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TOYO ELECTRIC MFG CO LTD
(6505)
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Rating:63Neutral
Price Target:
¥2,523.00
▲(19.01% Upside)
Action:Reiterated
Date:07/17/26
The score is primarily held back by weak 2026 cash-flow performance (negative operating and free cash flow) despite improving earnings and a generally reasonable balance sheet. Technicals are supportive with price above major moving averages, but overbought RSI increases near-term volatility risk. Valuation is a clear positive, with a low P/E and an above-average dividend yield.
Positive Factors
Improving profitability
Reported net income improved materially from ¥0.82B in 2023 to ¥2.98B in 2026. Sustained earnings gains increase internal funding capacity, support reinvestment in products and projects, and underpin longer-term competitiveness even if top-line growth is modest.
Negative Factors
Weak cash conversion
A sharp swing to negative operating and free cash flow in 2026 means reported profits are not converting to cash. This undermines the company’s ability to self-fund capex, service working capital, or expand projects without external funding, raising structural financing risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving profitability
Reported net income improved materially from ¥0.82B in 2023 to ¥2.98B in 2026. Sustained earnings gains increase internal funding capacity, support reinvestment in products and projects, and underpin longer-term competitiveness even if top-line growth is modest.
Read all positive factors
TOYO ELECTRIC MFG CO LTD (6505) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥21.69B
Dividend Yield4.1%
Average Volume (3M)44.25K
Price to Earnings (P/E)7.4
Beta (1Y)0.65
Revenue Growth-0.15%
EPS Growth41.96%
CountryJP
Employees1,146
SectorGeneral
Sector StrengthN/A
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)329.77
Shares Outstanding9,735,000
10 Day Avg. Volume26,680
30 Day Avg. Volume44,253
Financial Highlights & Ratios
PEG Ratio0.15
Price to Book (P/B)0.61
Price to Sales (P/S)0.46
P/FCF Ratio-11.63
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)255.1
Revenue Forecast (FY)¥44.00B
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
TOYO ELECTRIC MFG CO LTD primarily makes money by selling manufactured electrical and electronic equipment and related systems to business and institutional customers. Revenue is generally generated through (1) product sales (equipment, components...
TOYO ELECTRIC MFG CO LTD Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
68
Positive
Cash Flow
35
Negative
| Breakdown | May 2026 | May 2025 | May 2024 | May 2023 | May 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 40.48B | 40.54B | 32.14B | 31.02B | 30.16B |
| Gross Profit | 11.77B | 10.60B | 8.17B | 7.20B | 6.82B |
| EBITDA | 3.82B | 3.49B | 2.20B | 2.05B | 85.00M |
| Net Income | 2.98B | 2.13B | 935.00M | 824.00M | -930.00M |
Balance Sheet | |||||
| Total Assets | 53.81B | 55.85B | 51.65B | 52.18B | 48.72B |
| Cash, Cash Equivalents and Short-Term Investments | 4.53B | 5.01B | 6.42B | 5.52B | 4.45B |
| Total Debt | 10.12B | 9.22B | 10.59B | 11.18B | 11.77B |
| Total Liabilities | 23.20B | 28.46B | 25.58B | 27.60B | 26.70B |
| Stockholders Equity | 30.61B | 27.39B | 26.07B | 24.58B | 22.01B |
Cash Flow | |||||
| Free Cash Flow | -1.61B | 96.00M | 1.53B | 491.00M | 2.15B |
| Operating Cash Flow | -826.00M | 601.00M | 1.85B | 815.00M | 2.50B |
| Investing Cash Flow | -126.00M | -290.00M | -413.00M | 635.00M | 289.00M |
| Financing Cash Flow | 226.00M | -2.00B | -979.00M | -390.00M | -2.36B |
TOYO ELECTRIC MFG CO LTD Technical Analysis
Positive
2120.00
Price Trends
2219.04
Positive
2224.60
Positive
2142.35
Positive
Market Momentum
47.36
Positive
57.89
Neutral
75.20
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 2397.00, below the 50-day MA of 2219.04, and below the 200-day MA of 2142.35, indicating a bullish trend. The MACD of 47.36 indicates Positive momentum. The RSI at 57.89 is Neutral, neither overbought nor oversold. The STOCH value of 75.20 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥108.11B | 13.98 | 8.46% | 2.56% | 9.33% | 45.31% | |
78 Outperform | ¥129.36B | 14.93 | ― | 2.17% | 8.83% | 16.00% | |
67 Neutral | ¥25.02B | 39.50 | ― | 2.77% | -8.01% | -62.48% | |
63 Neutral | ¥21.69B | 7.40 | ― | 3.32% | -0.15% | 41.96% | |
58 Neutral | ¥20.54B | 11.59 | ― | ― | -5.81% | ― | |
56 Neutral | ¥96.61B | 40.66 | 2.91% | 2.89% | -21.58% | -98.64% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
JP:6505
TOYO ELECTRIC MFG CO LTD
2,440.00
485.19
24.82%
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TOYO ELECTRIC MFG CO LTD Corporate Events
Toyo Denki Seizo Lifts Profit and Maintains Outlook Despite Flat Sales
May 11, 2026
Toyo Denki Seizo reported nine‑month consolidated net sales of ¥28.96 billion, essentially flat year on year, while sharply improving profitability, with operating profit up 47.2% to ¥1.89 billion and profit attributable to owners ...
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.