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

• Market Cap: ¥12.37B
• Dividend Yield: 3.95%
• Average Volume (3M): 108.37K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.55
• Revenue Growth: -1.75%
• EPS Growth: -9.10%
• Country: JP
• Employees: 764
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Chemicals
• EPS (TTM): 12.19
• Shares Outstanding: 35,020,000
• 10 Day Avg. Volume: 75,180
• 30 Day Avg. Volume: 108,370
• PEG Ratio: -0.58
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 72 Outperform
• Price Target: ¥389.00 ▲(9.89%Upside)

The stock of Toho Acetylene Co., Ltd. scores a 72, driven primarily by its robust financial performance and attractive valuation. The company's strong balance sheet and cash flow generation capabilities provide a solid foundation, although recent technical indicators suggest a cautious short-term outlook. The absence of earnings call insights and relevant corporate events leaves the analysis focused on financials and valuation.

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

Company Description

Toho Acetylene Co., Ltd. (4093) is a Japan-based company primarily engaged in the manufacture and sale of industrial gases and related products. The company operates in sectors including industrial gas supply, chemical manufacturing, and welding materials, with a core focus on producing acetylene gas, oxygen, nitrogen, and other specialty gases used in various industrial applications. Toho Acetylene also offers equipment and services related to gas usage, catering to industries such as metal processing, electronics, and chemical manufacturing.

How the Company Makes Money

Toho Acetylene Co., Ltd. generates revenue through the production and sale of industrial gases, with acetylene being a significant product. The company supplies these gases to a wide range of industries that utilize them for processes such as welding, cutting, and chemical synthesis. In addition to gas sales, Toho Acetylene offers equipment and services related to the safe and effective use of these gases, providing value-added solutions that enhance its revenue streams. Strategic partnerships with industrial clients and ongoing innovations in gas production technology also contribute to the company's earnings by expanding its market reach and operational efficiency.

Toho Acetylene Co., Ltd. Financial Statement Overview

Summary

Toho Acetylene Co., Ltd. shows strong income performance with solid margins and revenue growth. The balance sheet is stable with low leverage and a strong equity position. However, cash flow management requires improvement, particularly in generating free cash flow.

Income Statement

Toho Acetylene Co., Ltd. has demonstrated solid performance in its income statement. The Gross Profit Margin for the TTM is approximately 31.26%, while the Net Profit Margin stands at 3.50%. The company has shown consistent EBIT and EBITDA margins at 5.19% and 7.97% respectively, indicating stable operational efficiency. Revenue growth has been steady with a notable increase from the previous year. Overall, the company is profitable and maintains strong margins.

Balance Sheet

The balance sheet of Toho Acetylene Co., Ltd. shows a healthy Equity Ratio of 52.84% in the TTM, reflecting a strong equity base. The Debt-to-Equity Ratio is manageable at 0.19, indicating low leverage. Return on Equity (ROE) stands at 6.72%, which is moderate but reflects potential for improvement. The company's balance sheet is stable with a good mix of assets and liabilities.

Cash Flow

The cash flow analysis reveals challenges in generating free cash flow, with zero reported in the TTM. The Operating Cash Flow to Net Income Ratio is unavailable due to zero operating cash flow, presenting an area of concern. Historically, the company has managed its capital expenditures and financing activities effectively, but recent figures suggest a need to enhance cash flow generation.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
35.07B	35.42B	34.09B	31.29B	29.83B	33.56B
	Gross Profit
11.03B	11.17B	10.12B	9.60B	9.45B	10.01B
	EBIT
1.97B	2.12B	1.52B	1.23B	1.19B	1.52B
	EBITDA
2.57B	3.07B	2.38B	2.08B	1.91B	2.24B
	Net Income Common Stockholders
1.30B	1.42B	988.73M	823.62M	738.16M	923.29M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.99B	8.99B	8.54B	8.33B	7.88B	7.75B
	Total Assets
33.76B	33.66B	31.36B	30.27B	29.53B	29.41B
	Total Debt
3.83B	3.83B	3.61B	3.60B	3.81B	3.85B
	Net Debt
-5.16B	-5.16B	-4.93B	-4.72B	-4.07B	-3.90B
	Total Liabilities
14.28B	14.18B	13.03B	12.71B	12.61B	12.95B
	Stockholders Equity
17.50B	17.50B	16.48B	15.83B	15.24B	14.73B
Cash Flow		Free Cash Flow
0.00	1.37B	639.73M	948.76M	623.27M	1.03B
	Operating Cash Flow
0.00	2.41B	1.11B	1.78B	1.21B	1.57B
	Investing Cash Flow
0.00	-1.46B	-443.35M	-684.06M	-568.92M	-543.89M
	Financing Cash Flow
0.00	-492.73M	-454.03M	-630.46M	-509.30M	-871.44M

Toho Acetylene Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 354.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 354 is above the 20-day moving average (MA) of 351.65, above the 50-day MA of 353.60, and above the 200-day MA of 347.72, indicating a bullish trend. The MACD of -0.54 indicates Negative momentum. The RSI at 51.82 is Neutral, neither overbought nor oversold. The STOCH value of 91.67 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	80 Outperform	¥20.38B	7.42		4.02%	8.23%	37.45%
4097	77 Outperform	¥56.09B	11.72		1.97%	6.12%	6.26%
4040	77 Outperform	¥7.47B	6.34		1.72%	4.57%	-13.43%
4093	72 Outperform	¥12.37B	9.56		3.95%	-1.75%	-9.10%
4025	72 Outperform	¥24.98B	10.04		1.91%	11.95%	68.61%
Sector *	51 Neutral	$2.03B	-1.13	-21.36%	3.65%	2.87%	-30.54%

Toho Acetylene Co., Ltd. Corporate Events

Toho Acetylene Announces Strategic Measures to Boost Profitability and Market Presence

Toho Acetylene Co., Ltd. has announced a new policy aimed at improving capital cost management and stock price performance. The company plans to achieve an ROE of 8.0% or higher by maximizing profits through growth strategies, enhancing shareholder returns, and improving investor relations. Key initiatives include establishing a dedicated food gas filling plant, introducing a hydrogen generator, and adopting a progressive dividend policy. These measures are expected to boost the company’s profitability and market recognition.

Toho Acetylene Affirms Independence Amid Tosoh Corporation’s Stake

Toho Acetylene Co., Ltd. has announced that Tosoh Corporation, its largest shareholder with a 24.73% stake, is an ‘other affiliated company.’ Despite this significant shareholding, Toho Acetylene maintains operational independence, as evidenced by its limited reliance on business transactions with Tosoh and the absence of financial dependencies. The company ensures protection for minority shareholders by adhering to fair transaction practices with Tosoh, similar to those with unrelated companies.

Toho Acetylene Advances in Market Listing Criteria and Governance

Toho Acetylene Co., Ltd. announced its progress in meeting the criteria for continued listing on the Tokyo Stock Exchange Prime Market. Despite challenges such as a decrease in sales and profits due to plant repairs and increased costs, the company is preparing to apply for a change to the Standard Market by October 2025. The company is also enhancing corporate governance by appointing more independent directors to its board.

Toho Acetylene Reports Decline in Fiscal Year 2025 Financial Results

Toho Acetylene Co., Ltd. reported a decline in its financial performance for the fiscal year ended March 31, 2025, with net sales decreasing by 1.7% and operating profit falling by 9.5% compared to the previous year. Despite the decline, the company maintained a stable equity ratio and increased its cash and cash equivalents at year-end, indicating a strong financial position. The company also conducted a five-for-one stock split effective January 1, 2024, impacting earnings per share calculations.