Toagosei Co (4045) AI Stock Analysis

• Market Cap: ¥169.59B
• Dividend Yield: 4.11%
• Average Volume (3M): 221.75K
• Price to Earnings (P/E): 16.0
• Beta (1Y): 0.56
• Revenue Growth: 1.45%
• EPS Growth: -20.28%
• Country: JP
• Employees: 2,609
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 33.75
• Shares Outstanding: 113,000,000
• 10 Day Avg. Volume: 202,630
• 30 Day Avg. Volume: 221,753
• PEG Ratio: 8.37
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 1.03
• P/FCF Ratio: -92.58
• 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: ¥1,672.94
• Price Target Upside: 9.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ¥1,687.00 ▲(10.88% Upside)

Toagosei Co's overall stock score is driven primarily by its solid financial performance and reasonable valuation. The company's strong revenue growth and operational efficiency are offset by challenges in managing free cash flow. The stock's technical indicators suggest a lack of strong momentum, but its valuation and dividend yield provide a compelling case for investors seeking stable returns.

Toagosei Co Business Overview & Revenue Model

Company Description

Toagosei Co., Ltd. is a leading Japanese chemical manufacturer based in Tokyo, specializing in a wide range of products including industrial gases, chemical materials, and specialty chemicals. The company operates in various sectors such as electronics, automobiles, and pharmaceuticals, focusing on innovation and quality in its offerings. Core products include gases like nitrogen and oxygen, as well as chemical solvents and adhesives, which serve diverse industrial applications.

How the Company Makes Money

Toagosei generates revenue primarily through the sale of industrial gases and chemical materials. Its revenue model is based on direct sales to manufacturing companies, research institutions, and various industrial sectors. Key revenue streams include the provision of specialty gases for semiconductor manufacturing, which is a growing market due to the increasing demand for electronics. Additionally, Toagosei has established significant partnerships with major players in the automotive and electronics industries, enhancing its market presence and driving sales. The company's focus on innovation and the development of new chemical products also contributes to its earnings, as it allows Toagosei to meet the evolving needs of its customers.

Toagosei Co Financial Statement Overview

Summary

Toagosei Co demonstrates strong revenue growth and operational efficiency, supported by a stable balance sheet with low leverage. Despite robust operating cash flow, the negative free cash flow in 2024 suggests potential challenges in capital expenditure management. Overall, the company is in a solid financial position but should focus on improving net margins and managing free cash flow effectively.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	166.37B	167.59B	159.37B	160.82B	156.31B	133.39B
Gross Profit	45.96B	45.71B	41.37B	42.93B	45.34B	38.06B
EBITDA	27.20B	25.54B	27.88B	27.87B	29.52B	22.18B
Net Income	10.55B	11.88B	12.18B	12.49B	13.77B	8.14B
Balance Sheet
Total Assets	269.84B	278.02B	272.29B	265.13B	258.95B	241.83B
Cash, Cash Equivalents and Short-Term Investments	31.62B	41.82B	56.11B	58.37B	75.46B	73.56B
Total Debt	11.01B	12.30B	12.35B	12.38B	11.49B	11.78B
Total Liabilities	59.19B	64.35B	59.77B	54.33B	52.34B	44.19B
Stockholders Equity	209.55B	212.59B	211.51B	205.97B	201.76B	192.88B
Cash Flow
Free Cash Flow	0.00	-1.86B	9.98B	-9.31B	9.70B	6.19B
Operating Cash Flow	0.00	20.18B	21.64B	10.99B	21.22B	20.67B
Investing Cash Flow	0.00	-13.59B	-3.53B	-3.58B	-10.24B	-11.36B
Financing Cash Flow	0.00	-14.51B	-15.52B	-9.46B	-8.64B	-8.49B

Toagosei Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1521.50
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 1521.5 is above the 20-day moving average (MA) of 1519.87, below the 50-day MA of 1522.56, and above the 200-day MA of 1419.66, indicating a neutral trend. The MACD of -4.96 indicates Positive momentum. The RSI at 50.73 is Neutral, neither overbought nor oversold. The STOCH value of 66.47 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
4272	75 Outperform	¥218.71B	12.23	7.16%	4.87%	8.14%	274.53%
4045	74 Outperform	¥169.59B	16.05	5.09%	4.11%	1.45%	-20.28%
4368	72 Outperform	¥169.17B	14.29	―	1.58%	12.70%	34.96%
4041	70 Outperform	¥185.66B	13.18	―	4.51%	3.26%	-13.75%
4114	66 Neutral	¥280.30B	15.98	―	5.75%	1.44%	58.90%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4061	59 Neutral	€195.28B	15.29	-3.41%	4.41%	0.61%	-180.24%

Toagosei Co Corporate Events

Toagosei Co., Ltd. Announces Treasury Stock Acquisition Plan

Toagosei Co., Ltd. has announced a plan to acquire its treasury stock through extended-hours trading on the Tokyo Stock Exchange. The acquisition involves purchasing up to 1,506,200 shares at a cost of 2,235,200,800 yen, with the results to be announced after the trading session on August 1, 2025. This move is part of a broader strategy to manage the company’s capital structure, potentially impacting shareholder value and market perception.

Toagosei Co. Reports Decline in H1 2025 Financial Results Amid Strategic Expansion

Toagosei Co., Ltd. reported a decline in its consolidated financial results for the first half of 2025, with net sales and profits showing a decrease compared to the previous year. The company has revised its performance forecast for the fiscal year, indicating a cautious outlook amidst changes in accounting policies and the inclusion of a new subsidiary, Toagosei Chemical India Pvt. Ltd. This strategic move reflects the company’s efforts to expand its market presence despite current financial challenges.

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.