Toho Acetylene Co., Ltd. (4093) AI Stock Analysis

• Market Cap: ¥12.93B
• Dividend Yield: 3.89%
• Average Volume (3M): 33.26K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.47
• Revenue Growth: -3.00%
• EPS Growth: -29.83%
• Country: JP
• Employees: 764
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 4.52
• Shares Outstanding: 35,020,000
• 10 Day Avg. Volume: 27,890
• 30 Day Avg. Volume: 33,256
• PEG Ratio: -1.07
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.36
• P/FCF Ratio: 8.52
• 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: 77 Outperform
• Price Target: ¥401.00 ▲(11.39% Upside)

Toho Acetylene Co., Ltd. receives a strong overall score driven by its robust financial performance and attractive valuation. The company's stable financial position and low P/E ratio, coupled with a solid dividend yield, enhance its investment appeal. Technical indicators suggest a neutral market sentiment, with no significant momentum or trend signals.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage enhances financial stability, providing resilience against economic fluctuations and supporting future growth.

Cash Generation Ability

Robust cash generation ensures liquidity and supports strategic investments, enabling the company to capitalize on growth opportunities and maintain operations efficiently.

Revenue and Profit Growth

Steady growth in revenue and profits indicates effective business operations and market demand, positioning the company well for continued success.

Negative Factors

Profit Margin Pressure

Pressure on profit margins could impact long-term profitability, necessitating cost management improvements to sustain earnings growth.

Revenue Growth Decline

A decline in revenue growth may signal challenges in market expansion or competitive pressures, potentially affecting future earnings.

EPS Growth Decline

A significant drop in EPS growth suggests potential issues in cost control or revenue generation, impacting investor confidence and valuation.

Toho Acetylene Co., Ltd. Business Overview & Revenue Model

Company Description

Toho Acetylene Co., Ltd. provides gas and equipment related products in Japan. The company offers high pressure gases, including acetylene, oxygen, nitrogen, argon, carbon dioxide, hydrogen, mixed gas, ammonia, semiconductor material gas, freon, helium gas, and standard gas, as well as nitrous oxide for food additives; LP gas and related equipment, and oil and gas related products; and eco energy related products, such as solar power generation systems, household fuel cells, and solar power LED street lights. It also provides industrial machinery products comprising acetylene, seamless, and ultra-low temperature liquefied gas containers; welding materials; welding fusion equipment consisting of welding machines, welding robots, laser processing machines, gas fusing-related products, and safety protection equipment; and cleaning equipment and agents. In addition, the company offers medical gases, such as oxygen, nitrogen, nitrous oxide, carbon dioxide, sterilized gas, and liquid helium; medical equipment; home treatment-related services; and medical related services. Its gas products are used in the environmental and chemical, steel and machinery, and food sectors. Toho Acetylene Co., Ltd. was founded in 1948 and is headquartered in Tagajo, Japan.

How the Company Makes Money

Toho Acetylene generates revenue primarily through the production and sale of acetylene gas and other industrial gases. The company has established key revenue streams by serving multiple sectors, including manufacturing, where gases are used in welding and cutting applications, and healthcare, where gases such as oxygen are critical. Additionally, Toho Acetylene may benefit from long-term contracts with industrial clients, ensuring a steady flow of income. The company also explores partnerships with other industry players and invests in research and development to create new products and improve existing ones, which can further enhance its market position and profitability.

Toho Acetylene Co., Ltd. Financial Statement Overview

Summary

Toho Acetylene Co., Ltd. demonstrates strong financial performance with steady growth in revenues and profits, supported by a solid balance sheet and strong cash flows. While profitability margins have experienced some pressure recently, the company's financial position remains stable, with a low leverage risk and effective cash generation capabilities.

Income Statement

Toho Acetylene Co., Ltd. has shown consistent revenue, gross profit, and net income growth over the years, with a slight dip in the most recent year. The gross profit margin remains strong, indicating effective cost management. However, the decline in net profit margin and EBIT margin in the latest year suggests some pressure on profitability.

