Toyokumo, Inc. (4058) AI Stock Analysis

• Market Cap: ¥26.45B
• Dividend Yield: 0.52%
• Average Volume (3M): 47.26K
• Price to Earnings (P/E): 23.7
• Beta (1Y): 0.88
• Revenue Growth: 50.92%
• EPS Growth: 46.61%
• Country: JP
• Employees: 73
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 26.29
• Shares Outstanding: 11,008,000
• 10 Day Avg. Volume: 80,240
• 30 Day Avg. Volume: 47,256
• PEG Ratio: 0.95
• Price to Book (P/B): 7.72
• Price to Sales (P/S): 7.47
• P/FCF Ratio: 17.66
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥2,667.00 ▼(-4.10% Downside)

The score is driven primarily by very strong financial performance (high and expanding profitability, conservative zero-debt balance sheet, and generally supportive cash generation). Offsetting this, technical indicators are mixed with weaker intermediate-term momentum, and valuation is not cheap given a ~27 P/E and low dividend yield.

Positive Factors

Exceptionally high gross and expanding net margins

Sustained ~97% gross margins and multi-year net margin expansion indicate a highly scalable software/cloud business with strong unit economics. Durable high margins support reinvestment, buffer against competition, and enable superior cash generation and profitability over the medium term.

Conservative, zero-debt balance sheet with strong ROE

A zero-debt balance sheet materially lowers financial risk and preserves strategic optionality. Strong ROE alongside rising equity provides durable capital flexibility for organic investment, product development, or opportunistic M&A without pressuring interest coverage or liquidity.

Robust free cash flow close to net income

Free cash flow near net income signals high earnings quality and enduring cash conversion capacity. This steady cash generation supports ongoing product development and operating needs, enabling self-funded growth and limiting reliance on external financing over the medium term.

Negative Factors

Operating cash flow lags reported earnings

Persistent OCF below net income reflects recurring working-capital or timing pressures that can erode liquidity and raise earnings quality questions. Over months this may constrain discretionary spending or force slower capex/R&D pacing despite strong headline profits.

Revenue growth has slowed versus earlier years

A durable deceleration in revenue growth reduces headroom for margin and profit expansion and increases execution risk to meet elevated investor expectations. Slower top-line momentum requires sustained product adoption or new market initiatives to restore prior growth trajectories.

No leverage may limit return-enhancement options

Zero leverage lowers risk but also removes a low-cost lever to amplify ROE and fund share-repurchase or M&A activity. Over the medium term this forces returns to come solely from operating gains, constraining capital structure flexibility and potential return optimization.

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 overall fundamentals: consistently growing revenue, exceptionally high gross margins (~97% in 2022–2024), and steadily expanding operating/net margins (net margin ~9% in 2019 to ~27% in 2024). Balance sheet is very low risk with zero debt and strong ROE (~26%–28% in 2022–2024). Cash flow is solid with free cash flow close to net income, but operating cash flow running below net income and some year-to-year volatility temper the score slightly.

Income Statement

Revenue has grown consistently over 2019–2024, with 2024 showing solid growth versus the prior year. Profitability is a key strength: gross margin is exceptionally high (~97% in 2022–2024) and operating and net margins have expanded steadily (net margin rising from ~9% in 2019 to ~27% in 2024). The main weakness is that growth has become less explosive than earlier years (the 2019–2021 pace was higher than 2023–2024), which slightly tempers the score despite strong margin performance.

Balance Sheet

The balance sheet is very conservative with zero debt across all reported years, which meaningfully reduces financial risk. Equity has increased materially over time, supporting growth and providing a cushion in a downturn. Returns on equity are strong (~26%–28% in 2022–2024), indicating efficient profitability relative to the capital base. A potential drawback is that with no leverage, future return expansion may rely more on continued operating execution than on balance-sheet optimization.

Cash Flow

Cash generation is strong and improving: operating cash flow and free cash flow have risen alongside earnings, and free cash flow is consistently close to net income (roughly ~0.99x in 2022–2024), suggesting good earnings quality. The key watch-out is cash conversion versus profit, as operating cash flow has been below net income each year (coverage below 1.0), implying some working-capital drag or timing effects despite healthy free cash flow overall. Free cash flow growth is positive over the longer run but has shown year-to-year volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.94B	3.15B	2.43B	1.94B	1.58B	1.10B
Gross Profit	3.69B	3.06B	2.38B	1.88B	1.40B	948.18M
EBITDA	1.59B	1.18B	891.13M	656.75M	441.63M	253.03M
Net Income	1.02B	841.00M	631.45M	427.04M	286.81M	150.24M
Balance Sheet
Total Assets	5.80B	4.66B	3.35B	2.61B	2.21B	1.72B
Cash, Cash Equivalents and Short-Term Investments	3.63B	4.20B	2.94B	2.30B	1.90B	1.62B
Total Debt	82.00M	0.00	0.00	0.00	0.00	0.00
Total Liabilities	2.26B	1.61B	1.11B	975.36M	746.91M	552.56M
Stockholders Equity	3.52B	3.04B	2.24B	1.63B	1.46B	1.17B
Cash Flow
Free Cash Flow	0.00	1.33B	768.50M	645.48M	367.32M	375.45M
Operating Cash Flow	0.00	1.34B	770.91M	650.14M	443.37M	378.23M
Investing Cash Flow	0.00	-70.00M	-87.41M	-4.66M	-162.46M	-2.77M
Financing Cash Flow	0.00	-107.00M	-40.89M	-250.82M	469.00K	633.09M

Toyokumo, Inc. Technical Analysis

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

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 2667.15, above the 50-day MA of 2686.73, and below the 200-day MA of 2904.68, indicating a bearish trend. The MACD of -84.60 indicates Positive momentum. The RSI at 27.92 is Positive, neither overbought nor oversold. The STOCH value of 4.11 is Positive, 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
3763	82 Outperform	¥46.00B	15.98	―	1.92%	20.81%	68.06%
3771	77 Outperform	¥32.83B	13.42	―	2.93%	11.53%	23.23%
3835	75 Outperform	¥20.08B	17.06	―	3.14%	0.50%	-2.92%
4058	72 Outperform	¥26.45B	23.66	―	0.52%	50.92%	46.61%
4259	64 Neutral	¥62.15B	-33.25	―	―	8.98%	-581.59%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5254	58 Neutral	¥25.07B	45.63	―	―	40.99%	-36.76%

Toyokumo, Inc. Corporate Events

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.

Toyokumo, Inc. Revises 2025 Financial Forecast Upwards

Toyokumo, Inc. has revised its full-year financial forecast for 2025, reflecting an optimistic outlook with increased net sales and profits. The revised forecast indicates a 4.3% increase in net sales and a 15% rise in EBITDA, suggesting strong performance and potential growth, which could positively impact stakeholders and enhance the company’s market position.

Toyokumo, Inc. Reports Strong Financial Growth for 2025

Toyokumo, Inc. reported a substantial increase in its financial performance for the nine months ending September 30, 2025, with net sales rising by 56.1% year-on-year. The company’s strong financial results indicate a robust operational performance and a positive outlook for stakeholders, as reflected in their forecasted growth and increased dividend projections.