Toyo Drilube Co., Ltd. (4976) AI Stock Analysis

• Market Cap: ¥5.52B
• Dividend Yield: 2.37%
• Average Volume (3M): 836.00
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.49
• Revenue Growth: 8.90%
• EPS Growth: 5.69%
• Country: JP
• Employees: 509
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 85.69
• Shares Outstanding: 1,355,000
• 10 Day Avg. Volume: 520
• 30 Day Avg. Volume: 836
• PEG Ratio: 0.54
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 1.01
• P/FCF Ratio: 20.14
• 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: 72 Outperform
• Price Target: ¥4,718.00 ▲(16.49% Upside)

Toyo Drilube Co., Ltd. has a strong financial foundation with consistent growth and profitability, contributing significantly to its overall score. The stock's attractive valuation further enhances its appeal. However, technical indicators suggest caution due to bearish momentum, which tempers the overall score.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and demand for Toyo Drilube's products, supporting long-term business sustainability.

Margin Sustainability

High margins reflect effective cost management and pricing power, which are crucial for maintaining profitability and competitive advantage.

Balance Sheet Health

A solid balance sheet with minimal leverage enhances financial stability and provides flexibility for future growth and investment opportunities.

Negative Factors

Cash Flow Management

Inadequate cash flow management can hinder the company's ability to reinvest in growth opportunities and meet financial obligations, affecting long-term performance.

Return on Equity

A relatively low ROE suggests potential inefficiencies in using shareholder equity to generate profits, which could impact investor confidence and capital allocation.

Cash Conversion Efficiency

Lack of clarity on cash conversion efficiency may indicate challenges in turning profits into cash, which is vital for sustaining operations and funding growth.

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

Company Description

Toyo Drilube Co., Ltd. (4976) is a leading manufacturer and supplier of lubricants and related products, primarily serving the drilling and construction sectors. The company specializes in the development of high-performance drilling fluids, lubricants, and other essential products that enhance operational efficiency and safety in various industrial applications. With a commitment to innovation and quality, Toyo Drilube aims to support its clients in achieving optimal performance and sustainability in their operations.

How the Company Makes Money

Toyo Drilube generates revenue primarily through the sale of its specialized lubricants and drilling fluids to companies in the construction and drilling industries. The company has established key revenue streams through direct sales to end-users, as well as partnerships with distributors and resellers who extend its market reach. Additionally, Toyo Drilube may engage in research and development collaborations with industry partners to create customized solutions, further enhancing its product offerings and driving sales. The company's earnings are also supported by its reputation for quality and reliability, which fosters customer loyalty and repeat business.

Toyo Drilube Co., Ltd. Financial Statement Overview

Summary

Toyo Drilube Co., Ltd. exhibits strong financial health with consistent revenue growth and solid profitability margins. The company maintains a conservative balance sheet with low leverage and effective equity utilization. While cash flow metrics show improvement, there is potential for further enhancement in free cash flow generation.

Income Statement

Toyo Drilube Co., Ltd. has demonstrated consistent revenue growth over the years, with a notable increase of 2.91% in the most recent period. The company maintains strong profitability with a gross profit margin of 37.47% and a net profit margin of 13.52%. However, there is a slight decline in EBIT and EBITDA margins compared to previous years, indicating potential cost pressures.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.076, indicating prudent leverage management. The return on equity is stable at 6.77%, showcasing effective use of equity to generate profits. The equity ratio is strong, highlighting a robust capital structure.

Cash Flow

Cash flow analysis reveals a significant improvement in free cash flow, with a growth rate of 'Infinity' due to a previous negative base. The operating cash flow to net income ratio is healthy at 0.67, though slightly lower than past performance. The free cash flow to net income ratio of 0.28 suggests room for improvement in converting profits into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.19B	5.19B	4.70B	3.87B	3.67B	6.38B
Gross Profit	1.95B	1.95B	1.78B	1.37B	1.41B	1.41B
EBITDA	1.15B	1.17B	1.19B	730.19M	965.10M	887.16M
Net Income	702.00M	702.00M	617.00M	332.59M	575.98M	453.00M
Balance Sheet
Total Assets	12.82B	12.82B	12.01B	11.19B	10.63B	9.76B
Cash, Cash Equivalents and Short-Term Investments	4.24B	4.24B	4.61B	4.38B	5.11B	4.91B
Total Debt	787.00M	787.00M	775.50M	845.71M	718.30M	693.50M
Total Liabilities	2.45B	2.45B	2.41B	2.29B	2.13B	1.98B
Stockholders Equity	10.36B	10.36B	9.60B	8.89B	8.50B	7.78B
Cash Flow
Free Cash Flow	0.00	261.00M	517.92M	-585.07M	190.84M	453.12M
Operating Cash Flow	0.00	942.00M	1.40B	399.77M	726.26M	690.77M
Investing Cash Flow	0.00	-2.02B	-1.08B	-1.23B	-517.62M	235.43M
Financing Cash Flow	0.00	-75.00M	-138.68M	-7.74M	-37.39M	-141.20M

Toyo Drilube Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4050.00
• 50DMA: Negative
• 100DMA: Negative
• 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:4976, the sentiment is Negative. The current price of 4050 is below the 20-day moving average (MA) of 4101.75, below the 50-day MA of 4180.10, and above the 200-day MA of 3884.10, indicating a neutral trend. The MACD of -22.22 indicates Negative momentum. The RSI at 40.78 is Neutral, neither overbought nor oversold. The STOCH value of 23.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4976.

Toyo Drilube Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4625	78 Outperform	¥3.61B	12.88	―	2.47%	1.79%	31.63%
4623	72 Outperform	¥6.55B	9.21	―	3.51%	-8.27%	-3.23%
4976	72 Outperform	¥5.52B	7.85	―	2.37%	8.90%	5.69%
4990	68 Neutral	¥5.03B	8.89	―	1.26%	0.80%	63.33%
4624	66 Neutral	¥5.25B	11.57	―	1.39%	2.67%	37.55%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4615	44 Neutral	¥4.32B	-16.66	―	―	8.66%	-239.07%