Tokai Holdings Corporation (3167) AI Stock Analysis

• Market Cap: ¥139.90B
• Dividend Yield: 3.17%
• Average Volume (3M): 649.81K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.32
• Revenue Growth: 3.99%
• EPS Growth: 20.63%
• Country: JP
• Employees: 4,732
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 8.74
• Shares Outstanding: 139,679,980
• 10 Day Avg. Volume: 370,790
• 30 Day Avg. Volume: 649,813
• PEG Ratio: 1.61
• Price to Book (P/B): 1.37
• Price to Sales (P/S): 0.53
• P/FCF Ratio: 11.24
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥1,164.00 ▲(8.48% Upside)

Tokai Holdings Corporation's strong financial performance, characterized by robust revenue growth and operational efficiency, is a key strength. The stock's reasonable valuation and attractive dividend yield further support its appeal. However, technical indicators suggest limited immediate momentum, and challenges in cash flow management need to be addressed for sustained growth.

Positive Factors

Revenue Growth

The significant revenue growth reflects robust expansion and indicates a strong market position, enhancing long-term business prospects.

Operational Efficiency

Consistent EBIT and EBITDA margins suggest effective cost management and operational efficiency, supporting sustainable profitability.

Leverage Management

Improved leverage management indicates better financial stability, reducing risk and enhancing the company's ability to invest in growth.

Negative Factors

Free Cash Flow Management

The decline in free cash flow could limit future investment capabilities and indicates a need for improved cash management strategies.

Net Profit Margin

A low net profit margin suggests limited profitability, which may hinder the company's ability to generate sufficient returns on investments.

Overall Debt Level

High debt levels can strain financial resources and increase vulnerability to economic downturns, impacting long-term financial health.

Tokai Holdings Corporation Business Overview & Revenue Model

Company Description

TOKAI Holdings Corporation engages in energy, information and communications, and related businesses in Japan and internationally. The company supplies liquefied petroleum gas for individuals, automotive, and corporations; solar power; piped natural gas; and other high-pressure gases; provides electricity to individuals and corporations; and offers water-related facility renovation services under the TOKAI WiLL brand, as well as directly operates two service stations and 13 wholesale service stations. It also offers Internet access services under the @T COM and TOKAI Network Club names, and mobile phone communications services, as well as operates 15 mobile shops; outsourcing services, such as co-location, mailing system, back-up, and cloud platforms; system development services, including consulting, construction, operation, and maintenance to various industries and fields; and mobile virtual network operator services. In addition, the company provides CATV services, as well as fiber-optic internet and telephone services; bottled water delivery services under the Ulunom and Fujishigen brands; security services ranging from monitoring services for senior citizens to surveillance services for factories, stores, and offices; life and property insurance agency services; office furniture, photocopiers, etc.; management systems for buildings and condominiums; wedding, reception, and restaurant facilities; and nursing care, ship repair, and bridal services. Further, it constructs detached and single-family homes, apartment complexes, and office buildings; engages in real estate business; design, constructs, sells, and installs housing equipment for home builders and construction companies; leases shops and offices; and designs, installs, and maintains air conditioning and sanitation equipment. TOKAI Holdings Corporation was founded in 1950 and is headquartered in Shizuoka, Japan.

How the Company Makes Money

Tokai Holdings generates revenue through multiple streams, primarily from its utility services in electricity and gas distribution, which constitute a significant portion of its earnings. The company also earns income from its telecommunications segment, providing internet and phone services to both residential and business customers. Additionally, Tokai has a retail division that sells a variety of consumer goods, contributing to its overall revenue. Strategic partnerships with other utility providers and technology firms further bolster its service offerings and market reach, while ongoing investments in renewable energy initiatives align with growing consumer demand for sustainable options, enhancing its competitive edge and revenue potential.

Tokai Holdings Corporation Financial Statement Overview

Summary

Tokai Holdings Corporation exhibits strong revenue growth and stable profitability, supported by a balanced financial structure. While the company shows potential in cash flow generation, there is room for improvement in converting earnings to cash. The financial health is solid, with opportunities to enhance profitability and cash flow efficiency.

Income Statement

Tokai Holdings Corporation shows a strong revenue growth trajectory with a TTM revenue growth rate of 79%. The company maintains healthy margins with a gross profit margin of 38.5% and an EBIT margin of 6.3%. However, the net profit margin is relatively low at 3.8%, indicating room for improvement in cost management or pricing strategies.

Balance Sheet

The company's balance sheet reflects a moderate debt-to-equity ratio of 0.70, suggesting a balanced approach to leveraging. Return on equity is solid at 10.2%, indicating effective use of equity to generate profits. The equity ratio stands at 45.2%, showing a stable financial structure, though there is potential to improve equity utilization.

