Tomoku Co., Ltd. (3946) AI Stock Analysis

• Market Cap: ¥56.87B
• Dividend Yield: 3.5%
• Average Volume (3M): 23.72K
• Price to Earnings (P/E): 7.5
• Beta (1Y): 0.74
• Revenue Growth: 4.40%
• EPS Growth: 47.13%
• Country: JP
• Employees: 3,783
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 158.49
• Shares Outstanding: 19,341,568
• 10 Day Avg. Volume: 18,720
• 30 Day Avg. Volume: 23,723
• PEG Ratio: 0.27
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.18
• P/FCF Ratio: 5.07
• 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: 68 Neutral
• Price Target: ¥3,979.00 ▲(12.72% Upside)

Tomoku Co., Ltd. scores well due to its strong financial performance and attractive valuation. The company's effective cost management and stable capital structure contribute positively. However, technical indicators suggest caution in the short term, which slightly offsets the overall score.

Positive Factors

Strong cash generation

A large rise in operating cash flow and 7.8bn yen of free cash flow indicates durable internal funding capacity. This strengthens the company’s ability to fund capex, pay down debt, and support dividends or strategic investments without relying on external financing.

Improving margins and profitability

Steady revenue growth with rising gross, EBIT and EBITDA margins shows sustainable operational improvements and cost discipline. Higher margins enhance resilience to input-cost swings and support long-term free cash flow generation if maintained across cycles.

Lower leverage and solid equity ratio

Reduced leverage and a near-45% equity ratio provide financial flexibility and lower solvency risk. This balance-sheet strength supports capital allocation choices, cushions downturns, and enables selective M&A or capex without materially increasing financial strain.

Negative Factors

Decline in total assets

A reduction in total assets may reflect underinvestment or asset run-off that could limit capacity expansion and innovation. Over the medium term, constrained asset growth can cap revenue scalability and impede the company’s ability to capture market share.

Negative investing cash flow

Sustained negative investing cash flow, while sometimes growth-oriented, can pressure free cash flow if returns lag. If capex or investments fail to generate proportional returns, cash conversion and shareholder returns could deteriorate over the next several quarters.

Cyclically exposed end markets and contract concentration

Heavy exposure to automotive and electronics demand cycles and dependence on large supply contracts raises revenue volatility risk. Structural downturns or lost contracts could materially reduce volumes, stressing margins and cash flow over multiple quarters.

Tomoku Co., Ltd. Business Overview & Revenue Model

Company Description

Tomoku Co., Ltd. manufactures and sells corrugated packaging, paper containers, and other forms of packaging indispensables for logistics and distribution businesses in Japan and internationally. The company also engages in the construction and sale of Swedish style houses; provision of logistics and insurance brokerage services; and sale of domestic and overseas materials and machinery. In addition, the company imports-exports housing-related materials; renovates, extends, and reconstructs general houses and condominiums; provides wooden truss of roofs and floors for small houses; and transports, warehouses, operates, and recycles food containers. Further, it provides automobile-inspection services, as well as warehousing, factory works, and worker dispatching services; manages food and beverage distribution center, and delivery operation; and manufactures housing components for Sweden house. The company was formerly known as Toyo Wood Products Co., Ltd. and changed its name to Tomoku Co., Ltd. in January 1971. Tomoku Co., Ltd. was founded in 1940 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Tomoku Co., Ltd. generates revenue through the production and sale of plastic and resin products, which are utilized in multiple sectors such as automotive, electronics, and consumer goods. The company's revenue model is based on direct sales to manufacturers and distributors, with a focus on high-volume contracts that ensure steady cash flow. Key revenue streams include product sales, custom material development services, and long-term supply agreements with major industry players. Tomoku also benefits from strategic partnerships with leading companies in various fields, enhancing its market reach and product offerings, which contribute to its overall earnings.

Tomoku Co., Ltd. Financial Statement Overview

Summary

Tomoku Co., Ltd. demonstrated strong financial performance with improvements in revenue, profitability, and cash flow. The company effectively managed its leverage and capital structure, ensuring stable financial health. However, a slight decrease in total assets suggests potential capital investment constraints.

Income Statement

Tomoku Co., Ltd. showed solid revenue growth with a 3.82% increase in 2025 compared to 2024. The gross profit margin improved to 16.82%, and the net profit margin rose to 2.96%, indicating enhanced profitability. EBIT and EBITDA margins also showed positive trends, with EBIT margin at 4.26% and EBITDA margin at 8.26%. This indicates efficient cost management and operational performance.

Balance Sheet

The company's debt-to-equity ratio decreased to 0.73, reflecting a stable capital structure and reduced leverage. Return on Equity (ROE) improved to 7.02%, suggesting effective use of shareholder equity. The equity ratio remained robust at 44.84%, indicating strong financial stability. However, total assets slightly decreased, which could signal capital investment constraints.

