Tosoh (4042) AI Stock Analysis

• Market Cap: ¥679.38B
• Dividend Yield: 4.68%
• Average Volume (3M): 988.56K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.77
• Revenue Growth: 5.74%
• EPS Growth: 1.14%
• Country: JP
• Employees: 14,394
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Chemicals
• EPS (TTM): 29.76
• Shares Outstanding: 325,080,960
• 10 Day Avg. Volume: 1,114,820
• 30 Day Avg. Volume: 988,560
• PEG Ratio: -0.21
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.97
• 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: ¥2,119.59
• Price Target Upside: -0.72% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ¥2,364.00 ▲(10.73%Upside)

Tosoh's stock is supported by strong financial performance and positive technical momentum. The company is reasonably valued and offers a solid dividend yield, making it an attractive option in the chemicals industry. However, the decline in free cash flow warrants attention.

Tosoh Business Overview & Revenue Model

Company Description

Tosoh Corporation, listed under the ticker 4042, is a global chemical and specialty materials company headquartered in Tokyo, Japan. Founded in 1935, Tosoh operates in various sectors including petrochemicals, basic chemicals, specialty products, and advanced materials. The company's portfolio encompasses a wide range of products such as chlor-alkali, olefins, polymers, and electronic materials, serving industries like healthcare, construction, automotive, and electronics.

How the Company Makes Money

Tosoh Corporation generates its revenue through the production and sale of chemical products and materials across several business segments. The petrochemical segment, which includes products like ethylene, propylene, and polyethylene, contributes significantly to its income by supplying raw materials for plastics and other industrial applications. The chlor-alkali segment, producing caustic soda and vinyl chloride monomer, is another major revenue stream, driven by demand in the construction and manufacturing industries. Additionally, the company's specialty products and advanced materials segments, which include high-performance materials used in electronics and healthcare, support its profitability. Tosoh's earnings are further bolstered by strategic partnerships and its global sales network, enabling the company to serve a diverse customer base across multiple regions.

Tosoh Financial Statement Overview

Summary

Tosoh shows robust revenue growth with stable profitability margins. The balance sheet is strong with moderate leverage and a healthy equity base, but the decline in free cash flow indicates potential cash management challenges.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.06T	1.01T	1.06T	918.58B	732.85B
Gross Profit	259.01B	226.23B	219.18B	272.02B	204.39B
EBITDA	151.69B	140.48B	117.67B	201.40B	128.28B
Net Income	58.00B	57.32B	50.34B	107.94B	63.28B
Balance Sheet
Total Assets	1.33T	1.29T	1.19T	1.09T	982.78B
Cash, Cash Equivalents and Short-Term Investments	141.55B	149.81B	130.01B	172.81B	158.94B
Total Debt	179.10B	176.34B	176.73B	91.91B	126.53B
Total Liabilities	424.88B	431.19B	400.06B	327.94B	321.10B
Stockholders Equity	827.11B	794.56B	738.89B	709.09B	615.78B
Cash Flow
Free Cash Flow	26.35B	58.26B	-95.86B	64.13B	44.95B
Operating Cash Flow	106.24B	116.97B	-16.24B	108.61B	95.11B
Investing Cash Flow	-81.57B	-59.94B	-78.73B	-43.52B	-46.35B
Financing Cash Flow	-37.92B	-31.22B	50.17B	-57.85B	1.58B

Tosoh Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2135.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 2135 is above the 20-day moving average (MA) of 2087.12, above the 50-day MA of 2061.79, and above the 200-day MA of 1996.13, indicating a bullish trend. The MACD of 12.91 indicates Negative momentum. The RSI at 63.99 is Neutral, neither overbought nor oversold. The STOCH value of 81.34 is Negative, 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	76 Outperform	¥588.06B	13.78	18.55%	4.82%	10.88%	14.80%
4042	74 Outperform	¥679.38B	11.72	7.04%	4.68%	5.74%	1.14%
4188	70 Outperform	$1.09T	24.20	2.49%	4.18%	0.46%	-62.37%
4004	70 Outperform	$585.79B	15.75	6.01%	2.01%	5.93%	82.41%
Sector *	70 Neutral	¥173.39B	11.06	6.37%	3.55%	3.93%	6.03%
3405	65 Neutral	¥591.06B	27.12	2.92%	2.92%	5.25%	-59.70%
4005	61 Neutral	$576.95B	14.94	3.96%	3.40%	6.51%	―

Tosoh Corporate Events

Tosoh Expands with New Vietnamese Subsidiary

Tosoh Corporation has established a new subsidiary, Tosoh Vietnam Polyurethane Co., Ltd, in Vietnam, which will focus on the separation and purification of MDI intermediate materials and sales of MDI products. This subsidiary is wholly owned by Tosoh and represents a strategic expansion in Asia, although it will not impact the company’s consolidated financial results for the fiscal year ending March 2025.

The most recent analyst rating on (JP:4042) stock is a Hold with a Yen1910.00 price target. To see the full list of analyst forecasts on Tosoh stock, see the JP:4042 Stock Forecast page.

Tosoh Corporation’s Strategic Plan for 2026-2028: Balancing Growth and Decarbonization

Tosoh Corporation has unveiled its medium-term business plan for 2026-2028, emphasizing growth and decarbonization. The plan includes expanding earnings through value-added chlorine derivatives and developing large-scale new businesses in advanced technologies. The company aims to achieve an operating income of ¥170 billion and reduce CO2 emissions by 30% compared to 2019 levels. The strategy involves restructuring operations to align with global economic trends and decarbonization, while prioritizing plant safety and exploring new investment opportunities.

The most recent analyst rating on (JP:4042) stock is a Hold with a Yen1910.00 price target. To see the full list of analyst forecasts on Tosoh stock, see the JP:4042 Stock Forecast page.

Tosoh Corporation Reports Strong Financial Results for Fiscal Year 2025

Tosoh Corporation reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a 5.7% increase in net sales to ¥1,063,382 million and a 23.9% rise in operating income. The company also announced a dividend increase, reflecting a positive outlook for stakeholders and a strong financial position, with total assets reaching ¥1,327,298 million and a net asset ratio of 62.3%.

The most recent analyst rating on (JP:4042) stock is a Hold with a Yen1910.00 price target. To see the full list of analyst forecasts on Tosoh stock, see the JP:4042 Stock Forecast page.