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Totech Corporation (9960) AI Stock Analysis

JP:9960

Totech Corporation

(TSE/TYO:9960)

Select Model
Rating:73.5Outperform
Price Target:JPY 4,772.00▲(12.15% Upside)
Action:reiterated
Date:08/17/26

The overall score of 73.5 reflects Totech's strong financial performance and attractive valuation, which are the primary drivers. The company's consistent revenue growth, robust balance sheet, and low P/E ratio provide a solid foundation. However, bearish technical indicators suggest near-term price pressure, though the stock may find support at its 200-day moving average.

Positive Factors
Sustained revenue growthThe multi-year revenue increase indicates expanding business activity rather than reliance on a single short-term uplift. Continued positive growth in 2026 supports the company’s ability to build scale, maintain customer demand, and provide a foundation for further profit growth.
Negative Factors
Weaker cash conversionThe sharp year-over-year decline in operating and free cash flow weakens confidence that reported earnings are converting consistently into cash. If this pattern persists, it could constrain internally funded investment and make capital spending more sensitive to operating performance.

Totech Corporation (9960) vs. iShares MSCI Japan ETF (EWJ)

-10%0%10%20%30%40%50%JP:9960+35.86%EWJ+16.91%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 174.48B
Dividend Yield
3.17%
Average Volume (3M)
106.98K
Price to Earnings (P/E)
13.5
Beta (1Y)
1.14
Revenue Growth
6.33%
EPS Growth
13.50%
Country
Japan
Employees
2,855
Sector
General
Sector Strength
55
Industry
Industrial - Distribution

Totech Corporation Business Overview & Revenue Model

Company Description

Established in Tokyo, Japan, in 1955, Totech Corporation primarily operates within Japan, specializing in the provision of air conditioning and control system equipment. The company delivers comprehensive facility environment management solutions to...

How the Company Makes Money

A detailed, factual explanation of Totech Corporation (9960)'s revenue model and key revenue streams (e.g., primary sources of sales, customer types, contract structure, and any notable partnerships) could not be reliably determined from the informat...

Totech Corporation Financial Statement Overview

Summary

Totech has shown consistent revenue growth (9% in FY2026) and improved profitability, with gross margin expanding to 28.4% and net margin reaching 7.7%. The balance sheet is exceptionally strong, with debt only 9% of equity and ROE of 18%. Cash flow generation weakened but remains positive, covering 73% of net income.

Income Statement

88Very Positive

Balance Sheet

95Very Positive

Cash Flow

72Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue170.54B170.01B155.96B140.73B126.70B110.12B
Gross Profit48.38B48.28B41.68B33.98B31.06B27.01B
EBITDA19.73B20.55B17.72B12.67B10.10B8.89B
Net Income12.92B13.13B11.19B7.00B5.23B4.72B
Balance Sheet
Total Assets113.02B115.12B105.23B100.48B92.06B84.69B
Cash, Cash Equivalents and Short-Term Investments12.08B11.30B13.08B8.69B6.05B7.84B
Total Debt8.21B6.67B4.82B9.88B13.26B13.06B
Total Liabilities38.34B41.45B44.00B47.04B46.56B43.02B
Stockholders Equity74.67B73.67B61.23B53.44B45.49B41.67B
Cash Flow
Free Cash Flow03.86B12.61B8.53B454.00M9.41B
Operating Cash Flow09.59B13.88B9.94B4.76B11.01B
Investing Cash Flow0-8.51B-1.10B-437.00M-5.03B-5.13B
Financing Cash Flow0-4.97B-8.41B-6.02B-2.65B-3.30B

Totech Corporation Technical Analysis

Technical Analysis SentimentPositive
Last Price4255.00

Price Trends

50DMA4109.00Positive
100DMA4027.05Positive
200DMA3961.52Positive

Market Momentum

MACD49.60Positive
RSI50.66Neutral
STOCH34.02Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9960, the sentiment is Positive. The current price of 4255.00 is below the 20-day moving average (MA) of 4276.25, above the 50-day MA of 4109.00, and above the 200-day MA of 3961.52, indicating a neutral trend. The MACD of 49.60 indicates Positive momentum. The RSI at 50.66 is Neutral, neither overbought nor oversold. The STOCH value of 34.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9960.

Totech Corporation Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:9960 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:9960JP:996074OutperformJPY 177.80B13.55―3.17%6.33%13.50%
JP:6986JP:698672OutperformJPY 26.30B16.431.96%2.89%-5.29%―
JP:6806JP:680666NeutralJPY 748.91B23.618.79%2.20%15.94%6.46%
JP:6908JP:690866NeutralJPY 61.87B22.07―3.78%9.70%3.12%
JP:6807JP:680758NeutralJPY 171.39B31.023.74%2.24%10.23%-33.88%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:6996JP:699654NeutralJPY 144.58B18.51―1.82%0.36%45.02%

* General Sector Average

Performance Comparison

0%50%100%150%200%JP:9960JP:6986JP:6806JP:6807JP:6908JP:6996Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:9960 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:9960Totech Corporation4255.001176.2738.21%
JP:6986Futaba Corp622.00-49.76-7.41%
JP:6806HIROSE ELECTRIC CO23675.002900.1113.96%
JP:6807Japan Aviation Electronics Industry 2458.00222.159.94%
JP:6908IRISO Electronics Co., Ltd.2669.00-307.14-10.32%
JP:6996Nichicon Corporation2093.00579.9538.33%

Totech Corporation Corporate Events

Totech Posts Softer Quarterly Profits but Confirms Stable Dividend and Growth Outlook

Aug 19, 2026

Totech Corporation reported consolidated net sales of ¥36.7 billion for the three months ended June 30, 2026, a modest 1.5% increase year on year, while operating profit, ordinary profit, and profit attributable to owners of parent all declined...

Totech Hits Record Q1 Sales but Earnings Dip on Human-Capital Investments

Aug 7, 2026

Totech Corporation reported record-high first-quarter net sales of ¥36.6 billion for the fiscal year ending March 2027, with growth in both its Product Sales and Construction businesses fueled by robust demand from urban redevelopment, private i...

Totech Posts Softer Quarterly Profit but Confirms Dividend and Growth Outlook

Aug 7, 2026

Totech Corporation reported consolidated net sales of ¥36.69 billion for the three months ended June 30, 2026, a modest 1.5% increase year on year. Profitability weakened, with operating profit down 12.4% to ¥2.60 billion and profit attribu...

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