Tokai Carbon Co (5301) AI Stock Analysis

• Market Cap: ¥220.99B
• Dividend Yield: 2.87%
• Average Volume (3M): 1.05M
• Price to Earnings (P/E): 19.5
• Beta (1Y): 0.95
• Revenue Growth: -3.14%
• EPS Growth: -388.89%
• Country: JP
• Employees: 4,625
• Sector: Basic Materials
• Sector Strength: 55
• Industry: Chemicals - Specialty
• EPS (TTM): 14.18
• Shares Outstanding: 225,171,140
• 10 Day Avg. Volume: 985,300
• 30 Day Avg. Volume: 1,051,076
• PEG Ratio: -1.59
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥950.47
• Price Target Upside: -8.21% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 56 Neutral
• Price Target: ―

Tokai Carbon Co's overall stock score reflects significant profitability challenges and a negative P/E ratio, which weigh heavily on the score. However, technical indicators suggest potential bullish momentum, and a stable balance sheet provides some support. The dividend yield offers slight compensation for the risks associated with negative earnings.

Tokai Carbon Co Business Overview & Revenue Model

Company Description

Tokai Carbon Co., Ltd. is a leading Japanese manufacturer in the carbon industry, specializing in the production and sale of carbon-related products. The company's diverse portfolio includes carbon black, graphite electrodes, fine carbon, friction materials, and industrial furnaces. These products serve a wide range of industries such as automotive, electronics, steel manufacturing, and renewable energy. Tokai Carbon is recognized for its commitment to innovation and sustainability, leveraging advanced technologies to meet the evolving needs of its global clientele.

How the Company Makes Money

Tokai Carbon Co., Ltd. generates revenue through the sale of its various carbon-related products across multiple sectors. The primary revenue streams include the production and distribution of carbon black, which is widely used in tire manufacturing and other rubber products; graphite electrodes, essential for electric arc furnace steel production; and fine carbon products used in semiconductors and other high-tech industries. The company also earns through the sale of friction materials for automotive applications and industrial furnaces for diverse industrial processes. Strategic partnerships and a robust distribution network further bolster its revenue, enabling Tokai Carbon to maintain a strong market presence and cater to a global customer base.

Tokai Carbon Co Financial Statement Overview

Summary

Tokai Carbon Co faces significant challenges in profitability, with a steep decline in net income and negative net profit margin. Although the balance sheet remains stable and cash flow indicates operational resilience, increasing debt and declining free cash flow growth are concerns.

Income Statement

The income statement shows a significant decline in revenue from 2023 to 2024, with a steep drop in net income leading to a negative net profit margin for 2024. Gross profit margin also decreased. Despite historical growth, the recent downturn indicates challenges in profitability and revenue growth.

Balance Sheet

The balance sheet reflects a reasonable debt-to-equity ratio and a stable equity base. However, the total debt has increased, impacting the company's leverage. The equity ratio remains healthy, indicating good asset coverage by equity.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth, yet operating cash flow remains relatively strong. The free cash flow to net income ratio is unfavorable due to negative net income, pointing to challenges in converting profits into cash flow.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	350.11B	363.95B	340.37B	258.87B	201.54B
Gross Profit	80.64B	98.73B	94.05B	70.73B	49.55B
EBITDA	-3.95B	80.78B	75.57B	54.52B	35.26B
Net Income	-56.74B	25.47B	22.42B	16.11B	3.83B
Balance Sheet
Total Assets	640.75B	640.00B	576.47B	512.50B	459.71B
Cash, Cash Equivalents and Short-Term Investments	92.21B	77.47B	70.91B	78.86B	67.17B
Total Debt	199.11B	166.64B	171.45B	168.25B	158.64B
Total Liabilities	315.60B	279.90B	275.60B	255.94B	234.89B
Stockholders Equity	289.56B	324.49B	268.82B	229.21B	201.27B
Cash Flow
Free Cash Flow	9.36B	12.46B	-4.01B	8.54B	27.79B
Operating Cash Flow	64.47B	62.07B	41.20B	38.07B	55.02B
Investing Cash Flow	-70.78B	-47.63B	-49.90B	-35.28B	-44.30B
Financing Cash Flow	9.41B	-14.51B	-10.63B	1.21B	927.00M

Tokai Carbon Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1035.50
• 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:5301, the sentiment is Positive. The current price of 1035.5 is above the 20-day moving average (MA) of 1023.31, above the 50-day MA of 1003.32, and above the 200-day MA of 915.58, indicating a bullish trend. The MACD of 11.73 indicates Positive momentum. The RSI at 56.28 is Neutral, neither overbought nor oversold. The STOCH value of 49.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5301.

