Toyo Tanso Co., Ltd. (5310) AI Stock Analysis

• Market Cap: ¥100.25B
• Dividend Yield: 2.58%
• Average Volume (3M): 166.19K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 1.17
• Revenue Growth: -3.92%
• EPS Growth: -12.29%
• Country: JP
• Employees: 1,785
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 66.97
• Shares Outstanding: 20,992,588
• 10 Day Avg. Volume: 226,130
• 30 Day Avg. Volume: 166,190
• PEG Ratio: 0.28
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 1.69
• P/FCF Ratio: 32.28
• 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: ¥5,700.72
• Price Target Upside: 20.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• Price Target: ¥5,335.00 ▲(13.15% Upside)

Toyo Tanso Co., Ltd. demonstrates strong financial performance with robust growth and profitability, contributing significantly to the overall score. The technical analysis indicates bullish momentum, though the overbought RSI suggests caution. The valuation is reasonable, providing a balanced view of the stock's potential. The absence of earnings call and corporate events data did not impact the score.

Toyo Tanso Co., Ltd. Business Overview & Revenue Model

Company Description

Toyo Tanso Co., Ltd. (5310) is a leading manufacturer specializing in carbon-related products and materials. The company operates primarily in the sectors of industrial materials, electronics, and energy, producing a range of core products including graphite electrodes, carbon products, and semiconductor materials. With a focus on innovation and quality, Toyo Tanso serves various industries, providing essential components for steel manufacturing, electric arc furnaces, and advanced electronic devices.

How the Company Makes Money

Toyo Tanso generates revenue primarily through the sale of its carbon-related products, which serve critical functions in industrial processes, particularly in steel production through graphite electrodes. The company also earns income from its semiconductor materials, which are essential for the electronics industry. Key revenue streams include direct sales to manufacturing companies, long-term contracts with major players in the steel and technology sectors, and partnerships with research institutions for product development. Additionally, the company's focus on high-quality and specialized products allows it to command premium pricing, contributing significantly to its earnings.

Toyo Tanso Co., Ltd. Financial Statement Overview

Summary

Toyo Tanso Co., Ltd. exhibits strong financial performance with impressive revenue and profit growth. The income statement shows robust margins, while the balance sheet reflects stability with low leverage and high equity. Cash flow generation is excellent, supporting operational and strategic initiatives. However, the conservative leverage approach could limit future growth opportunities.

Income Statement

The company demonstrates robust revenue growth, with a 7.8% increase from 2023 to 2024. Gross profit margin is strong at 40.5%, indicating efficient production processes. Net profit margin has improved significantly to 18.8%, reflecting effective cost management and operational efficiency. Both EBIT margin at 23.0% and EBITDA margin at 30.0% show healthy earnings before interest and taxes, as well as depreciation and amortization, respectively. Overall, the income statement reflects a solid financial performance with consistent growth and profitability.

Balance Sheet

The balance sheet is robust with a high equity ratio of 83.2%, suggesting strong asset financing through equity and low leverage risk with zero debt. Return on equity (ROE) is impressive at 10.6%, indicating effective utilization of shareholder funds. The company maintains a solid liquidity position with significant cash reserves. However, the high equity ratio could also imply possible under-utilization of financial leverage, which might restrict growth potential. Overall, the balance sheet reflects financial stability and low risk.

Cash Flow

The cash flow statement shows a strong free cash flow growth rate of 123.9%, highlighting excellent cash generation capabilities. Operating cash flow to net income ratio is 0.95, illustrating good conversion of accounting profits into cash. The free cash flow to net income ratio is 0.28, indicating a healthy portion of earnings are translated into available cash. Despite a slightly lower conversion rate, the overall cash flow is positive and indicates efficient cash management and robust financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	51.99B	53.09B	49.25B	43.77B	37.73B	31.23B
Gross Profit	21.18B	21.49B	17.72B	14.43B	12.38B	9.52B
EBITDA	15.95B	17.50B	13.71B	9.81B	9.11B	6.19B
Net Income	8.86B	9.96B	7.51B	5.18B	4.46B	2.66B
Balance Sheet
Total Assets	109.80B	113.19B	96.61B	89.43B	83.66B	76.08B
Cash, Cash Equivalents and Short-Term Investments	14.34B	18.50B	18.13B	18.44B	18.36B	16.63B
Total Debt	1.79B	718.00M	474.00M	285.00M	199.00M	254.00M
Total Liabilities	18.61B	18.99B	12.09B	12.23B	11.40B	9.46B
Stockholders Equity	91.14B	94.15B	84.47B	77.15B	72.20B	66.58B
Cash Flow
Free Cash Flow	0.00	2.78B	1.24B	1.31B	2.15B	744.00M
Operating Cash Flow	0.00	9.49B	6.22B	5.63B	7.33B	7.02B
Investing Cash Flow	0.00	-6.31B	-2.69B	-5.25B	-6.25B	1.01B
Financing Cash Flow	0.00	-2.56B	-1.97B	-1.39B	-1.26B	-2.10B

Toyo Tanso Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4715.00
• 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:5310, the sentiment is Positive. The current price of 4715 is above the 20-day moving average (MA) of 4439.75, above the 50-day MA of 4274.30, and above the 200-day MA of 4207.48, indicating a bullish trend. The MACD of 144.88 indicates Negative momentum. The RSI at 63.75 is Neutral, neither overbought nor oversold. The STOCH value of 61.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5310.

