Toso Company, Limited (5956) AI Stock Analysis

0 Followers

Toso Company, Limited

(TSE/TYO:5956)

Select Model

Rating:62Neutral

Price Target:JPY 610.00▲(8.16% Upside)

Action:reiterated

Date:08/18/26

The overall score is driven primarily by a solid, low-leverage balance sheet and recovering profitability, balanced against weakening cash flows and negative free cash flow that tighten financial flexibility, while weak price momentum weighs on the outlook but is partly offset by an attractive, low P/E valuation and reasonable dividend yield.

Positive Factors

Revenue and Profit RecoveryRevenue re-accelerated in 2026 and operating and net margins improved year over year. If sustained, this indicates recovering demand and better earnings leverage, though the improvement still needs to prove durable across cycles.

Negative Factors

Negative Free Cash FlowPersistent negative free cash flow indicates weak recent cash conversion and possible reinvestment or working-capital pressure. If prolonged, it could constrain dividends, investment capacity, and financial flexibility despite reported profits.

Toso Company, Limited (5956) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 4.98B
Dividend Yield: 2.75%
Average Volume (3M): 4,840
Price to Earnings (P/E): 7.7
Beta (1Y): 0.23
Revenue Growth: -0.52%
EPS Growth: -9.79%
Country: Japan
Employees: 990
Sector: General
Sector Strength: 55
Industry: Furnishings, Fixtures & Appliances

Toso Company, Limited Business Overview & Revenue Model

Company Description

Toso Company, Limited operates as a global entity, focusing on the design, production, and international distribution of various interior furnishings. The firm provides a comprehensive selection of window treatments, including both conventional and a...

How the Company Makes Money

Toso makes money primarily by manufacturing and selling interior furnishing products—most notably curtain rails and associated components—through distribution channels that supply homebuilders, interior contractors, retailers, and other professional...

Toso Company, Limited Financial Statement Overview

Summary

Score reflects a conservative, low-leverage balance sheet and recovering profitability, offset by thin net margins and a clear deterioration in cash generation, with free cash flow turning negative in recent years.

Income Statement

63Positive

Balance Sheet

75Positive

Cash Flow

45Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	23.20B	23.25B	22.79B	21.61B	21.30B	20.86B
Gross Profit	9.40B	9.40B	9.12B	8.47B	8.52B	8.55B
EBITDA	1.62B	1.63B	1.37B	1.01B	1.25B	1.50B
Net Income	671.02M	671.13M	500.15M	294.88M	367.02M	531.77M
Balance Sheet
Total Assets	22.81B	23.07B	22.21B	21.66B	20.47B	20.50B
Cash, Cash Equivalents and Short-Term Investments	4.29B	4.42B	3.95B	3.57B	3.59B	4.06B
Total Debt	2.85B	2.81B	1.97B	1.40B	1.35B	1.89B
Total Liabilities	6.84B	7.22B	7.42B	7.24B	6.86B	7.22B
Stockholders Equity	15.88B	15.77B	14.70B	14.34B	13.55B	13.22B
Cash Flow
Free Cash Flow	0	-162.73M	-22.02M	194.82M	165.21M	833.99M
Operating Cash Flow	0	679.53M	457.28M	690.93M	606.57M	1.33B
Investing Cash Flow	0	-897.79M	-539.14M	-581.78M	-581.54M	-564.16M
Financing Cash Flow	0	708.80M	377.55M	-193.24M	-653.30M	-839.57M

Toso Company, Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price564.00

Price Trends

50DMA573.62Negative

100DMA576.22Negative

200DMA592.81Negative

Market Momentum

MACD-3.63Positive

RSI43.21Neutral

STOCH46.67Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5956, the sentiment is Negative. The current price of 564.00 is below the 20-day moving average (MA) of 568.75, below the 50-day MA of 573.62, and below the 200-day MA of 592.81, indicating a bearish trend. The MACD of -3.63 indicates Positive momentum. The RSI at 43.21 is Neutral, neither overbought nor oversold. The STOCH value of 46.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5956.

Toso Company, Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:5956 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:8130	82Outperform	JPY 184.23B	11.41	―	4.81%	3.50%	19.85%
JP:7981	72Outperform	JPY 190.81B	13.30	―	4.20%	1.75%	7.96%
JP:7887	68Neutral	JPY 6.53B	5.22	―	3.07%	40.27%	-18.17%
JP:7840	67Neutral	JPY 45.34B	13.24	―	3.12%	4.44%	26.86%
JP:5956	62Neutral	JPY 4.98B	7.75	―	2.75%	-0.52%	-9.79%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:7898	51Neutral	JPY 7.85B	-3.08	―	2.80%	4.00%	-208.45%

* General Sector Average

Performance Comparison

JP:5956 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:5956	Toso Company, Limited	564.00	40.30	7.70%
JP:7840	France Bed Holdings Co., Ltd.	1312.00	31.62	2.47%
JP:7887	Nankai Plywood Co., Ltd.	1305.00	-161.74	-11.03%
JP:7898	Wood One Co., Ltd.	856.00	-11.11	-1.28%
JP:7981	Takara Standard Co., Ltd	3050.00	595.69	24.27%
JP:8130	Sangetsu Corporation	3225.00	312.12	10.72%

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: Aug 18, 2026

Toso Company, Limited AI Stock Analysis