Toyo Tire Corporation (JP:5105)
:5105
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Toyo Tire
(5105)
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Rating:81Outperform
Price Target:
¥4,345.00
▲(15.50% Upside)
Action:ReiteratedDate: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
De-risked Balance Sheet
Sharply lower leverage and steadily compounding equity materially reduce refinancing and solvency risk. The stronger balance sheet improves financial flexibility to fund capex, sustain dividends, pursue M&A or absorb cyclicality in tire demand over the next several quarters.
Negative Factors
Net Margin Compression
A decline in net margin versus the prior year signals pressure on bottom-line conversion, suggesting rising costs or limited price recovery. If persistent, this erodes ROE and reduces available cash for reinvestment or shareholder returns over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
De-risked Balance Sheet
Sharply lower leverage and steadily compounding equity materially reduce refinancing and solvency risk. The stronger balance sheet improves financial flexibility to fund capex, sustain dividends, pursue M&A or absorb cyclicality in tire demand over the next several quarters.
Read all positive factors
Toyo Tire (5105) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥577.73B
Dividend Yield2.93%
Average Volume (3M)934.31K
Price to Earnings (P/E)10.5
Beta (1Y)1.17
Revenue Growth2.81%
EPS Growth2.78%
CountryJP
Employees10,410
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)68.55
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
¥4,899.52Price Target Upside30.24% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)475.72
Revenue Forecast (FY)¥632.59B
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 includ...
How the Company Makes Money
Toyo Tire primarily makes money by selling tires through a combination of original equipment (OE) supply to vehicle manufacturers and replacement (aftermarket) sales to distributors, dealers, and retailers. Its core revenue stream is the sale of t...
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 | 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 | 130.23B | 132.91B | 129.09B | 107.67B | 70.79B | 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 | 85.56B | 102.05B | 102.71B | 132.33B | 127.78B |
| 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 | 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 Technical Analysis
Negative
3762.00
Price Trends
4246.12
Negative
4258.17
Negative
3891.99
Negative
Market Momentum
-183.00
Negative
41.06
Neutral
70.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5105, the sentiment is Negative. The current price of 3762 is below the 20-day moving average (MA) of 3897.55, below the 50-day MA of 4246.12, and below the 200-day MA of 3891.99, indicating a bearish trend. The MACD of -183.00 indicates Negative momentum. The RSI at 41.06 is Neutral, neither overbought nor oversold. The STOCH value of 70.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5105.
Toyo Tire Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | ¥577.73B | 10.49 | 15.27% | 2.93% | 2.81% | 2.78% | |
73 Outperform | ¥143.29B | 16.04 | ― | 5.78% | -4.26% | 17.85% | |
70 Outperform | ¥549.33B | 12.60 | 4.89% | 2.59% | -0.26% | 129.15% | |
68 Neutral | ¥4.28T | 14.28 | 6.59% | 3.07% | 0.24% | -23.93% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | ¥977.13B | 9.00 | 9.11% | 1.60% | 10.53% | -2.52% | |
60 Neutral | ¥3.70B | 10.35 | ― | 3.03% | 4.17% | -693.96% |
* Consumer Cyclical Sector Average
JP:5105
Toyo Tire
3,753.00
1,065.51
39.65%
JP:5108
Bridgestone
3,326.00
353.74
11.90%
JP:5110
Sumitomo Rubber Industries
2,090.00
212.42
11.31%
JP:5101
Yokohama Rubber Co
6,196.00
2,717.34
78.11%
JP:5161
Nishikawa Rubber Co., Ltd.
3,915.00
1,579.43
67.63%
JP:5162
Asahi Rubber Inc.
816.00
258.86
46.46%
Toyo Tire Corporate Events
Toyo Tire Details Mitsubishi’s 20% Stake and Affirms Management Independence
Mar 27, 2026
Toyo Tire Corporation has disclosed information on its relationship with Mitsubishi Corporation, which holds 20% of Toyo Tire’s voting rights and treats the tire maker as an equity-method affiliate. Under an existing capital and business all...
Toyo Tire to Allocate Treasury Shares as Restricted Stock to Executives
Mar 27, 2026
Toyo Tire Corporation has approved the disposal of 16,804 shares of its treasury stock on April 24, 2026, at 3,762 yen per share, with a total value of 63.2 million yen. The shares will be allocated as restricted stock to 4 internal directors and ...
Toyo Tire to Tie Executive Pay More Closely to Performance With New Share Plan
Mar 4, 2026
Toyo Tire has overhauled its director remuneration system by introducing a new performance-linked, restricted share-based plan for executive directors, aligning their compensation more tightly with the company’s medium-term business plan tar...
Toyo Tire Sets Five-Year Course With New Mid-Term ’26 Plan
Mar 4, 2026
Toyo Tire Corporation has unveiled a new mid-term business plan, dubbed the “Mid-Term ’26 Plan,” which will guide the company’s strategy and operations from fiscal 2026 through fiscal 2030. The plan is intended to shape the...
Toyo Tire Books European Impairment Losses, Cutting FY2025 Non-Consolidated Profit
Feb 13, 2026
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,...
Toyo Tire Lifts Sales and Operating Profit but Bottom Line Slips in FY2025
Feb 13, 2026
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%. T...
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.