Toyo Tanso Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5310	77 Outperform	¥100.25B	13.39	8.63%	2.58%	-3.92%	-12.29%
6668	69 Neutral	¥11.24B	5.58	―	2.14%	12.23%	65.43%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6882	61 Neutral	¥12.74B	115.99	―	4.46%	-17.49%	-96.33%
6943	51 Neutral	¥3.70B	23.10	―	1.51%	-16.30%	-281.92%
6521	48 Neutral	¥21.32B	―	―	―	36.90%	-311.02%

Toyo Tanso Co., Ltd. Corporate Events

Toyo Tanso Announces Strategic Organizational and Personnel Changes

Toyo Tanso Co., Ltd. announced significant organizational and personnel changes to enhance its operational efficiency and strategic focus. The company is consolidating its technology and sales departments to form an Advanced Technology Division, aiming to better address the evolving challenges in the manufacturing industry. Additionally, key executive roles are being realigned to support these strategic shifts, reflecting a commitment to innovation and market responsiveness.

Toyo Tanso Reports Strong 2024 Results, Projects Challenges for 2025

Toyo Tanso Co., Ltd. reported a notable financial performance for the fiscal year ending December 31, 2024, with a significant increase in net sales and profits compared to the previous year. Despite the strong results in 2024, the company projects a decline in financial performance for the fiscal year 2025, expecting decreases in net sales, operating profit, and ordinary profit, indicating potential challenges ahead.

Toyo Tanso Announces Strategic Executive Changes

Toyo Tanso Co., Ltd. announced changes in its board of directors and executive officers, highlighting a strategic alignment with its operational and global sales divisions. These appointments reflect the company’s efforts to bolster its corporate planning and international business strategy, potentially enhancing its market position and operational efficiency.

Toyo Tanso Unveils Ambitious Growth Plan for 2025–2029

Toyo Tanso Co., Ltd. announced its medium-term management plan for 2025–2029, aiming to achieve high growth through its special graphite products and compound materials, anticipating recovery in the SiC semiconductor market by 2026. The company targets net sales of ¥82 billion and an operating profit of ¥22 billion by 2029, with plans for capital investment to strengthen production systems for semiconductors and other high-value applications.

Toyo Tanso Outperforms Forecasts and Raises Annual Dividend

Toyo Tanso announced that its actual results for the fiscal year ending December 31, 2024, exceeded the previously forecasted figures in operating profit, ordinary profit, and profit attributable to owners of the parent, primarily due to a weaker yen and increased sales of high-value-added products. The company also decided to increase its year-end dividend to 145 yen per share, reflecting its policy to return profits to shareholders while also reinvesting in future growth initiatives.

Toyo Tanso Reports Strong 2024 Results but Anticipates 2025 Challenges

Toyo Tanso reported strong financial results for the fiscal year ending December 31, 2024, with significant increases in net sales and profits compared to the previous year. Despite the positive results, the company forecasts a challenging year ahead with expected declines in net sales and profits for 2025, indicating potential market or operational challenges.

Toyo Tanso Announces Leadership Changes to Bolster Global Strategy

Toyo Tanso Co., Ltd. announced changes in its board of directors and executive officers, indicating a strategic move to reinforce its leadership team. With the reappointment of key figures such as Naotaka Kondo as CEO and Tatsuro Hamada in charge of global R&D and production, the company aims to strengthen its operational and market positioning, potentially impacting stakeholders and enhancing global business strategies.

Toyo Tanso Unveils Strategic Growth Plan for 2025-2029

Toyo Tanso Co., Ltd. has announced its medium-term management plan for 2025-2029, aiming to achieve significant growth despite challenges in the SiC semiconductor market due to a slowdown in EV demand. The company plans to leverage its special graphite products and compound materials as growth drivers, while also expanding applications in semiconductors and nuclear power. The plan sets ambitious targets, including reaching net sales of ¥82 billion and an operating profit margin of 27% by 2029, supported by a capital investment of ¥57 billion.

Toyo Tanso Reports Profit Surge and Announces Increased Dividend

Toyo Tanso Co., Ltd. reported a significant increase in its operating, ordinary, and attributable profits for the fiscal year ending December 31, 2024, despite net sales being slightly below forecasts. The increase in profits was attributed to a weaker yen, increased sales of high-value-added products, and gains from foreign exchange and subsidies. Consequently, the company decided to increase its year-end dividend to 145 yen per share from the previously forecasted 120 yen, aligning with its policy to return profits to shareholders while considering future expansion and investment needs.

Toyo Tanso Co., Ltd. Reports Strong 2024 Financial Performance Amid Forecasted 2025 Challenges

Toyo Tanso Co., Ltd. reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, with net sales rising by 7.8% and operating profits by 31.8% year-on-year. Despite the current year’s growth, the company forecasts a decrease in profits for the next fiscal year ending December 31, 2025, due to anticipated challenges, which may impact its industry positioning and shareholder returns.