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

• Market Cap: ¥16.25B
• Dividend Yield: 3.89%
• Average Volume (3M): 33.26K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.52
• Revenue Growth: -3.00%
• EPS Growth: -29.83%
• Country: JP
• Employees: 764
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 11.23
• 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: 79 Outperform
• Price Target: ¥533.00 ▲(48.06% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is driven primarily by strong financial fundamentals—especially a robust, low-leverage balance sheet and solid cash generation—offset by some recent profitability margin pressure. Technicals show a clear uptrend, but overbought momentum signals raise near-term risk. Valuation remains supportive with a reasonable P/E and a ~3% dividend yield.

Positive Factors

Strong balance sheet

Low leverage, a healthy equity ratio and steadily falling net debt give Toho Acetylene durable financial resilience. This balance-sheet strength supports operations through cyclical weakness, preserves access to credit for capex or working capital, and underpins long-term strategic optionality such as selective M&A or sustained shareholder distributions.

Operating cash flow generation

Consistently strong operating cash flows provide internal funding for maintenance capex, cylinder and distribution assets, and working capital. Reliable cash generation lowers refinancing risk, sustains operations during profit volatility, and gives management flexibility to reinvest in service infrastructure and customer fulfillment over the medium term.

Recurring industrial-gas revenue model

A business model built on consumable gas sales, recurring supply contracts and logistics/service fees creates a high-repeat revenue base. Industrial customers' steady consumption patterns and contract renewals drive predictable demand and cash flow, supporting long-term revenue stability and high customer retention despite cyclical end-market moves.

Negative Factors

Profit margin pressure

Reported declines in net profit and EBIT margins indicate profitability compression that can persist if input costs, pricing power, or mix issues remain. Sustained margin erosion would reduce cash conversion, constrain reinvestment and dividends, and weaken returns on capital, making long-term growth harder without margin recovery or cost restructuring.

Recent revenue and EPS contraction

Small declines in revenue and EPS point to emerging demand or pricing headwinds. If these trends persist they can erode scale economics, weaken pricing leverage with industrial customers, and signal deeper end-market softness for manufacturing and construction users—pressuring future profitability and investment capacity.

Slight free cash flow decline

A recent dip in free cash flow, even modest, reduces near-term financial flexibility for capex, cylinder fleet renewal, or balance-sheet repair. Continued FCF erosion would force reliance on external financing for growth projects or distributions and could gradually erode the advantage of the company's otherwise strong balance sheet.

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

Income statement performance is strong (80) with consistent growth, though the latest year shows margin pressure. Balance sheet strength stands out (85) with a solid equity base, low leverage, and declining net debt. Cash flow is healthy (78) with strong operating cash generation despite a slight recent dip in free cash flow.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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 396.15, below the 50-day MA of 377.68, and above the 200-day MA of 356.80, indicating a bullish trend. The MACD of 18.53 indicates Negative momentum. The RSI at 78.71 is Negative, neither overbought nor oversold. The STOCH value of 87.71 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
4093	79 Outperform	¥16.25B	12.89	―	3.89%	-3.00%	-29.83%
4097	79 Outperform	¥62.93B	14.82	―	2.88%	3.42%	13.37%
5013	78 Outperform	¥43.82B	8.53	―	3.53%	-3.45%	30.52%
4041	74 Outperform	¥233.68B	15.32	―	4.09%	1.69%	0.94%
4091	69 Neutral	¥2.59T	22.67	―	1.11%	2.35%	0.43%
4463	66 Neutral	¥28.20B	11.91	―	3.53%	6.99%	-0.30%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Toho Acetylene Co., Ltd. Corporate Events

Toho Acetylene Posts Slight Profit Decline but Maintains Stable Outlook

Toho Acetylene reported consolidated net sales of ¥25.0 billion for the nine months ended December 31, 2025, a slight 0.8% decline year on year, with operating profit down 4.8% to ¥1.23 billion and profit attributable to owners of parent down 3.8% to ¥830 million.

Despite the modest profit decline, the company’s financial position strengthened marginally, with total assets rising to ¥33.9 billion and the equity ratio improving to 55.1%, while it kept its full-year forecast largely flat, projecting only slight sales growth and lower profits, and maintained its dividend outlook, signaling stable but subdued earnings momentum for stakeholders.

The most recent analyst rating on (JP:4093) stock is a Buy with a Yen388.00 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 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.