Tokai Carbon Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4182	77 Outperform	¥507.88B	11.44	6.78%	3.66%	-4.90%	20.59%
5304	73 Outperform	¥43.37B	7.36		4.71%	-16.43%	-20.57%
4205	71 Outperform	$314.34B	12.58	7.18%	4.35%	5.34%	-19.93%
5302	69 Neutral	¥45.17B	11.95	7.31%	4.83%	-2.94%	-11.43%
5301	56 Neutral	¥220.99B	19.46	-17.71%	2.87%	-3.14%	-388.89%
4208	54 Neutral	$226.31B	11.14	-1.23%	4.76%	3.96%	-116.62%
Sector *	44 Neutral	AU$1.45B	-6.08	-41.46%	4.25%	-2.94%	-41.86%

Tokai Carbon Co Corporate Events

Tokai Carbon Announces Key Management Changes

Tokai Carbon Co., Ltd. has announced a series of management changes, effective July 21, 2025, involving key positions within the company. These changes include new appointments and role adjustments for several executives, which are expected to enhance the company’s strategic restructuring efforts and operational efficiency.

The most recent analyst rating on (JP:5301) stock is a Hold with a Yen950.00 price target. To see the full list of analyst forecasts on Tokai Carbon Co stock, see the JP:5301 Stock Forecast page.

Tokai Carbon Expands Global Reach with Strategic Acquisition

Tokai Carbon Co., Ltd. announced the acquisition of Bridgestone Carbon Black (Thailand) Co., Ltd., a move aligned with its Vision 2030 strategy to enhance its global carbon black business. This acquisition, in collaboration with its subsidiary Thai Tokai Carbon Product Co., Ltd., is expected to strengthen Tokai Carbon’s partnership with Bridgestone, improve supply stability, and boost competitiveness in the carbon black market.

The most recent analyst rating on (JP:5301) stock is a Hold with a Yen950.00 price target. To see the full list of analyst forecasts on Tokai Carbon Co stock, see the JP:5301 Stock Forecast page.

Tokai Carbon Completes Subsidiary Share Transfer

Tokai Carbon Co., Ltd. has completed the transfer of its shares in the subsidiary TOKAI ERFTCARBON GmbH to Lenbach Equity Opportunities III. GmbH & Co. KG. This move, effective from the second quarter of the fiscal year ending December 2025, will see TEG removed from Tokai Carbon’s consolidated accounts, with minimal impact expected on the company’s fiscal performance.

The most recent analyst rating on (JP:5301) stock is a Hold with a Yen950.00 price target. To see the full list of analyst forecasts on Tokai Carbon Co stock, see the JP:5301 Stock Forecast page.

Tokai Carbon Announces Corrections to Subsidiary Transfer Disclosure

Tokai Carbon Co., Ltd. announced corrections to a previous disclosure regarding the transfer of a consolidated subsidiary. The corrected financial figures for the subsidiary show consistent declines in net assets, total assets, and net sales over the past three fiscal years, with significant negative EBIT and net income reported for 2023 and 2024. These corrections may impact the company’s financial outlook and stakeholder confidence.

The most recent analyst rating on (JP:5301) stock is a Hold with a Yen950.00 price target. To see the full list of analyst forecasts on Tokai Carbon Co stock, see the JP:5301 Stock Forecast page.

Tokai Carbon Transfers Subsidiary to Align with Vision 2030

Tokai Carbon Co., Ltd. has decided to transfer all shares of its subsidiary, TOKAI ERFTCARBON GmbH, to LEO III. Fund, advised by DUBAG Investment Advisory GmbH. This decision aligns with Tokai Carbon’s Vision 2030 strategy to optimize resource allocation and address challenges in the European graphite electrode market, where demand has been sluggish due to price competition and low capacity utilization.

The most recent analyst rating on (JP:5301) stock is a Hold with a Yen950.00 price target. To see the full list of analyst forecasts on Tokai Carbon Co stock, see the JP:5301 Stock Forecast page.

Tokai Carbon Co. Reports Q1 2025 Financial Results with Increased Profitability

Tokai Carbon Co., Ltd. reported its consolidated financial results for the first quarter of the fiscal year ending December 31, 2025, showing a decrease in net sales by 2.2% compared to the previous year. However, the company experienced significant growth in operating income and net income attributable to owners, with increases of 104.5% and 85.9% respectively. Despite the decline in net sales, the substantial rise in profitability indicators suggests improved operational efficiency and cost management, which could positively impact the company’s market positioning and stakeholder confidence.

The most recent analyst rating on (JP:5301) stock is a Hold with a Yen950.00 price target. To see the full list of analyst forecasts on Tokai Carbon Co stock, see the JP:5301 Stock Forecast page.