI Stock Analysis

• Market Cap: ¥224.40B
• Dividend Yield: 2.85%
• Average Volume (3M): 954.96K
• Price to Earnings (P/E): 19.5
• Beta (1Y): 0.93
• Revenue Growth: -5.38%
• EPS Growth: -491.67%
• Country: JP
• Employees: 4,625
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 25.82
• Shares Outstanding: 225,171,140
• 10 Day Avg. Volume: 867,020
• 30 Day Avg. Volume: 954,960
• 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: ¥1,045.47
• Price Target Upside: -0.57% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: ¥1,045.00 ▼(-0.62% Downside)

Tokai Carbon Co's overall stock score is primarily impacted by its financial performance challenges, particularly in profitability, and a negative P/E ratio indicating potential overvaluation. Technical analysis shows a neutral trend with bearish momentum, adding to the cautious outlook. The dividend yield offers some support, but it is overshadowed by the financial and valuation concerns.

Tokai Carbon Co Business Overview & Revenue Model

Company Description

Tokai Carbon Co., Ltd. manufactures and sells carbon-related products and services in Japan. It offers graphite electrodes for use in electric furnaces, such as direct current, alternating current, and refining furnaces; and carbon black, including SEAST, TOKABLACK, Aqua Black, and Thermal black varieties, which are used to reinforce the rubber in tires, as well as used as a black pigment in various black-colored products. It also provides fine carbon products comprising special graphite products that include isotropic graphite G/HK series, extruded graphite, SiC coated carbon, C/C composite, glassy carbon, solid SiC, carbon brush, and resin-impregnated graphite products, as well as furnace materials for silicon semiconductor, solar cell manufacturing, and other applications; and industrial furnaces and related products, which comprise silicon carbide heating elements, resistors, recryte SiC structural materials, and industrial furnaces for heat treatment of ceramics, electronic components, metals, glass, and others. In addition, it provides carbon and graphite products and solutions for various smelting applications; and friction materials, including sintered metal friction, paper friction, carbonaceous friction, sliding, resin, woven, and soft mold materials to regulate power transmission in industrial and construction machinery, as well as for use in brake and clutch parts of vehicles, such as motorbikes, trucks, buses, and trains. Further, the company offers anode materials for secondary lithium-ion batteries that are used in smartphones and electric cars. The company was formerly known as Tokai Electrode Mfg. Co. Ltd. and changed its name to Tokai Carbon Co., Ltd. in 1975. Tokai Carbon Co., Ltd. was founded in 1918 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Tokai Carbon Co., Ltd. generates revenue through the sale of its various carbon-related products across multiple sectors. The primary revenue streams include the production and distribution of carbon black, which is widely used in tire manufacturing and other rubber products; graphite electrodes, essential for electric arc furnace steel production; and fine carbon products used in semiconductors and other high-tech industries. The company also earns through the sale of friction materials for automotive applications and industrial furnaces for diverse industrial processes. Strategic partnerships and a robust distribution network further bolster its revenue, enabling Tokai Carbon to maintain a strong market presence and cater to a global customer base.

Tokai Carbon Co Financial Statement Overview

Summary

Tokai Carbon Co faces significant challenges in profitability as indicated by the recent income statement. The balance sheet remains relatively stable, though increasing debt is a concern. Cash flow stability suggests operational resilience, but profitability issues need addressing for long-term sustainability.

Income Statement

The income statement shows a significant decline in revenue from 2023 to 2024, with a steep drop in net income leading to a negative net profit margin for 2024. Gross profit margin also decreased. Despite historical growth, the recent downturn indicates challenges in profitability and revenue growth.

Balance Sheet

The balance sheet reflects a reasonable debt-to-equity ratio and a stable equity base. However, the total debt has increased, impacting the company's leverage. The equity ratio remains healthy, indicating good asset coverage by equity.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth, yet operating cash flow remains relatively strong. The free cash flow to net income ratio is unfavorable due to negative net income, pointing to challenges in converting profits into cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	348.30B	350.11B	363.95B	340.37B	258.87B	201.54B
Gross Profit	74.41B	80.64B	98.73B	94.05B	70.73B	49.55B
EBITDA	-4.85B	-3.95B	80.78B	78.14B	54.52B	34.47B
Net Income	-55.34B	-56.74B	25.47B	22.42B	16.11B	1.02B
Balance Sheet
Total Assets	617.99B	640.75B	640.00B	576.47B	512.50B	459.71B
Cash, Cash Equivalents and Short-Term Investments	80.46B	92.21B	77.47B	70.91B	78.86B	67.17B
Total Debt	202.98B	199.11B	166.64B	171.45B	168.25B	158.64B
Total Liabilities	310.84B	315.60B	279.90B	275.60B	255.94B	234.89B
Stockholders Equity	273.48B	289.56B	324.49B	268.82B	229.21B	201.27B
Cash Flow
Free Cash Flow	0.00	9.36B	12.46B	-4.01B	8.54B	27.79B
Operating Cash Flow	0.00	64.47B	62.07B	41.20B	38.07B	55.02B
Investing Cash Flow	0.00	-70.78B	-47.63B	-49.90B	-35.28B	-44.30B
Financing Cash Flow	0.00	9.41B	-14.51B	-10.63B	1.21B	927.00M

