Tosoh (4042) AI Stock Analysis

• Market Cap: $715.65B
• Dividend Yield: 4.36%
• Average Volume (3M): 1.42M
• Price to Earnings (P/E): 17.7
• Beta (1Y): 0.71
• Revenue Growth: -1.21%
• EPS Growth: -27.21%
• Country: JP
• Employees: 14,394
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 2.71
• Shares Outstanding: 325,080,960
• 10 Day Avg. Volume: 1,159,440
• 30 Day Avg. Volume: 1,423,120
• PEG Ratio: 9.67
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.62
• P/FCF Ratio: 24.82
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 0.77
• Enterprise Value/Gross Profit: 3.14
• Enterprise Value/Ebitda: 5.73
• 1Y Price Target: $2,306.14
• Price Target Upside: 0.66% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥2,448.00 ▲(6.85% Upside)

Tosoh's overall stock score is driven by its solid financial performance and attractive valuation, despite some challenges in cash flow management. Technical indicators suggest potential for recovery, but current momentum is slightly bearish.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.

Strong Balance Sheet

A strong balance sheet with a high equity ratio provides financial stability and flexibility for future investments and growth opportunities.

Operational Profitability

Stable operational profitability suggests efficient cost management and a resilient business model, which are crucial for sustaining long-term earnings.

Negative Factors

Decline in Free Cash Flow

A decline in free cash flow can limit the company's ability to fund operations and investments, potentially impacting future growth and financial health.

Decreased Net Profit Margin

A decreasing net profit margin may indicate rising costs or pricing pressures, which could affect profitability and competitiveness in the long term.

High Capital Expenditures

High capital expenditures can strain cash reserves and limit financial flexibility, potentially impacting the company's ability to respond to market changes.

Tosoh Business Overview & Revenue Model

Company Description

Tosoh Corporation (4042) is a leading Japanese chemical manufacturer that operates in various sectors, including petrochemicals, specialty chemicals, and advanced materials. The company is known for its production of a wide range of products, including silicon-based materials, catalysts, and diagnostic reagents. Tosoh’s commitment to innovation and sustainability positions it as a key player in the global chemical industry, serving diverse markets such as electronics, healthcare, and automotive.

How the Company Makes Money

Tosoh generates revenue primarily through the sale of its chemical products across different sectors. The company's key revenue streams include the production and distribution of specialty chemicals, petrochemicals, and advanced materials, which are utilized in various industries such as electronics and healthcare. Significant partnerships with other companies in the chemical and electronics sectors enhance its market reach and product development capabilities. Additionally, Tosoh capitalizes on its research and development efforts to create high-value products that meet the evolving needs of its customers, contributing to its overall earnings.

Tosoh Financial Statement Overview

Summary

Tosoh demonstrates solid financial health with consistent revenue growth and stable profitability margins. The balance sheet is strong, with moderate leverage and a healthy equity base. However, the decline in free cash flow signals potential challenges in cash management.

Income Statement

Tosoh's financial performance shows robust revenue growth from 2024 to 2025, with a 5.75% increase. The company maintains a healthy gross profit margin of around 24.4% and a net profit margin of 5.46% for 2025. However, the net profit margin has slightly decreased compared to the previous year. EBIT and EBITDA margins are stable, indicating consistent operational profitability.

Balance Sheet

Tosoh's balance sheet reveals a reasonable debt-to-equity ratio of 0.22, reflecting moderate leverage that is typical for the industry. The equity ratio of 62.32% indicates a strong equity base supporting its assets. Return on equity stands at 7.01%, showing profitability, though it has room for improvement.

Cash Flow

The cash flow analysis highlights a significant decrease in free cash flow from 2024 to 2025, with a negative growth rate. Operating cash flow remains strong, although free cash flow to net income ratio is lower, indicating higher capital expenditures. The operating cash flow to net income ratio of 1.83 shows efficient cash generation relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.06T	1.06T	1.01T	1.06T	918.58B	732.85B
Gross Profit	256.95B	259.01B	226.23B	219.18B	272.02B	204.39B
EBITDA	140.92B	151.69B	140.48B	126.11B	201.40B	136.86B
Net Income	48.30B	58.00B	57.32B	50.34B	107.94B	63.28B
Balance Sheet
Total Assets	1.31T	1.33T	1.29T	1.19T	1.09T	982.78B
Cash, Cash Equivalents and Short-Term Investments	146.24B	141.55B	149.81B	120.15B	161.52B	149.16B
Total Debt	191.16B	179.10B	176.34B	176.73B	91.91B	126.53B
Total Liabilities	424.23B	424.88B	431.19B	400.06B	327.94B	321.10B
Stockholders Equity	811.63B	827.11B	794.56B	738.89B	709.09B	615.78B
Cash Flow
Free Cash Flow	36.44B	26.35B	58.26B	-95.86B	64.13B	44.95B
Operating Cash Flow	119.72B	106.24B	116.97B	-16.24B	108.61B	95.11B
Investing Cash Flow	-81.43B	-81.57B	-59.94B	-78.73B	-43.52B	-46.35B
Financing Cash Flow	-38.58B	-37.92B	-31.22B	50.17B	-57.85B	1.58B

