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TOCALO Co., Ltd. (JP:3433)
:3433
Japanese Market
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TOCALO Co., Ltd. (3433) AI Stock Analysis

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JP:3433

TOCALO Co., Ltd.

(3433)

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Outperform 78 (OpenAI - 5.2)
Rating:78Outperform
Price Target:
¥3,287.00
▲(47.80% Upside)
Action:Reiterated
Date:05/13/26
The score is driven primarily by strong financial fundamentals (high profitability and very low leverage), partially offset by weaker near-term cash generation from negative 2026 free cash flow. Technically, the trend is bullish, but overbought readings temper the score. Valuation is supportive but not a clear bargain.
Positive Factors
High and consistent profitability
Sustained EBIT and improving net margins indicate durable operating leverage and pricing power in specialized surface engineering. Over the medium term this supports reinvestment capacity, competitive margins versus peers, and resilience to cost pressure, underpinning free-cash generation potential when FCF volatility eases.
Negative Factors
Negative free cash flow in 2026
A negative FCF year reflects elevated capex or working-capital strain and weakens near-term cash generation. If prolonged, it can constrain organic reinvestment, dividend coverage or optional buybacks, forcing reliance on liquid balance-sheet reserves despite overall low leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
High and consistent profitability
Sustained EBIT and improving net margins indicate durable operating leverage and pricing power in specialized surface engineering. Over the medium term this supports reinvestment capacity, competitive margins versus peers, and resilience to cost pressure, underpinning free-cash generation potential when FCF volatility eases.
Read all positive factors

TOCALO Co., Ltd. (3433) vs. iShares MSCI Japan ETF (EWJ)

TOCALO Co., Ltd. Business Overview & Revenue Model

Company Description
TOCALO Co.,Ltd., a Japanese company with its headquarters in Kobe, specializes in pioneering surface modification technologies for both domestic and international markets. The firm produces a variety of high-performance functional coatings, employ...
How the Company Makes Money
TOCALO primarily makes money by providing contract surface treatment/coating services to industrial clients. Revenue is generated when customers pay for applying specialized surface processing (e.g., thermal spray and other surface modification/co...

TOCALO Co., Ltd. Financial Statement Overview

Summary
Strong profitability and a conservatively financed balance sheet (very low and improving leverage) support resilience, but cash-flow quality is a notable offset due to choppy free cash flow and negative FCF in 2026.
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
63
Positive
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue58.49B54.23B46.73B48.14B43.81B
Gross Profit22.10B20.29B16.27B17.38B16.59B
EBITDA14.79B15.51B12.71B13.98B13.24B
Net Income10.06B8.05B6.33B7.35B6.91B
Balance Sheet
Total Assets89.29B82.78B77.94B74.90B70.07B
Cash, Cash Equivalents and Short-Term Investments14.73B17.98B20.91B20.91B20.11B
Total Debt7.57B3.88B5.10B2.94B4.29B
Total Liabilities16.63B17.05B18.01B17.25B17.61B
Stockholders Equity66.76B60.65B55.46B53.84B49.10B
Cash Flow
Free Cash Flow-2.01B3.55B3.09B5.28B5.31B
Operating Cash Flow7.75B9.08B7.88B9.89B9.87B
Investing Cash Flow-9.96B-6.19B-4.63B-5.09B-5.04B
Financing Cash Flow-1.16B-5.12B-3.24B-4.56B-4.55B

TOCALO Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2224.00
Price Trends
50DMA
3176.04
Negative
100DMA
3004.05
Negative
200DMA
2640.73
Positive
Market Momentum
MACD
-48.52
Positive
RSI
37.47
Neutral
STOCH
31.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3433, the sentiment is Negative. The current price of 2224 is below the 20-day moving average (MA) of 3178.65, below the 50-day MA of 3176.04, and below the 200-day MA of 2640.73, indicating a neutral trend. The MACD of -48.52 indicates Positive momentum. The RSI at 37.47 is Neutral, neither overbought nor oversold. The STOCH value of 31.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3433.

TOCALO Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥169.57B17.153.39%7.85%24.91%
78
Outperform
¥93.61B8.783.82%3.17%655.04%
73
Outperform
¥190.20B15.8310.28%2.77%4.61%1.98%
73
Outperform
¥221.78B24.632.50%2.57%9.14%
71
Outperform
¥111.31B15.554.64%1.98%-17.69%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
62
Neutral
¥111.58B21.743.77%-2.59%9.55%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3433
TOCALO Co., Ltd.
2,945.00
1,026.65
53.52%
JP:6498
Kitz
2,290.00
1,123.38
96.29%
JP:5192
Mitsuboshi Belting Ltd.
4,070.00
798.83
24.42%
JP:5195
Bando Chemical Industries Ltd.
2,269.00
638.75
39.18%
JP:6490
Nippon Pillar Packing Co., Ltd.
9,920.00
6,181.50
165.35%
JP:7995
Valqua Ltd.
6,460.00
3,356.18
108.13%

TOCALO Co., Ltd. Corporate Events

Tocalo to Grant Restricted Treasury Shares to Directors Under Long-Term Incentive Plan
Jul 17, 2026
Tocalo Co., Ltd. has approved the disposition of 9,311 treasury shares as restricted stock awards to five internal directors, at a price of 3,055 yen per share, totaling 28,445,105 yen. The move is part of a compensation program first adopted in 2...
TOCALO Boosts U.S. Semiconductor Service Presence With Capital Injection Into Arizona Unit
Jun 19, 2026
TOCALO Co., Ltd. will inject additional capital into its wholly owned U.S. subsidiary, TOCALO USA, Inc., to fund capital expenditures and launch operations at TOCALO USA-Arizona LLC, a newly established unit in Chandler, Arizona, focused on surfac...
TOCALO Lifts Year-End Dividend, Boosts Annual Shareholder Payout
May 11, 2026
TOCALO’s board has approved an increase in its year-end dividend for shareholders of record on March 31, 2026, raising the payout to 48 yen per share from a previously forecast 33 yen. Subject to approval at the June 25, 2026 general shareho...
TOCALO boosts profits, raises dividend and widens overseas footprint
May 11, 2026
TOCALO reported consolidated net sales of ¥58.49 billion for the fiscal year ended March 31, 2026, up 7.9%, with operating profit rising 15.0% to ¥14.10 billion and profit attributable to owners of parent jumping 25.0% to ¥10.06 bil...
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: May 13, 2026