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Topy Industries, Limited (7231) AI Stock Analysis

JP:7231

Topy Industries, Limited

(TSE/TYO:7231)

Select Model
Rating:73.1Outperform
Price Target:JPY 3,369.00â–²(12.60% Upside)
Action:upgraded
Date:08/17/26

The stock's financial performance is solid with strong balance sheet and improving profitability, though cash flow generation has weakened. Valuation is attractive with low P/E and high dividend yield. Technical indicators show bullish momentum but overbought signals suggest near-term caution. Overall, the stock presents a moderately positive outlook.

Positive Factors
Improving ProfitabilityThe substantial increase in net income and improved margins indicate better earnings capacity than in prior periods. If sustained, this provides greater resilience against cyclical demand and input-cost pressure, although profitability remains modest.
Negative Factors
Multi-Year Revenue ContractionPersistent revenue contraction signals weaker volumes or demand across the company’s industrial and automotive customer base. Without a durable return to growth, fixed-cost absorption and operating leverage may remain constrained, limiting the sustainability of recent earnings improvement.

Topy Industries, Limited (7231) vs. iShares MSCI Japan ETF (EWJ)

-10%-5%0%5%10%15%20%25%30%JP:7231+9.26%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 64.67B
Dividend Yield
5.18%
Average Volume (3M)
57.85K
Price to Earnings (P/E)
6.9
Beta (1Y)
0.95
Revenue Growth
1.87%
EPS Growth
46.10%
Country
Japan
Employees
5,290
Sector
Consumer Cyclical
Sector Strength
61
Industry
Auto - Parts

Topy Industries, Limited Business Overview & Revenue Model

Company Description

Operating primarily in Japan, Topy Industries, Limited is a diversified manufacturer with interests spanning steel production, automotive parts, industrial machinery components, power generation, and various other sectors. Its extensive product portf...

How the Company Makes Money

null

Topy Industries, Limited Financial Statement Overview

Summary

Revenue declined but margins expanded, leading to 59% net income growth. Balance sheet is strong with low debt (D/E 0.41) and improved ROE. Cash flow weakened but remains positive. Overall financial health is solid with some cash flow concerns.

Income Statement

68Positive

Balance Sheet

85Very Positive

Cash Flow

55Neutral
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue303.76B297.75B300.61B333.99B334.50B271.18B
Gross Profit45.72B46.32B42.43B45.88B44.62B31.06B
EBITDA24.35B19.69B22.06B17.26B21.61B15.19B
Net Income9.34B10.15B6.39B4.68B6.32B386.00M
Balance Sheet
Total Assets277.90B271.58B281.75B298.29B292.32B282.19B
Cash, Cash Equivalents and Short-Term Investments30.53B29.42B27.47B25.01B23.74B21.04B
Total Debt67.42B59.43B68.79B74.98B83.92B86.43B
Total Liabilities133.73B126.16B145.03B157.30B170.89B168.49B
Stockholders Equity142.68B143.97B135.28B139.68B120.27B112.66B
Cash Flow
Free Cash Flow03.22B7.49B12.98B6.47B-14.01B
Operating Cash Flow013.13B15.39B22.32B15.06B-5.53B
Investing Cash Flow01.64B-1.97B-9.40B-8.36B-2.61B
Financing Cash Flow0-13.68B-10.83B-12.58B-4.68B3.53B

Topy Industries, Limited Technical Analysis

Technical Analysis SentimentNeutral
Last Price2992.00

Price Trends

50DMA3023.56Negative
100DMA2894.31Positive
200DMA2950.40Positive

Market Momentum

MACD-3.67Positive
RSI46.76Neutral
STOCH30.91Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7231, the sentiment is Neutral. The current price of 2992.00 is below the 20-day moving average (MA) of 3013.45, below the 50-day MA of 3023.56, and above the 200-day MA of 2950.40, indicating a neutral trend. The MACD of -3.67 indicates Positive momentum. The RSI at 46.76 is Neutral, neither overbought nor oversold. The STOCH value of 30.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7231.

Topy Industries, Limited Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:7231 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:7231JP:723173OutperformJPY 69.72B6.94―5.18%1.87%46.10%
JP:5991JP:599169NeutralJPY 586.55B16.95―2.28%3.12%-15.85%
JP:7278JP:727866NeutralJPY 187.35B15.276.44%6.34%0.21%0.59%
JP:7242JP:724264NeutralJPY 183.84B7.7110.55%10.70%11.33%23.30%
Sector *61Neutral$18.38B12.79-2.54%3.03%1.52%-15.83%
JP:6473JP:647354NeutralJPY 630.94B29.262.71%3.28%3.66%12.13%
JP:7220JP:722050NeutralJPY 160.59B110.86―1.43%3.50%-77.77%

* Consumer Cyclical Sector Average

Performance Comparison

0%50%100%150%JP:7231JP:6473JP:7242JP:7278JP:5991JP:7220Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:7231 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7231Topy Industries, Limited2992.00275.5210.14%
JP:6473JTEKT Corporation1982.00485.2132.42%
JP:7242KYB Corporation1514.00253.2920.09%
JP:7278Exedy Corporation5130.00222.504.53%
JP:5991NHK Spring Co., Ltd.2895.5061.182.16%
JP:7220Musashi Seimitsu Industry Co., Ltd.2449.00-1000.63-29.01%

Topy Industries, Limited Corporate Events

Topy Industries Completes ¥1.28 Billion Treasury Stock Buyback

Aug 5, 2026

Topy Industries, Limited, a Japan-listed industrial manufacturer, operates on the Tokyo Stock Exchange Prime Market and Nagoya Stock Exchange Premier Market. The company aims to maintain a flexible capital structure to navigate changes in its managem...

Topy Industries Launches Targeted Share Buyback to Bolster Capital Policy

Aug 4, 2026

Topy Industries, Limited has moved to adjust its capital structure through a new share repurchase program authorized by its board of directors on August 4, 2026. The initiative reflects the company’s intent to manage shareholder equity more act...

Topy Industries Lifts First-Half Forecast but Keeps Full-Year Guidance Unchanged

Aug 4, 2026

Topy Industries has revised upward its consolidated earnings forecast for the second quarter of the fiscal year ending March 31, 2027, citing stronger-than-expected sales volumes of undercarriage parts for construction machinery and other components,...

Topy Industries Sales Rise as Profits Slump, Earnings Forecasts Cut

Aug 4, 2026

Topy Industries reported consolidated net sales of ¥77.2 billion for the quarter ended June 30, 2026, up 8.4% year-on-year, but suffered a sharp profit squeeze, with operating profit down 56.8% to ¥693 million and profit attributable to own...

Topy Industries Reaffirms Independence Despite Nippon Steel Stake

Jun 25, 2026

Topy Industries has clarified its relationship with Nippon Steel Corporation, which holds 23.0% of its voting rights and is classified as an “other affiliate” and equity-method associate. The company buys some raw materials from Nippon St...

Topy Industries Lifts Annual Dividend to ¥130 Under Progressive Payout Policy

May 21, 2026

Topy Industries’ board has approved a year-end dividend of ¥90 per share for the fiscal year ended March 31, 2026, with a total payout of ¥1.97 billion funded from retained earnings. This brings the full-year dividend to ¥130 per...

Topy Industries to Overhaul Governance Structure With Audit and Supervisory Committee

May 21, 2026

Topy Industries plans to shift its governance structure from a company with an Audit & Supervisory Board to a company with an Audit and Supervisory Committee, subject to shareholder approval at its 132nd Ordinary General Meeting on June 25, 2026....

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 17, 2026