Tosnet Corporation (4754) AI Stock Analysis

• Market Cap: ¥7.33B
• Dividend Yield: 2.4%
• Average Volume (3M): 863.00
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.30
• Revenue Growth: 3.00%
• EPS Growth: -13.82%
• Country: JP
• Employees: 880
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): 79.75
• Shares Outstanding: 4,732,600
• 10 Day Avg. Volume: 1,080
• 30 Day Avg. Volume: 863
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ¥1,667.00 ▲(7.27% Upside)

Tosnet Corporation's overall stock score is driven by its stable financial position and attractive valuation. The low P/E ratio and decent dividend yield suggest potential undervaluation. However, declining revenue and profit margins, along with mixed technical indicators, present challenges that could impact future performance. The absence of recent earnings call data and notable corporate events limits further insights.

Positive Factors

Stable Financial Position

The company's strong equity and manageable debt levels indicate financial stability, providing a solid foundation for long-term growth and resilience against economic fluctuations.

Recurring Revenue Model

The subscription-based revenue model ensures a steady income stream, enhancing financial predictability and supporting sustainable growth through consistent cash flow.

Strategic Partnerships

Strategic partnerships expand market reach and enhance product offerings, fostering innovation and competitive advantage in the telecommunications industry.

Negative Factors

Declining Revenue

The decline in revenue indicates potential market challenges or competitive pressures, which could hinder long-term growth and profitability if not addressed.

Decreased Free Cash Flow

Reduced free cash flow limits the company's ability to invest in growth opportunities and manage debt, potentially affecting long-term financial health and strategic initiatives.

Declining Net Profit Margin

A declining net profit margin suggests increased costs or pricing pressures, which could impact the company's ability to sustain profitability and invest in future growth.

Tosnet Corporation Business Overview & Revenue Model

Company Description

TOSNET Corporation, together with its subsidiaries, provides security services in Japan. The company provides static guard services for office buildings, stores, parking lots, banks, warehouses, residences, etc.; security patrol services, including checking and responding to intruders and suspicious objects; access control by checking the identity of each person; crowd control services for festivals, concerts, sporting games, conventions, seminars, parades, expos, shop's openings, etc.; traffic control services for parking lots, construction sites, warehouses, etc.; and retail security services for grocery stores, jewelry shops, department stores, appliance stores, etc. It also supplies and installs CCTV camera, shop security mirror, and electronic article surveillance systems. In addition, the company offers power supply car services for events, concerts, sporting games, blackouts, data centers, and business continuity plans; mailing services, including wrapping, packaging, and label printing services; and building management, equipment maintenance, and cleaning services. It serves customers through its network of 82 branch offices. TOSNET Corporation was founded in 1977 and is headquartered in Sendai, Japan.

How the Company Makes Money

Tosnet Corporation generates revenue through a variety of security-related services. The company's key revenue streams include manned security services, where it provides trained security personnel for the protection of facilities, buildings, and specific locations. Another significant revenue stream is traffic guidance services, where the company manages traffic flows and provides safety measures at construction sites, roadworks, and public events. Additionally, Tosnet offers facility management services, which include the maintenance and management of building operations to ensure a safe and secure environment. The company's revenue is bolstered by long-term contracts with private and public sector clients, and it may also engage in partnerships or collaborations to expand its service offerings and reach.

Tosnet Corporation Financial Statement Overview

Summary

Tosnet Corporation exhibits strong financial health with consistent revenue growth, efficient operations, and a robust balance sheet. The company has a strong equity base and low debt reliance, enhancing its financial stability. However, cash flow stability shows some fluctuations in TTM figures.

Income Statement

Tosnet Corporation has demonstrated consistent revenue growth, with a notable increase in Total Revenue from 2023 to TTM (Trailing-Twelve-Months). The Gross Profit Margin is strong, indicating efficient cost management, while the Net Profit Margin has also shown improvement, reflecting enhanced profitability. EBIT and EBITDA margins are robust, underscoring the company's operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with a healthy Equity Ratio, signifying a solid equity base. The Debt-to-Equity Ratio is low, indicating minimal reliance on debt financing, reducing financial risk. Return on Equity is improving, highlighting effective utilization of equity to generate profits.

Cash Flow

Cash flow metrics show stable Free Cash Flow, although the Free Cash Flow Growth Rate is unavailable. The Operating Cash Flow to Net Income Ratio is positive, indicating good cash generation relative to net income. However, zero values in TTM cash flows suggest potential fluctuations or seasonal variations in cash activities.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	11.96B	11.91B	11.56B	10.94B	10.03B	9.92B
Gross Profit	3.93B	3.81B	3.80B	3.66B	3.41B	3.42B
EBITDA	1.21B	1.37B	1.61B	1.09B	964.05M	1.13B
Net Income	963.07M	757.67M	891.65M	576.81M	498.73M	564.08M
Balance Sheet
Total Assets	10.92B	11.27B	11.19B	10.55B	9.41B	9.02B
Cash, Cash Equivalents and Short-Term Investments	5.56B	6.10B	5.80B	5.42B	4.57B	4.58B
Total Debt	887.92M	922.04M	1.05B	1.34B	1.13B	1.13B
Total Liabilities	2.86B	2.80B	3.26B	3.35B	2.73B	2.71B
Stockholders Equity	8.06B	8.48B	7.93B	7.20B	6.68B	6.31B
Cash Flow
Free Cash Flow	0.00	561.39M	964.67M	925.93M	234.80M	720.37M
Operating Cash Flow	0.00	797.43M	1.06B	1.02B	526.37M	810.32M
Investing Cash Flow	0.00	-86.79M	-273.17M	-233.68M	-329.02M	-80.00M
Financing Cash Flow	0.00	-404.19M	-513.63M	72.84M	-211.76M	-261.98M

Tosnet Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1554.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4754, the sentiment is Positive. The current price of 1554 is above the 20-day moving average (MA) of 1532.90, above the 50-day MA of 1532.48, and above the 200-day MA of 1432.85, indicating a bullish trend. The MACD of 7.01 indicates Negative momentum. The RSI at 55.01 is Neutral, neither overbought nor oversold. The STOCH value of 39.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4754.

Tosnet Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9740	80 Outperform	¥44.06B	14.06	―	1.95%	9.05%	14.38%
9686	77 Outperform	¥16.66B	7.79	―	3.28%	34.15%	324.87%
2331	76 Outperform	¥633.69B	18.94	―	2.14%	7.73%	30.92%
7058	72 Outperform	¥4.34B	19.89	―	3.03%	6.87%	-1.10%
4754	67 Neutral	¥7.33B	9.54	―	2.40%	3.00%	-13.82%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
4264	60 Neutral	¥7.89B	54.09	―	―	5.80%	-43.56%