TOCALO Co., Ltd. (3433) AI Stock Analysis

• Market Cap: ¥115.11B
• Dividend Yield: 3.58%
• Average Volume (3M): 149.91K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 1.08
• Revenue Growth: 16.04%
• EPS Growth: 28.29%
• Country: JP
• Employees: 1,389
• Sector: Industrials
• Sector Strength: 91
• Industry: Industrial - Machinery
• EPS (TTM): 38.19
• Shares Outstanding: 61,200,000
• 10 Day Avg. Volume: 138,530
• 30 Day Avg. Volume: 149,913
• PEG Ratio: 5.04
• Price to Book (P/B): 1.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥2,024.00
• Price Target Upside: 2.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥2,194.00 ▲(11.09%Upside)

TOCALO Co., Ltd. benefits from robust financial performance with consistent growth in revenue and profits, supported by strong margins and a stable balance sheet. While the technical analysis indicates bullish momentum, caution is advised due to overbought conditions. The stock's valuation is attractive with a reasonable P/E ratio and a solid dividend yield. The absence of new corporate events or earnings call data does not impact the current evaluation.

TOCALO Co., Ltd. Business Overview & Revenue Model

Company Description

TOCALO Co., Ltd. is a leading Japanese company specializing in surface treatment technologies. The company operates primarily in the industrial sector, offering a wide range of thermal spray coatings and surface modification services. These services are crucial for enhancing the durability and performance of components used in various industries, including automotive, aerospace, energy, electronics, and machinery. TOCALO's advanced coating solutions are designed to improve wear resistance, corrosion protection, and thermal insulation, catering to the needs of high-tech and heavy-duty applications.

How the Company Makes Money

TOCALO Co., Ltd. generates revenue through its core service offerings in thermal spray coatings and surface treatment solutions. The company provides specialized coating services that extend the lifespan and operational efficiency of equipment used in demanding industrial environments. Revenue is primarily driven by service contracts with manufacturers across various sectors who require high-performance coatings for their products. This includes partnerships with companies in the automotive, aerospace, and energy sectors, where TOCALO's coatings are applied to components such as engine parts, turbines, and electronic devices. Additionally, TOCALO invests in research and development to innovate and improve its coating technologies, thereby maintaining a competitive edge and fostering long-term client relationships.

TOCALO Co., Ltd. Financial Statement Overview

Summary

TOCALO Co., Ltd. exhibits strong financial health with consistent revenue and profit growth, robust margins, and a stable balance sheet. The low leverage and high equity ratio provide financial stability, and effective cash flow management supports operational efficiency.

Income Statement

TOCALO Co., Ltd. has demonstrated strong financial performance with consistent revenue growth, increasing from 39,073 million yen in 2021 to 54,231 million yen in 2025. The company maintains a robust gross profit margin, averaging around 36-37% over the years. Net profit margin has also improved, reaching approximately 14.9% in 2025. EBIT and EBITDA margins are healthy, showing operational efficiency improvements. The revenue growth rate from 2024 to 2025 was substantial at 16%, indicating a positive growth trajectory.

Balance Sheet

TOCALO Co., Ltd.'s balance sheet is strong, with a low debt-to-equity ratio of 0.06, reflecting low leverage. The company has a high equity ratio of around 74.3% in 2025, showcasing financial stability. The return on equity is solid at approximately 13.3%, indicating effective use of shareholder capital. However, the slight increase in total liabilities over the years requires monitoring.

Cash Flow

The company shows a positive trend in operating cash flow, increasing to 9,077 million yen in 2025. Free cash flow has grown steadily, with a growth rate of 18.9% from 2024 to 2025. The operating cash flow to net income ratio is 1.13, demonstrating strong cash generation relative to earnings. The free cash flow to net income ratio is 0.44, indicating a moderate level of free cash flow generation. Overall, cash flow management appears solid.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	54.23B	46.73B	48.14B	43.81B	39.07B
Gross Profit	19.98B	16.24B	17.37B	16.59B	14.59B
EBITDA	15.50B	12.25B	13.55B	13.04B	11.44B
Net Income	8.05B	6.33B	7.35B	6.91B	5.46B
Balance Sheet
Total Assets	81.68B	77.94B	74.26B	69.52B	64.18B
Cash, Cash Equivalents and Short-Term Investments	17.98B	20.91B	20.91B	20.11B	19.23B
Total Debt	3.88B	5.10B	2.94B	4.29B	6.07B
Total Liabilities	15.94B	18.02B	16.62B	17.06B	17.29B
Stockholders Equity	60.65B	55.46B	53.84B	49.10B	44.20B
Cash Flow
Free Cash Flow	3.55B	2.99B	5.19B	5.25B	6.21B
Operating Cash Flow	9.08B	7.88B	9.89B	9.87B	10.59B
Investing Cash Flow	-6.19B	-4.63B	-5.09B	-5.04B	-4.62B
Financing Cash Flow	-5.12B	-3.24B	-4.56B	-4.55B	-3.80B

TOCALO Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1975.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3433, the sentiment is Positive. The current price of 1975 is above the 20-day moving average (MA) of 1908.30, above the 50-day MA of 1845.82, and above the 200-day MA of 1767.44, indicating a bullish trend. The MACD of 38.43 indicates Negative momentum. The RSI at 74.36 is Negative, neither overbought nor oversold. The STOCH value of 92.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3433.

TOCALO Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6490	77 Outperform	¥89.26B	10.64		3.76%	-1.05%	-23.08%
3433	75 Outperform	¥115.11B	14.58		3.58%	16.04%	28.29%
6486	75 Outperform	¥94.51B	18.02		5.20%	0.68%	-32.97%
6407	75 Outperform	¥176.92B	13.30		3.18%	15.78%	62.07%
6455	74 Outperform	¥101.17B	10.28		2.97%	17.37%	58.50%
6284	74 Outperform	¥95.80B	13.40		2.35%	17.01%	16.10%
Sector *	65 Neutral	$10.94B	15.63	5.27%	1.90%	3.14%	-27.13%

TOCALO Co., Ltd. Corporate Events

TOCALO Co., Ltd. Announces Treasury Stock Disposition for Director Compensation

TOCALO Co., Ltd. announced the disposition of 13,450 shares of treasury stock as restricted stock awards to its directors, excluding external and non-regular directors. This move is part of a compensation program aimed at aligning the interests of the directors with those of the shareholders by enhancing enterprise value. The initiative reflects TOCALO’s strategy to motivate its leadership team and strengthen its market position by ensuring long-term commitment and performance alignment.

TOCALO Co., Ltd. Increases Year-End Dividend to 38 Yen Per Share

TOCALO Co., Ltd. announced an increase in its year-end dividend per share to 38 yen, up from the previously forecasted 35 yen, reflecting a commitment to enhancing shareholder returns. This decision, based on the company’s consolidated financial results for the fiscal year ending March 2025, results in an annual dividend of 68 yen per share, indicating a positive financial performance and a consolidated dividend payout ratio of 50.2%.

TOCALO Co., Ltd. Reports Strong Financial Growth in FY2025

TOCALO Co., Ltd. reported strong financial results for the fiscal year ended March 31, 2025, with a significant increase in net sales and profits compared to the previous year. The company’s robust performance is highlighted by a 16% rise in net sales and a 33.4% increase in operating profit, reflecting its solid market positioning and effective operational strategies. The announcement indicates a positive outlook for stakeholders, with improved dividends and a stable financial position, suggesting continued growth and stability in the coming years.