Cash Flow

Operating cash flow increased significantly by 63.16% in 2025, leading to a strong free cash flow of 7.8 billion yen. Free cash flow to net income ratio improved, signifying better cash conversion. However, the company experienced negative investing cash flow, potentially indicating high capital expenditures or investment activities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	221.16B	219.61B	211.53B	212.82B	206.01B	175.65B
Gross Profit	37.85B	36.94B	34.80B	33.58B	33.89B	30.48B
EBITDA	17.71B	18.14B	15.81B	15.80B	15.50B	13.64B
Net Income	6.60B	6.51B	5.31B	5.25B	5.98B	4.89B
Balance Sheet
Total Assets	208.98B	206.82B	213.37B	195.38B	190.02B	179.74B
Cash, Cash Equivalents and Short-Term Investments	14.98B	21.00B	18.13B	15.02B	16.70B	14.05B
Total Debt	70.18B	67.66B	72.98B	69.59B	67.17B	61.52B
Total Liabilities	115.79B	113.45B	124.16B	114.67B	113.89B	108.53B
Stockholders Equity	92.45B	92.73B	88.62B	80.19B	75.66B	70.73B
Cash Flow
Free Cash Flow	0.00	7.80B	4.03B	-2.47B	-1.07B	1.30B
Operating Cash Flow	0.00	18.14B	11.12B	7.01B	16.70B	11.07B
Investing Cash Flow	0.00	-8.26B	-9.29B	-9.39B	-18.22B	-13.45B
Financing Cash Flow	0.00	-7.05B	1.05B	535.00M	4.12B	5.83B

Tomoku Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3530.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3946, the sentiment is Neutral. The current price of 3530 is below the 20-day moving average (MA) of 3567.00, above the 50-day MA of 3469.50, and above the 200-day MA of 3128.15, indicating a neutral trend. The MACD of 1.13 indicates Positive momentum. The RSI at 44.73 is Neutral, neither overbought nor oversold. The STOCH value of 18.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3946.

Tomoku Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3950	82 Outperform	¥76.14B	12.63	―	6.64%	2.85%	-9.13%
3947	80 Outperform	¥24.66B	8.31	―	2.92%	8.54%	5.27%
7923	80 Outperform	¥5.96B	8.70	―	1.72%	5.37%	20.22%
7482	78 Outperform	¥31.36B	13.95	―	4.00%	5.42%	15.41%
3951	70 Outperform	¥19.26B	13.77	―	4.39%	5.06%	-15.22%
3946	68 Neutral	¥56.87B	7.51	―	3.50%	4.40%	47.13%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Tomoku Co., Ltd. Corporate Events

Tomoku Co., Ltd. Reports Strong Financial Growth and Increased Dividends

Tomoku Co., Ltd. reported a significant increase in its financial performance for the six months ending September 30, 2025, with net sales rising by 3.8% and operating profit surging by 42.1% compared to the previous year. The company also announced an increase in dividends per share, reflecting its strong financial position and commitment to returning value to shareholders.

The most recent analyst rating on (JP:3946) stock is a Hold with a Yen3536.00 price target. To see the full list of analyst forecasts on Tomoku Co., Ltd. stock, see the JP:3946 Stock Forecast page.

Tomoku Co., Ltd. Reports Higher-Than-Expected Profits for Interim Period

Tomoku Co., Ltd. announced a discrepancy between its forecasted and actual financial results for the six months ending September 30, 2025. The company’s net sales were slightly below expectations, but operating profit, ordinary profit, and profit attributable to owners of the parent exceeded forecasts due to strong performance in the housing business by its subsidiary, Tamazen Co., Ltd.

The most recent analyst rating on (JP:3946) stock is a Hold with a Yen3536.00 price target. To see the full list of analyst forecasts on Tomoku Co., Ltd. stock, see the JP:3946 Stock Forecast page.

Tomoku Co., Ltd. Reports Strong Financial Growth for First Half of 2025

Tomoku Co., Ltd. reported a significant improvement in its financial performance for the six months ended September 30, 2025, with net sales reaching ¥109,084 million, a 3.8% increase year-on-year. The company also saw substantial growth in operating profit, ordinary profit, and profit attributable to owners of the parent, reflecting a robust recovery and strong market positioning. The inclusion of two new companies in its consolidation scope and the exclusion of one company indicate strategic adjustments in its operations. The company has also announced an increase in its annual dividend, signaling confidence in its future financial stability.

The most recent analyst rating on (JP:3946) stock is a Hold with a Yen3536.00 price target. To see the full list of analyst forecasts on Tomoku Co., Ltd. stock, see the JP:3946 Stock Forecast page.