Toa Corporation (6809) AI Stock Analysis

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Toa Corporation

(TSE/TYO:6809)

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Rating:78Outperform

Price Target:JPY 1,944.00▲(9.34% Upside)

Action:reiterated

Date:08/30/26

The score is driven primarily by strengthening financial performance and a very conservative balance sheet, complemented by supportive (but not overheated) technical momentum. A reasonable P/E and solid dividend yield further underpin the rating, while historical cash-flow volatility and only mid-single-digit ROE keep the score from being higher.

Positive Factors

Sustained revenue growth and improving marginsSteady revenue growth alongside expanding gross and operating margins indicates stronger project execution and improving profitability. If sustained, this combination can support earnings growth and provide greater resilience against cost inflation.

Negative Factors

Historically volatile cash flowThe sharp variation in cash generation highlights exposure to construction working-capital swings, including contract timing and collections. Such volatility can constrain liquidity predictability even when accounting earnings remain positive.

Toa Corporation (6809) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 61.90B
Dividend Yield: 5.06%
Average Volume (3M): 95.77K
Price to Earnings (P/E): 13.5
Beta (1Y): 0.59
Revenue Growth: 12.04%
EPS Growth: 29.00%
Country: Japan
Employees: 3,083
Sector: Industrials
Sector Strength: 63
Industry: Communication Equipment

Toa Corporation Business Overview & Revenue Model

Company Description

TOA Corporation manufactures and sells broadcasting, communications, and transmission equipment in Japan. The company offers public address / voice evacuation systems, commercial audio systems, professional sound systems, intercom systems, wireless s...

How the Company Makes Money

Toa Corporation makes money mainly by earning contract revenue from construction projects as a general contractor. Its core revenue stream comes from (1) civil engineering works—such as infrastructure-related projects where it is paid based on contra...

Toa Corporation Financial Statement Overview

Summary

Fundamentals are solid and improving: revenue growth accelerated into 2026 and profitability expanded (gross margin up to ~44.6% and EBIT margin to ~8.4%). The balance sheet is a major strength with very low leverage (debt-to-equity ~0.02) and growing equity. Offsetting this, cash flow has shown volatility (notably weak/negative in 2023) and ROE remains only mid-single-digit despite improvement.

Income Statement

78Positive

Balance Sheet

88Very Positive

Cash Flow

70Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	58.16B	55.39B	50.63B	48.81B	45.12B	40.86B
Gross Profit	26.71B	24.72B	22.48B	20.92B	18.16B	17.38B
EBITDA	8.15B	6.53B	5.65B	5.40B	4.18B	3.91B
Net Income	4.35B	3.31B	2.37B	2.00B	1.76B	1.47B
Balance Sheet
Total Assets	79.00B	76.77B	68.63B	64.73B	63.91B	60.69B
Cash, Cash Equivalents and Short-Term Investments	27.75B	27.39B	19.16B	16.43B	16.94B	17.91B
Total Debt	1.09B	1.37B	3.50B	3.02B	3.84B	2.91B
Total Liabilities	15.35B	15.20B	16.04B	15.49B	15.14B	13.75B
Stockholders Equity	60.41B	58.32B	49.51B	46.58B	46.24B	44.72B
Cash Flow
Free Cash Flow	0	5.40B	5.01B	4.16B	-819.00M	867.00M
Operating Cash Flow	0	5.88B	5.62B	5.07B	583.00M	1.63B
Investing Cash Flow	0	1.06B	-2.40B	-928.00M	-2.79B	-752.00M
Financing Cash Flow	0	2.76B	-2.08B	-5.23B	-1.44B	-458.00M

Toa Corporation Technical Analysis

Technical Analysis SentimentPositive

Last Price1778.00

Price Trends

50DMA1712.84Positive

100DMA1652.37Positive

200DMA1651.29Positive

Market Momentum

MACD4.79Negative

RSI59.35Neutral

STOCH69.39Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6809, the sentiment is Positive. The current price of 1778.00 is above the 20-day moving average (MA) of 1708.30, above the 50-day MA of 1712.84, and above the 200-day MA of 1651.29, indicating a bullish trend. The MACD of 4.79 indicates Negative momentum. The RSI at 59.35 is Neutral, neither overbought nor oversold. The STOCH value of 69.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6809.

Toa Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

JP:6809 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6744	84Outperform	JPY 271.07B	16.34	―	2.72%	11.62%	53.88%
JP:6809	78Outperform	JPY 60.65B	13.47	―	5.06%	12.04%	29.00%
JP:9735	76Outperform	JPY 3.00T	25.34	8.70%	1.57%	4.25%	14.23%
JP:7734	72Outperform	JPY 156.54B	14.96	―	1.79%	14.25%	30.90%
JP:6870	64Neutral	JPY 10.45B	11.38	―	4.17%	4.70%	-27.90%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

* Industrials Sector Average

Performance Comparison

JP:6809 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6809	Toa Corporation	1778.00	186.05	11.69%
JP:9735	Secom Co	6990.00	1808.17	34.89%
JP:6744	Nohmi Bosai Ltd.	4555.00	1134.12	33.15%
JP:6870	Fenwal Controls of Japan, Ltd.	1870.00	157.13	9.17%
JP:7734	Riken Keiki Co., Ltd.	3350.00	138.61	4.32%

Toa Corporation Corporate Events

Toa Corporation Delivers Strong Q1 Earnings and Confirms Full-Year Outlook

Aug 4, 2026

Toa Corporation reported a strong start to fiscal 2026, with consolidated net sales for the three months ended June 30 rising 12.4% year-on-year to ¥12.57 billion and operating profit surging 163.4% to ¥963 million. Ordinary profit climbed 168.1% to...

TOA Corporation Completes Treasury Share Disposal for Executive Restricted Stock

Jul 30, 2026

TOA Corporation has completed the payment process for the disposal of 20,700 treasury shares under a restricted share-based remuneration scheme approved by its board on July 15, 2026. The shares, priced at ¥1,600 each for a total of ¥33.12 million, w...

TOA Corporation to Dispose Treasury Shares for Restricted Share-Based Pay

Jul 15, 2026

TOA Corporation has approved the disposal of 20,700 treasury shares under its restricted share-based remuneration plans for directors and executive officers, with a total disposal value of ¥33,120 million at ¥1,600 per share. The shares will be alloc...

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 30, 2026

Toa Corporation AI Stock Analysis