Toenec Corporation (1946) AI Stock Analysis

• Market Cap: ¥180.88B
• Dividend Yield: 3.09%
• Average Volume (3M): 107.85K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.86
• Revenue Growth: 3.75%
• EPS Growth: 87.00%
• Country: JP
• Employees: 6,077
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 55.59
• Shares Outstanding: 96,649,950
• 10 Day Avg. Volume: 122,180
• 30 Day Avg. Volume: 107,850
• PEG Ratio: 0.53
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.33
• P/FCF Ratio: 7.75
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: ¥2,210.00 ▲(17.74% Upside)

Toenec Corporation's stock is rated positively due to strong financial performance and bullish technical indicators. The stock's valuation is attractive, with a reasonable P/E ratio and a solid dividend yield. The absence of recent earnings call data and corporate events does not detract from the overall positive outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Toenec's products and services, supporting long-term business expansion and market presence.

Profitability

Improved profitability suggests effective cost management and operational efficiency, enhancing the company's ability to reinvest in growth opportunities.

Equity Position

A strong equity position provides financial stability and flexibility, enabling Toenec to withstand economic fluctuations and invest in strategic initiatives.

Negative Factors

Cash Flow Decline

A decline in free cash flow may limit Toenec's ability to fund new projects and return capital to shareholders, impacting future growth potential.

Debt Levels

While debt is managed prudently, continuous monitoring is needed to prevent financial strain, which could affect long-term operational flexibility.

Cash Flow Optimization

The need for cash flow optimization highlights potential inefficiencies in capital allocation, which could hinder Toenec's ability to sustain growth and innovation.

Toenec Corporation Business Overview & Revenue Model

Company Description

Toenec Corporation, established in 1946, is a diversified manufacturing company specializing in the production of high-quality industrial components and precision machinery. Operating across several sectors, including automotive, aerospace, and consumer electronics, Toenec is renowned for its innovative engineering solutions and commitment to sustainability. The company's core products include advanced automotive parts, aerospace components, and precision tools that cater to a global clientele, leveraging cutting-edge technology and a dedicated workforce to maintain its competitive edge.

How the Company Makes Money

Toenec Corporation generates revenue through multiple streams, primarily focusing on the sale of its manufactured products to various industries. The company earns significant income from long-term contracts with major automotive and aerospace manufacturers, which provide a steady demand for their specialized components. Additionally, Toenec offers custom engineering services, allowing clients to tailor solutions to their specific needs, thus enhancing customer loyalty and repeat business. Strategic partnerships with technology firms also contribute to revenue growth, enabling Toenec to integrate innovative technologies into its product offerings. Furthermore, the company invests in research and development to create new products and improve existing lines, ensuring a continuous pipeline of offerings that meet market demands and drive profitability.

Toenec Corporation Financial Statement Overview

Summary

Toenec Corporation exhibits strong financial health with consistent revenue and profit growth, stable margins, and a robust equity position. Effective debt management is evident, though cash flow optimization is needed to enhance free cash flow.

Income Statement

Toenec Corporation has demonstrated consistent revenue growth, with a notable increase of 7.2% from 2024 to 2025. The gross profit margin has remained healthy at approximately 14.9% in 2025, indicating effective cost management. The net profit margin improved to 4.0% in 2025, reflecting enhanced profitability. EBIT and EBITDA margins were stable at 5.9% and 10.6% respectively, showcasing operational efficiency. Overall, the income statement reveals a strong upward trajectory in revenue and profitability.

Balance Sheet

The balance sheet of Toenec Corporation reflects robust equity, with an equity ratio of 44.0% as of 2025, highlighting financial stability. The debt-to-equity ratio of 0.67 indicates moderate leverage, suggesting prudent debt management. Return on equity improved to 7.88%, signaling effective utilization of equity to generate profits. While the company maintains a solid financial position, the relatively high debt level requires continuous monitoring to mitigate potential risks.

