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Toyo Gosei Co., Ltd. (JP:4970)
:4970
Japanese Market
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Toyo Gosei Co., Ltd. (4970) AI Stock Analysis

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JP:4970

Toyo Gosei Co., Ltd.

(4970)

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Neutral 68 (OpenAI - 4o)
Rating:68Neutral
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. (4970) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionToyo 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 MoneyToyo 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
75
Positive
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
72
Positive
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
65
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue31.50B38.66B31.96B34.16B33.14B27.16B
Gross Profit7.77B9.06B7.60B9.03B8.39B6.21B
EBITDA6.59B7.79B6.29B7.83B7.32B5.28B
Net Income2.81B3.28B2.40B3.83B3.46B2.35B
Balance Sheet
Total Assets56.83B65.86B59.52B51.11B46.89B43.52B
Cash, Cash Equivalents and Short-Term Investments3.52B3.60B3.65B3.25B3.68B3.79B
Total Debt21.18B28.55B23.02B18.52B18.55B20.55B
Total Liabilities35.74B41.03B37.70B31.46B30.82B30.73B
Stockholders Equity21.10B24.83B21.82B19.64B16.06B12.79B
Cash Flow
Free Cash Flow5.77B-4.12B-3.02B-29.69M2.39B-1.27B
Operating Cash Flow5.77B6.79B4.57B3.66B5.81B4.42B
Investing Cash Flow0.00-11.97B-7.59B-3.27B-3.42B-5.69B
Financing Cash Flow0.005.19B3.60B-406.16M-2.56B1.47B

Toyo Gosei Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6720.00
Price Trends
50DMA
5808.19
Positive
100DMA
5272.25
Positive
200DMA
5222.99
Positive
Market Momentum
MACD
258.62
Positive
RSI
58.33
Neutral
STOCH
45.79
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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥23.36B9.253.85%6.41%-3.59%
77
Outperform
¥32.75B11.940.13%9.61%53.78%
74
Outperform
¥56.20B12.282.93%5.20%-1.83%
72
Outperform
¥29.17B5.864.53%3.47%33.32%
68
Neutral
¥51.83B20.630.69%14.95%-10.67%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
49
Neutral
¥33.96B94.324.54%-3.77%-315.45%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4970
Toyo Gosei Co., Ltd.
6,720.00
-357.38
-5.05%
JP:4025
Taki Chemical Co., Ltd.
3,785.00
211.16
5.91%
JP:4097
Koatsu Gas Kogyo Co., Ltd.
1,023.00
166.75
19.47%
JP:4249
Moriroku Holdings Co., Ltd.
2,437.00
292.63
13.65%
JP:4463
Nicca Chemical Co., Ltd.
1,482.00
322.61
27.83%
JP:5013
Yushiro Chemical Industry Co., Ltd.
2,165.00
679.31
45.72%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025