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

• Market Cap: ¥56.78B
• Dividend Yield: 3.58%
• Average Volume (3M): 23.72K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.73
• Revenue Growth: 4.40%
• EPS Growth: 47.13%
• Country: JP
• Employees: 3,783
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 122.91
• 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): 86,525.27
• Revenue Forecast (FY): ¥35.25T

• Rating: 68 Neutral
• Price Target: ¥3,536.00 ▲(5.39% 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

Revenue Growth

Consistent revenue growth indicates strong demand for Tomoku's products, enhancing its market position and ensuring steady cash flow.

Cash Flow Management

Improved cash flow management enhances financial flexibility, allowing Tomoku to invest in growth opportunities and manage debt effectively.

Profitability Improvement

Enhanced profitability through improved margins suggests effective cost management and operational efficiency, supporting long-term financial health.

Negative Factors

Asset Decrease

A decrease in total assets may limit Tomoku's ability to invest in new projects, potentially hindering future growth and competitiveness.

Negative Investing Cash Flow

Negative investing cash flow could strain financial resources, impacting Tomoku's ability to fund future strategic initiatives without additional financing.

Leverage Concerns

While leverage has decreased, maintaining a stable capital structure is crucial to avoid potential risks associated with high debt levels in the future.

Tomoku Co., Ltd. Business Overview & Revenue Model

Company Description

Tomoku Co., Ltd. (3946) is a Japanese company primarily engaged in the manufacturing and supply of high-quality plastic and resin products. The company operates within the materials sector, focusing on the development of innovative solutions for various industries, including automotive, electronics, and consumer goods. Tomoku is known for its advanced materials technology and commitment to sustainability, providing eco-friendly products that meet the evolving needs of its clients.

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: 3355.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 3355 is below the 20-day moving average (MA) of 3361.50, above the 50-day MA of 3348.76, and above the 200-day MA of 2897.23, indicating a neutral trend. The MACD of 17.87 indicates Negative momentum. The RSI at 49.40 is Neutral, neither overbought nor oversold. The STOCH value of 37.30 is Neutral, 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	¥74.79B	12.41	―	6.79%	2.85%	-9.13%
3947	80 Outperform	¥24.35B	9.92	―	2.98%	8.54%	5.27%
7482	78 Outperform	¥29.28B	13.46	―	4.14%	5.42%	15.41%
7923	76 Outperform	¥4.21B	6.14	―	2.09%	5.37%	20.22%
3951	70 Outperform	¥18.83B	12.04	―	4.38%	5.06%	-15.22%
3946	68 Neutral	¥56.78B	7.72	―	3.58%	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.

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.

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.