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TOYO Co Ltd (TOYO)
NASDAQ:TOYO
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TOYO Co Ltd (TOYO) AI Stock Analysis

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TOYO

TOYO Co Ltd

(NASDAQ:TOYO)

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Neutral 67 (OpenAI - 4o)
Rating:67Neutral
Price Target:
$6.50
▲(12.65% Upside)
TOYO's strong technical indicators and attractive valuation are key strengths, suggesting potential for growth. However, financial performance concerns, particularly in cash flow and leverage, and mixed earnings call sentiment, moderate the overall score.

TOYO Co Ltd (TOYO) vs. SPDR S&P 500 ETF (SPY)

TOYO Co Ltd Business Overview & Revenue Model

Company DescriptionTOYO Co Ltd (TOYO) is a leading company specializing in the manufacturing and distribution of high-quality industrial materials and products. Operating primarily in the sectors of automotive, electronics, and construction, TOYO offers an extensive range of products including adhesives, coatings, and specialty chemicals. The company is known for its commitment to innovation and sustainability, providing solutions that meet the evolving needs of its diverse clientele.
How the Company Makes MoneyTOYO generates revenue through multiple streams including the sale of its core products such as adhesives and coatings to various industries like automotive and electronics. The company also engages in long-term contracts with major manufacturers, ensuring a steady income from consistent orders. Additionally, TOYO benefits from strategic partnerships with key players in the construction and manufacturing sectors, which enhance its market reach and product offerings. Research and development initiatives lead to new product launches, further driving sales and expanding their customer base.

TOYO Co Ltd Earnings Call Summary

Earnings Call Date:Sep 08, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:May 04, 2026
Earnings Call Sentiment Neutral
The earnings call highlights several strategic advancements, including the acquisition of the VSUN brand and expansion of solar manufacturing capacity, which position TOYO for future growth. However, these are offset by significant financial challenges such as decreased gross profit margins, increased operating expenses, and a decline in net income. The sentiment is balanced with positive strategic moves and negative financial impacts.
Q2-2025 Updates
Positive Updates
Acquisition of VSUN Brand
TOYO Co., Ltd. acquired the VSUN brand from Vietnam Sun Energy, aiming to streamline operations and accelerate growth. This acquisition is expected to reinforce market credibility and customer confidence.
Expansion of Solar Manufacturing Capacity
The new solar cell manufacturing facility in Ethiopia is operating at full 2 gigawatt capacity, with plans to double to 4 gigawatts by October 2025. This expansion provides a compelling cost structure and access to green power.
Increase in Solar Cell Shipments
Solar cell shipments increased to 1.6 gigawatts in the first half of 2025, up from 985 megawatts in the same period last year.
Cash Position Improvement
The company had approximately $30 million in cash and current restricted cash as of June 2025, compared to $15.1 million as of December 2024.
Negative Updates
Decline in Gross Profit Margin
Gross profit margin decreased to 16.6% in the first half of 2025, compared to 19.3% in the same period last year, due to increased unit costs of raw materials.
Increase in Operating Expenses
Total operating expenses rose by 219.9% to approximately $30 million for the first half of 2025, from $4.2 million in the same period last year, primarily due to expenses related to new facilities and being a public company.
Decrease in Net Income
Net income attributable to shareholders was approximately $4 million for the first half of 2025, compared to $19.6 million for the same period last year.
Reduced Non-GAAP Adjusted EBITDA
Non-GAAP adjusted EBITDA decreased to approximately $23 million for the first half of 2025, compared to $33 million in the same period last year, reflecting increased operating expenses and reduced sales volume to the U.S. market.
Company Guidance
During the call, TOYO Co., Ltd. provided guidance indicating a strategic focus on expanding solar cell production, projecting shipments of approximately 4.2 to 4.4 gigawatts for the full year 2025. This expansion is expected to drive revenue to a range of $375 million to $400 million, with net income anticipated between $39 million and $45 million. The company highlighted the integration of the VSUN brand to streamline operations and enhance market presence. Despite a slight decline in gross profit margin to 16.6% in the first half of 2025, compared to 19.3% in the previous year, TOYO expects margins to improve as new facilities in Ethiopia and Houston reach full capacity. The company remains committed to leveraging its manufacturing capabilities and strategic partnerships to navigate tariff-related challenges and capitalize on high-growth markets.

