Toso Company, Limited (5956) AI Stock Analysis

• Market Cap: ¥4.95B
• Dividend Yield: 1.8%
• Average Volume (3M): 4.82K
• Price to Earnings (P/E): 7.5
• Beta (1Y): 0.07
• Revenue Growth: 6.36%
• EPS Growth: 163.79%
• Country: JP
• Employees: 928
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 5.13
• Shares Outstanding: 10,000,000
• 10 Day Avg. Volume: 3,390
• 30 Day Avg. Volume: 4,823
• PEG Ratio: 0.13
• Price to Book (P/B): 0.32
• Price to Sales (P/S): 0.21
• P/FCF Ratio: -214.41
• 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

• Rating: 74 Outperform
• Price Target: ¥580.00 ▲(4.50% Upside)

The strong financial performance of Toso Company, Limited, characterized by solid revenue growth and a robust balance sheet, is the primary driver of the stock score. While valuation metrics are favorable, the technical analysis indicates mixed momentum, and the negative free cash flow presents a risk that should be monitored.

Toso Company, Limited Business Overview & Revenue Model

Company Description

Toso Company, Limited (5956) is a prominent Japanese company specializing in the manufacturing and sale of glass products. Established in the glass industry, Toso operates primarily in the sectors of architectural glass and decorative glass, providing a diverse range of products including glass doors, windows, and other architectural elements. The company is known for its innovative designs and commitment to quality, serving both residential and commercial markets.

How the Company Makes Money

Toso Company generates revenue primarily through the sale of its glass products to construction companies, architects, and interior designers. The company has established key revenue streams through both direct sales and partnerships with distributors and retailers in the building materials sector. Additionally, Toso benefits from ongoing contracts for large-scale construction projects, which provide a steady income stream. The company's focus on innovation, custom solutions, and high-quality materials also attracts premium pricing, further enhancing its profitability.

Toso Company, Limited Financial Statement Overview

Summary

Toso Company, Limited exhibits strong financial health with robust revenue growth and improved profitability margins. The balance sheet is solid with low leverage, supporting long-term stability. However, the negative free cash flow is a concern that needs addressing.

Income Statement

Toso Company, Limited shows a stable gross profit margin of approximately 39.6% in the latest year, with a net profit margin improving to 2.2% from 1.4% the previous year, indicating enhanced profitability. Revenue growth is positive at 5.5% year-over-year, reflecting healthy sales expansion. The EBIT margin increased to 3.3%, suggesting better operational efficiency, and EBITDA margin improved to 6.3%. Overall, the company demonstrates solid revenue growth and profitability improvement, though with room for further margin enhancements.

Balance Sheet

The balance sheet is strong, with a debt-to-equity ratio of 0.13, reflecting low leverage and financial stability. The return on equity is stable at 3.4%, and the equity ratio is high at 66.2%, indicating a robust equity base. The company's low debt levels and strong equity position contribute to financial health and stability, providing flexibility for future growth opportunities.

Cash Flow

Free cash flow has turned negative, indicating potential cash management challenges, though the operating cash flow remains positive at 0.91 times net income, which is a healthy indicator. Free cash flow to net income ratio is negative, pointing to increased capital expenditures. While there are positive aspects to cash flow generation, the recent decline in free cash flow warrants attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.14B	22.79B	21.61B	21.30B	20.86B	21.42B
Gross Profit	9.33B	9.04B	8.58B	8.65B	8.80B	9.22B
EBITDA	1.59B	1.43B	1.07B	1.30B	1.56B	1.81B
Net Income	653.75M	500.15M	294.88M	367.02M	531.77M	750.93M
Balance Sheet
Total Assets	22.10B	22.21B	21.66B	20.47B	20.50B	20.71B
Cash, Cash Equivalents and Short-Term Investments	4.22B	3.95B	3.57B	3.59B	4.06B	4.02B
Total Debt	2.33B	1.97B	1.40B	1.35B	1.89B	2.62B
Total Liabilities	7.53B	7.42B	7.24B	6.86B	7.22B	8.05B
Stockholders Equity	14.49B	14.70B	14.34B	13.55B	13.22B	12.60B
Cash Flow
Free Cash Flow	0.00	-22.02M	77.75M	110.78M	782.55M	902.55M
Operating Cash Flow	0.00	457.28M	690.93M	606.57M	1.33B	1.33B
Investing Cash Flow	0.00	-539.14M	-581.78M	-581.54M	-564.16M	-472.65M
Financing Cash Flow	0.00	377.55M	-193.24M	-653.30M	-839.57M	-646.77M

Toso Company, Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 555.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5956, the sentiment is Neutral. The current price of 555 is below the 20-day moving average (MA) of 558.45, above the 50-day MA of 554.57, and above the 200-day MA of 524.77, indicating a neutral trend. The MACD of 1.26 indicates Positive momentum. The RSI at 47.34 is Neutral, neither overbought nor oversold. The STOCH value of 48.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5956.

Toso Company, Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7807	―	¥4.09B	7.74	―	1.46%	0.65%	-39.91%
5956	―	¥4.95B	7.49	―	1.80%	6.36%	163.79%
7887	―	¥7.15B	13.36	―	2.02%	7.48%	10.02%
7898	―	¥8.02B	3.91	―	2.79%	0.90%	―
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6612	―	¥6.67B	―	―	―	-16.75%	45.18%
7822	―	¥10.08B	359.85	―	4.39%	0.89%	-99.30%