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TOYO ELECTRIC MFG CO LTD (JP:6505)
:6505
Japanese Market
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TOYO ELECTRIC MFG CO LTD (6505) AI Stock Analysis

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JP:6505

TOYO ELECTRIC MFG CO LTD

(6505)

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Neutral 69 (OpenAI - Gpt-5.6Sol)
Rating:69Neutral
Price Target:
¥3,098.00
▲(46.13% Upside)
Action:Reiterated
Date:10/16/26
The score is driven by attractive valuation (low P/E and solid dividend yield) and strong technical uptrend, offset by the biggest risk: weak and deteriorating cash flow in 2026 (negative operating and free cash flow) despite improved reported earnings.
Positive Factors
Improving profitability
The substantial increase in net income indicates stronger earnings power than in earlier years. If profitability remains supported by the company’s transportation and industrial equipment activities, it can improve internally funded investment, resilience, and returns over the next several quarters.
Negative Factors
Negative cash generation
The latest negative operating and free cash flow creates a meaningful disconnect between reported earnings and cash realization. If this persists, the company may have less flexibility to fund reinvestment, maintain operations, or withstand working-capital pressure internally.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving profitability
The substantial increase in net income indicates stronger earnings power than in earlier years. If profitability remains supported by the company’s transportation and industrial equipment activities, it can improve internally funded investment, resilience, and returns over the next several quarters.
Read all positive factors

TOYO ELECTRIC MFG CO LTD (6505) vs. iShares MSCI Japan ETF (EWJ)

TOYO ELECTRIC MFG CO LTD Business Overview & Revenue Model

Company Description
Toyo Denki Seizo K.K., along with its group of subsidiaries, operates as a global manufacturer and vendor of diverse equipment systems across transportation, industrial, and information sectors. Its operations span both domestic Japanese and inter...
How the Company Makes Money
The company makes money primarily by selling manufactured electrical equipment and systems to corporate and public-sector customers, with revenue typically recognized when products are delivered and accepted under contract. Key revenue streams gen...

TOYO ELECTRIC MFG CO LTD Financial Statement Overview

Summary
Fundamentals are mixed. Profitability improved meaningfully (net income rising through 2026) and leverage looks manageable with stronger ROE, but cash generation deteriorated sharply in 2026 as operating cash flow and free cash flow turned negative—creating a notable earnings-to-cash disconnect.
Income Statement
72
Positive
Balance Sheet
68
Positive
Cash Flow
35
Negative
BreakdownMay 2026May 2025May 2024May 2023May 2022
Income Statement
Total Revenue40.48B40.54B32.14B31.02B30.16B
Gross Profit11.77B10.60B8.17B7.20B6.82B
EBITDA3.82B3.49B2.20B2.05B85.00M
Net Income2.98B2.13B935.00M824.00M-930.00M
Balance Sheet
Total Assets53.81B55.85B51.65B52.18B48.72B
Cash, Cash Equivalents and Short-Term Investments4.53B5.01B6.42B5.52B4.45B
Total Debt10.12B9.22B10.59B11.18B11.77B
Total Liabilities23.20B28.46B25.58B27.60B26.70B
Stockholders Equity30.61B27.39B26.07B24.58B22.01B
Cash Flow
Free Cash Flow-1.61B96.00M1.53B491.00M2.15B
Operating Cash Flow-826.00M601.00M1.85B815.00M2.50B
Investing Cash Flow-126.00M-290.00M-413.00M635.00M289.00M
Financing Cash Flow226.00M-2.00B-979.00M-390.00M-2.36B

TOYO ELECTRIC MFG CO LTD Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2120.00
Price Trends
50DMA
2526.36
Positive
100DMA
2327.82
Positive
200DMA
2255.44
Positive
Market Momentum
MACD
185.48
Negative
RSI
69.01
Neutral
STOCH
73.34
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6505, the sentiment is Positive. The current price of 2120 is below the 20-day moving average (MA) of 2688.30, below the 50-day MA of 2526.36, and below the 200-day MA of 2255.44, indicating a bullish trend. The MACD of 185.48 indicates Negative momentum. The RSI at 69.01 is Neutral, neither overbought nor oversold. The STOCH value of 73.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6505.

TOYO ELECTRIC MFG CO LTD Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
¥118.83B13.47―2.96%8.83%16.00%
70
Outperform
¥113.85B14.3810.14%1.96%9.33%45.31%
69
Neutral
¥26.54B7.94―3.37%4.21%36.74%
63
Neutral
¥22.23B35.57―3.06%-8.01%-62.48%
62
Neutral
¥21.21B12.32―1.38%-5.81%―
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
47
Neutral
¥108.60B44.962.15%2.84%-21.58%-98.64%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6505
TOYO ELECTRIC MFG CO LTD
2,968.00
969.71
48.53%
JP:6258
Hirata
3,570.00
1,603.95
81.58%
JP:6104
Shibaura Machine Co., Ltd.
4,935.00
890.30
22.01%
JP:6284
Nissei ASB Machine Co,. Ltd.
8,120.00
1,520.37
23.04%
JP:6440
Juki Corporation
724.00
301.67
71.43%
JP:6482
Yushin Precision Equipment Co., Ltd.
653.00
38.73
6.30%

TOYO ELECTRIC MFG CO LTD Corporate Events

Toyo Denki Boosts Earnings Outlook and Dividend After Strong First Quarter
Oct 14, 2026
In the three months ended August 31, 2026, Toyo Denki Seizo K.K. delivered robust results, lifting net sales 24% to ¥10.4 billion and nearly doubling profit attributable to owners of the parent to ¥875 million, while earnings per share r...
Toyo Denki Names New Director Candidates Ahead of August Shareholders’ Meeting
Sep 24, 2026
Toyo Denki Seizo K.K. has announced a slate of director, audit and supervisory board, and substitute audit and supervisory board candidates to be voted on at its 165th Annual General Meeting of Shareholders scheduled for August 27, 2026. The propo...
Toyo Denki Seizo Raises Dividend Targets and Introduces Interim Payouts
Sep 24, 2026
Toyo Denki Seizo has revised its shareholder return policy, elevating its focus on profit distribution as a key management priority. The company aims to enhance shareholder returns while maintaining financial stability and alignment with long-term...
Toyo Denki Unveils “Sustainable 2030” Plan to Drive Profitable Growth and Restructuring
Sep 24, 2026
Toyo Denki Seizo K.K. has unveiled a new four-year medium-term management plan, “Sustainable 2030 – Driving Transformation and Accelerating Growth,” covering fiscal years ending May 2027 to May 2030. The plan aims to deliver sust...
Toyo Denki Beats Profit Forecasts and Lifts Year-End Dividend
Sep 24, 2026
Toyo Denki Seizo K.K. reported consolidated results for the fiscal year ended May 31, 2026 that modestly exceeded its net sales forecast and significantly outperformed profit projections. Strong sales of products for new rolling stock to domestic ...
Toyo Denki Boosts Profit and Dividends Despite Flat Sales, Signals Margin Pressure Ahead
Aug 7, 2026
Toyo Denki Seizo reported virtually flat net sales of ¥40.48 billion for the fiscal year ended May 31, 2026, but significantly improved profitability, with operating profit up 30.5% and profit attributable to owners of parent up 39.8%. The co...
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: Oct 16, 2026