Tosnet Corporation (4754) AI Stock Analysis

• Market Cap: ¥7.27B
• Dividend Yield: 2.4%
• Average Volume (3M): 863.00
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.31
• Revenue Growth: 3.00%
• EPS Growth: -13.82%
• Country: JP
• Employees: 880
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): -2.23
• Shares Outstanding: 4,732,600
• 10 Day Avg. Volume: 1,080
• 30 Day Avg. Volume: 863
• PEG Ratio: -0.66
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.58
• P/FCF Ratio: 12.36
• 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: 67 Neutral
• Price Target: ¥1,667.00 ▲(7.20% Upside)
• Action: Downgraded Date: 12/11/25
• Date: Action: Downgraded 12/11/25

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 demonstrates a stable financial position with strong equity and manageable debt levels. However, declining revenue and profit margins pose challenges that need addressing to ensure sustainable growth. The company should focus on improving cash flow conversion and enhancing operational efficiency to bolster its financial health.

Income Statement

Tosnet Corporation's income statement shows a mixed performance. The gross profit margin is healthy, indicating efficient cost management. However, the net profit margin has declined, reflecting challenges in maintaining profitability. Revenue growth has been negative recently, which is a concern for future earnings potential. EBIT and EBITDA margins are stable, but there's room for improvement to enhance operational efficiency.

Balance Sheet

The balance sheet of Tosnet Corporation is relatively strong, with a low debt-to-equity ratio indicating conservative leverage. The return on equity is moderate, suggesting decent profitability relative to shareholder investment. The equity ratio is solid, showcasing a strong capital structure with a significant portion of assets financed by equity.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth, which could impact future investments and debt servicing. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to reported earnings. However, the free cash flow to net income ratio has decreased, suggesting potential challenges in converting profits into cash.

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

Tosnet Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1555.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4754, the sentiment is Negative. The current price of 1555 is below the 20-day moving average (MA) of 1620.15, below the 50-day MA of 1614.08, and above the 200-day MA of 1491.14, indicating a neutral trend. The MACD of -7.65 indicates Positive momentum. The RSI at 28.82 is Positive, neither overbought nor oversold. The STOCH value of 2.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥44.79B	14.19	―	1.95%	9.05%	14.38%
9735	73 Outperform	¥2.68T	23.15	8.35%	1.77%	5.39%	4.89%
4754	67 Neutral	¥7.27B	13.88	―	2.40%	3.00%	-13.82%
4264	65 Neutral	¥10.68B	53.30	―	―	5.80%	-43.56%
2331	64 Neutral	¥652.54B	18.50	―	2.14%	7.73%	30.92%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7058	62 Neutral	¥4.56B	17.67	―	3.03%	6.87%	-1.10%