Toli Corporation (7971) AI Stock Analysis

• Market Cap: ¥31.17B
• Dividend Yield: 3.6%
• Average Volume (3M): 150.32K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.58
• Revenue Growth: 5.10%
• EPS Growth: -4.12%
• Country: JP
• Employees: 1,883
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 6.52
• Shares Outstanding: 60,129,250
• 10 Day Avg. Volume: 154,000
• 30 Day Avg. Volume: 150,323
• PEG Ratio: -2.36
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.26
• P/FCF Ratio: -10.49
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥597.00 ▲(1.53% Upside)

The stock's solid overall score is primarily driven by its strong valuation, indicating potential undervaluation with a low P/E ratio and a good dividend yield. Financial performance is robust, with consistent revenue growth and a stable balance sheet, although cash flow challenges need attention. Technical analysis suggests bullish momentum, but overbought indicators warrant caution.

Toli Corporation Business Overview & Revenue Model

Company Description

Toli Corporation (7971) is a Japanese company primarily engaged in the manufacturing and sale of various types of packaging materials and solutions. The company operates in sectors such as flexible packaging, rigid packaging, and industrial materials, catering to a diverse range of industries including food, pharmaceuticals, and consumer goods. Toli Corporation is known for its innovative approaches in packaging design and technology, providing products that enhance product preservation and consumer convenience.

How the Company Makes Money

Toli Corporation generates revenue through multiple key streams, primarily from the sale of its packaging products to businesses in various sectors. The company's revenue model is built on the production of customized packaging solutions that meet the specific needs of clients, which often leads to long-term contracts and repeat business. Additionally, Toli may engage in partnerships with manufacturers and suppliers to expand its market reach and improve its product offerings. Factors contributing to its earnings include the growing demand for sustainable packaging solutions, advancements in packaging technology, and the expansion of its operations into emerging markets.

Toli Corporation Financial Statement Overview

Summary

Toli Corporation demonstrates a strong financial position with consistent revenue growth and a stable balance sheet. However, challenges in cash flow management due to high capital expenditures may impact future liquidity. Continued focus on operational efficiency and expense management will be crucial for sustaining profitability.

Income Statement

The company has shown steady revenue growth with a 3.16% increase from 2024 to 2025. Gross profit margin is consistent, and the net profit margin is stable at approximately 3.32% for 2025. However, EBIT and EBITDA margins have decreased slightly, indicating a need to control operating expenses to maintain profitability.

Balance Sheet

The balance sheet is robust with a healthy equity ratio of approximately 51.07% in 2025, indicating strong financial stability. The debt-to-equity ratio remains manageable at 0.20, showing prudent use of leverage. ROE is modest at around 7.30%, suggesting moderate efficiency in generating returns from equity.

Cash Flow

The cash flow situation indicates challenges with negative free cash flow due to high capital expenditures. However, the operating cash flow to net income ratio of 0.70 in 2025 indicates solid cash generation relative to earnings, though the free cash flow to net income ratio is negative, reflecting cash outflows exceeding net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	108.09B	105.71B	102.47B	95.23B	88.51B	85.93B
Gross Profit	31.37B	30.66B	29.92B	27.18B	24.13B	24.49B
EBITDA	8.49B	8.56B	8.40B	6.65B	3.84B	4.61B
Net Income	3.49B	3.51B	3.69B	2.56B	720.00M	1.39B
Balance Sheet
Total Assets	93.68B	94.06B	90.85B	84.79B	79.98B	76.82B
Cash, Cash Equivalents and Short-Term Investments	9.37B	8.21B	9.63B	9.74B	10.34B	10.36B
Total Debt	10.78B	9.78B	6.70B	6.70B	6.70B	6.63B
Total Liabilities	45.95B	45.68B	45.09B	43.90B	41.70B	38.73B
Stockholders Equity	47.39B	48.05B	45.43B	40.61B	38.01B	37.82B
Cash Flow
Free Cash Flow	0.00	-2.65B	1.51B	115.00M	1.19B	1.63B
Operating Cash Flow	0.00	2.47B	5.29B	3.60B	4.96B	4.16B
Investing Cash Flow	0.00	-4.77B	-3.90B	-3.27B	-4.02B	-3.11B
Financing Cash Flow	0.00	842.00M	-1.57B	-934.00M	-1.06B	-987.00M

Toli Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 588.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7971, the sentiment is Positive. The current price of 588 is above the 20-day moving average (MA) of 574.80, above the 50-day MA of 575.35, and above the 200-day MA of 492.22, indicating a bullish trend. The MACD of 1.65 indicates Negative momentum. The RSI at 60.42 is Neutral, neither overbought nor oversold. The STOCH value of 85.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7971.

Toli Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7871	80 Outperform	¥18.08B	12.09	―	3.23%	1.51%	-13.05%
5237	79 Outperform	¥11.56B	12.40	―	3.96%	-2.90%	-24.21%
7971	71 Outperform	¥31.17B	9.60	―	3.60%	5.10%	-4.12%
7949	71 Outperform	¥45.03B	16.57	―	2.56%	2.77%	8.52%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7820	52 Neutral	¥20.97B	21.76	―	4.33%	-7.57%	-316.77%
5337	46 Neutral	¥17.70B	15.45	―	―	-11.27%	―

Toli Corporation Corporate Events

Toli Corporation’s Q1 Financial Performance: Sales Up, Profits Down

Toli Corporation reported a 10.5% increase in net sales for the first quarter ending March 2026, reaching 25,056 million yen. However, the company experienced a decline in operating profit by 13% and a decrease in comprehensive income by 64.7% compared to the previous year, indicating challenges in maintaining profitability despite increased sales.