TOYO Co Ltd Financial Statement Overview

Summary
TOYO Co Ltd shows strong revenue growth and improved net profitability. However, declining gross margins, increased leverage, and weak cash flow performance raise concerns about financial stability.
Income Statement
65
Positive
TOYO Co Ltd has shown impressive revenue growth of 34.69% in the latest annual report, indicating strong market demand and expansion. However, the gross profit margin has decreased from 26.66% to 12.37%, suggesting increased cost pressures or pricing challenges. The net profit margin improved significantly to 23.11%, driven by a substantial net income increase, which is a positive sign of profitability. EBIT and EBITDA margins have declined, indicating potential operational inefficiencies.
Balance Sheet
55
Neutral
The company's debt-to-equity ratio increased to 1.24, reflecting higher leverage and potential financial risk. The return on equity is currently at 0%, which is concerning as it indicates no return on shareholders' investments. The equity ratio stands at 24.71%, showing a moderate level of financial stability but also highlighting the reliance on debt financing.
Cash Flow
45
Neutral
TOYO Co Ltd's cash flow performance is weak, with a significant decline in free cash flow growth by -108.71%. The operating cash flow to net income ratio is low at 0.37, indicating challenges in converting income into cash. The free cash flow to net income ratio is also low at 0.05, suggesting limited cash generation relative to net income.
BreakdownTTMDec 2024Dec 2023Dec 2021
Income Statement
Total Revenue177.98M177.00M62.38M0.00
Gross Profit18.34M21.90M16.63M0.00
EBITDA19.98M9.20M14.59M-246.89K
Net Income24.42M40.90M9.89M-246.89K
Balance Sheet
Total Assets353.62M239.80M238.28M93.86M
Cash, Cash Equivalents and Short-Term Investments28.19M13.65M18.04M276.28K
Total Debt149.35M73.57M12.34M0.00
Total Liabilities283.38M180.36M181.39M3.30M
Stockholders Equity67.01M59.24M56.90M90.56M
Cash Flow
Free Cash Flow-9.83M2.46M-126.77M-182.13K
Operating Cash Flow64.75M46.51M-12.53M-182.13K
Investing Cash Flow-74.65M-44.04M-114.24M-92.92M
Financing Cash Flow3.07M-2.09M146.15M93.38M

TOYO Co Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.77
Price Trends
50DMA
5.27
Positive
100DMA
4.41
Positive
200DMA
3.75
Positive
Market Momentum
MACD
0.18
Positive
RSI
55.47
Neutral
STOCH
26.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TOYO, the sentiment is Positive. The current price of 5.77 is above the 20-day moving average (MA) of 5.75, above the 50-day MA of 5.27, and above the 200-day MA of 3.75, indicating a bullish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 55.47 is Neutral, neither overbought nor oversold. The STOCH value of 26.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TOYO.

TOYO Co Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
$204.26M7.9134.94%
49
Neutral
$96.48M-24.42-4.15%-33.25%81.55%
48
Neutral
$152.09M-2.7257.88%308.47%76.84%
42
Neutral
$73.61M-1.8016.21%86.59%55.95%
41
Neutral
$60.49M-0.02209.06%-54.68%63.56%
41
Neutral
$55.93M-2.79110.69%-27.65%16.39%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TOYO
TOYO Co Ltd
5.86
3.06
109.29%
SOL
Emeren Group
1.88
-0.95
-33.57%
MAXN
Maxeon Solar Technologies
3.58
-4.85
-57.53%
SPWR
Complete Solaria
1.83
-0.65
-26.21%
ZEO
Zeo Energy
1.28
-0.38
-22.89%
SMXT
SolarMax Technology, Inc.
1.03
0.39
60.94%

TOYO Co Ltd Corporate Events

TOYO Co., Ltd Acquires VSUN Trademarks to Enhance Solar Energy Portfolio
Sep 15, 2025

On September 4, 2025, TOYO Co., Ltd and its subsidiary Toyo Solar Company Limited entered into a trademark purchase agreement with Vietnam Sunergy Europe GmbH and Vietnam Sunergy Joint Stock Company to acquire the ‘VSUN’ trademarks registered in 12 jurisdictions for $340,000. Following this acquisition, on September 12, 2025, TOYO Group granted a one-year license back to VSUN for the use of these trademarks in their business operations. This strategic acquisition and licensing arrangement is expected to enhance TOYO’s market presence and operational capabilities in the solar energy sector.

TOYO Co., Ltd Reports Interim Financial Results for June 2025
Sep 12, 2025

TOYO Co., Ltd has released its unaudited interim financial statements for the six months ending June 30, 2025. The company reported total revenues of $139.1 million, with a slight increase from the previous year’s $138.1 million. The financial results indicate a shift in revenue sources, with a significant increase in third-party revenues and a decrease in related party revenues. The company’s total assets have grown to $353.6 million from $239.8 million at the end of 2024, reflecting substantial increases in both current and non-current assets. This financial performance suggests a strategic realignment in TOYO’s operations, potentially impacting its market positioning and stakeholder interests.

TOYO Co., Ltd Expands U.S. Market Presence with VSUN Acquisition and New Facilities
Sep 9, 2025

On September 8, 2025, TOYO Co., Ltd announced its unaudited financial results for the first half of 2025, highlighting strategic growth initiatives. The company has expanded its manufacturing capabilities with a new solar cell facility in Ethiopia, which began production in April 2025, and a module assembly plant in Texas. The acquisition of the VSUN brand is set to enhance TOYO’s market presence in the U.S., leveraging VSUN’s established customer base and reputation. This strategic move is expected to strengthen TOYO’s competitive position and revenue potential in the solar energy market.

TOYO Co., Ltd Secures $60 Million Photovoltaic Module Deal
Aug 5, 2025

On July 2, 2025, TOYO Solar Texas LLC, a subsidiary of TOYO Co., Ltd, entered into a significant module supply and purchase agreement with New Leaf Energy Buyer, Inc. This agreement involves the sale of 380,380 photovoltaic modules for approximately $60 million, with the contract set to expire on December 31, 2025. TOYO Co., Ltd has also provided a parent guaranty to support its subsidiary’s obligations under this agreement. This deal is expected to enhance TOYO’s market presence and operational capacity in the renewable energy sector.

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: Oct 02, 2025