Toyo Tire (5105) AI Stock Analysis

• Market Cap: $456.89B
• Dividend Yield: 4.72%
• Average Volume (3M): 1.16M
• Price to Earnings (P/E): 7.0
• Beta (1Y): 0.99
• Revenue Growth: 4.01%
• EPS Growth: -22.73%
• Country: JP
• Employees: 10,410
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Auto - Parts
• EPS (TTM): 87.71
• Shares Outstanding: 154,111,020
• 10 Day Avg. Volume: 674,570
• 30 Day Avg. Volume: 1,162,843
• PEG Ratio: 0.30
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.38
• 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: $3,009.74
• Price Target Upside: 2.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 81 Outperform
• Price Target: ¥3,499.00 ▲(18.63%Upside)

Toyo Tire's strong financial performance and attractive valuation are the primary drivers of its high score. The stock's positive technical indicators also contribute, although caution is warranted due to overbought signals. The lack of earnings call and corporate event data did not affect the overall assessment.

Toyo Tire Business Overview & Revenue Model

Company Description

Toyo Tire Corporation, listed on the Tokyo Stock Exchange under the ticker symbol 5105, is a Japanese company engaged primarily in the manufacturing and marketing of tires. Established in 1945, the company operates in the automotive sector, producing a range of high-performance tires for passenger vehicles, commercial trucks, and off-road vehicles. Toyo Tire is known for its innovation in tire technology and its commitment to delivering products that enhance safety, performance, and environmental sustainability.

How the Company Makes Money

Toyo Tire makes money primarily through the sale of its tire products. The company's revenue streams include sales of consumer tires for passenger vehicles, which are distributed through various retail and wholesale channels globally. Additionally, Toyo Tire generates significant revenue from its commercial tire segment, which provides tires for trucks, buses, and industrial vehicles, servicing both original equipment manufacturers (OEMs) and the replacement market. The company also benefits from strategic partnerships and collaborations with automotive manufacturers, enhancing its market reach and product offerings. Factors such as advancements in tire technology, a strong brand reputation, and a global distribution network contribute to the company's earnings.

Toyo Tire Financial Statement Overview

Summary

Toyo Tire exhibits strong financial performance with robust revenue and earnings growth, efficient leverage management, and a solid equity base. Despite a decrease in free cash flow, the overall financial health is supported by stable income and balance sheet metrics.

Income Statement

Toyo Tire has demonstrated strong revenue growth over the years, with a notable increase of 2.27% from 2023 to 2024. The company maintains a solid gross profit margin of 40.81% and a net profit margin of 13.23% for 2024. EBIT and EBITDA margins are robust, showcasing efficient operational management. The upward trajectory in revenue and profits indicates a healthy financial position.

Balance Sheet

The debt-to-equity ratio is stable at 0.18, indicating a well-balanced leverage strategy. The return on equity (ROE) for 2024 is a strong 15.83%, reflecting effective use of shareholder funds. The equity ratio stands at 65.38%, highlighting a strong capital structure with significant equity backing. Overall, Toyo Tire's balance sheet shows stability and prudent financial management.

Cash Flow

Toyo Tire's free cash flow has decreased from 2023 to 2024, but it remains positive, indicating healthy cash generation. The operating cash flow to net income ratio is 0.90, showcasing effective cash earnings conversion. However, the decline in free cash flow growth rate suggests potential areas for improvement in cash management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
565.36B	552.83B	497.21B	393.65B	343.76B
	Gross Profit
230.76B	216.51B	197.98B	161.04B	123.24B
	EBIT
93.98B	76.90B	44.05B	53.08B	36.33B
	EBITDA
129.09B	127.92B	70.79B	74.55B	38.63B
	Net Income Common Stockholders
74.81B	72.27B	47.96B	41.35B	11.68B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
86.64B	52.88B	41.60B	55.62B	37.65B
	Total Assets
722.67B	645.48B	598.89B	531.23B	445.58B
	Total Debt
102.05B	82.64B	129.15B	125.67B	108.21B
	Net Debt
15.42B	29.77B	87.55B	70.06B	70.56B
	Total Liabilities
250.11B	250.28B	277.97B	251.07B	222.88B
	Stockholders Equity
472.55B	395.20B	320.68B	279.95B	220.78B
Cash Flow		Free Cash Flow
48.40B	55.80B	-31.22B	-4.26B	29.88B
	Operating Cash Flow
67.06B	86.50B	15.17B	34.47B	53.80B
	Investing Cash Flow
-15.21B	-14.66B	-16.71B	-37.54B	-27.86B
	Financing Cash Flow
-23.08B	-62.89B	-16.23B	11.70B	-12.64B

Toyo Tire Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2949.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 2949.5 is below the 20-day moving average (MA) of 2963.68, above the 50-day MA of 2767.37, and above the 200-day MA of 2438.00, indicating a neutral trend. The MACD of 52.03 indicates Positive momentum. The RSI at 55.31 is Neutral, neither overbought nor oversold. The STOCH value of 23.81 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5101	82 Outperform	$545.14B	8.71	7.48%	3.00%	8.13%	-17.49%
5105	81 Outperform	$456.89B	7.00	14.57%	4.72%	4.01%	-22.73%
5108	73 Outperform	$4.23T	15.12	7.60%	3.47%	2.07%	-15.58%
Sector *	62 Neutral	$6.76B	11.07	2.80%	6.34%	2.68%	-24.87%
5110	52 Neutral	$427.76B	50.94	-1.90%	3.56%	1.37%	-119.72%

Toyo Tire Corporate Events

Toyo Tire Reports Mixed Financial Results for Q1 FY2025

Toyo Tire Corporation reported a 6.2% increase in net sales for the first quarter of fiscal year 2025, reaching 135,510 million yen. Despite the rise in sales, the company experienced a decline in operating income by 13.7% and a significant drop in ordinary income by 42.7% compared to the same period in FY2024. The Tire Business Unit saw a 6.2% increase in net sales, while the Automotive Parts Business Unit achieved a 6.9% increase in net sales and a notable 62.0% rise in operating income. The company’s total assets and liabilities decreased, but the capital ratio improved to 68.2%, indicating a stronger financial position.

The most recent analyst rating on (JP:5105) stock is a Buy with a Yen2750.00 price target. To see the full list of analyst forecasts on Toyo Tire stock, see the JP:5105 Stock Forecast page.

Toyo Tire Strengthens Alliance with Mitsubishi Corporation

Toyo Tire Corporation has announced its relationship with Mitsubishi Corporation, which holds 20% of Toyo Tire’s voting rights, positioning Toyo as an equity-method affiliate. The companies have a capital and business alliance to strengthen sales, technology, and resources, aiming to maximize synergies. Despite this relationship, Toyo Tire maintains its independence, with business activities and management decisions made internally.

Toyo Tire Announces Treasury Stock Disposal for Restricted Stock Compensation

Toyo Tire Corporation announced the disposal of treasury stock as part of its Restricted Stock Compensation Plan, aimed at aligning the interests of directors and corporate officers with shareholders. This move involves the issuance of 22,465 shares to eligible directors and officers, enhancing their motivation and commitment to the company’s long-term success.