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Toami Corporation (5973) AI Stock Analysis

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JP:5973

Toami Corporation

(TSE/TYO:5973)

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Rating:74.5Outperform
Price Target:JPY 695.00â–²(12.46% Upside)
Action:reiterated
Date:08/18/26

The overall score reflects a financially stable company with a strong balance sheet and improving cash flows but weak, volatile profitability, combined with a currently favorable technical setup showing a clear uptrend and solid momentum, and a balanced valuation characterized by a moderate P/E and reasonable dividend yield.

Positive Factors
Long-term Revenue ExpansionThe substantial revenue increase since 2021 indicates expanded business scale and customer demand. Although recent growth has weakened, the larger revenue base provides a platform for operating improvement if the company can stabilize sales and protect margins.
Negative Factors
Thin Operating ProfitabilityVery low EBIT and net margins leave limited protection against input-cost increases, pricing pressure, or demand weakness. Even with improvement from 2025, modest earnings power makes sustained profitability and stronger shareholder returns difficult.

Toami Corporation (5973) vs. iShares MSCI Japan ETF (EWJ)

-5%0%5%10%15%20%25%30%JP:5973+17.65%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 3.50B
Dividend Yield
2.91%
Average Volume (3M)
2,748
Price to Earnings (P/E)
10.2
Beta (1Y)
0.23
Revenue Growth
-1.67%
EPS Growth
1239.17%
Country
Japan
Employees
406
Sector
Basic Materials
Sector Strength
61
Industry
Steel

Toami Corporation Business Overview & Revenue Model

Company Description

Established in 1887 and headquartered in Shijonawate, Japan, Toami Corporation manufactures and markets welded wire mesh products under the TOAMI brand across Japan. Its diverse range of offerings includes specialized welded wire mesh, processed rein...

Toami Corporation Financial Statement Overview

Summary

Financially stable but only moderately attractive: revenue has grown over time and the balance sheet is conservative with moderate leverage, and cash generation has improved with positive free cash flow, but profitability is structurally weak, margins are thin and volatile, and returns on equity are low.

Income Statement

63Positive

Balance Sheet

78Positive

Cash Flow

69Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue18.32B18.39B18.10B17.63B15.41B12.27B
Gross Profit3.06B2.95B2.46B2.62B2.04B1.93B
EBITDA739.09M593.83M359.63M679.04M158.93M229.41M
Net Income344.12M175.60M-6.44M247.35M-72.20M69.68M
Balance Sheet
Total Assets18.51B18.82B19.09B19.51B18.36B15.87B
Cash, Cash Equivalents and Short-Term Investments1.60B2.00B1.79B895.44M1.35B1.64B
Total Debt3.51B4.16B4.78B4.52B4.17B2.00B
Total Liabilities7.35B7.75B8.29B8.52B7.58B4.91B
Stockholders Equity11.16B11.05B10.78B10.97B10.77B10.96B
Cash Flow
Free Cash Flow01.10B150.24M860.55M-1.68B-1.91B
Operating Cash Flow01.58B903.07M1.34B-674.66M-1.32B
Investing Cash Flow0-522.43M-121.02M-1.96B-1.41B-904.90M
Financing Cash Flow0-846.17M111.52M160.59M1.79B1.79B

Toami Corporation Technical Analysis

Technical Analysis SentimentPositive
Last Price618.00

Price Trends

50DMA606.31Positive
100DMA601.98Positive
200DMA597.97Positive

Market Momentum

MACD2.28Negative
RSI60.72Neutral
STOCH75.44Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5973, the sentiment is Positive. The current price of 618.00 is above the 20-day moving average (MA) of 608.20, above the 50-day MA of 606.31, and above the 200-day MA of 597.97, indicating a bullish trend. The MACD of 2.28 indicates Negative momentum. The RSI at 60.72 is Neutral, neither overbought nor oversold. The STOCH value of 75.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5973.

Toami Corporation Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:5973 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:5973JP:597375OutperformJPY 3.86B10.23―2.91%-1.67%1239.17%
JP:5458JP:545870OutperformJPY 3.84B7.57―3.13%3.77%117.60%
JP:5609JP:560962NeutralJPY 4.82B16.86―2.00%-9.61%-44.25%
Sector *61Neutral$10.43B7.12-0.05%2.87%2.86%-36.73%
JP:5491JP:549158NeutralJPY 5.91B12.27―0.57%1.74%-63.78%
JP:5986JP:598656NeutralJPY 5.80B4.53―4.63%-4.49%295.28%
JP:5446JP:544651NeutralJPY 3.87B-7.08―0.79%-14.77%-208.13%

* Basic Materials Sector Average

Performance Comparison

-20%0%20%40%JP:5973JP:5446JP:5458JP:5491JP:5609JP:5986Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:5973 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:5973Toami Corporation618.00107.2821.01%
JP:5446Hokuetsu Metal Co., Ltd.1007.00-240.00-19.25%
JP:5458Takasago Tekko K.K.1278.00352.1338.03%
JP:5491Nippon Kinzoku Co., Ltd.883.0085.0010.65%
JP:5609Nippon Chuzo K.K.1000.00172.1420.79%
JP:5986Molitec Steel Co., Ltd.259.0060.4730.46%
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