Toagosei Co (4045) AI Stock Analysis

• Market Cap: $159.73B
• Dividend Yield: 4.54%
• Average Volume (3M): 230.04K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.59
• Revenue Growth: 5.13%
• EPS Growth: -8.77%
• Country: JP
• Employees: 2,609
• Sector: Basic Materials
• Sector Strength: 72
• Industry: Chemicals
• EPS (TTM): 18.01
• Shares Outstanding: 113,000,000
• 10 Day Avg. Volume: 242,950
• 30 Day Avg. Volume: 230,043
• PEG Ratio: -1.74
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -14.74
• 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: $1,528.37
• Price Target Upside: 6.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ¥1,585.00 ▲(10.61%Upside)

Toagosei Co's overall stock score is primarily driven by its solid financial performance and reasonable valuation. The technical analysis shows a positive trend, albeit with neutral sentiment indicators. The company's strong dividend yield adds to its appeal. However, challenges in cash flow management and modest net profit margins slightly dampen the score.

Toagosei Co Business Overview & Revenue Model

Company Description

Toagosei Co., Ltd. is a Japanese chemical company primarily engaged in the production and distribution of a wide range of chemical products. The company's operations are segmented into several key areas, including commodity chemicals, acrylic products, and specialty chemicals. It is known for its innovative adhesive technologies, including the popular Aron Alpha (known as Krazy Glue in some markets) and various other industrial and consumer chemical products. Toagosei's products serve a diverse set of industries such as construction, automotive, electronics, and healthcare.

How the Company Makes Money

Toagosei Co. generates revenue through the sales of its diverse chemical product offerings. Its revenue streams are primarily divided into several segments: commodity chemicals, which include basic chemicals used in various industrial applications; acrylic products, which are utilized in areas such as paint, coatings, and adhesives; and specialty chemicals, which cater to niche markets with customized chemical solutions. A significant portion of its income derives from its adhesives business, with products like Aron Alpha contributing substantially to its earnings. The company also benefits from strategic partnerships and collaborations with both domestic and international firms, enhancing its market reach and driving sales across different regions. Additionally, Toagosei's investment in research and development helps maintain its competitive edge, enabling the creation of new products and improvement of existing ones, further supporting its revenue growth.

Toagosei Co Financial Statement Overview

Summary

Toagosei Co demonstrates strong revenue growth and operational efficiency, supported by a stable balance sheet with low leverage. However, the company faces challenges with declining net profit margins and negative free cash flow, indicating potential issues in net income and capital expenditure management.

Income Statement

Toagosei Co exhibits consistent revenue growth, with a 5.15% increase from 2023 to 2024. The gross profit margin for 2024 is 27.27%, indicating strong profitability. However, net profit margin slightly decreased to 7.08% in 2024 from 7.64% in 2023, reflecting some pressure on net income. EBIT and EBITDA margins remain solid at 8.49% and 15.24% respectively, showcasing efficient operations.

Balance Sheet

The company maintains a robust balance sheet with a low debt-to-equity ratio of 0.06, highlighting financial stability. The equity ratio is high at 76.44%, indicating strong equity financing. Return on equity is modest at 5.58%, suggesting room for improvement in generating returns from shareholders' equity.

Cash Flow

Operating cash flow to net income ratio is 1.70, indicating solid cash generation relative to net income. However, free cash flow has turned negative in 2024, showing a decline in cash available after capital expenditures. This could signal potential cash flow management issues that need addressing.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	167.59B	159.37B	160.82B	156.31B	133.39B
Gross Profit	45.71B	41.37B	42.93B	45.34B	38.06B
EBITDA	25.54B	27.88B	24.84B	28.30B	22.18B
Net Income	11.88B	12.18B	12.49B	13.77B	8.14B
Balance Sheet
Total Assets	278.02B	272.29B	265.13B	258.95B	241.83B
Cash, Cash Equivalents and Short-Term Investments	41.82B	56.11B	58.37B	75.46B	73.56B
Total Debt	12.30B	12.35B	12.38B	11.49B	11.78B
Total Liabilities	64.35B	59.77B	54.33B	52.34B	44.19B
Stockholders Equity	212.59B	211.51B	205.97B	201.76B	192.88B
Cash Flow
Free Cash Flow	-1.86B	9.98B	-9.31B	9.70B	6.19B
Operating Cash Flow	20.18B	21.64B	10.99B	21.22B	20.67B
Investing Cash Flow	-13.59B	-3.53B	-3.58B	-10.24B	-11.36B
Financing Cash Flow	-14.51B	-15.52B	-9.46B	-8.64B	-8.49B

