Toyo Tire (5105) AI Stock Analysis

• Market Cap: ¥702.42B
• Dividend Yield: 2.93%
• Average Volume (3M): 934.31K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 1.02
• Revenue Growth: 2.81%
• EPS Growth: 2.78%
• Country: JP
• Employees: 10,410
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 68.55
• Shares Outstanding: 154,111,020
• 10 Day Avg. Volume: 721,340
• 30 Day Avg. Volume: 934,310
• PEG Ratio: -0.70
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 1.12
• P/FCF Ratio: 9.62
• 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: ¥5,400.00
• Price Target Upside: 16.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 492.24
• Revenue Forecast (FY): ¥628.56B

• Rating: 81 Outperform
• Price Target: ¥5,162.00 ▲(11.08% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

Overall score is driven by strong financial performance led by a de-risking balance sheet and healthy operating margins, complemented by an attractive valuation (low P/E and ~2.9% yield). Technicals are supportive with price above key moving averages and positive MACD, though momentum indicators are closer to neutral than strongly bullish.

Positive Factors

Multi-year revenue growth

Sustained revenue expansion and a re-acceleration in 2025 indicate expanding market share and successful geographic/product penetration. Durable top-line growth supports scale economies, funds R&D and capex, and reduces unit cost sensitivity across cycles, strengthening long-term competitiveness.

Sustained strong operating margins

High and stable gross and operating margins reflect favorable product mix (performance/specialty tires) and manufacturing efficiency. Margin strength underpins free cash flow and reinvestment capacity, enabling the company to fund innovation and absorb cyclical pressure without immediate erosion of core profitability.

De-risked balance sheet and low leverage

Material reduction in leverage increases financial flexibility, lowers refinancing risk, and preserves capacity for strategic investments, dividends, or bolt-on M&A. A stronger balance sheet also provides resilience in downturns and supports consistent capital allocation over multi-year horizons.

Negative Factors

Net profit and margin compression

Declining net margin and lower net income despite higher revenue signal pressure below the operating line—possible pricing, mix, tax, or non-operating headwinds. If sustained, reduced net returns constrain retained earnings, limit ROE recovery, and may pressure long-term capital returns or investment plans.

Volatile cash conversion and working-capital swings

Intermittent disconnects between earnings and operating cash flow point to working-capital or investment timing risk. Persistent volatility complicates forecasting and could force short-term financing needs during downturns, reducing the practical benefit of low leverage and constraining discretionary spending.

Exposure to input-cost volatility

Significant reliance on commodity inputs makes margins vulnerable to raw-material and energy cycles. Long-term protection depends on successful pass-through, hedging, or procurement advantages; failure to manage these structurally can compress margins and profit stability across multi-month commodity swings.

Toyo Tire Business Overview & Revenue Model

Company Description

Toyo Tire Corporation manufactures and sells tires in Japan and internationally. The company provides tires for passenger vehicles, SUVs and pickup trucks, and trucks and buses under the Toyo Tires and Nitto. It also offers automotive parts including engine and motor mounts, suspension parts, and Constant velocity universal joint (CVJ) boots. The company was formerly known as Toyo Tire & Rubber Co., Ltd. and changed its name to Toyo Tire Corporation in January 2019. Toyo Tire Corporation was incorporated in 1943 and is headquartered in Itami, Japan.

How the Company Makes Money

Toyo Tire generates revenue primarily through the sale of its tire products across various segments, including passenger vehicles, light trucks, and commercial trucks. The company operates a diversified revenue model that includes direct sales to retailers, partnerships with automotive manufacturers, and distribution through a network of dealers. Key revenue streams come from both domestic and international markets, with a significant focus on North America and Asia. Additionally, Toyo Tire invests in research and development to create high-performance and environmentally friendly products, which enhances its market competitiveness. Strategic partnerships with automotive companies for original equipment manufacturing (OEM) also contribute to its earnings, as these arrangements can lead to stable and recurring revenue from tire supply contracts.

Toyo Tire Financial Statement Overview

Summary

Strong multi-year revenue expansion and solid operating profitability (2025 gross margin ~39.5%, EBIT margin ~16.4%). Balance sheet is a key strength with meaningfully lower leverage (debt-to-equity ~0.19 in 2025). Offsets include softer 2025 net profitability versus 2024 (net margin down to ~10.7%) and historically volatile cash conversion despite improved 2025 free cash flow (~69.4B).

Income Statement

Revenue has expanded strongly since 2020 (from ~343.8B to ~594.9B in 2025), with growth re-accelerating in 2025 after a near-flat 2024. Profitability is solid for the industry: 2025 gross margin ~39.5% and operating profitability remains healthy (EBIT margin ~16.4%, EBITDA margin ~22.3%). The main weakness is earnings softness in 2025 versus 2024 (net income down and net margin compressing from ~13.2% to ~10.7%), suggesting some cost or pricing pressure despite higher sales.

