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Toho Acetylene Co., Ltd. (JP:4093)
:4093
Japanese Market

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

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JP

Toho Acetylene Co., Ltd.

(4093)

Rating:68Neutral
Price Target:
¥384.00
▲(8.78%Upside)
Toho Acetylene Co., Ltd. has a solid financial foundation, contributing significantly to its overall score. The strong balance sheet and cash generation capabilities reinforce its financial stability. Valuation metrics suggest potential undervaluation, adding appeal for value investors. However, technical indicators signal some bearish sentiment, which slightly tempers the overall outlook.

Toho Acetylene Co., Ltd. (4093) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionToho 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 MoneyToho 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. 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
80
Positive
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
85
Very Positive
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
78
Positive
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue35.07B34.80B35.42B34.09B31.29B29.83B
Gross Profit11.03B10.97B11.17B10.12B9.60B9.45B
EBITDA2.86B2.89B3.07B2.38B2.08B1.91B
Net Income1.30B1.29B1.42B988.73M823.62M738.16M
Balance Sheet
Total Assets33.91B33.64B33.66B31.36B30.27B29.53B
Cash, Cash Equivalents and Short-Term Investments8.81B9.50B8.99B8.54B8.33B7.88B
Total Debt3.49B3.84B3.83B3.61B3.60B3.81B
Total Liabilities13.95B13.25B14.18B13.03B12.71B12.61B
Stockholders Equity17.92B18.30B17.50B16.48B15.83B15.24B
Cash Flow
Free Cash Flow0.001.47B1.37B639.73M948.76M623.27M
Operating Cash Flow0.002.23B2.41B1.11B1.78B1.21B
Investing Cash Flow0.00-993.79M-1.46B-443.35M-684.06M-568.92M
Financing Cash Flow0.00-730.63M-492.73M-454.03M-630.46M-509.30M

Toho Acetylene Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price353.00
Price Trends
50DMA
354.38
Negative
100DMA
353.77
Negative
200DMA
349.50
Positive
Market Momentum
MACD
-0.41
Positive
RSI
47.57
Neutral
STOCH
33.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4093, the sentiment is Negative. The current price of 353 is below the 20-day moving average (MA) of 354.15, below the 50-day MA of 354.38, and above the 200-day MA of 349.50, indicating a neutral trend. The MACD of -0.41 indicates Positive momentum. The RSI at 47.57 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4093.

Toho Acetylene Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥19.65B7.23
4.76%8.23%37.45%
77
Outperform
¥57.41B12.00
1.92%6.12%6.26%
76
Outperform
¥7.19B6.10
2.27%4.57%-13.43%
72
Outperform
¥24.41B9.81
0.18%11.95%68.61%
68
Neutral
¥12.30B9.51
5.11%-1.75%-9.10%
62
Neutral
$10.29B9.96-0.15%2.86%2.14%-32.15%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4093
Toho Acetylene Co., Ltd.
352.00
-7.70
-2.14%
JP:4025
Taki Chemical Co., Ltd.
2,831.00
-1,481.24
-34.35%
JP:4040
NANKAI CHEMICAL COMPANY LIMITED
3,085.00
-270.01
-8.05%
JP:4097
Koatsu Gas Kogyo Co., Ltd.
1,040.00
95.81
10.15%
JP:4463
Nicca Chemical Co., Ltd.
1,260.00
282.72
28.93%

Toho Acetylene Co., Ltd. Corporate Events

Toho Acetylene Announces Strategic Measures to Boost Profitability and Market Presence
May 14, 2025

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
May 14, 2025

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
May 14, 2025

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
May 14, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 28, 2025