Balance Sheet

The company exhibits a robust balance sheet with a solid equity base and a low debt-to-equity ratio, indicating financial stability. The equity ratio is healthy, reflecting a strong capital position. The consistent reduction in net debt over the years further enhances the balance sheet's strength.

Cash Flow

Operating cash flow remains strong, supporting a healthy free cash flow. Although there is a slight decrease in free cash flow in the most recent period, the company's ability to generate cash from operations relative to net income is robust, ensuring liquidity. The free cash flow to net income ratio indicates efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	34.95B	34.80B	35.42B	34.09B	31.29B	29.83B
Gross Profit	10.99B	10.97B	11.17B	10.12B	9.60B	9.45B
EBITDA	2.90B	2.89B	3.07B	2.38B	2.08B	1.91B
Net Income	1.23B	1.29B	1.42B	988.73M	823.62M	738.16M
Balance Sheet
Total Assets	33.07B	33.64B	33.66B	31.36B	30.27B	29.53B
Cash, Cash Equivalents and Short-Term Investments	8.89B	9.50B	8.99B	8.54B	8.33B	7.88B
Total Debt	3.34B	3.84B	3.83B	3.61B	3.60B	3.81B
Total Liabilities	12.73B	13.25B	14.18B	13.03B	12.71B	12.61B
Stockholders Equity	18.27B	18.30B	17.50B	16.48B	15.83B	15.24B
Cash Flow
Free Cash Flow	0.00	1.47B	1.37B	639.73M	948.76M	623.27M
Operating Cash Flow	0.00	2.23B	2.41B	1.11B	1.78B	1.21B
Investing Cash Flow	0.00	-993.79M	-1.46B	-443.35M	-684.06M	-568.92M
Financing Cash Flow	0.00	-730.63M	-492.73M	-454.03M	-630.46M	-509.30M

Toho Acetylene Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 360.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4093, the sentiment is Positive. The current price of 360 is below the 20-day moving average (MA) of 360.30, above the 50-day MA of 357.48, and above the 200-day MA of 351.18, indicating a bullish trend. The MACD of 2.08 indicates Negative momentum. The RSI at 77.90 is Negative, neither overbought nor oversold. The STOCH value of 89.26 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4093.

Toho Acetylene Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4463	81 Outperform	¥24.30B	9.70	―	3.53%	6.99%	-0.30%
4097	79 Outperform	¥62.99B	12.92	―	2.88%	3.42%	13.37%
4093	77 Outperform	¥12.93B	11.64	―	3.89%	-3.00%	-29.83%
4040	77 Outperform	¥7.53B	6.49	―	1.96%	8.43%	2.99%
4025	66 Neutral	¥34.66B	11.93	―	0.13%	9.78%	40.00%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Toho Acetylene Co., Ltd. Corporate Events

Toho Acetylene Transitions to Tokyo Stock Exchange’s Standard Market

Toho Acetylene Co., Ltd. has received approval from the Tokyo Stock Exchange to change its market segment listing from the Prime Market to the Standard Market, effective December 24, 2025. This strategic move aligns with the company’s focus on maintaining sufficient liquidity and governance levels while continuing to pursue growth and enhance corporate value. The company remains committed to improving its corporate governance and investor relations to meet shareholder expectations.

The most recent analyst rating on (JP:4093) stock is a Buy with a Yen401.00 price target. To see the full list of analyst forecasts on Toho Acetylene Co., Ltd. stock, see the JP:4093 Stock Forecast page.

Toho Acetylene Reports Decline in Semi-Annual Financial Results

Toho Acetylene Co., Ltd. reported a decline in its financial performance for the six months ended September 30, 2025, with net sales decreasing by 2.0% and profits showing significant reductions compared to the previous year. Despite the downturn, the company maintains a stable equity ratio, and there is no revision in the forecasted dividends or financial results for the fiscal year ending March 31, 2026, indicating a cautious but steady outlook.

The most recent analyst rating on (JP:4093) stock is a Buy with a Yen401.00 price target. To see the full list of analyst forecasts on Toho Acetylene Co., Ltd. stock, see the JP:4093 Stock Forecast page.