TOYOKOH Inc. (341A) AI Stock Analysis

• Market Cap: ¥30.89B
• Dividend Yield: N/A
• Average Volume (3M): 171.84K
• Price to Earnings (P/E): 68.4
• Beta (1Y): -0.40
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 46
• Sector: Technology
• Sector Strength: 88
• Industry: Construction
• EPS (TTM): 3.34
• Shares Outstanding: 13,606,490
• 10 Day Avg. Volume: 118,560
• 30 Day Avg. Volume: 171,840
• PEG Ratio: -0.11
• Price to Book (P/B): 5.13
• Price to Sales (P/S): 5.14
• P/FCF Ratio: -46.81
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: ¥2,426.00 ▲(10.78% Upside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is driven mainly by improving profitability and rapid revenue growth, tempered by persistently negative free cash flow and a relatively high P/E valuation. Technicals are moderately supportive, but not strong enough to offset the cash flow and valuation risks.

Positive Factors

Rapid revenue growth

Sustained near-doubling revenue indicates strong market demand and successful commercialization of offerings. Over 2-6 months this growth provides a larger revenue base to absorb fixed costs, supports investment in scale, and improves the company's ability to convert growth into durable profit streams if execution continues.

Material margin expansion

A substantial improvement in gross and net margins suggests better pricing, mix, or operational control, improving cash-generating potential per unit of revenue. If maintained, higher margins create structural profitability that funds reinvestment and cushions against cyclical downturns in construction demand.

Improved balance sheet leverage metrics

An improved equity ratio and moderate debt-to-equity indicate the company has rebalanced capital structure and reduced prior solvency concerns. This stronger financial footing enhances financing flexibility and resilience, allowing sustained investment or debt servicing without immediate dilution or distress.

Negative Factors

Persistent negative free cash flow

Consecutive negative free cash flow driven by heavy capital expenditures creates ongoing liquidity pressure and may necessitate external financing or equity raises. Over the medium term this can constrain strategic flexibility, increase financing costs, and raise execution risk if capex does not translate into durable cash returns.

History of operational losses and prior deficit equity

A track record of past operating losses and previously negative equity signals execution risk and potential volatility in results. While recent profitability is positive, the company must sustain improved operations long-term to avoid recurrence; legacy issues weaken stakeholder confidence and heighten sensitivity to setbacks.

Small organizational scale

A very small workforce limits capacity to scale, increases single-person or key-employee risk, and constrains ability to bid for larger projects or diversify service lines. Structurally, small scale can limit bargaining power with suppliers and slow institutionalization of processes necessary for sustained growth.

TOYOKOH Inc. Business Overview & Revenue Model

Company Description

TOYOKOH Inc. (341A) is a leading company in the manufacturing and distribution of precision machinery components and industrial automation solutions. Operating primarily in the manufacturing sector, the company specializes in providing high-quality products that support various industries, including automotive, electronics, and machinery. With a focus on innovation and technology, TOYOKOH Inc. offers a range of core products such as machine tools, precision parts, and automation systems designed to enhance productivity and efficiency for its clients.

How the Company Makes Money

TOYOKOH Inc. generates revenue through multiple streams, primarily from the sale of its precision machinery components and industrial automation systems. The company operates a B2B model, supplying products to various sectors, including automotive and electronics manufacturers, which are crucial for its revenue. Additionally, TOYOKOH Inc. benefits from long-term contracts and partnerships with major players in the industry, ensuring a steady demand for its products. The company also invests in research and development to innovate and expand its product offerings, creating new revenue opportunities. Maintenance services and customer support for its machinery further contribute to its earnings, providing recurring revenue from existing clients.

TOYOKOH Inc. Financial Statement Overview

Summary

Income statement momentum is strong (84.9% YoY revenue growth, gross margin up to 42.6%, net margin turned positive at 15.8%), and the balance sheet has improved (equity ratio 52.2%, debt-to-equity 0.73). However, cash flow is a key drag with negative free cash flow for consecutive years due to high capex, raising liquidity and sustainability risk.

Income Statement

The company's income statement shows a significant improvement in financial performance over the past year. Gross profit margin increased to 42.6% from 27.9% in TTM, and the net profit margin turned positive at 15.8% from a negative position in the previous year. Revenue growth was strong at 84.9% year-over-year. However, previous EBIT and EBITDA were negative, indicating past operational challenges. Recent improvement suggests a positive trend, but sustained performance is necessary to ensure stability.

