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

• Market Cap: ¥12.27B
• Dividend Yield: 4.02%
• Average Volume (3M): 30.81K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.51
• 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: 36,850
• 30 Day Avg. Volume: 30,810
• PEG Ratio: -10.42
• Price to Book (P/B): 0.67
• 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: ¥389.00
• Price Target Upside: 11.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥397.00 ▲(14.08%Upside)

Toho Acetylene Co., Ltd. scores well due to its strong financial performance and attractive valuation, signaling stability and potential undervaluation. However, technical indicators show potential downward pressure, reflecting recent market sentiment.

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

Company Description

Toho Acetylene Co., Ltd. (4093) is a Japanese company primarily engaged in the production and sale of industrial gases, welding materials, and related equipment. The company operates in the chemical sector, focusing on the provision of acetylene and other gas products essential for various industrial applications, including welding, cutting, and chemical processing. With a commitment to innovation and quality, Toho Acetylene serves a diverse range of industries, ensuring reliable supply and technical support for its clients.

How the Company Makes Money

Toho Acetylene Co., Ltd. generates revenue through the production and sale of industrial gases, with acetylene being a core product. The company's primary revenue streams include the sale of gases to industrial clients for use in welding and cutting applications, as well as the provision of related equipment and materials. Strategic partnerships with other industrial firms and a strong distribution network contribute to its earnings by expanding market reach and ensuring consistent supply. Additionally, the company may engage in research and development to create new products or improve existing offerings, thereby enhancing its competitive advantage and attracting a broader customer base.

Toho Acetylene Co., Ltd. Financial Statement Overview

Summary

Toho Acetylene Co., Ltd. demonstrates strong financial performance with consistent growth in revenues and profits, a solid balance sheet with low leverage risk, and effective cash generation capabilities. However, recent pressures on profitability margins slightly temper the score.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	34.80B	35.42B	34.09B	31.29B	29.83B
Gross Profit	10.97B	11.17B	10.12B	9.60B	9.45B
EBITDA	2.89B	3.07B	2.38B	2.08B	1.91B
Net Income	1.29B	1.42B	988.73M	823.62M	738.16M
Balance Sheet
Total Assets	33.64B	33.66B	31.36B	30.27B	29.53B
Cash, Cash Equivalents and Short-Term Investments	9.50B	8.99B	8.54B	8.33B	7.88B
Total Debt	3.84B	3.83B	3.61B	3.60B	3.81B
Total Liabilities	13.25B	14.18B	13.03B	12.71B	12.61B
Stockholders Equity	18.30B	17.50B	16.48B	15.83B	15.24B
Cash Flow
Free Cash Flow	1.47B	1.37B	639.73M	948.76M	623.27M
Operating Cash Flow	2.23B	2.41B	1.11B	1.78B	1.21B
Investing Cash Flow	-993.79M	-1.46B	-443.35M	-684.06M	-568.92M
Financing Cash Flow	-730.63M	-492.73M	-454.03M	-630.46M	-509.30M

Toho Acetylene Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 348.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 348 is below the 20-day moving average (MA) of 351.70, below the 50-day MA of 351.08, and below the 200-day MA of 350.87, indicating a bearish trend. The MACD of -0.95 indicates Positive momentum. The RSI at 41.93 is Neutral, neither overbought nor oversold. The STOCH value of 52.38 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4463	78 Outperform	¥20.35B	7.49		4.39%	8.23%	37.45%
4097	77 Outperform	¥58.02B	12.12		1.85%	6.12%	6.26%
4040	76 Outperform	¥7.48B	6.35		1.71%	4.57%	-13.43%
4093	75 Outperform	¥12.27B	9.48		4.02%	-1.75%	-9.10%
4025	72 Outperform	¥24.90B	10.01		0.17%	11.95%	68.61%
Sector *	44 Neutral	C$980.54M	-6.83	-13.68%	1.75%	17.37%	-32.98%

Toho Acetylene Co., Ltd. Corporate Events

Toho Acetylene Announces Treasury Shares Disposal to Boost Leadership Alignment

Toho Acetylene Co., Ltd. has announced the disposal of 19,000 treasury shares under its restricted stock compensation plan, aiming to align the interests of its directors and senior executives with those of its shareholders. This move is expected to enhance the commitment of the company’s leadership to increase corporate value and share price, impacting its market positioning and stakeholder confidence.

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.