Toyokumo, Inc. (4058) AI Stock Analysis

• Market Cap: ¥20.21B
• Dividend Yield: 0.52%
• Average Volume (3M): 47.26K
• Price to Earnings (P/E): 18.7
• Beta (1Y): 0.70
• Revenue Growth: 50.92%
• EPS Growth: 46.61%
• Country: JP
• Employees: 73
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 21.41
• Shares Outstanding: 11,008,000
• 10 Day Avg. Volume: 80,240
• 30 Day Avg. Volume: 47,256
• PEG Ratio: 0.96
• Price to Book (P/B): 7.44
• Price to Sales (P/S): 6.19
• P/FCF Ratio: 14.92
• 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): 103.2
• Revenue Forecast (FY): ¥4.05B

• Rating: 69 Neutral
• Price Target: ¥2,075.00 ▼(-25.39% Downside)
• Action: Downgraded Date: 02/18/26
• Date: Action: Downgraded 02/18/26

Strong fundamentals (high growth, exceptional profitability, debt-free balance sheet, and rising free cash flow) support the score, but this is meaningfully offset by very weak technical momentum (price below all major moving averages with oversold/bearish indicators). Valuation is reasonable and provides moderate support.

Positive Factors

Exceptional margins

Sustained ~97% gross margins and expanding operating/net margins indicate a highly scalable, low-variable-cost software model with durable pricing power. Such margin structure supports strong cash generation, funds reinvestment and competitive flexibility across economic cycles, underpinning long-term profitability.

Conservative balance sheet

A zero-debt balance sheet materially reduces financial risk and preserves strategic optionality for investment or M&A. Coupled with high ROE, this reflects efficient use of equity capital and provides resilience in downturns, enabling durable capital allocation without leverage-driven vulnerability.

Consistent growth and strong FCF

Steady revenue growth plus free cash flow near net income signals high earnings quality and reliable internal funding for R&D, customer success, and selective acquisitions. This durable cash generation supports long-term reinvestment and strategic initiatives without heavy external financing.

Negative Factors

Cash conversion lag

Consistent operating cash flow below reported net income implies working-capital or timing inefficiencies that can compress liquidity during slower quarters. Over the medium term this can strain reinvestment capacity and raise funding needs if growth requires upfront spending or customer payment terms shift unfavorably.

Slowing revenue acceleration

A deceleration versus prior high-growth periods suggests market penetration may be maturing or that incremental sales are harder to win. If top-line expansion stalls, sustaining high margins and investor expectations will hinge on product expansion, pricing, or new market entry—each requiring sustained execution risk.

Limited leverage for return enhancement

While conservative, a zero-debt posture limits the company’s ability to amplify returns via inexpensive leverage or tax-efficient capital structure. Long-term return improvement will therefore depend heavily on operational gains or accretive M&A funded from cash, increasing execution dependence.

Toyokumo, Inc. Business Overview & Revenue Model

Company Description

Toyokumo, Inc., a service company, engages in the development and provision of cloud services for businesses. It offers safety confirmation service 2, an automatic safety confirmation system; Form Bridge, a service to create forms to be published on the web; Print Creator, a service that uses the data registered in the kintone application to print out forms; kViewer, a linked service for publishing; kMailer, an email sending system that works with kintone; Data collect, a kintone collaboration service; kBackup, a service for data preservation; and Timestamp, a service to save electronic books. The company was founded in 2010 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Toyokumo, Inc. generates revenue through the sale of its cloud-based software services. The company offers subscription-based models where clients pay recurring fees for access to its software applications. These applications often include business management tools, productivity enhancers, and other IT solutions tailored to various industry requirements. Key revenue streams include subscription fees, service fees for customization and integration, and support and maintenance charges. The company may also engage in strategic partnerships with other technology firms to expand its service offerings and reach new markets, further contributing to its earnings.

Toyokumo, Inc. Financial Statement Overview

Summary

Strong financial profile with rapid multi-year revenue growth, exceptionally high gross margin (~97% in 2022–2024), and very strong net margins (~26–27% in 2023–2024). Balance sheet is low-risk with zero debt and expanding equity/assets, and cash generation is robust with FCF rising materially over time, though operating cash conversion shows some variability.

Income Statement

Revenue has compounded rapidly from 2020 to 2025 (¥1.10B to ¥4.86B), with consistently strong year-over-year growth in every period provided (roughly low-20s% to ~40% range, including ~23% in 2025). Profitability is a major strength: gross margin is exceptionally high (about 97% in 2022–2024), and operating and net margins are also very strong and improving versus earlier years (net margin ~26–27% in 2023–2024 vs ~14% in 2020). The main watch-out is that margins are already at very elevated levels, which can make future expansion harder and increases sensitivity if growth decelerates.

Balance Sheet

The balance sheet is conservatively positioned with zero debt across all years shown, reducing financial risk and giving flexibility. Equity and assets have expanded steadily (equity from ~¥1.17B in 2020 to ~¥4.04B in 2025; assets from ~¥1.72B to ~¥6.54B), consistent with a business scaling profitably. Returns on equity are strong in the available years (mid-to-high 20% range in 2022–2024). A limitation is that without more liquidity detail (cash, current assets/liabilities), short-term balance sheet resilience cannot be fully assessed from the provided data.

