Toyo Tire (5105) AI Stock Analysis

• Market Cap: $578.81B
• Dividend Yield: 3.46%
• Average Volume (3M): 896.45K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 1.04
• Revenue Growth: 2.57%
• EPS Growth: -22.34%
• Country: JP
• Employees: 10,410
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Auto - Parts
• EPS (TTM): 128.74
• Shares Outstanding: 154,111,020
• 10 Day Avg. Volume: 783,990
• 30 Day Avg. Volume: 896,446
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.78
• Enterprise Value/Revenue: 0.80
• Enterprise Value/Gross Profit: 1.97
• Enterprise Value/Ebitda: 3.42
• 1Y Price Target: $3,375.66
• Price Target Upside: -10.22% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 80 Outperform
• Price Target: ¥3,774.00 ▲(0.37% Upside)

Toyo Tire shows a strong overall stock performance driven primarily by its robust financial performance and attractive valuation. Technical indicators suggest bullish momentum, but caution is advised due to overbought conditions. The absence of new earnings call data or corporate events does not detract from the strong fundamentals and valuation of the company.

Toyo Tire Business Overview & Revenue Model

Company Description

Toyo Tire Corporation, headquartered in Japan, is a prominent player in the tire and rubber industry. The company is engaged in the development, manufacture, and sale of tires primarily for passenger vehicles, trucks, and buses. Toyo Tire is known for its innovation and high-performance tire products, which are distributed globally. Aside from tires, the company is involved in the production of automotive parts and industrial rubber products, catering to a diverse range of sectors.

How the Company Makes Money

Toyo Tire Corporation generates revenue primarily through the sale of its tire products. The company's key revenue streams include sales of passenger vehicle tires, light truck tires, and commercial truck and bus tires. Toyo Tire's products are distributed through a network of dealers, retailers, and wholesalers worldwide. The company also earns income from its automotive parts and industrial rubber product segments, although these contribute a smaller portion to its overall revenue. Strategic partnerships with automotive manufacturers and a strong focus on research and development further bolster Toyo Tire's market presence and profitability.

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
EBITDA	129.09B	127.92B	70.79B	74.55B	38.63B
Net Income	74.81B	72.27B	47.96B	41.35B	11.68B
Balance Sheet
Total Assets	722.67B	645.48B	598.89B	531.23B	445.58B
Cash, Cash Equivalents and Short-Term Investments	86.64B	52.88B	41.60B	55.62B	37.65B
Total Debt	102.05B	82.64B	129.15B	125.67B	108.21B
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: 3760.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 3760 is above the 20-day moving average (MA) of 3488.80, above the 50-day MA of 3226.32, and above the 200-day MA of 2668.60, indicating a bullish trend. The MACD of 161.43 indicates Negative momentum. The RSI at 80.26 is Negative, neither overbought nor oversold. The STOCH value of 88.64 is Negative, 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	80 Outperform	$578.81B	8.75	14.46%	3.46%	2.57%	-22.34%
Sector *	61 Neutral	$17.75B	12.56	-5.49%	3.02%	1.43%	-14.12%
BRDCF	―	$31.93B	23.23	5.62%	4.93%	―	―
SMTUF	―	$3.08B	52.12	-2.19%	5.34%	―	―
YORUF	―	$5.71B	9.10	7.41%	3.90%	―	―

Toyo Tire Corporate Events

Toyo Tire Exceeds Q2 Financial Forecasts and Revises Full-Year Outlook

Toyo Tire Corporation announced a notable improvement in its financial performance for the second quarter of the fiscal year ending December 31, 2025, surpassing previous forecasts. The company attributed this success to lower-than-expected costs for ocean freight and raw materials, as well as strong sales of priority products. Consequently, Toyo Tire has revised its full-year financial forecasts upward and increased its dividend forecasts, reflecting confidence in its ongoing operational strength and market positioning.

Toyo Tire Reports Mixed Financial Results for Q2 FY2025

Toyo Tire Corporation reported a 3.6% increase in net sales for the second quarter of fiscal year 2025, driven by growth in both its Tire and Automotive Parts Business Units. Despite the rise in sales, the company experienced a decrease in ordinary income and profit attributable to owners, reflecting challenges in maintaining profitability. The financial situation showed a decrease in total assets and liabilities, while net assets increased, resulting in a higher capital ratio.