Recurring Rental Business ModelTokai Lease’s core model—rental fees for temporary buildings and equipment plus installation, maintenance and disposal services—creates recurring, contract-driven revenue and diversified income streams. This structural mix supports steady utilization-linked cash generation and long-term client relationships across industries.

Revenue And Margin ImprovementConsistent top-line growth with improved gross and net margins indicates durable operating leverage and better cost control. Strengthened EBIT/EBITDA margins point to sustainable profitability enhancements, supporting cash flow stability and the ability to reinvest in fleet or services over the medium term.

Positive Operating Cash GenerationOperating cash flow near reported profits demonstrates earnings quality and reliable cash conversion from operations. Persistent positive OCF supports working capital needs, debt servicing and dividend capacity, providing financial flexibility even if investment cycles require periodic capital spending.

Bears Say

Negative Free Cash FlowSustained negative free cash flow driven by elevated capex reduces internal funding for growth or debt reduction. Over a multi-month horizon, this can force reliance on external financing or slow dividend/repurchase flexibility, constraining strategic optionality and increasing financing cost sensitivity.

Material LeverageA leverage ratio near 0.83, while manageable, increases fixed obligations and reduces balance sheet resilience. In a capital-intensive leasing business, this level of debt amplifies interest and refinancing risk during downturns and can limit the company’s ability to absorb utilization shocks or pursue opportunistic investments.

Cyclicality Of End MarketsRevenue and asset utilization are structurally tied to cyclical sectors like construction and events. These demand swings can materially affect utilization rates and rental pricing over quarters, creating persistent earnings volatility and making long-term planning, fleet utilization and revenue visibility more challenging.

9761 FAQ

What was Tokai Lease Co., Ltd.’s price range in the past 12 months?

Tokai Lease Co., Ltd. lowest stock price was ¥1730.00 and its highest was ¥2739.00 in the past 12 months.

What is Tokai Lease Co., Ltd.’s market cap?

Tokai Lease Co., Ltd.’s market cap is ¥9.12B.

When is Tokai Lease Co., Ltd.’s upcoming earnings report date?

Tokai Lease Co., Ltd.’s upcoming earnings report date is Apr 24, 2026 which is in 40 days.

How were Tokai Lease Co., Ltd.’s earnings last quarter?

Tokai Lease Co., Ltd. released its earnings results on Feb 12, 2026. The company reported ¥20.19 earnings per share for the quarter, beating the consensus estimate of N/A by ¥20.19.

Is Tokai Lease Co., Ltd. overvalued?

According to Wall Street analysts Tokai Lease Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Tokai Lease Co., Ltd. pay dividends?

Tokai Lease Co., Ltd. pays a Semiannually dividend of ¥60 which represents an annual dividend yield of 5.03%. See more information on Tokai Lease Co., Ltd. dividends here

What is Tokai Lease Co., Ltd.’s EPS estimate?

Tokai Lease Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Tokai Lease Co., Ltd. have?

Tokai Lease Co., Ltd. has 3,494,322 shares outstanding.

What happened to Tokai Lease Co., Ltd.’s price movement after its last earnings report?

Tokai Lease Co., Ltd. reported an EPS of ¥20.19 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 2.823%.

Which hedge fund is a major shareholder of Tokai Lease Co., Ltd.?

Currently, no hedge funds are holding shares in JP:9761

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

Tokai Lease Co., Ltd.

Tokai Lease Co., Ltd. manufactures, sells, and leases temporary buildings, and fixtures and fittings in Japan. The company's solutions cover flat houses, such as convenience stores, schools, support centers, factories, post offices, fire and disaster management agencies, emergency temporary housing, government buildings, police boxes, dining rooms, offices, and toilet buildings; and unit houses comprising schools, vote counting facilities, and offices. Its solutions also cover TU suspended ceiling and partition, steel lumber, kitchen capsule, Tokai system basics, steel eaves and waist, steel steps, and air conditioner panels; and office equipment and fixtures, such as desk chairs, storage furniture, air conditioners, home appliances, outdoor and educational equipment, and others. Tokai Lease Co., Ltd. was founded in 1963 and is headquartered in Osaka, Japan.