Toyo Tec Co., Ltd (9686) AI Stock Analysis

• Market Cap: ¥16.55B
• Dividend Yield: 2.97%
• Average Volume (3M): 8.16K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.35
• Revenue Growth: 34.15%
• EPS Growth: 324.87%
• Country: JP
• Employees: 1,953
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): 76.97
• Shares Outstanding: 11,440,000
• 10 Day Avg. Volume: 7,590
• 30 Day Avg. Volume: 8,160
• PEG Ratio: 1.99
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.40
• P/FCF Ratio: 8.08
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: ¥1,749.00 ▲(13.28% Upside)

Toyo Tec Co., Ltd demonstrates strong financial performance with robust revenue growth and cash flow, supported by a solid balance sheet. The valuation is attractive, with a low P/E ratio and a healthy dividend yield. Technical analysis presents mixed signals, with short-term bearish trends but long-term strength. The absence of earnings call and corporate events data does not impact the overall assessment.

Toyo Tec Co., Ltd Business Overview & Revenue Model

Company Description

Toyo Tec Co., Ltd (9686) is a Japanese company primarily engaged in the manufacturing and distribution of various industrial equipment and materials. The company operates in sectors such as manufacturing, construction, and technology, providing core products that include precision machinery, automation systems, and industrial tools. Toyo Tec is known for its commitment to innovation and quality, serving a diverse range of clients across multiple industries.

How the Company Makes Money

Toyo Tec generates revenue through the sale of its industrial equipment and machinery, which are critical to manufacturing and construction processes. The company has established key revenue streams from direct sales to businesses in various sectors, as well as through long-term service contracts for maintenance and support of its products. Additionally, Toyo Tec benefits from strategic partnerships with other companies in the technology and automation fields, enabling them to expand their product offerings and market reach. The company may also receive revenue from consulting services related to industrial process optimization and efficiency improvements.

Toyo Tec Co., Ltd Financial Statement Overview

Summary

Toyo Tec Co., Ltd's financial statements reflect a well-rounded performance with impressive revenue growth and solid cash flow health. While profitability margins are strong, there is potential for further enhancement, particularly in net profit margins. The balance sheet remains a strong point, characterized by low leverage and high equity ratios, ensuring financial stability. Overall, the company is well-positioned for future growth with a secure financial foundation.

Income Statement

Toyo Tec Co., Ltd has shown strong revenue growth with a 11.8% increase from the previous year, indicating robust business expansion. The company maintains healthy profitability with a gross profit margin of 19.8% and a net profit margin of 2.0%. EBIT and EBITDA margins are steady at 3.0% and 8.3%, respectively, showcasing efficient operations. However, the net profit margin is relatively low, which suggests room for improvement in cost management or pricing strategies.

Balance Sheet

The company exhibits a solid balance sheet with a debt-to-equity ratio of 0.44, indicating conservative leverage and financial stability. A high equity ratio of 56.0% underscores strong financial health. Return on equity is moderate at 3.2%, which could be improved to enhance shareholder returns. Overall, the balance sheet reflects a stable financial position with manageable debt levels.

Cash Flow

Cash flow performance is robust, highlighted by a significant turnaround in free cash flow, from negative values in prior periods to a positive 1720.2 million. The operating cash flow to net income ratio of 4.3 demonstrates effective cash generation relative to earnings. This indicates strong liquidity and the ability to support future investments or debt repayments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	39.10B	34.93B	31.25B	30.14B	27.47B	26.00B
Gross Profit	7.64B	6.91B	6.00B	5.84B	5.40B	5.33B
EBITDA	4.00B	2.88B	2.33B	2.26B	1.90B	1.97B
Net Income	1.46B	692.70M	626.23M	741.88M	459.51M	560.98M
Balance Sheet
Total Assets	40.69B	38.80B	35.77B	31.59B	29.88B	32.13B
Cash, Cash Equivalents and Short-Term Investments	9.63B	10.62B	10.89B	10.18B	10.73B	11.26B
Total Debt	10.31B	9.46B	6.55B	5.07B	4.04B	4.62B
Total Liabilities	18.39B	17.06B	14.46B	10.96B	9.43B	10.38B
Stockholders Equity	22.29B	21.74B	21.31B	20.62B	20.45B	21.75B
Cash Flow
Free Cash Flow	0.00	1.72B	-2.09B	404.53M	-1.33B	-221.59M
Operating Cash Flow	0.00	2.86B	1.90B	1.50B	783.89M	1.27B
Investing Cash Flow	0.00	-4.45B	-3.05B	-1.33B	203.25M	-1.40B
Financing Cash Flow	0.00	2.42B	1.14B	-135.85M	-881.43M	576.18M

Toyo Tec Co., Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1544.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9686, the sentiment is Negative. The current price of 1544 is below the 20-day moving average (MA) of 1563.75, below the 50-day MA of 1579.03, and above the 200-day MA of 1409.61, indicating a neutral trend. The MACD of 10.60 indicates Negative momentum. The RSI at 46.62 is Neutral, neither overbought nor oversold. The STOCH value of 51.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9686.

Toyo Tec Co., Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9686	77 Outperform	¥16.55B	7.74	―	2.97%	34.15%	324.87%
7464	76 Outperform	¥3.22B	12.80	―	5.12%	-1.35%	-17.35%
9740	75 Outperform	¥37.57B	11.99	―	2.20%	9.05%	14.38%
4754	74 Outperform	¥7.43B	7.66	―	2.10%	5.24%	91.21%
7058	72 Outperform	¥3.95B	44.49	―	3.30%	6.83%	-59.50%
4264	66 Neutral	¥8.68B	69.47	―	―	12.33%	-44.28%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%