Improving Net MarginNet margin has risen to about 3.7% in 2025 after weaker years, indicating structural improvement in profitability. Sustained margin expansion enhances internal cash generation, supports reinvestment and dividends, and provides a larger buffer against demand shocks over the next several quarters.

Deleveraging TrendLeverage has meaningfully declined over several years, reflecting capital retention or debt paydown. A continued downward trend in debt-to-equity improves financial flexibility, lowers interest burden, and increases capacity for strategic investments or opportunistic M&A over a multi-quarter horizon.

Recent Positive Free Cash FlowFree cash flow turned positive in the last two years and approached ~66% of net income, showing improving cash conversion. Durable positive FCF supports capital expenditure, dividend payouts and further debt reduction, strengthening balance sheet resilience over the medium term.

Bears Say

Declining Revenue TrendTop-line contraction across consecutive years reduces scale and can erode operating leverage. Persistent revenue declines constrain margin expansion, limit reinvestment capacity, and make profitability gains more fragile if demand or pricing pressure persists over the next several quarters.

Volatile Cash GenerationHistorical swings between negative and positive free cash flow signal inconsistent cash conversion. That volatility elevates funding and execution risk for capex, dividends or deleveraging plans, and means recent FCF improvement may not be fully reliable without structural changes to working capital or earnings quality.

Modest Returns On CapitalROE near mid-single digits and low single-digit operating margins indicate limited ability to generate high shareholder returns. Modest returns constrain reinvestment payoff and reduce the margin for error in downturns, making sustained value creation more challenging absent material operational improvement.

3204 FAQ

What was Toabo Corporation’s price range in the past 12 months?

Toabo Corporation lowest stock price was ¥368.00 and its highest was ¥557.00 in the past 12 months.

What is Toabo Corporation’s market cap?

Toabo Corporation’s market cap is ¥4.82B.

When is Toabo Corporation’s upcoming earnings report date?

Toabo Corporation’s upcoming earnings report date is May 07, 2026 which is in 75 days.

How were Toabo Corporation’s earnings last quarter?

Toabo Corporation released its earnings results on Feb 13, 2026. The company reported ¥34.8 earnings per share for the quarter, beating the consensus estimate of N/A by ¥34.8.

Is Toabo Corporation overvalued?

According to Wall Street analysts Toabo Corporation’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Toabo Corporation pay dividends?

Toabo Corporation pays a Annually dividend of ¥14 which represents an annual dividend yield of 2.7%. See more information on Toabo Corporation dividends here

What is Toabo Corporation’s EPS estimate?

Toabo Corporation’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Toabo Corporation have?

Toabo Corporation has 8,940,448 shares outstanding.

What happened to Toabo Corporation’s price movement after its last earnings report?

Toabo Corporation reported an EPS of ¥34.8 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 0.973%.

Which hedge fund is a major shareholder of Toabo Corporation?

Currently, no hedge funds are holding shares in JP:3204

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Toabo Corporation

Toabo Corporation manufactures and sells textiles in Japan and internationally. It offers fabrics, suits, uniforms, and wool products. The company is also involved in the manufacture of fine chemicals used in electronic materials and healthcare-related fields; electronic products for use in the field of power tools, vacuum cleaners, home appliances, industrial equipment, and OA equipment; and automotive interior, wastewater treatment, civil engineering, and greening materials. In addition, it leases offices, commercial complexes, and factory sites, as well as engages in driving school businesses. Toabo Corporation was founded in 1922 and is headquartered in Osaka, Japan.