Balance Sheet

The balance sheet reflects a reasonably strong financial position with a debt-to-equity ratio of 0.73, indicating manageable leverage. The equity ratio improved significantly to 52.2% from a deficit position, showcasing a stronger financial footing. Return on equity (ROE) is high at 15.8%, demonstrating effective use of equity. However, past negative equity and high debt levels raise concerns about financial stability if growth falters.

Cash Flow

Cash flow analysis reveals challenges, with negative free cash flow for consecutive years. Despite a positive operating cash flow to net income ratio of 0.56, free cash flow remains negative due to substantial capital expenditures. This indicates cash management issues that could impact future liquidity, especially if capital expenditures continue at a high level.

Breakdown	Mar 2025	Mar 2025	Mar 2023
Income Statement
Total Revenue	2.03B	1.10B	1.12B
Gross Profit	862.78M	305.88M	361.44M
EBITDA	310.15M	-130.72M	-88.24M
Net Income	321.08M	-158.47M	-119.20M
Balance Sheet
Total Assets	3.89B	1.92B	1.35B
Cash, Cash Equivalents and Short-Term Investments	2.09B	797.65M	258.87M
Total Debt	1.47B	1.33B	1.34B
Total Liabilities	1.86B	1.59B	1.56B
Stockholders Equity	2.03B	328.46M	-218.89M
Cash Flow
Free Cash Flow	-222.64M	-229.95M	-124.78M
Operating Cash Flow	179.50M	-176.59M	-114.67M
Investing Cash Flow	-521.71M	-17.15M	-9.15M
Financing Cash Flow	1.53B	744.69M	-44.00M

TOYOKOH Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6485	79 Outperform	¥35.36B	12.21	―	4.23%	-0.34%	50.73%
1972	74 Outperform	¥29.25B	10.63	―	7.56%	8.01%	13.19%
5936	63 Neutral	¥6.11B	7.99	―	4.13%	2.76%	-10.23%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
341A	55 Neutral	¥30.89B	68.39	―	―	―	―
7820	55 Neutral	¥21.60B	-8.36	―	4.35%	-4.00%	-386.52%
5932	52 Neutral	¥21.92B	-4.87	―	4.03%	1.03%	-92.80%

TOYOKOH Inc. Corporate Events

TOYOKOH Updates Q3 Investor Materials and Secures First Overseas CoolLaser Order

TOYOKOH Inc. has updated its investor presentation for the third quarter of the fiscal year ending March 2026, refreshing company profile data, sales trends by business, SOSEI processed area, and intellectual property metrics as of late 2025 and early 2026. The materials also provide new financial statement analysis, including third-quarter income statement highlights, order backlog trends, and commentary on balance sheet investments aimed at business growth.

The updated deck outlines key initiatives by strategic focus area, along with the company’s direction and outlook beyond the current fiscal year, signaling ongoing R&D and growth efforts. It also highlights the first overseas order for the CoolLaser system signed at the Singapore Airshow 2026, introduces a case study on using CoolLaser for pedestrian bridge maintenance to extend infrastructure lifespans, and notes refreshed information on the Society of Laser Processing for Transportable System, underscoring TOYOKOH’s role in this niche technology ecosystem.

The most recent analyst rating on (JP:341A) stock is a Hold with a Yen2502.00 price target. To see the full list of analyst forecasts on TOYOKOH Inc. stock, see the JP:341A Stock Forecast page.

TOYOKOH Posts Strong Nine-Month Profit Surge and Lifts Full-Year Outlook

TOYOKOH Inc. reported strong non-consolidated results for the nine months ended December 31, 2025, with revenue rising 45.1% year-on-year to ¥2.23 billion and operating profit jumping 77.8% to ¥469 million. Ordinary profit climbed 85.8% to ¥459 million, net income increased 45.7% to ¥391 million, and basic earnings per share improved to ¥28.97, while total assets and equity also expanded, keeping the equity ratio near 54%.

The company maintained its policy of paying no interim or year-end dividends for the fiscal year ending March 31, 2026, signaling a continued emphasis on retaining earnings, possibly for growth or capital needs. It forecasts full-year revenue of ¥3.0 billion, up 48.1%, and expects operating profit to nearly double and ordinary profit to more than double, underscoring confidence in sustained earnings momentum and potentially strengthening its market position and financial resilience.

The most recent analyst rating on (JP:341A) stock is a Hold with a Yen2502.00 price target. To see the full list of analyst forecasts on TOYOKOH Inc. stock, see the JP:341A Stock Forecast page.