TORQ, Inc. (8077) AI Stock Analysis

TORQ, Inc.

(TSE/TYO:8077)

Select Model

Rating:72Outperform

Price Target:JPY 231.00▲(12.14% Upside)

Action:upgraded

Date:08/06/26

The stock earns a score of 72, reflecting a moderately attractive investment. The strongest positive is the compelling valuation, with a low P/E and healthy dividend yield. Financial performance is solid, supported by a strengthened balance sheet and robust recent cash flows, though revenue declines and margin pressure are concerns. Technical indicators are neutral, with the stock still below its 200-day moving average, indicating some longer-term weakness. Overall, the company presents a balanced risk-reward profile.

Positive Factors

Improved leverage (debt reduction)A meaningful reduction in debt-to-equity improves financial flexibility and lowers interest burden over the medium term. This stronger capital structure reduces default risk, supports continued investment or dividend funding, and gives management room to pursue strategic initiatives without urgent refinancing.

Negative Factors

Recent revenue declineA recurring or continuing top-line decline erodes operating leverage and constrains long-term growth options. If revenue weakness persists, management will face pressure to offset it via margin improvements or cost cuts, which can limit investment in new products, distribution, or market expansion.

TORQ, Inc. (8077) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 4.68B
Dividend Yield: 2.90%
Average Volume (3M): 16.13K
Price to Earnings (P/E): 6.8
Beta (1Y): 0.33
Revenue Growth: -5.86%
EPS Growth: -28.00%
Country: Japan
Employees: 213
Sector: General
Sector Strength: 55
Industry: Industrial - Distribution

TORQ, Inc. Business Overview & Revenue Model

Company Description

TORQ Inc. operates within Japan, specializing in the import, export, and domestic distribution of a diverse range of rivets and fastening solutions. Its extensive product catalog includes various screw types, from miniature fasteners to high-strength...

TORQ, Inc. Financial Statement Overview

Summary

The company shows solid profitability with a net margin of 4.01% and improved EBIT/EBITDA margins, but revenue declined 1.96% in 2025 after near-flat growth in 2024. Gross margin also decreased. Balance sheet strengthened with debt-to-equity improving to 0.90 and equity ratio rising to 42%. Cash flow performance was exceptional in 2025 with ¥2.06B free cash flow and strong conversion. However, historical cash flow volatility includes three negative FCF years in the past five. Overall, financial health is good but with some concerns about revenue trends and margins.

Income Statement

65Positive

Balance Sheet

75Positive

Cash Flow

70Positive

Financial statement breakdown
Breakdown	TTM	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	21.64B	22.54B	22.41B	21.76B	20.48B	19.25B
Gross Profit	4.41B	4.73B	4.59B	4.37B	4.17B	3.88B
EBITDA	1.05B	1.44B	1.38B	1.31B	821.90M	300.42M
Net Income	683.26M	904.88M	895.48M	845.38M	532.24M	258.95M
Balance Sheet
Total Assets	34.15B	34.04B	33.68B	32.69B	31.12B	28.44B
Cash, Cash Equivalents and Short-Term Investments	3.71B	3.63B	2.77B	3.24B	1.78B	2.37B
Total Debt	12.47B	12.80B	13.28B	13.27B	13.76B	11.55B
Total Liabilities	19.64B	19.75B	20.41B	20.35B	20.08B	17.82B
Stockholders Equity	14.51B	14.29B	13.27B	12.34B	11.04B	10.62B
Cash Flow
Free Cash Flow	2.06B	2.06B	-33.60M	1.82B	-1.97B	-2.62B
Operating Cash Flow	2.06B	2.06B	-20.03M	1.87B	-869.95M	-28.65M
Investing Cash Flow	-191.03M	-191.03M	78.05M	-61.15M	-1.70B	-3.17B
Financing Cash Flow	-781.72M	-781.72M	-508.98M	-634.42M	2.06B	3.20B

TORQ, Inc. Technical Analysis

Technical Analysis SentimentNegative

Last Price206.00

Price Trends

50DMA208.83Negative

100DMA206.71Positive

200DMA210.52Negative

Market Momentum

MACD-0.19Negative

RSI48.84Neutral

STOCH26.46Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8077, the sentiment is Negative. The current price of 206.00 is below the 20-day moving average (MA) of 207.00, below the 50-day MA of 208.83, and below the 200-day MA of 210.52, indicating a neutral trend. The MACD of -0.19 indicates Negative momentum. The RSI at 48.84 is Neutral, neither overbought nor oversold. The STOCH value of 26.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8077.

TORQ, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:8077 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7628	81Outperform	JPY 26.72B	11.65	―	3.86%	5.68%	39.50%
JP:8077	72Outperform	JPY 4.71B	6.84	―	2.90%	-5.86%	-28.00%
JP:8103	71Outperform	JPY 37.17B	10.80	―	4.56%	17.27%	-5.38%
JP:9830	69Neutral	JPY 156.42B	9.54	―	2.57%	10.37%	1.94%
JP:8052	62Neutral	JPY 57.13B	11.12	―	2.70%	-1.14%	6.32%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:8077 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:8077	TORQ, Inc.	207.00	-42.79	-17.13%
JP:7628	Ohashi Technica Inc.	1061.00	70.38	7.10%
JP:8052	Tsubakimoto Kogyo Co., Ltd.	2967.00	471.18	18.88%
JP:8103	Meiwa Corporation	922.00	158.80	20.81%
JP:9830	Trusco Nakayama Corporation	2372.00	37.79	1.62%

TORQ, Inc. Corporate Events

Torq’s Half-Year Profit Slides as Sales Decline, but Dividend Outlook Held Steady

Jun 11, 2026

Torq Inc. reported consolidated net sales of ¥10.61 billion for the six months ended April 30, 2026, down 6.6% year on year, with operating profit falling 43.4% to ¥326 million and profit attributable to owners of parent dropping 37.0% to &...

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 06, 2026

TORQ, Inc. AI Stock Analysis