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Toyo Tire
(5105)
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Rating:82Outperform
Price Target:
¥4,178.00
▲(4.69% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by strong financial performance (healthy margins, meaningful revenue growth, and a sharply improved leverage profile) and supportive valuation (low P/E with a ~3.15% yield). Technicals add a positive backdrop with price above major moving averages and positive MACD, though momentum readings are moderate. Key risks are the 2025 net profitability step-down versus 2024 and historically lumpy cash conversion.
Positive Factors
Revenue and margin strength
Sustained multi-year revenue growth and industry-leading gross and operating margins indicate a durable ability to capture value across product segments. Strong margins provide structural capacity to fund R&D, capex, and payout while cushioning commodity cost swings over the medium term.
Negative Factors
Net profitability compression
A rollback in net margin and absolute net income signals structural pressure on bottom-line returns, which can erode ROE and free cash over time. If sustained, this weakens reinvestment capacity and challenges maintaining prior return levels without pricing or cost restructuring.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and margin strength
Sustained multi-year revenue growth and industry-leading gross and operating margins indicate a durable ability to capture value across product segments. Strong margins provide structural capacity to fund R&D, capex, and payout while cushioning commodity cost swings over the medium term.
Read all positive factors
Toyo Tire (5105) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥581.89B
Dividend Yield3.59%
Average Volume (3M)934.31K
Price to Earnings (P/E)9.8
Beta (1Y)1.10
Revenue Growth3.55%
EPS Growth-9.71%
CountryJP
Employees9,941
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)425.89
Shares Outstanding154,111,020
10 Day Avg. Volume721,340
30 Day Avg. Volume934,310
Financial Highlights & Ratios
PEG Ratio-0.70
Price to Book (P/B)1.28
Price to Sales (P/S)1.12
P/FCF Ratio9.62
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥4,482.50Price Target Upside12.32% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)445.6
Revenue Forecast (FY)¥628.38B
Toyo Tire Business Overview & Revenue Model
Company Description
Toyo Tire Corporation (5105) is a Japan-based manufacturer in the tire and rubber products sector. The company develops, manufactures, and sells tires for passenger cars, SUVs, light trucks, and other vehicles, and also provides related automotive...
How the Company Makes Money
Toyo Tire makes money mainly by manufacturing and selling tires across multiple vehicle segments and geographies. Its primary revenue stream is tire sales, including (1) replacement tires sold to consumers and fleets via distributors/retailers and...
Toyo Tire Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 590.36B | 594.92B | 565.36B | 552.83B | 497.21B | 393.65B |
| Gross Profit | 235.36B | 234.81B | 230.76B | 216.51B | 197.98B | 161.04B |
| EBITDA | 128.82B | 125.80B | 138.18B | 127.92B | 94.65B | 80.29B |
| Net Income | 65.58B | 63.61B | 74.81B | 72.27B | 47.96B | 41.35B |
Balance Sheet | ||||||
| Total Assets | 735.03B | 753.25B | 722.67B | 645.48B | 598.89B | 531.23B |
| Cash, Cash Equivalents and Short-Term Investments | 104.94B | 117.26B | 86.64B | 52.88B | 41.60B | 55.62B |
| Total Debt | 62.10B | 85.56B | 102.05B | 102.71B | 132.33B | 127.78B |
| Total Liabilities | 202.25B | 230.58B | 250.11B | 250.28B | 277.97B | 251.07B |
| Stockholders Equity | 532.77B | 522.66B | 472.55B | 395.20B | 320.68B | 279.95B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 69.39B | 48.40B | 63.84B | -27.86B | -1.85B |
| Operating Cash Flow | 0.00 | 93.06B | 67.06B | 86.50B | 15.17B | 34.47B |
| Investing Cash Flow | 0.00 | -23.08B | -15.21B | -14.66B | -16.71B | -37.54B |
| Financing Cash Flow | 0.00 | -43.83B | -23.08B | -62.89B | -16.23B | 11.70B |
Toyo Tire Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | ¥581.89B | 9.82 | 12.94% | 3.38% | 3.55% | -9.71% | |
75 Outperform | ¥5.45T | 12.92 | 9.60% | 3.16% | 6.06% | 120.85% | |
72 Outperform | ¥633.83B | 10.24 | 8.07% | 3.93% | 4.82% | ― | |
70 Outperform | ¥1.18T | 11.06 | 11.53% | 1.96% | 12.75% | 124.90% | |
69 Neutral | ¥129.75B | 11.29 | ― | 5.78% | 3.24% | 236.26% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | ¥3.64B | 28.10 | ― | 3.03% | 2.35% | ― |
* Consumer Cyclical Sector Average
JP:5105
Toyo Tire
3,764.00
315.42
9.15%
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Toyo Tire Corporate Events
Toyo Tire Ends Mitsubishi Alliance as Trading House Exits Major Shareholder Role
Aug 10, 2026
Toyo Tire Corporation has moved to reshape its shareholder structure by buying back treasury shares through an off-auction repurchase, leading Mitsubishi Corporation to tender virtually all of its common stock holdings. As a result, Mitsubishi has...
Toyo Tire Completes ¥111 Billion Share Buyback and Plans Major Share Cancellation
Aug 10, 2026
Toyo Tire Corporation has completed a major share repurchase, acquiring 30,822,200 common shares, equivalent to about 20.01% of its issued shares excluding treasury stock, for a total of ¥111.0 billion through the Tokyo Stock Exchange’s...
Toyo Tire Ends Mitsubishi Alliance After Achieving Growth Goals
Aug 7, 2026
Toyo Tire Corporation will terminate its capital and business alliance with Mitsubishi Corporation following a planned acquisition of its own shares, which will reduce Mitsubishi’s ownership stake below the agreed threshold. The alliance, fo...
Toyo Tire Launches Major Share Buyback That May Reshape Shareholder Base
Aug 7, 2026
Toyo Tire Corporation has approved a large-scale share buyback, resolving to acquire up to 32 million of its common shares, or about 20.78% of its outstanding stock excluding treasury shares, through an off-auction own share repurchase (ToSTNeT-3)...
Toyo Tire Launches Large-Scale Share Buyback and Cancellation to Lift Capital Efficiency
Aug 7, 2026
Toyo Tire Corporation’s board has approved a major share buyback and subsequent cancellation as part of its Mid-Term ’26 Plan to boost capital efficiency and shareholder value. The company will repurchase up to 32 million common shares...
Toyo Tire Q2 Profit Beats Forecast Despite Lower Sales on Weaker Yen
Aug 7, 2026
Toyo Tire has reported consolidated results for the cumulative second quarter of the fiscal year ending December 31, 2026 that differ from its earlier forecast. Net sales and operating income came in below projections, with net sales at ¥284....
Toyo Tire Posts Q2 Profit Decline Amid Slight Sales Growth but Strengthens Balance Sheet
Aug 7, 2026
Toyo Tire reported second-quarter fiscal 2026 consolidated net sales of 284.19 billion yen, up 0.3% year on year, but saw operating income fall 22.2% to 37.5 billion yen and profit attributable to owners of parent decline 11.7% to 29.44 billion ye...
Toyo Tire Delivers Higher Profit on Lower Sales in Q1 FY2026
May 15, 2026
Toyo Tire reported first-quarter fiscal 2026 consolidated net sales of 130.95 billion yen, down 3.4% year on year, as lower revenue in both tire and automotive parts weighed on top-line performance. Despite the sales decline and an 8.1% drop in op...
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.