Toyo Tire (5105) AI Stock Analysis

• Market Cap: $667.33B
• Dividend Yield: 3%
• Average Volume (3M): 914.50K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 1.06
• Revenue Growth: 2.81%
• EPS Growth: 2.78%
• Country: JP
• Employees: 10,410
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 128.10
• Shares Outstanding: 154,111,020
• 10 Day Avg. Volume: 738,480
• 30 Day Avg. Volume: 914,500
• PEG Ratio: 1.44
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.67
• P/FCF Ratio: 7.78
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 1.05
• Enterprise Value/Gross Profit: 2.60
• Enterprise Value/Ebitda: 4.84
• 1Y Price Target: $5,205.61
• Price Target Upside: 20.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 81 Outperform
• Price Target: ¥4,818.00 ▲(11.14% Upside)

Toyo Tire's overall stock score is driven by strong financial performance and positive technical indicators. The company's valuation is attractive with a low P/E ratio and a solid dividend yield. The lack of earnings call data and corporate events does not detract from the positive outlook based on available data.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective sales strategies, supporting long-term business sustainability.

Margin Sustainability

High profit margins reflect efficient cost management and pricing power, contributing to sustained profitability and competitive advantage.

Balance Sheet Health

A stable debt-to-equity ratio suggests prudent financial management, providing flexibility for future investments and growth opportunities.

Negative Factors

Decline in Free Cash Flow

Decreasing free cash flow growth can limit the company's ability to invest in new projects and return capital to shareholders, impacting long-term growth.

Earnings Per Share Decline

A decline in EPS growth may indicate challenges in maintaining profitability, potentially affecting investor confidence and future earnings potential.

Cash Management

Inefficient cash management could hinder the company's ability to fund operations and strategic initiatives, affecting long-term financial health.

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

Toyo Tire displays strong financial performance with robust revenue and earnings growth, effective leverage management, and a solid equity base. The income statement is particularly strong with high profit margins, while the balance sheet reflects stability. However, the cash flow score is lower due to a decline in free cash flow growth, indicating room for improvement in cash management.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	575.27B	565.36B	552.83B	497.21B	393.65B	343.76B
Gross Profit	231.00B	230.76B	216.51B	197.98B	161.04B	123.24B
EBITDA	124.22B	138.18B	127.92B	94.65B	74.55B	38.63B
Net Income	66.14B	74.81B	72.27B	47.96B	41.35B	11.68B
Balance Sheet
Total Assets	707.04B	722.67B	645.48B	598.89B	531.23B	445.58B
Cash, Cash Equivalents and Short-Term Investments	93.37B	86.64B	52.88B	41.60B	55.62B	37.65B
Total Debt	76.72B	102.05B	97.87B	129.15B	125.67B	108.21B
Total Liabilities	229.18B	250.11B	250.28B	277.97B	251.07B	222.88B
Stockholders Equity	477.86B	472.55B	395.20B	320.68B	279.95B	220.78B
Cash Flow
Free Cash Flow	0.00	48.40B	55.80B	-31.22B	-4.26B	29.88B
Operating Cash Flow	0.00	67.06B	86.50B	15.17B	34.47B	53.80B
Investing Cash Flow	0.00	-15.21B	-14.66B	-16.71B	-37.54B	-27.86B
Financing Cash Flow	0.00	-23.08B	-62.89B	-16.23B	11.70B	-12.64B

Toyo Tire Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4335.00
• 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 Positive. The current price of 4335 is above the 20-day moving average (MA) of 4253.55, above the 50-day MA of 4195.78, and above the 200-day MA of 3321.04, indicating a bullish trend. The MACD of 34.12 indicates Negative momentum. The RSI at 55.63 is Neutral, neither overbought nor oversold. The STOCH value of 72.40 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
5105	81 Outperform	$667.33B	9.19	15.27%	3.00%	2.81%	2.78%
5101	76 Outperform	$880.78B	13.90	9.11%	1.54%	10.53%	-2.52%
5108	73 Outperform	$4.60T	23.34	6.59%	3.01%	0.24%	-23.93%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
5110	59 Neutral	$482.57B	-33.33	4.89%	2.62%	-0.26%	129.15%

Toyo Tire Corporate Events

Toyo Tire Reports Q3 2025 Financial Performance with Mixed Results

Toyo Tire Corporation reported its consolidated business performance for the third quarter of fiscal year 2025, showing a 3.5% increase in net sales to 435,289 million yen. Despite the rise in sales, the company experienced a decline in operating and ordinary income by 5.5% and 9.1%, respectively. The Tire Business Unit saw a slight increase in net sales but a decrease in operating income, while the Automotive Parts Business Unit experienced growth in both net sales and operating income. The company’s total assets decreased, but liabilities were reduced significantly, leading to an increase in net assets and a higher capital ratio.