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Toabo Corporation (JP:3204)
:3204
Japanese Market
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Toabo Corporation (3204) AI Stock Analysis

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JP:3204

Toabo Corporation

(3204)

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Outperform 78 (OpenAI - 4o)
Rating:78Outperform
Price Target:
¥574.00
▲(15.26% 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.

Toabo Corporation (3204) vs. iShares MSCI Japan ETF (EWJ)

Toabo Corporation Business Overview & Revenue Model

Company DescriptionToabo 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 MoneyToabo 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 improvements in profitability and cash generation in 2024. The stable margins and improved ROE reflect effective management practices. However, challenges include declining revenue and high debt levels, which could affect long-term growth.
Income Statement
75
Positive
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
68
Positive
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
72
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue18.43B18.42B19.04B17.00B15.53B14.75B
Gross Profit3.79B3.61B3.62B3.18B2.95B2.80B
EBITDA1.29B1.13B1.00B923.00M819.00M747.00M
Net Income792.00M799.00M573.00M269.00M258.00M184.00M
Balance Sheet
Total Assets34.97B34.84B34.45B32.91B31.49B31.25B
Cash, Cash Equivalents and Short-Term Investments1.72B2.40B2.47B2.46B2.58B2.66B
Total Debt12.79B12.87B12.90B12.25B11.78B12.38B
Total Liabilities21.49B21.42B21.92B21.17B20.12B20.43B
Stockholders Equity13.48B13.42B12.53B11.74B11.36B10.81B
Cash Flow
Free Cash Flow0.00164.00M-160.00M-505.00M376.00M-410.00M
Operating Cash Flow0.00571.00M414.00M492.00M664.00M-68.00M
Investing Cash Flow0.00-157.00M-597.00M-1.13B-217.00M-199.00M
Financing Cash Flow0.00-229.00M230.00M336.00M-692.00M928.00M

Toabo Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price498.00
Price Trends
50DMA
444.94
Positive
100DMA
421.83
Positive
200DMA
406.48
Positive
Market Momentum
MACD
18.95
Negative
RSI
81.92
Negative
STOCH
93.22
Negative
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 498 is above the 20-day moving average (MA) of 466.40, above the 50-day MA of 444.94, and above the 200-day MA of 406.48, indicating a bullish trend. The MACD of 18.95 indicates Negative momentum. The RSI at 81.92 is Negative, neither overbought nor oversold. The STOCH value of 93.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3204.

Toabo Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥51.27B10.952.94%-14.87%-0.65%
78
Outperform
¥4.44B5.532.52%0.28%30.35%
76
Outperform
¥26.49B10.922.65%16.95%203.14%
73
Outperform
¥8.69B8.323.98%5.00%25.91%
73
Outperform
¥6.04B5.103.31%5.13%-20.24%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
62
Neutral
¥4.22B31.350.82%3.57%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3204
Toabo Corporation
498.00
118.31
31.16%
JP:3696
CERES INC.
2,279.00
890.19
64.10%
JP:7509
I. A Group Corporation
4,080.00
1,135.19
38.55%
JP:7571
Yamano Holdings Corporation
121.00
62.88
108.19%
JP:7795
Kyoritsu Co., Ltd.
201.00
57.42
39.99%
JP:8157
Tsuzuki Denki Co., Ltd.
3,275.00
811.51
32.94%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 23, 2025