Tokai Carbon (TKCBY) AI Stock Analysis

• Market Cap: $1.47B
• Dividend Yield: 1.78%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 18.9
• Beta (1Y): 0.56
• Revenue Growth: -5.77%
• EPS Growth: -477.17%
• Country: US
• Employees: 4,625
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.71
• Shares Outstanding: 56,235,750
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: 0.01
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.52
• P/FCF Ratio: 19.57
• Enterprise Value/Market Cap: 1.78
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: 0.03
• Enterprise Value/Ebitda: 0.06
• 1Y Price Target: $28.00
• Price Target Upside: -0.11% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 53 Neutral
• Price Target: $28.00 ▼(-0.11% Downside)

Tokai Carbon's overall stock score is primarily impacted by its financial challenges, including declining revenue and profitability. Technical analysis provides some support with a moderately positive outlook, but valuation concerns due to negative earnings weigh heavily on the score.

Tokai Carbon Business Overview & Revenue Model

Company Description

Tokai Carbon Co., Ltd. manufactures and sells carbon-related products and services in Japan. It offers graphite electrodes for use in electric furnaces, such as direct current, alternating current, and refining furnaces; and carbon black, including SEAST, TOKABLACK, Aqua Black, and Thermal black varieties, which are used to reinforce the rubber in tires, as well as used as a black pigment in various black-colored products. It also provides fine carbon products comprising special graphite products that include isotropic graphite G/HK series, extruded graphite, SiC coated carbon, C/C composite, glassy carbon, solid SiC, carbon brush, and resin-impregnated graphite products, as well as furnace materials for silicon semiconductor, solar cell manufacturing, and other applications; and industrial furnaces and related products, which comprise silicon carbide heating elements, resistors, recryte SiC structural materials, and industrial furnaces for heat treatment of ceramics, electronic components, metals, glass, and others. In addition, it provides carbon and graphite products and solutions for various smelting applications; and friction materials, including sintered metal friction, paper friction, carbonaceous friction, sliding, resin, woven, and soft mold materials to regulate power transmission in industrial and construction machinery, as well as for use in brake and clutch parts of vehicles, such as motorbikes, trucks, buses, and trains. Further, the company offers anode materials for secondary lithium-ion batteries that are used in smartphones and electric cars. The company was formerly known as Tokai Electrode Mfg. Co. Ltd. and changed its name to Tokai Carbon Co., Ltd. in 1975. Tokai Carbon Co., Ltd. was founded in 1918 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Tokai Carbon makes money primarily through the manufacture and sale of its carbon-based products. The Carbon Black segment, which produces materials used in tires and other rubber products, is a significant revenue stream. The Graphite Electrodes segment supplies products used in electric arc furnaces for steel production, while the Fine Carbon segment provides specialty carbon products for the semiconductor and solar industries. The Industrial Furnaces and Related Products segment generates revenue by offering industrial heat treatment furnaces, and the Friction Materials segment serves the automotive industry. The company's revenue is bolstered by strategic partnerships and a global operational presence, enabling it to cater to a wide range of industrial needs across different regions.

Tokai Carbon Financial Statement Overview

Summary

Tokai Carbon's financial performance is under pressure with declining revenue and negative net income impacting profitability. The balance sheet shows increased leverage, and while cash flows are positive, they are not growing, indicating financial challenges.

Income Statement

Tokai Carbon's income statement shows significant challenges. The company experienced a decline in total revenue from 2023 to 2024, coupled with a negative net income, leading to a negative net profit margin. The gross profit margin is moderate, but the negative EBITDA margin is concerning. The revenue growth rate over the past year is negative, indicating a contraction in business operations.

Balance Sheet

The balance sheet reveals a stable equity ratio, reflecting a balanced asset structure. However, the debt-to-equity ratio increased from 2023 to 2024, raising leverage concerns. The ROE is negative due to the negative net income, indicating a lack of profitability on equity investments.

Cash Flow

Cash flow analysis shows resilience in operating cash flow, sustaining positive free cash flow despite capital expenditures. However, the free cash flow growth rate is negative, and the operating cash flow to net income ratio is high, highlighting reliance on cash flows to cover losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	337.27B	350.11B	363.95B	340.37B	258.87B	201.54B
Gross Profit	81.45B	80.64B	81.49B	94.05B	70.73B	49.55B
EBITDA	46.43B	-3.95B	80.78B	78.14B	54.27B	34.47B
Net Income	-51.86B	-56.74B	25.47B	22.42B	16.11B	1.02B
Balance Sheet
Total Assets	606.57B	640.75B	640.00B	576.47B	512.50B	459.71B
Cash, Cash Equivalents and Short-Term Investments	72.22B	92.21B	77.47B	70.91B	78.86B	67.17B
Total Debt	198.54B	199.11B	166.64B	171.45B	168.25B	158.64B
Total Liabilities	298.53B	315.60B	279.90B	275.60B	255.94B	234.89B
Stockholders Equity	274.56B	289.56B	324.49B	268.82B	229.21B	201.27B
Cash Flow
Free Cash Flow	0.00	9.36B	12.46B	-4.01B	8.54B	27.79B
Operating Cash Flow	0.00	64.47B	62.07B	41.20B	38.07B	55.02B
Investing Cash Flow	0.00	-70.78B	-47.63B	-49.90B	-35.28B	-44.30B
Financing Cash Flow	0.00	9.41B	-14.51B	-10.63B	1.21B	927.00M

Tokai Carbon Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.03
• 50DMA: Positive
• 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 TKCBY, the sentiment is Positive. The current price of 28.03 is above the 20-day moving average (MA) of 27.79, above the 50-day MA of 27.79, and above the 200-day MA of 25.92, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 53.71 is Neutral, neither overbought nor oversold. The STOCH value of 67.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TKCBY.

Tokai Carbon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SSL	72 Outperform	$3.95B	10.75	4.56%	2.00%	-6.73%	―
CBT	71 Outperform	$4.02B	9.83	29.03%	2.40%	-3.61%	-9.70%
IOSP	63 Neutral	$1.96B	104.48	1.55%	2.07%	-5.45%	-87.13%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MTX	54 Neutral	$1.92B	1,381.72	0.13%	0.72%	-3.93%	-97.39%
TKCBY	53 Neutral	$1.47B	18.92	-16.22%	1.78%	-5.77%	-477.17%
OEC	52 Neutral	$406.52M	26.77	3.11%	1.14%	-3.79%	-79.76%