Taiyo Holdings Co., Ltd. (4626) AI Stock Analysis

• Market Cap: ¥619.65B
• Dividend Yield: 3.26%
• Average Volume (3M): 284.24K
• Price to Earnings (P/E): 39.1
• Beta (1Y): 0.42
• Revenue Growth: 11.78%
• EPS Growth: 8.98%
• Country: JP
• Employees: 2,210
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 99.18
• Shares Outstanding: 116,839,615
• 10 Day Avg. Volume: 318,860
• 30 Day Avg. Volume: 284,240
• PEG Ratio: 1.01
• Price to Book (P/B): 2.61
• Price to Sales (P/S): 2.26
• P/FCF Ratio: 15.46
• 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): 186.4
• Revenue Forecast (FY): ¥135.67B

• Rating: 75 Outperform
• Price Target: ¥6,107.00 ▼(-19.01% Downside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is driven primarily by strong financial performance (growth, healthy margins, and very strong free cash flow generation). Technicals are supportive overall given the stock’s position above key longer-term moving averages, though near-term momentum is mixed. The main constraint is valuation, with a high P/E that reduces the score despite a moderate dividend yield.

Positive Factors

Strong revenue & margins

Consistent double-digit revenue growth with very healthy gross and improving net margins indicates durable product-level profitability and pricing power in specialty electronic materials. This supports sustained earnings resilience through cost cycles and funds operational priorities over months.

Robust free cash flow

Strong cash generation and a large jump in free cash flow enhances financial flexibility for reinvestment, debt management, or dividends. High OCF-to-net-income ratio signals durable cash conversion, supporting strategic initiatives and cushioning against short-term market swings.

Healthy balance sheet

Moderate leverage and a strong equity base provide balance-sheet resilience and room to fund growth or weather downturns without stressing liquidity. An improving ROE signals efficient capital use, supporting sustainable returns and lower refinancing risk over the medium term.

Negative Factors

End-market cyclicality

Business is structurally exposed to electronics and semiconductor cycles; demand swings at PCB makers and chippackaging can materially affect volumes and pricing. That exposure can produce multi-quarter revenue volatility and complicate capacity planning and margins.

Qualification & customer dependence

Sustained sales rely on maintaining customer qualifications and long-term contracts. Lack of disclosed strategic partnerships implies potential client concentration and switching risk; losing qualifications or a key account could cause lasting revenue disruptions.

FCF rise driven by lower capex

Much of the FCF improvement stems from capex cuts rather than purely higher operating cash, which could signal underinvestment. Prolonged lower capex may constrain capacity, product development, or qualification efforts, limiting long-term revenue and competitiveness.

Taiyo Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Taiyo Holdings Co., Ltd., together with its subsidiaries, engages in the electronics materials business worldwide. The company offers printed wiring boards, such as rigid board materials comprising liquid solder resist, legend ink, plating resist, and etching resist; PKG board materials, including liquid and dry film solder resists; flexible printed circuit board materials comprising liquid and dry film solder resists, and dry film photoimageable coverlay; and build-up materials. The company also provides FPD materials; manufactures and sells prescription drugs and pharmaceuticals; manufactures and markets dyes, pigments, and other chemical products; and operates solar power plants. In addition, it engages in the provision of systems engineering services; developments of systems; and food businesses. Further, it offers anisotropic conductive adhesive, photoimageable interlayer insulating materials, stretchable conductive paste, and photo-imageable white dry film solder products. The company was formerly known as Taiyo Ink Mfg. Co., Ltd. and changed its name to Taiyo Holdings Co., Ltd. in October 2010. Taiyo Holdings Co., Ltd. was incorporated in 1953 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Taiyo Holdings generates revenue through the sale of its electronic materials and components, which are essential for the production of semiconductors and PCBs. The company's revenue model is largely based on direct sales to manufacturers in the electronics sector, where it offers a diverse product portfolio tailored to meet specific industry standards and requirements. Key revenue streams include sales of solder masks, conductive inks, and other specialized materials used in electronic manufacturing processes. The company also benefits from strategic partnerships with major electronics manufacturers, which helps to secure long-term contracts and foster innovation in product development. Additionally, Taiyo Holdings invests in research and development to enhance product performance and expand its market reach, further contributing to its earnings.

Taiyo Holdings Co., Ltd. Financial Statement Overview

Summary

Strong fundamentals supported by 13.6% revenue growth (2025 vs 2024), robust gross margin (47.2%), improved net margin (9.1%), and solid EBIT/EBITDA margins (18.5%/21.0%). Cash generation is a key strength with operating cash flow up 11.7% and free cash flow rising sharply to ¥17.4B, while leverage is moderate (debt-to-equity 0.63) with a healthy equity ratio (53.6%).