Cash Flow

Tokai Holdings demonstrates a positive free cash flow growth rate of 6.7% TTM, indicating improving cash generation capabilities. The operating cash flow to net income ratio is 0.42, suggesting a moderate conversion of net income to cash. However, the free cash flow to net income ratio of 0.44 indicates that a significant portion of earnings is not being converted into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	246.85B	243.48B	231.51B	230.19B	210.69B	196.73B
Gross Profit	95.71B	93.74B	89.95B	86.06B	85.21B	82.87B
EBITDA	34.77B	33.15B	30.84B	31.14B	31.19B	30.66B
Net Income	10.44B	9.22B	8.48B	6.46B	8.97B	8.81B
Balance Sheet
Total Assets	208.27B	211.11B	205.30B	193.34B	184.47B	178.97B
Cash, Cash Equivalents and Short-Term Investments	4.13B	5.64B	5.76B	4.36B	4.74B	5.58B
Total Debt	49.36B	65.09B	65.53B	64.91B	61.25B	57.41B
Total Liabilities	109.81B	115.26B	114.00B	111.04B	105.53B	102.92B
Stockholders Equity	96.00B	93.47B	89.08B	80.22B	77.24B	74.51B
Cash Flow
Free Cash Flow	9.82B	11.43B	13.70B	7.23B	7.46B	19.30B
Operating Cash Flow	25.64B	25.80B	30.07B	21.19B	20.81B	32.22B
Investing Cash Flow	-15.81B	-15.83B	-18.83B	-14.15B	-14.59B	-17.07B
Financing Cash Flow	-11.13B	-10.13B	-9.67B	-7.46B	-6.91B	-14.06B

Tokai Holdings Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1073.00
• 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 JP:3167, the sentiment is Positive. The current price of 1073 is above the 20-day moving average (MA) of 1063.10, above the 50-day MA of 1045.50, and above the 200-day MA of 1011.52, indicating a bullish trend. The MACD of 6.62 indicates Negative momentum. The RSI at 58.59 is Neutral, neither overbought nor oversold. The STOCH value of 69.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3167.

Tokai Holdings Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3498	74 Outperform	¥184.16B	14.45	―	1.58%	46.91%	62.91%
8014	73 Outperform	¥99.79B	10.27	―	3.74%	-2.33%	-16.42%
9003	72 Outperform	¥276.89B	13.73	―	2.30%	-1.88%	-9.94%
3167	70 Outperform	¥139.90B	13.37	―	3.17%	3.99%	20.63%
8088	69 Neutral	¥384.79B	8.31	―	3.37%	4.50%	-9.36%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9010	60 Neutral	¥110.13B	20.84	―	1.40%	4.80%	30.05%

Tokai Holdings Corporation Corporate Events

Tokai Holdings Reports Progress on Stock Repurchase Program

Tokai Holdings Corporation announced the status of its stock repurchase program, revealing that it has repurchased 281,400 shares of its common stock at a cost of ¥294,686,700 between November 1 and November 30, 2025. This move is part of a broader initiative authorized by the Board of Directors to repurchase up to 2,200,000 shares by March 31, 2026, aiming to optimize capital structure and enhance shareholder returns.

Tokai Holdings Reports Record Financial Growth in 2025

Tokai Holdings Corporation reported record-high financial results for the six months ending September 30, 2025, with a 51% increase in profit attributable to owners of the parent. This growth was driven by an increase in group customers and strategic expansions in its business sectors. The company aims to achieve record highs in sales and profits for the fiscal year ending March 2026, marking the final year of its Medium-Term Management Plan 2025, by strengthening competitiveness and pursuing M&A and regional expansion.

Tokai Holdings Reports Strong Financial Growth for First Half of 2025

Tokai Holdings Corporation reported a significant improvement in its financial performance for the six months ended September 30, 2025, with net sales increasing by 3.0% and profit attributable to owners of the parent rising by 51.1% compared to the previous year. This growth reflects the company’s strategic initiatives and operational efficiencies, positioning it strongly in its industry and indicating positive implications for stakeholders.

TOKAI Holdings Updates on Stock Repurchase Program

TOKAI Holdings Corporation announced the status of its stock repurchase program, revealing that it repurchased 356,100 shares of its common stock at a total cost of ¥360,000,600 during October 2025. This repurchase is part of a broader plan authorized by the Board of Directors to buy back up to 2,200,000 shares, aiming to enhance shareholder value and optimize capital structure.

TOKAI Holdings Announces Progress in Stock Repurchase Program

TOKAI Holdings Corporation has announced the status of its stock repurchase program, which was resolved by the Board of Directors on August 19, 2025. As of September 30, 2025, the company repurchased 184,900 shares of its common stock at a total cost of ¥196,063,400. This move is part of a larger plan to repurchase up to 2,200,000 shares by March 31, 2026, aiming to enhance shareholder value and optimize capital structure.