Balance Sheet

Leverage appears conservative and improving: debt-to-equity has fallen meaningfully from ~0.49 (2020) to ~0.19 (2025), while equity has compounded steadily (to ~522.7B in 2025). This balance sheet trajectory increases flexibility through cycles and reduces refinancing risk. A watch item is that profitability on equity has come off prior peaks (ROE was stronger in 2023–2024 than in earlier years), so maintaining returns while scaling is key.

Cash Flow

Cash generation has improved materially versus the weak 2021–2022 period (2022 had negative free cash flow), with 2025 delivering strong operating cash flow (~93.1B) and free cash flow (~69.4B). Free cash flow is broadly supported by earnings (about ~0.75x net income in 2025), indicating decent earnings quality. The weakness is volatility: operating cash flow has not consistently tracked profits well (coverage has ranged from very low in 2022 to better levels in 2023–2025), implying working-capital or investment swings that could reappear in a downturn.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	575.27B	594.92B	565.36B	552.83B	497.21B	393.65B
Gross Profit	231.00B	234.81B	230.76B	216.51B	197.98B	161.04B
EBITDA	124.22B	132.91B	138.18B	127.92B	94.65B	74.55B
Net Income	66.14B	63.61B	74.81B	72.27B	47.96B	41.35B
Balance Sheet
Total Assets	707.04B	753.25B	722.67B	645.48B	598.89B	531.23B
Cash, Cash Equivalents and Short-Term Investments	93.37B	117.26B	86.64B	52.88B	41.60B	55.62B
Total Debt	76.72B	101.37B	102.05B	97.87B	129.15B	125.67B
Total Liabilities	229.18B	230.58B	250.11B	250.28B	277.97B	251.07B
Stockholders Equity	477.86B	522.66B	472.55B	395.20B	320.68B	279.95B
Cash Flow
Free Cash Flow	0.00	69.39B	48.40B	55.80B	-31.22B	-4.26B
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 Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4647.00
• 50DMA: Positive
• 100DMA: Positive
• 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:5105, the sentiment is Neutral. The current price of 4647 is above the 20-day moving average (MA) of 4604.40, above the 50-day MA of 4447.42, and above the 200-day MA of 3800.27, indicating a neutral trend. The MACD of 97.56 indicates Negative momentum. The RSI at 49.52 is Neutral, neither overbought nor oversold. The STOCH value of 62.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5105.

Toyo Tire Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5105	81 Outperform	¥702.42B	11.68	15.27%	2.93%	2.81%	2.78%
5161	73 Outperform	¥161.78B	23.86	―	5.78%	-4.26%	17.85%
5108	72 Outperform	$4.76T	15.43	6.59%	3.07%	0.24%	-23.93%
5110	70 Outperform	¥676.54B	14.52	4.89%	2.59%	-0.26%	129.15%
5101	69 Neutral	$1.18T	11.79	9.11%	1.60%	10.53%	-2.52%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
5162	58 Neutral	¥3.61B	-143.17	―	3.03%	4.17%	-693.96%

Toyo Tire Corporate Events

Toyo Tire Books European Impairment Losses, Cutting FY2025 Non-Consolidated Profit

Toyo Tire Corporation has booked extraordinary losses for the fiscal year ended December 31, 2025 after recognizing impairment losses of 13.5 billion yen on non-current assets at its Serbian subsidiary under IFRS. In its non-consolidated accounts, it also recorded a 13.437 billion yen loss on valuation of investments in its European holding company, though this write-down is neutralized at the consolidated level.

Despite higher net sales and operating income, Toyo Tire’s non-consolidated profit attributable to owners of parent dropped 36.2% year on year to 41.6 billion yen, with earnings per share sliding to 270.41 yen. The company attributed the decline in bottom-line profit mainly to the extraordinary losses, highlighting how asset impairments in Europe are weighing on its standalone results even as core operations show modest growth.

The most recent analyst rating on (JP:5105) stock is a Buy with a Yen5200.00 price target. To see the full list of analyst forecasts on Toyo Tire stock, see the JP:5105 Stock Forecast page.

Toyo Tire Lifts Sales and Operating Profit but Bottom Line Slips in FY2025

Toyo Tire reported consolidated net sales of ¥594.9 billion for fiscal 2025, up 5.2% year on year, with operating income rising 3.6% to ¥97.4 billion, though ordinary income dipped slightly and profit attributable to owners fell 15.0%. The Tire Business Unit drove most of the growth with higher sales and operating income, while the Automotive Parts Business Unit saw modest sales gains but lower profit.

The company’s financial position strengthened as total assets rose to ¥753.2 billion, liabilities and interest-bearing debt declined, and net assets increased, lifting the capital ratio to 69.4%. This combination of revenue growth, solid core tire earnings, and a deleveraged balance sheet suggests improved financial resilience despite the decline in bottom-line profit, with implications for shareholders and creditors watching profitability and capital structure.

The most recent analyst rating on (JP:5105) stock is a Buy with a Yen5200.00 price target. To see the full list of analyst forecasts on Toyo Tire stock, see the JP:5105 Stock Forecast page.