Cash Flow

Cash generation is robust and improving: operating cash flow and free cash flow rise materially over time (operating cash flow ~¥378M in 2020 to ~¥2.02B in 2025; free cash flow ~¥375M to ~¥2.02B). Free cash flow closely tracks earnings in multiple years (free cash flow to net income is ~1.0 in 2022–2024), which supports earnings quality. Volatility is the key drawback: free cash flow growth swings (down slightly in 2021, then sharp rebounds in subsequent years), and operating cash flow has been below net income in the years where the relationship is provided (coverage <1 in 2021–2024), suggesting some working-capital timing or cash conversion variability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.94B	4.86B	3.15B	2.43B	1.94B	1.58B
Gross Profit	3.69B	4.41B	3.06B	2.38B	1.88B	1.40B
EBITDA	1.59B	1.86B	1.18B	891.13M	656.75M	441.63M
Net Income	1.02B	1.09B	841.00M	631.45M	427.04M	286.81M
Balance Sheet
Total Assets	5.80B	6.54B	4.66B	3.35B	2.61B	2.21B
Cash, Cash Equivalents and Short-Term Investments	3.63B	4.41B	4.20B	2.94B	2.30B	1.90B
Total Debt	82.00M	0.00	0.00	0.00	0.00	0.00
Total Liabilities	2.26B	2.48B	1.61B	1.11B	975.36M	746.91M
Stockholders Equity	3.52B	4.04B	3.04B	2.24B	1.63B	1.46B
Cash Flow
Free Cash Flow	0.00	2.02B	1.33B	768.50M	645.48M	367.32M
Operating Cash Flow	0.00	2.02B	1.34B	770.91M	650.14M	443.37M
Investing Cash Flow	0.00	-1.36B	-70.00M	-87.41M	-4.66M	-162.46M
Financing Cash Flow	0.00	-448.00M	-107.00M	-40.89M	-250.82M	469.00K

Toyokumo, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2781.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4058, the sentiment is Negative. The current price of 2781 is above the 20-day moving average (MA) of 1983.35, above the 50-day MA of 2400.45, and below the 200-day MA of 2863.14, indicating a bearish trend. The MACD of -177.05 indicates Negative momentum. The RSI at 31.27 is Neutral, neither overbought nor oversold. The STOCH value of 63.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4058.

Toyokumo, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4333	81 Outperform	¥21.88B	16.24	―	3.86%	0.50%	17.15%
9702	75 Outperform	¥22.97B	15.96	―	3.01%	9.84%	-19.96%
3648	74 Outperform	¥21.15B	10.37	―	2.40%	21.57%	129.44%
3921	74 Outperform	¥24.42B	14.16	―	2.53%	16.13%	62.27%
3853	70 Outperform	¥20.58B	19.00	―	0.82%	―	―
4058	69 Neutral	¥20.21B	18.71	―	0.52%	50.92%	46.61%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Toyokumo, Inc. Corporate Events

Toyokumo Launches ¥300 Million Share Buyback to Boost Capital Efficiency

Toyokumo, Inc. has approved a share buyback program under the Companies Act, authorizing the repurchase of up to 150,000 common shares, equivalent to 1.37% of its issued shares excluding treasury stock. The initiative, capped at ¥300 million and scheduled from February 16 to May 29, 2026, is aimed at enhancing capital efficiency and enabling more flexible capital policies amid a changing business environment.

As of February 13, 2026, Toyokumo holds 56,300 treasury shares out of 11,008,000 issued shares excluding treasury stock. The planned acquisition of additional shares is expected to optimize the company’s capital structure and may support shareholder value by tightening the share float and potentially improving key financial metrics.

The most recent analyst rating on (JP:4058) stock is a Buy with a Yen2575.00 price target. To see the full list of analyst forecasts on Toyokumo, Inc. stock, see the JP:4058 Stock Forecast page.

Toyokumo Posts 30% January Sales Growth to Start FY2026

Toyokumo reported preliminary consolidated net sales of 451 million yen for January 2026, representing 130.0% year-on-year growth, with cumulative sales for the fiscal year to date matching that figure and growth rate. These results follow strong expansion in FY2025, when monthly sales consistently posted double-digit growth, underscoring the company’s continued momentum and providing stakeholders with an early indication of robust demand at the start of FY2026.

The disclosed figures are unaudited and may be revised, but they suggest Toyokumo is sustaining a solid growth trajectory as it enters the new fiscal year. Investors and other stakeholders are likely to view the January performance and the company’s ongoing monthly reporting practice as a positive sign of both operational strength and transparency in financial communication.

The most recent analyst rating on (JP:4058) stock is a Buy with a Yen2575.00 price target. To see the full list of analyst forecasts on Toyokumo, Inc. stock, see the JP:4058 Stock Forecast page.

Toyokumo Posts Strong Double-Digit Sales Growth Through December 2025

Toyokumo, Inc. reported steady growth in consolidated net sales for December 2025, with monthly sales rising to 456 million yen, up 44.9% year on year, and cumulative sales for the fiscal year reaching 4,858 million yen, an increase of 54.5% from the previous year. The monthly data show consistent double-digit year-on-year growth throughout FY2025, indicating strong business momentum and a solid expansion of its revenue base, though the company noted that these figures are preliminary, unaudited, and may be revised, which stakeholders should consider when assessing performance trends.

The most recent analyst rating on (JP:4058) stock is a Buy with a Yen3089.00 price target. To see the full list of analyst forecasts on Toyokumo, Inc. stock, see the JP:4058 Stock Forecast page.