Income Statement

The company has demonstrated strong revenue growth, evidenced by a 13.6% increase in 2025 compared to 2024. Gross profit margin remains robust at 47.2% for 2025, indicating effective cost management. Net profit margin improved to 9.1%, reflecting enhanced profitability. EBIT and EBITDA margins are solid at 18.5% and 21.0% respectively, showcasing operational efficiency. Continued focus on margin improvement and cost control is evident.

Balance Sheet

The balance sheet shows a stable financial position with a debt-to-equity ratio of 0.63, indicating moderate leverage. Return on Equity (ROE) improved to 10.5%, reflecting efficient use of equity. The equity ratio is healthy at 53.6%, highlighting a strong equity base. The company exhibits a balanced approach to debt and equity management, though maintaining leverage at current levels is crucial for financial stability.

Cash Flow

Operating cash flow increased by 11.7% in 2025, supporting the company's ability to generate cash from operations. Free cash flow exhibited significant growth, rising from ¥2.4 billion in 2024 to ¥17.4 billion in 2025, driven by reduced capital expenditure. The operating cash flow to net income ratio is robust at 2.2, indicating strong cash conversion. The company effectively manages its cash flows, aiding in growth initiatives and financial flexibility.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2021
Income Statement
Total Revenue	121.33B	119.01B	104.78B	97.34B	97.97B	80.99B
Gross Profit	57.23B	56.19B	48.83B	42.79B	42.87B	34.87B
EBITDA	24.86B	24.94B	21.73B	23.75B	25.20B	21.08B
Net Income	10.81B	10.78B	8.65B	11.40B	11.80B	9.53B
Balance Sheet
Total Assets	187.61B	192.02B	212.75B	187.26B	189.27B	179.00B
Cash, Cash Equivalents and Short-Term Investments	36.54B	44.90B	58.58B	47.12B	51.56B	54.70B
Total Debt	62.16B	64.52B	86.72B	71.50B	78.15B	81.22B
Total Liabilities	87.64B	89.04B	112.35B	94.53B	103.81B	102.51B
Stockholders Equity	99.96B	102.97B	100.39B	92.73B	85.46B	76.14B
Cash Flow
Free Cash Flow	0.00	17.40B	2.41B	10.33B	7.96B	5.24B
Operating Cash Flow	0.00	23.71B	21.22B	22.74B	18.31B	16.31B
Investing Cash Flow	0.00	-8.31B	-21.07B	-13.16B	-11.26B	-11.60B
Financing Cash Flow	0.00	-29.22B	8.95B	-13.94B	-11.28B	19.75B

Taiyo Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7540.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4626, the sentiment is Neutral. The current price of 7540 is above the 20-day moving average (MA) of 5523.40, above the 50-day MA of 5128.74, and above the 200-day MA of 4042.30, indicating a neutral trend. The MACD of 144.57 indicates Positive momentum. The RSI at 48.21 is Neutral, neither overbought nor oversold. The STOCH value of 8.62 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4626.

Taiyo Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4626	75 Outperform	¥619.65B	39.14	―	3.26%	11.78%	8.98%
4612	69 Neutral	¥2.72T	15.09	10.44%	1.52%	9.81%	32.64%
4613	68 Neutral	¥466.36B	13.77	13.71%	3.38%	0.29%	27.84%
4631	65 Neutral	¥419.23B	12.96	8.14%	2.61%	-1.45%	―
4182	64 Neutral	¥846.59B	-52.21	-1.15%	3.49%	-6.83%	-123.67%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4183	61 Neutral	¥930.53B	52.39	2.02%	3.82%	-4.63%	-65.11%

Taiyo Holdings Co., Ltd. Corporate Events

Taiyo Holdings Reshapes Management Structure Across Pharma and Digital Units

Taiyo Holdings has announced a set of senior personnel changes across its pharmaceutical and digital operations, resolved at a board meeting on February 4, 2026 and scheduled to take effect on April 1, 2026 following any necessary subsidiary procedures. The reshuffle primarily affects roles at Taiyo Pharma, funlead corp., and Taiyo Pharma Tech, and involves reallocation of responsibilities among senior corporate executive officers, including positions such as Chief Digital Officer and executive oversight of the information systems department, signaling an effort to strengthen management structure and coordination across its pharma and digital businesses within the group.

The most recent analyst rating on (JP:4626) stock is a Buy with a Yen5578.00 price target. To see the full list of analyst forecasts on Taiyo Holdings Co., Ltd. stock, see the JP:4626 Stock Forecast page.