Tokai Carbon Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1051.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5301, the sentiment is Positive. The current price of 1051.5 is above the 20-day moving average (MA) of 1023.27, above the 50-day MA of 1026.11, and above the 200-day MA of 945.00, indicating a bullish trend. The MACD of 3.44 indicates Negative momentum. The RSI at 59.82 is Neutral, neither overbought nor oversold. The STOCH value of 87.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5301.

Tokai Carbon Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5304	73 Outperform	¥48.01B	11.26	7.79%	4.30%	-27.68%	-43.78%
4205	71 Outperform	¥333.55B	13.35	7.33%	4.13%	5.34%	-19.93%
4182	71 Outperform	¥539.01B	13.01	6.82%	3.60%	-6.27%	40.98%
5302	69 Neutral	¥48.43B	11.88	7.84%	4.56%	-2.88%	-6.99%
5301	54 Neutral	¥224.40B	19.46	-16.22%	2.85%	-5.38%	-491.67%
4208	50 Neutral	¥233.34B	-44.10	-1.22%	4.60%	-0.53%	-117.46%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Tokai Carbon Co Corporate Events

Tokai Carbon Reports Q2 Earnings Discrepancy with Positive Income Results

Tokai Carbon Co., Ltd. announced a discrepancy between its FY2025 Q2 earnings forecast and actual results, with net sales falling short due to reduced sales volume in the carbon black segment. However, the company exceeded expectations in operating, ordinary, and net income due to successful cost reduction initiatives, maintaining its overall FY2025 forecast.

The most recent analyst rating on (JP:5301) stock is a Hold with a Yen950.00 price target. To see the full list of analyst forecasts on Tokai Carbon Co stock, see the JP:5301 Stock Forecast page.

Tokai Carbon Co. Reports Improved Profitability Amid Decline in Sales

Tokai Carbon Co., Ltd. reported its consolidated financial results for the second quarter of the fiscal year ending December 31, 2025, showing a decline in net sales by 7.5% compared to the previous year. However, the company experienced significant growth in operating income and net income attributable to owners, with increases of 65.7% and 133.2% respectively, indicating improved profitability despite reduced sales. This financial performance highlights Tokai Carbon’s ability to enhance operational efficiency and profitability, which could positively impact its market positioning and stakeholder confidence.

The most recent analyst rating on (JP:5301) stock is a Hold with a Yen950.00 price target. To see the full list of analyst forecasts on Tokai Carbon Co stock, see the JP:5301 Stock Forecast page.

Tokai Carbon Announces Key Management Changes

Tokai Carbon Co., Ltd. has announced a series of management changes, effective July 21, 2025, involving key positions within the company. These changes include new appointments and role adjustments for several executives, which are expected to enhance the company’s strategic restructuring efforts and operational efficiency.

The most recent analyst rating on (JP:5301) stock is a Hold with a Yen950.00 price target. To see the full list of analyst forecasts on Tokai Carbon Co stock, see the JP:5301 Stock Forecast page.

Tokai Carbon Expands Global Reach with Strategic Acquisition

Tokai Carbon Co., Ltd. announced the acquisition of Bridgestone Carbon Black (Thailand) Co., Ltd., a move aligned with its Vision 2030 strategy to enhance its global carbon black business. This acquisition, in collaboration with its subsidiary Thai Tokai Carbon Product Co., Ltd., is expected to strengthen Tokai Carbon’s partnership with Bridgestone, improve supply stability, and boost competitiveness in the carbon black market.

The most recent analyst rating on (JP:5301) stock is a Hold with a Yen950.00 price target. To see the full list of analyst forecasts on Tokai Carbon Co stock, see the JP:5301 Stock Forecast page.

Tokai Carbon Completes Subsidiary Share Transfer

Tokai Carbon Co., Ltd. has completed the transfer of its shares in the subsidiary TOKAI ERFTCARBON GmbH to Lenbach Equity Opportunities III. GmbH & Co. KG. This move, effective from the second quarter of the fiscal year ending December 2025, will see TEG removed from Tokai Carbon’s consolidated accounts, with minimal impact expected on the company’s fiscal performance.

The most recent analyst rating on (JP:5301) stock is a Hold with a Yen950.00 price target. To see the full list of analyst forecasts on Tokai Carbon Co stock, see the JP:5301 Stock Forecast page.