Cash Flow

Toenec Corporation's cash flow analysis shows a decline in operating cash flow, dropping to ¥17.77 billion in 2025, down from the previous year. Free cash flow decreased to ¥11.62 billion, reflecting higher capital expenditures. The operating cash flow to net income ratio remains healthy at 1.65, demonstrating strong cash generation relative to net income. While the cash flow position is stable, the reduction in free cash flow growth suggests a need for strategic capital allocation to sustain future growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	272.14B	270.97B	252.86B	232.05B	219.62B	215.68B
Gross Profit	41.73B	40.48B	37.41B	32.32B	34.90B	35.54B
EBITDA	29.53B	28.82B	27.40B	8.29B	23.36B	23.55B
Net Income	10.90B	10.77B	9.35B	-5.55B	8.28B	8.83B
Balance Sheet
Total Assets	292.95B	310.56B	304.93B	300.17B	301.60B	308.23B
Cash, Cash Equivalents and Short-Term Investments	40.20B	43.03B	39.78B	31.80B	30.52B	48.41B
Total Debt	81.40B	91.17B	93.02B	97.06B	98.98B	109.11B
Total Liabilities	157.46B	173.88B	173.79B	182.98B	175.00B	188.49B
Stockholders Equity	135.45B	136.63B	131.10B	117.16B	126.57B	119.72B
Cash Flow
Free Cash Flow	2.48B	11.62B	15.81B	10.26B	969.00M	19.29B
Operating Cash Flow	3.72B	19.01B	19.12B	12.64B	5.94B	24.11B
Investing Cash Flow	-806.00M	-3.08B	-2.06B	-2.12B	2.97B	-3.72B
Financing Cash Flow	-4.62B	-13.67B	-9.90B	-8.36B	-27.52B	-9.93B

Toenec Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1877.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1946, the sentiment is Positive. The current price of 1877 is below the 20-day moving average (MA) of 1897.70, above the 50-day MA of 1739.34, and above the 200-day MA of 1323.73, indicating a neutral trend. The MACD of 37.76 indicates Positive momentum. The RSI at 53.20 is Neutral, neither overbought nor oversold. The STOCH value of 41.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1946.

Toenec Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1946	77 Outperform	¥180.88B	11.53	―	3.09%	3.75%	87.00%
1939	77 Outperform	¥74.28B	14.22	―	4.38%	-0.84%	-1.80%
1890	75 Outperform	¥163.72B	18.28	―	5.05%	12.80%	34.19%
1952	73 Outperform	¥154.22B	12.36	―	2.81%	8.83%	49.49%
1945	73 Outperform	¥57.95B	16.27	―	2.95%	-7.98%	37.92%
1934	68 Neutral	¥189.41B	15.91	―	2.87%	6.66%	46.38%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Toenec Corporation Corporate Events

Toenec Corporation Announces Treasury Share Disposal for Employee Incentive Plan

Toenec Corporation announced its decision to dispose of treasury shares as part of a restricted stock incentive plan for its employee shareholding association. This move aims to enhance employee benefits and align their interests with shareholders by allowing them to acquire company stock, thereby fostering asset building and incentivizing contributions to the company’s sustainable growth.

Toenec Corporation Increases Dividend Payout Ratio to 40%

Toenec Corporation has announced a change in its dividend policy, increasing the target consolidated dividend payout ratio from 30% to 40% to enhance shareholder returns. The company has revised its interim dividend to ¥28 per share and its year-end dividend forecast to ¥37 per share, projecting an annual dividend of ¥65 per share with a payout ratio of 40.2%, reflecting its commitment to align shareholder returns with business performance.

Toenec Corporation Revises Earnings Forecast Upwards Amid Improved Profitability

Toenec Corporation announced a revision to its earnings forecast for the fiscal year ending March 31, 2026, following a discrepancy between its previous forecast and actual results for the second quarter. While net sales fell short due to lower-than-expected project completions, profitability exceeded expectations due to improved indoor wiring work and gains from cross-shareholdings. The company has revised its full-year forecast upwards, anticipating higher profits driven by a recovery in power distribution line work and progress in pending projects.

Toenec Corporation Reports Strong Profit Growth Amid Slight Sales Decline

Toenec Corporation reported its consolidated financial results for the six months ended September 30, 2025, showing a slight decrease in net sales by 1.7% compared to the previous year. However, the company experienced significant growth in operating profit, ordinary profit, and profit attributable to owners of the parent, with increases of 32.5%, 47.3%, and 151.9% respectively. The company also announced a revision to its dividend policy and an increase in the year-end dividend forecast, reflecting a positive outlook for the fiscal year ending March 31, 2026.