Toabo Corporation (3204) AI Stock Analysis

• Market Cap: ¥3.97B
• Dividend Yield: 2.92%
• Average Volume (3M): 21.98K
• Price to Earnings (P/E): 5.0
• Beta (1Y): 0.27
• Revenue Growth: 0.28%
• EPS Growth: 30.35%
• Country: JP
• Employees: 456
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 29.09
• Shares Outstanding: 8,940,448
• 10 Day Avg. Volume: 28,820
• 30 Day Avg. Volume: 21,976
• 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: ¥437.00
• Price Target Upside: -1.80% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: ¥437.00 ▼(-1.80% Downside)

Toabo Corporation's stock is bolstered by strong financial performance and attractive valuation, with an exceptionally low P/E ratio and solid dividend yield. While technical indicators present a mixed outlook, the company's profitability and cash flow improvements are significant positives. However, the high debt levels and declining revenue remain concerns that could impact future growth.

Toabo Corporation Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Toabo Corporation generates revenue through the production and sale of its textile products. The company's key revenue streams include the sale of synthetic fibers and textiles to manufacturers and distributors within the fashion, home furnishing, and industrial sectors. Additionally, Toabo may engage in strategic partnerships with other companies to expand its market reach and enhance its product offerings. The company benefits from economies of scale and its ability to innovate in textile technology, which helps maintain its competitive edge and profitability in the market.

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

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	747.00M
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: 445.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 445 is above the 20-day moving average (MA) of 438.25, above the 50-day MA of 424.28, and above the 200-day MA of 401.05, indicating a bullish trend. The MACD of 5.36 indicates Negative momentum. The RSI at 70.04 is Negative, neither overbought nor oversold. The STOCH value of 70.67 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
8157	80 Outperform	¥53.33B	12.05	10.79%	2.96%	-14.87%	-0.65%
7509	73 Outperform	¥6.18B	5.32	8.07%	3.23%	5.13%	-20.24%
3204	72 Outperform	¥3.97B	4.98	―	2.92%	0.28%	30.35%
3696	71 Outperform	¥27.40B	12.50	13.28%	2.53%	16.95%	203.14%
7795	66 Neutral	¥8.69B	8.20	4.06%	4.02%	5.00%	25.91%
7571	59 Neutral	¥4.12B	31.61	3.15%	0.82%	3.57%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%