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

• Market Cap: ¥540.16B
• Dividend Yield: 3.36%
• Average Volume (3M): 284.24K
• Price to Earnings (P/E): 41.3
• Beta (1Y): 0.48
• Revenue Growth: 11.78%
• EPS Growth: 8.98%
• Country: JP
• Employees: 2,210
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 67.46
• 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): 179.75
• Revenue Forecast (FY): ¥131.00B

• Rating: 73 Outperform
• Price Target: ¥9,789.00 ▲(29.83% Upside)

The overall stock score is driven primarily by strong financial performance and positive technical indicators. The stock's valuation is a concern due to a high P/E ratio, but the dividend yield offers some compensation. The absence of earnings call data and corporate events did not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling investment in growth initiatives and reducing reliance on external financing.

Profitability

Improved profitability margins reflect efficient operations and cost management, contributing to sustainable long-term earnings growth.

Negative Factors

Leverage Concerns

Moderate leverage requires careful management to prevent financial strain, especially if revenue growth slows or interest rates rise.

Valuation Concerns

High valuation may limit upside potential and increase vulnerability to market corrections, impacting investor sentiment.

Industry Competition

Intense competition in the electronics materials industry could pressure margins and require continuous innovation to maintain market position.

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

Company Description

Taiyo Holdings Co., Ltd. (4626) is a Japan-based company primarily engaged in the manufacture and sale of electronic materials and components. The company operates in various sectors, including semiconductor materials, printed circuit board (PCB) materials, and other electronic components. Taiyo Holdings provides a range of products such as solder masks, conductive inks, and photoresists, catering to the needs of the electronics industry, particularly in the areas of automotive, telecommunications, and consumer electronics.

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

Taiyo Holdings Co., Ltd. shows strong financial performance with robust revenue and profit growth, effective cost management, and solid cash flow generation. The company maintains a moderate leverage, which is crucial for financial stability.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Neutral

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 4825.15, above the 50-day MA of 4384.99, and above the 200-day MA of 3337.17, indicating a neutral trend. The MACD of 133.21 indicates Positive momentum. The RSI at 49.25 is Neutral, neither overbought nor oversold. The STOCH value of 35.91 is Neutral, 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
4205	79 Outperform	¥352.66B	9.79	9.65%	3.97%	0.87%	16.71%
4118	74 Outperform	$275.72B	10.45	5.47%	3.44%	2.60%	9.50%
4626	73 Outperform	¥540.16B	41.35	―	3.36%	11.78%	8.98%
4631	71 Outperform	¥358.18B	11.05	8.14%	2.64%	-1.45%	―
4203	71 Outperform	¥456.93B	23.30	6.52%	1.80%	3.25%	-11.31%
4613	68 Neutral	¥413.97B	11.19	13.71%	3.38%	0.29%	27.84%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Taiyo Holdings Co., Ltd. Corporate Events

Taiyo Holdings Releases 2030 Committee Final Report

Taiyo Holdings Co., Ltd. has released the final report from its 2030 Committee, which includes evaluations and recommendations aimed at enhancing corporate value. The report endorses the company’s ambitious Medium-term Management Plan, which targets a 30% ROE by FY2031/3, and suggests that achieving these targets will lead to sustainable growth and profitability. The company is also considering its capital policy options, including the possibility of going private, with a decision expected by the end of the fiscal year ending March 31, 2026.

Taiyo Holdings Announces Stock Split and Dividend Revisions

Taiyo Holdings Co., Ltd. has announced a two-for-one stock split to make its shares more accessible to investors and expand its retail investor base. The company will amend its Articles of Incorporation to increase the total number of authorized shares and has revised its dividend forecasts to reflect the stock split, though the practical dividend per share remains unchanged.

Taiyo Holdings Co., Ltd. Reports Q2 FY2026 Financial Results

Taiyo Holdings Co., Ltd. has released its consolidated financial results for the second quarter of the fiscal year ending March 31, 2026. The announcement highlights the company’s diverse business segments, including ICT, fine chemicals, energy, and food, which are crucial for its market positioning. The release underscores the company’s strategic focus on sustainability and innovation in its core sectors, which may influence its competitive stance and stakeholder interests.

Taiyo Holdings Boosts Interim Dividend Amid Earnings Growth

Taiyo Holdings Co., Ltd. has announced an increase in its interim dividend to 165 yen per share, up from the previously forecasted 145 yen, reflecting an upward revision in its consolidated earnings forecast for the six months ended September 30, 2025. This decision aligns with the company’s commitment to a 100% consolidated total payout ratio, maintaining shareholder returns while considering potential revisions to its full-year earnings forecast.

Taiyo Holdings Revises Earnings Forecast and Announces Stock Split

Taiyo Holdings has revised its full-year earnings forecast for the fiscal year ending March 31, 2026, following stronger-than-expected performance in its Electronics business, particularly in semiconductor package products and rigid board materials for China. The revised forecast reflects increased net sales and profits, driven by gains from the sale of a CVC fund and the liquidation of Onstatic Ink (Shenzhen) Co., Ltd. Additionally, the company announced a stock split, effective December 1, 2025, to enhance share liquidity.

Taiyo Holdings Reports Strong H1 Results and Announces Stock Split

Taiyo Holdings reported strong financial results for the first half of the fiscal year ending March 31, 2026, with significant increases in net sales, operating income, and profit attributable to owners of the parent compared to the previous year. The company also announced a stock split effective December 1, 2025, which will impact dividend calculations and earnings per share, reflecting a strategic move to enhance shareholder value.