Toabo Corporation (3204) AI Stock Analysis

• Market Cap: ¥4.50B
• Dividend Yield: 2.67%
• Average Volume (3M): 31.49K
• Price to Earnings (P/E): 5.6
• Beta (1Y): 0.26
• Revenue Growth: -3.33%
• EPS Growth: 30.77%
• Country: JP
• Employees: 456
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 11.06
• Shares Outstanding: 8,940,448
• 10 Day Avg. Volume: 48,790
• 30 Day Avg. Volume: 31,486
• PEG Ratio: 0.11
• Price to Book (P/B): 0.26
• Price to Sales (P/S): 0.19
• P/FCF Ratio: 21.48
• 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: 78 Outperform
• Price Target: ¥574.00 ▲(17.62% Upside)

Toabo Corporation's stock is rated favorably due to strong technical indicators and a compelling valuation, despite some financial risks. The stock's bullish momentum and undervaluation are significant strengths, while financial performance shows resilience but highlights the need to address high debt levels.

Positive Factors

Cash Generation

Improved cash generation enhances financial flexibility, allowing Toabo to invest in growth opportunities and manage debt more effectively.

Profitability

Enhanced profitability indicates effective cost management and operational efficiency, supporting sustainable growth and shareholder value.

ROE Improvement

Improved ROE suggests better utilization of shareholder funds, reflecting management's ability to generate returns on investments.

Negative Factors

High Debt Levels

High debt levels can limit financial flexibility and increase vulnerability to economic downturns, potentially impacting long-term stability.

Revenue Decline

A decline in revenue may indicate challenges in market demand or competitive pressures, which could hinder future growth prospects.

Limited Free Cash Flow

Limited free cash flow after capital expenditures may constrain the ability to fund new projects or reduce debt, affecting long-term growth.

Toabo Corporation Business Overview & Revenue Model

Company Description

Toabo Corporation (3204) is a diversified company based in Japan, primarily engaged in the manufacturing and distribution of precision machinery and components. The company operates in various sectors, including automotive, aerospace, and industrial equipment, providing innovative solutions that enhance efficiency and performance. Toabo's core products include high-precision machining tools, automation systems, and custom-engineered components, which are widely used across multiple industries, catering to both domestic and international markets.

How the Company Makes Money

Toabo Corporation generates revenue through a multi-faceted business model that includes direct sales of its precision machinery and components, as well as service contracts for maintenance and support. A significant portion of the company's earnings comes from long-term contracts with major manufacturers in the automotive and aerospace sectors, where reliability and precision are paramount. Additionally, Toabo has established strategic partnerships with various industry leaders, allowing for joint ventures and collaborative projects that enhance its market reach and product offerings. The company also invests in research and development to innovate and expand its product line, leading to new revenue opportunities in emerging markets.

Toabo Corporation Financial Statement Overview

Summary

Toabo Corporation exhibits solid financial performance with improved profitability and cash generation in 2024. Stable margins and improved ROE reflect effective management. However, the decline in revenue and high debt levels could pose challenges in sustaining long-term growth.

Income Statement

Toabo Corporation's income statement shows a stable gross profit margin of around 19% over recent years, indicating consistent cost management. The net profit margin improved significantly to 4.3% in 2024 from 3.0% in 2023, reflecting enhanced profitability. However, revenue has decreased slightly from 2023 to 2024, which could be a potential concern. Overall, the company's EBIT and EBITDA margins show a modest upward trend, signaling operational efficiency.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of roughly 0.96, indicating a balanced use of debt and equity financing. Return on Equity (ROE) improved to 6.0% in 2024 from 4.6% in 2023, suggesting better utilization of shareholder funds. The equity ratio stands at a solid 38.5%, which is a positive indicator of financial stability. However, the total debt level remains high, posing a potential risk if market conditions worsen.

Cash Flow

Toabo Corporation's cash flow statement shows a significant improvement in free cash flow from negative in 2023 to positive in 2024, highlighting enhanced cash generation capabilities. The operating cash flow to net income ratio stands at 0.71, indicating good cash conversion efficiency. Despite this, the free cash flow to net income ratio is relatively low at 0.21, suggesting limited cash available after capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.43B	18.42B	19.04B	17.00B	15.53B	14.75B
Gross Profit	3.79B	3.61B	3.62B	3.18B	2.95B	2.80B
EBITDA	1.29B	1.13B	1.00B	923.00M	819.00M	645.00M
Net Income	792.00M	799.00M	573.00M	269.00M	258.00M	184.00M
Balance Sheet
Total Assets	34.97B	34.84B	34.45B	32.91B	31.49B	31.25B
Cash, Cash Equivalents and Short-Term Investments	1.72B	2.40B	2.47B	2.46B	2.58B	2.66B
Total Debt	12.79B	12.87B	12.90B	12.25B	11.78B	12.38B
Total Liabilities	21.49B	21.42B	21.92B	21.17B	20.12B	20.43B
Stockholders Equity	13.48B	13.42B	12.53B	11.74B	11.36B	10.81B
Cash Flow
Free Cash Flow	0.00	164.00M	-160.00M	-505.00M	376.00M	-410.00M
Operating Cash Flow	0.00	571.00M	414.00M	492.00M	664.00M	-68.00M
Investing Cash Flow	0.00	-157.00M	-597.00M	-1.13B	-217.00M	-199.00M
Financing Cash Flow	0.00	-229.00M	230.00M	336.00M	-692.00M	928.00M

Toabo Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 488.00
• 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:3204, the sentiment is Positive. The current price of 488 is below the 20-day moving average (MA) of 492.05, above the 50-day MA of 476.84, and above the 200-day MA of 419.90, indicating a neutral trend. The MACD of 0.55 indicates Positive momentum. The RSI at 51.30 is Neutral, neither overbought nor oversold. The STOCH value of 62.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3204.

Toabo Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3204	78 Outperform	¥4.50B	5.61	―	2.67%	-3.33%	30.77%
7795	73 Outperform	¥8.65B	7.27	―	4.00%	6.83%	41.94%
7509	73 Outperform	¥5.94B	4.51	―	3.33%	7.25%	-11.62%
8157	68 Neutral	¥52.18B	10.37	―	3.08%	-5.63%	52.73%
3696	64 Neutral	¥25.07B	8.26	―	2.78%	10.23%	152.86%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7571	56 Neutral	¥4.18B	35.06	―	0.80%	2.95%	―