Toagosei Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1433.00
• 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:4045, the sentiment is Positive. The current price of 1433 is above the 20-day moving average (MA) of 1397.55, above the 50-day MA of 1371.77, and above the 200-day MA of 1416.37, indicating a bullish trend. The MACD of 15.88 indicates Negative momentum. The RSI at 64.67 is Neutral, neither overbought nor oversold. The STOCH value of 74.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4045.

Toagosei Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4368	79 Outperform	¥140.97B	12.13		1.90%	17.86%	39.28%
4041	78 Outperform	¥183.43B	12.05		4.87%	0.50%	-8.77%
4114	74 Outperform	¥259.44B	14.69		6.46%	4.42%	61.92%
4272	74 Outperform	¥208.93B	12.36	6.49%	5.66%	10.30%	333.75%
4045	74 Outperform	$159.73B	14.48	5.27%	4.54%	5.13%	-8.77%
Sector *	70 Outperform	¥177.14B	11.15	6.29%	3.43%	3.91%	3.49%
4061	54 Neutral	€178.33B	15.29	-4.17%	4.83%	2.82%	-202.98%

Toagosei Co Corporate Events

Toagosei Co. Ends Joint Venture to Boost Krazy Glue’s Market Presence

Toagosei Co., Ltd. has decided to dissolve its joint venture with Newell Brands Inc. Group in the U.S. by acquiring the latter’s equity interest in Elmer’s & Toagosei Co. This move aims to enhance Toagosei’s flexibility and agility in the competitive adhesive market, particularly for its Krazy Glue brand. The company plans to strengthen its market share and expand its operations internationally by leveraging its integrated production and sales capabilities.

Toagosei Completes Treasury Shares Disposal for Stock Compensation

Toagosei Co., Ltd. has completed the payment procedures for the disposal of 72,900 treasury shares as restricted stock compensation to its directors and other key personnel. This strategic move, resolved by the Board of Directors, aims to align the interests of the company’s leadership with its long-term goals, potentially enhancing corporate governance and stakeholder confidence.

Toagosei Co. Reports Mixed Financial Results for Q1 2025

Toagosei Co., Ltd. reported its consolidated financial results for the first quarter of 2025, showing a slight increase in net sales by 2.1% compared to the previous year. However, the company experienced declines in operating income, ordinary profit, and net income attributable to owners of the parent, indicating challenges in maintaining profitability. Despite these setbacks, the company forecasts a modest improvement in operating income and net income for the fiscal year 2025, suggesting a cautiously optimistic outlook for the remainder of the year.

Toagosei Co. Reports Q1 2025 Financial Results with Mixed Performance

Toagosei Co., Ltd. reported its consolidated financial results for the first quarter of 2025, showing a slight increase in net sales by 2.1% year-on-year, reaching ¥39,822 million. However, the company experienced declines in operating income, ordinary profit, and net income attributable to owners of the parent, with the latter dropping by 26.4%. Despite these challenges, Toagosei maintains a strong net worth ratio of 78.0%, indicating a stable financial position. The company also announced a forecasted increase in annual dividends per share for fiscal 2025, reflecting confidence in its future performance.

Toagosei Co. Announces Treasury Shares Disposal for Executive Incentives

Toagosei Co., Ltd. has announced the disposal of 72,900 treasury shares as restricted stock compensation to its directors and executive officers, aiming to incentivize them for the sustainable improvement of the company’s medium- to long-term corporate value. This strategic move is intended to align the interests of the company’s management with those of its shareholders, promoting shared value and enhancing corporate governance.