Toyo Gosei Co., Ltd. (4970) AI Stock Analysis

• Market Cap: ¥51.83B
• Dividend Yield: 0.69%
• Average Volume (3M): 57.46K
• Price to Earnings (P/E): 20.6
• Beta (1Y): 1.20
• Revenue Growth: 14.95%
• EPS Growth: -10.67%
• Country: JP
• Employees: 503
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 25.39
• Shares Outstanding: 8,143,390
• 10 Day Avg. Volume: 36,350
• 30 Day Avg. Volume: 57,456
• PEG Ratio: 0.35
• Price to Book (P/B): 1.70
• Price to Sales (P/S): 1.09
• P/FCF Ratio: -10.22
• 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: ¥6,002.50
• Price Target Upside: -10.68% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 68 Neutral
• Price Target: ¥5,505.00 ▼(-18.08% Downside)

Toyo Gosei Co., Ltd. demonstrates strong financial performance with robust revenue growth and profitability. Technical indicators show positive momentum, supporting the stock's current valuation. However, cash flow challenges and increasing debt levels are areas of concern that need addressing.

Toyo Gosei Co., Ltd. Business Overview & Revenue Model

Company Description

Toyo Gosei Co., Ltd. (4970) is a prominent Japanese company specializing in the manufacture of high-performance plastic products and synthetic resins. Operating primarily in the fields of automotive, electronics, and industrial materials, the company focuses on developing innovative solutions that meet the evolving needs of its diverse client base. Toyo Gosei is known for its commitment to quality and sustainability, offering products that enhance the performance and functionality of various applications.

How the Company Makes Money

Toyo Gosei generates revenue through the production and sale of specialized plastic materials and synthetic resins, which are essential components in a variety of industries, including automotive and electronics. The company's revenue model is primarily driven by direct sales to manufacturers and distributors, with a focus on long-term contracts and partnerships that ensure a stable demand for its products. Key revenue streams include the development of custom formulations tailored to specific customer needs and the provision of technical support services. Additionally, Toyo Gosei benefits from strategic partnerships with major players in the automotive and electronics sectors, allowing for collaborative projects that enhance innovation and expand market reach, thus contributing significantly to its earnings.

Toyo Gosei Co., Ltd. Financial Statement Overview

Summary

Toyo Gosei Co., Ltd. shows strong revenue and profit growth with a solid equity position. However, challenges exist with cash flow management and increasing debt levels, necessitating focus on optimizing capital expenditures and improving free cash flow.

Income Statement

Toyo Gosei Co., Ltd. exhibits strong revenue growth, with a significant increase from ¥31.96 billion in 2024 to ¥38.67 billion in 2025. The gross profit margin improved from 23.78% to 23.44%, indicating efficient cost management. The net profit margin also rose from 7.49% to 8.48%, showcasing enhanced profitability. However, the EBIT margin decreased slightly from 11.00% to 10.61%, which could indicate some operational cost pressures.

Balance Sheet

The balance sheet reflects a stable financial structure, with a debt-to-equity ratio of 1.15 in 2025, which is manageable but slightly elevated compared to industry norms. The equity ratio improved to 37.72%, indicating a solid equity base. Return on equity improved to 13.20%, reflecting efficient use of shareholder funds. However, the increase in total debt from ¥23.01 billion to ¥28.55 billion warrants monitoring.

Cash Flow

The company faces challenges with cash flow, as evidenced by the negative free cash flow in 2025 of ¥-4.12 billion due to high capital expenditures. The operating cash flow to net income ratio was strong at 2.07, suggesting good quality of earnings. However, the free cash flow to net income ratio was negative, indicating potential cash constraints that need to be addressed.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	31.50B	38.66B	31.96B	34.16B	33.14B	27.16B
Gross Profit	7.77B	9.06B	7.60B	9.03B	8.39B	6.21B
EBITDA	6.59B	7.79B	6.29B	7.83B	7.32B	5.28B
Net Income	2.81B	3.28B	2.40B	3.83B	3.46B	2.35B
Balance Sheet
Total Assets	56.83B	65.86B	59.52B	51.11B	46.89B	43.52B
Cash, Cash Equivalents and Short-Term Investments	3.52B	3.60B	3.65B	3.25B	3.68B	3.79B
Total Debt	21.18B	28.55B	23.02B	18.52B	18.55B	20.55B
Total Liabilities	35.74B	41.03B	37.70B	31.46B	30.82B	30.73B
Stockholders Equity	21.10B	24.83B	21.82B	19.64B	16.06B	12.79B
Cash Flow
Free Cash Flow	5.77B	-4.12B	-3.02B	-29.69M	2.39B	-1.27B
Operating Cash Flow	5.77B	6.79B	4.57B	3.66B	5.81B	4.42B
Investing Cash Flow	0.00	-11.97B	-7.59B	-3.27B	-3.42B	-5.69B
Financing Cash Flow	0.00	5.19B	3.60B	-406.16M	-2.56B	1.47B

Toyo Gosei Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6720.00
• 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:4970, the sentiment is Positive. The current price of 6720 is above the 20-day moving average (MA) of 6635.44, above the 50-day MA of 5808.19, and above the 200-day MA of 5222.99, indicating a bullish trend. The MACD of 258.62 indicates Positive momentum. The RSI at 58.33 is Neutral, neither overbought nor oversold. The STOCH value of 45.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4970.

Toyo Gosei Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4463	78 Outperform	¥23.36B	9.25	―	3.85%	6.41%	-3.59%
4025	77 Outperform	¥32.75B	11.94	―	0.13%	9.61%	53.78%
4097	74 Outperform	¥56.20B	12.28	―	2.93%	5.20%	-1.83%
5013	72 Outperform	¥29.17B	5.86	―	4.53%	3.47%	33.32%
4970	68 Neutral	¥51.83B	20.63	―	0.69%	14.95%	-10.67%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4249	49 Neutral	¥33.96B	94.32	―	4.54%	-3.77%	-315.45%