Taiyo Holdings Highlights Diversified Portfolio in Electronics, Healthcare and ICT

In its FY2026/3 third-quarter consolidated financial result digest, Taiyo Holdings Co., Ltd. outlined the structure of its diversified operations across Electronics, Medical and Pharmaceuticals, and ICT and Sustainability, underscoring a portfolio that spans key growth areas such as PCB-related chemicals, pharmaceutical manufacturing and ICT and energy-related businesses. While the release focuses on segment definitions rather than specific figures, it highlights the company’s strategic positioning in both advanced manufacturing and healthcare, suggesting a business model designed to balance cyclical electronics demand with more stable medical and sustainability-driven revenue streams.

The most recent analyst rating on (JP:4626) stock is a Buy with a Yen5578.00 price target. To see the full list of analyst forecasts on Taiyo Holdings Co., Ltd. stock, see the JP:4626 Stock Forecast page.

Taiyo Holdings Lifts Full-Year Earnings Outlook on Strong Semiconductor Materials Demand

Taiyo Holdings has revised upward its full-year consolidated earnings forecast for the fiscal year ending March 31, 2026, after stronger-than-expected third-quarter performance in its Electronics business, particularly driven by robust demand for semiconductor package products and rigid board materials in China. The company now projects net sales of ¥133.0 billion and operating income of ¥29.6 billion, representing increases of 3.3% and 10.0%, respectively, over its previous forecast, with profit attributable to owners of parent raised to ¥20.1 billion and higher earnings per share. Segment data show that the upgrades are concentrated in the Electronics division, while forecasts for the Medical & Pharmaceuticals and ICT & Sustainability businesses, as well as the dividend outlook, remain unchanged, signaling that the current earnings momentum is largely electronics-driven and tied to semiconductor-related demand.

The most recent analyst rating on (JP:4626) stock is a Buy with a Yen5578.00 price target. To see the full list of analyst forecasts on Taiyo Holdings Co., Ltd. stock, see the JP:4626 Stock Forecast page.

Taiyo Holdings Lifts Full-Year Forecast on Strong Nine-Month Earnings and Stock Split

Taiyo Holdings reported strong results for the nine months ended December 31, 2025, with net sales rising 14.4% year on year to ¥103.7 billion and profit attributable to owners of parent up 34.6% to ¥17.4 billion, lifting basic earnings per share to ¥156.93 on a post-split basis. The company’s equity ratio improved to 55.5% and net assets per share increased, underscoring a solid financial position, while the firm implemented a two-for-one stock split effective December 1, 2025 and maintained generous dividend plans, signaling confidence in earnings sustainability. Reflecting this momentum, Taiyo raised its full-year consolidated earnings forecast for the fiscal year ending March 31, 2026, now projecting double-digit growth in sales and operating income and an 86.5% jump in full-year profit attributable to owners of parent to ¥20.1 billion, a move that highlights management’s positive outlook amid resilient demand in its core electronics-related markets.

The most recent analyst rating on (JP:4626) stock is a Buy with a Yen5578.00 price target. To see the full list of analyst forecasts on Taiyo Holdings Co., Ltd. stock, see the JP:4626 Stock Forecast page.

Taiyo Holdings Executive Resigns Over Improper Expense Claims; Governance Measures Tightened

Taiyo Holdings Co., Ltd. has announced the resignation of Managing Executive Officer Naohiro Arata, effective December 19, 2025, after an internal probe with external experts found he had submitted inappropriate entertainment expense claims and received improper reimbursements; Arata has acknowledged the misconduct, fully refunded the amounts, and also stepped down as a director of subsidiary Taiyo Ink Mfg. Co., Ltd. In response, the company has tightened its expense review procedures, committed to further strengthening internal controls, and its president and representative director, Hitoshi Saito, will voluntarily return 10% of his monthly base salary for three months starting December 2025 as a gesture of accountability, signaling an effort to contain governance risks and reassure stakeholders about compliance and oversight standards.

The most recent analyst rating on (JP:4626) stock is a Buy with a Yen9789.00 price target. To see the full list of analyst forecasts on Taiyo Holdings Co., Ltd. stock, see the JP:4626 Stock Forecast page.

Taiyo Holdings Reshapes Executive Lineup and Transfers Global Plants Initiative to Core Subsidiary

Taiyo Holdings announced a series of senior personnel changes, effective December 19, 2025 and January 1, 2026, including adjustments to executive officer roles overseeing production, digital strategy, finance, internal audit, human resources, and compliance across its electronics and pharmaceutical subsidiaries. In parallel, the company will transfer its Global Plants Initiative to Taiyo Ink Mfg. Co., Ltd. from the start of 2026, a move aimed at refining its management structure and consolidating global manufacturing functions under the core ink business, which may streamline governance, clarify accountability across group companies, and support more focused oversight of production and overseas plant management.

The most recent analyst rating on (JP:4626) stock is a Buy with a Yen9789.00 price target. To see the full list of analyst forecasts on Taiyo Holdings Co., Ltd. stock, see the JP:4626 Stock Forecast page.