Improved ProfitabilityNet margin rising to 4.3% alongside ROE improving to 6.0% signals lasting operational improvements and more efficient capital use. Sustained margin expansion supports internal reinvestment, dividend capacity and resilience through cycles, strengthening long-term shareholder returns.

Free Cash Flow TurnaroundThe shift to positive free cash flow and a 0.71 operating cash flow to net income ratio indicate improved cash conversion and core cash generation. Durable FCF provides flexibility for debt repayment, capex and strategic investments, reducing reliance on external funding over time.

Stable Gross MarginA consistent gross margin near 19% reflects steady cost control or pricing power in core operations. That stability underpins predictable operating margins, aids long-term planning, and reduces sensitivity to commodity or input volatility, supporting sustainable profitability.

Bears Say

Slight Revenue DeclineA modest top-line contraction of ~3.3% erodes scale benefits and can pressure long-term margin expansion if persistent. Sustained revenue weakness may reflect demand or market-share challenges, limiting reinvestment capacity and slowing structural earnings and cash-flow improvement.

Relatively High LeverageA near-1.0 debt-to-equity ratio implies material financial leverage, which raises fixed obligations and reduces flexibility. In adverse conditions higher interest or refinancing risk could constrain capex, acquisitions and dividend policy, increasing long-term financial vulnerability.

Limited Free Cash After CapexA low FCF-to-net-income ratio (~0.21) means much reported profit is not immediately available after investment needs. This limits capacity for debt reduction, strategic M&A, or higher shareholder returns unless cash conversion improves, constraining durable financial flexibility.

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 ¥4.54B.

When is Toabo Corporation’s upcoming earnings report date?

Toabo Corporation’s upcoming earnings report date is Feb 13, 2026 which is in 8 days.

How were Toabo Corporation’s earnings last quarter?

Toabo Corporation released its earnings results on Nov 13, 2025. The company reported ¥11.06 earnings per share for the quarter, beating the consensus estimate of N/A by ¥11.06.

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 ¥11.06 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 1.59%.

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.