Toho Lamac Co., Ltd. (7422) AI Stock Analysis

• Market Cap: ¥2.97B
• Dividend Yield: 1.96%
• Average Volume (3M): 17.99K
• Price to Earnings (P/E): 47.3
• Beta (1Y): 0.22
• Revenue Growth: 0.82%
• EPS Growth: N/A
• Country: JP
• Employees: 162
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 1.25
• Shares Outstanding: 5,120,700
• 10 Day Avg. Volume: 14,510
• 30 Day Avg. Volume: 17,990
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥613.00
• Price Target Upside: 5.69% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: ¥613.00 ▲(5.69% Upside)

Toho Lamac Co., Ltd.'s stock score of 64 reflects its strong financial performance due to improved profitability and financial stability, despite declining revenue. Technical analysis supports a positive trend, with prices above key moving averages. However, valuation concerns arise from a high P/E ratio, somewhat offset by a moderate dividend yield.

Toho Lamac Co., Ltd. Business Overview & Revenue Model

Company Description

Toho Lamac Co., Ltd. (7422) is a specialized trading company engaged in the distribution of construction materials and industrial goods. The company operates across various sectors, including construction, manufacturing, and logistics, offering a range of products such as piping materials, industrial equipment, and building supplies. Toho Lamac is committed to providing high-quality products and services that meet the evolving needs of its diverse customer base.

How the Company Makes Money

Toho Lamac Co., Ltd. generates revenue primarily through the sale of construction materials and industrial goods. The company employs a business model that focuses on sourcing high-quality materials from manufacturers and distributing them to various industries, including construction and manufacturing. Key revenue streams include direct sales to construction firms, industrial clients, and other businesses requiring specialized materials and equipment. Additionally, the company may engage in strategic partnerships with manufacturers and suppliers to enhance its product offerings and expand its market reach. These partnerships, along with a strong distribution network, contribute significantly to the company's earnings.

Toho Lamac Co., Ltd. Financial Statement Overview

Summary

Toho Lamac Co., Ltd. demonstrates a recovery in profitability and improved financial stability in recent years. While revenue has declined, the company has managed costs effectively, resulting in improved margins. The strong balance sheet and positive cash flow dynamics provide a solid foundation for future growth.

Income Statement

Toho Lamac Co., Ltd. has seen a significant drop in total revenue from 2019 to 2024, with a negative revenue growth rate in recent years. However, the company improved its gross profit margin from 20.5% in 2023 to 30% in 2024, indicating cost management efforts. The net profit margin turned positive in 2024 after losses in previous years, reflecting a recovery in profitability.

Balance Sheet

The company's balance sheet shows a strong equity base with a high equity ratio of approximately 76.5% in 2024. The debt-to-equity ratio is low at 0.17, indicating financial stability. Return on Equity (ROE) improved significantly in 2024 to 2.66% from negative in previous years, showing enhanced shareholder value creation.

Cash Flow

Operating cash flow decreased significantly from 2019 to 2024, but free cash flow remained positive, suggesting efficient capital expenditure management. The free cash flow to net income ratio improved to 0.58 in 2024, highlighting better cash generation relative to net income.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.76B	5.10B	6.38B	6.34B	6.73B
Gross Profit	1.43B	1.27B	1.49B	1.61B	1.73B
EBITDA	174.94M	-113.17M	33.61M	-173.79M	-156.75M
Net Income	124.35M	-135.66M	-6.14M	-217.78M	-192.51M
Balance Sheet
Total Assets	6.11B	5.96B	6.20B	6.41B	6.79B
Cash, Cash Equivalents and Short-Term Investments	1.89B	1.83B	1.41B	2.08B	1.61B
Total Debt	800.00M	800.00M	901.58M	1.00B	1.01B
Total Liabilities	1.44B	1.51B	1.70B	1.75B	1.92B
Stockholders Equity	4.67B	4.44B	4.50B	4.66B	4.87B
Cash Flow
Free Cash Flow	71.77M	346.46M	-666.05M	143.46M	371.17M
Operating Cash Flow	106.79M	384.80M	-654.17M	154.50M	371.76M
Investing Cash Flow	9.95M	192.59M	235.79M	277.73M	428.90M
Financing Cash Flow	-55.19M	-155.93M	-158.13M	-59.80M	-182.45M

Toho Lamac Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 580.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7422, the sentiment is Positive. The current price of 580 is below the 20-day moving average (MA) of 593.60, below the 50-day MA of 586.86, and above the 200-day MA of 475.03, indicating a neutral trend. The MACD of -3.66 indicates Positive momentum. The RSI at 48.99 is Neutral, neither overbought nor oversold. The STOCH value of 76.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7422.

Toho Lamac Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7932	86 Outperform	34.97B	13.35	6.17%	4.00%	-1.69%	-2.96%
3416	77 Outperform	2.33B	5.29	33.89%	4.43%	13.15%	78.54%
2668	75 Outperform	8.19B	14.27	10.76%	2.49%	2.32%	43.85%
2666	71 Outperform	2.40B	8.18	6.49%	1.81%	9.21%	24.86%
7422	64 Neutral	¥2.97B	47.32		1.96%	0.82%	―
7938	64 Neutral	7.64B	14.82	5.49%	2.92%	-1.58%	-16.57%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%