Tosoh Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2291.00
• 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:4042, the sentiment is Positive. The current price of 2291 is above the 20-day moving average (MA) of 2282.42, above the 50-day MA of 2247.03, and above the 200-day MA of 2126.27, indicating a bullish trend. The MACD of 18.58 indicates Negative momentum. The RSI at 52.08 is Neutral, neither overbought nor oversold. The STOCH value of 55.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4042.

Tosoh Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4021	72 Outperform	¥700.14B	15.56	19.69%	3.36%	10.06%	18.03%
4004	72 Outperform	¥1.13T	104.96	1.67%	1.05%	-1.90%	-71.97%
4042	71 Outperform	$715.65B	17.71	4.79%	4.36%	-1.21%	-27.21%
4005	69 Neutral	¥754.21B	8.89	8.79%	2.61%	-1.64%	―
3405	62 Neutral	¥472.73B	60.98	1.08%	3.51%	-1.94%	-84.08%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4188	54 Neutral	$1.12T	10.25	1.09%	3.77%	-11.50%	25.86%

Tosoh Corporate Events

Tosoh Corporation Advances Share Buyback Strategy

Tosoh Corporation announced the acquisition of 1,869,100 of its own shares, costing approximately 4.2 billion yen, as part of a broader share buyback plan initiated in August 2025. This move is part of a strategic effort to enhance shareholder value and optimize capital structure, reflecting Tosoh’s commitment to maintaining a strong market position and delivering value to its stakeholders.

Tosoh Corporation Reports Decline in Semi-Annual Financial Results

Tosoh Corporation reported a decline in its financial performance for the six months ending September 30, 2025, with net sales and operating income both decreasing by over 5% compared to the previous year. The company also revised its financial forecast for the fiscal year ending March 31, 2026, anticipating a decrease in net sales and income attributable to owners, which may impact its market positioning and stakeholder confidence.

Tosoh Corporation Announces Share Buyback Initiative

Tosoh Corporation has announced the acquisition of its own shares, acquiring 2,673,900 common shares at a total cost of 5,936,042,650 yen between October 1 and October 31, 2025. This move is part of a broader strategy approved by the Board of Directors to acquire up to 17 million shares, aiming to enhance shareholder value and optimize capital structure.

Tosoh Corporation Revises Financial Forecast Amid Market Challenges

Tosoh Corporation has revised its financial forecast for the fiscal year ending March 31, 2026, due to decreased sales volumes in its Chlor-alkali and Petrochemical Groups and challenging overseas market conditions. Despite a weaker yen and strong performance in water treatment engineering, the company anticipates lower net sales, operating income, and net income attributable to owners of the parent, impacted by sluggish demand, deteriorating trade terms, and an impairment loss on fixed assets.

Tosoh Corporation Revises Financial Forecast Amid Impairment Loss

Tosoh Corporation announced it will record an impairment loss on the fixed assets of its subsidiary Tosoh SMD, Inc. due to decreased shipments in the U.S. semiconductor market, leading to a revised financial forecast. Despite challenges such as a weaker yen and rising raw material costs, the company expects improved operating and ordinary income due to increased sales in its Engineering Group and better trade terms for its Specialty Group, although net income will fall due to the impairment loss.

Tosoh Corporation Advances Share Buyback Program

Tosoh Corporation has announced the acquisition of its own shares, purchasing 1,232,000 common shares at a total cost of 2,891,846,000 yen from September 1 to September 30, 2025. This move is part of a larger plan approved by the Board of Directors to acquire up to 17,000,000 shares, with a maximum budget of 25 billion yen, aimed at enhancing shareholder value and optimizing capital structure.