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Toyo Tire Corporation (JP:5105)
:5105
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Toyo Tire (5105) AI Stock Analysis

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JP:5105

Toyo Tire

(5105)

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Outperform 81 (OpenAI - 5.2)
Rating:81Outperform
Price Target:
¥4,510.00
▲(13.40% Upside)
Action:Reiterated
Date: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
Revenue Growth
Multi-year top-line expansion to ~595B demonstrates durable demand and expanding market reach across replacement and OE channels. Re-acceleration in 2025 indicates regained volume or mix strength, supporting scale economies, reinvestment capacity and long-term competitive positioning.
Negative Factors
Net Margin Compression
Declining net margin from prior peaks signals rising cost pressure or weaker mix at the bottom line. If sustained, margin erosion would reduce free cash flow conversion and limit capacity to fund dividends, capex, or strategic initiatives without rebuilding pricing or cost discipline.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Multi-year top-line expansion to ~595B demonstrates durable demand and expanding market reach across replacement and OE channels. Re-acceleration in 2025 indicates regained volume or mix strength, supporting scale economies, reinvestment capacity and long-term competitive positioning.
Read all positive factors

Toyo Tire (5105) vs. iShares MSCI Japan ETF (EWJ)

Toyo Tire Business Overview & Revenue Model

Company Description
Operating globally and within Japan, Toyo Tire Corporation specializes in the manufacturing and distribution of tires. Their extensive product line includes tires for passenger vehicles, SUVs, pickup trucks, and commercial trucks and buses, market...
How the Company Makes Money
Toyo Tire makes money primarily by selling tires under the TOYO TIRES and NITTO brands through domestic (Japan) and international distribution channels. Its core revenue stream is the sale of replacement (aftermarket) tires to consumers via dealer...

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
82
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
74
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue575.27B594.92B565.36B552.83B497.21B393.65B
Gross Profit231.00B234.81B230.76B216.51B197.98B161.04B
EBITDA124.22B125.80B138.18B127.92B94.65B80.29B
Net Income66.14B63.61B74.81B72.27B47.96B41.35B
Balance Sheet
Total Assets707.04B753.25B722.67B645.48B598.89B531.23B
Cash, Cash Equivalents and Short-Term Investments93.37B117.26B86.64B52.88B41.60B55.62B
Total Debt76.72B85.56B102.05B102.71B132.33B127.78B
Total Liabilities229.18B230.58B250.11B250.28B277.97B251.07B
Stockholders Equity477.86B522.66B472.55B395.20B320.68B279.95B
Cash Flow
Free Cash Flow0.0069.39B48.40B63.84B-27.86B-1.85B
Operating Cash Flow0.0093.06B67.06B86.50B15.17B34.47B
Investing Cash Flow0.00-23.08B-15.21B-14.66B-16.71B-37.54B
Financing Cash Flow0.00-43.83B-23.08B-62.89B-16.23B11.70B

Toyo Tire Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3977.00
Price Trends
50DMA
3717.78
Positive
100DMA
3846.96
Positive
200DMA
3985.98
Negative
Market Momentum
MACD
60.96
Negative
RSI
58.04
Neutral
STOCH
70.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5105, the sentiment is Positive. The current price of 3977 is above the 20-day moving average (MA) of 3808.31, above the 50-day MA of 3717.78, and below the 200-day MA of 3985.98, indicating a neutral trend. The MACD of 60.96 indicates Negative momentum. The RSI at 58.04 is Neutral, neither overbought nor oversold. The STOCH value of 70.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5105.

Toyo Tire Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥600.36B9.1715.27%2.93%2.97%0.49%
73
Outperform
¥4.51T13.586.59%3.07%1.37%32.33%
71
Outperform
¥576.53B10.514.89%2.59%1.09%
70
Outperform
¥1.18T10.689.11%1.60%13.08%78.00%
69
Neutral
¥112.73B10.615.78%1.24%188.67%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
55
Neutral
¥3.69B22.703.03%2.78%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5105
Toyo Tire
3,905.00
901.52
30.02%
JP:5108
Bridgestone
3,569.00
642.45
21.95%
JP:5110
Sumitomo Rubber Industries
2,214.00
597.50
36.96%
JP:5101
Yokohama Rubber Co
7,564.00
3,469.08
84.72%
JP:5161
Nishikawa Rubber Co., Ltd.
3,115.00
613.96
24.55%
JP:5162
Asahi Rubber Inc.
796.00
197.07
32.90%

Toyo Tire Corporate Events

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.Date of analysis: Feb 18, 2026