Toyo Tanso Co., Ltd. (5310) AI Stock Analysis

• Market Cap: ¥133.39B
• Dividend Yield: 2.5%
• Average Volume (3M): 165.19K
• Price to Earnings (P/E): 24.4
• Beta (1Y): 1.19
• Revenue Growth: -8.00%
• EPS Growth: -17.82%
• Country: JP
• Employees: 1,785
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 44.52
• Shares Outstanding: 20,992,588
• 10 Day Avg. Volume: 236,600
• 30 Day Avg. Volume: 165,186
• PEG Ratio: -0.41
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 2.19
• P/FCF Ratio: -17.52
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 290.93
• Revenue Forecast (FY): ¥49.69B

• Rating: 78 Outperform
• Price Target: ¥7,250.00 ▲(50.41% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by strong financial durability from an exceptionally conservative balance sheet, partially offset by 2025’s revenue/profit reset and negative free cash flow. Technicals are supportive with a clear multi-timeframe uptrend and positive momentum. Valuation is reasonable with a moderate dividend yield but not especially compelling given the near-term cash-flow and margin pressure.

Positive Factors

Conservative balance sheet

Very low leverage and equity large relative to assets provide durable financial flexibility. This strength supports capital spending, R&D, and withstands cyclical slumps without needing external financing, preserving strategic optionality over the next several quarters.

Specialized product mix & customer base

High-tech, specialized carbon products for semiconductors and aerospace create structural barriers to entry and support long-term customer relationships. Technical know-how and bespoke solutions enable premium pricing and recurring contracts, underpinning steady demand across 2–6 months.

Underlying margin resilience

Even after 2025 compression, healthy gross and EBITDA margins indicate strong underlying cost structure and pricing power. These margins provide a buffer against cyclical pressures and support operational profitability continuity over the medium term.

Negative Factors

2025 revenue and profit reset

A material decline in revenue and a sharp net margin contraction in 2025 signal structural demand, pricing, or mix challenges. If this reset persists, it will restrain earnings power, limit reinvestment capacity and could force longer-term cost or strategy adjustments.

Negative free cash flow in 2025

Free cash flow flipping negative increases funding risk despite low leverage; it suggests heavier capex or working-capital strain. Over several quarters this raises cash volatility, can constrain organic growth funding, and may pressure dividend or buyback flexibility.

Weak revenue & EPS trends

Large negative revenue and EPS growth metrics reflect meaningful operational deterioration. Persistent top- and bottom-line declines over multiple reporting periods would impair the company’s ability to invest, maintain margins, and sustain returns to shareholders over the 2–6 month horizon.

Toyo Tanso Co., Ltd. Business Overview & Revenue Model

Company Description

Toyo Tanso Co., Ltd. engages in the production and sale of various carbon materials in Japan and internationally. The company provides isotropic graphite products for use in semiconductor, mold, renewable energy, and atomic power industries; carbon-carbon composite materials for use in electronics, environment and energy, general industrial furnaces, automobiles, and other means of transport industries; and PERMA-FOIL, a flexible graphite sheet that is used as a seal to note automotive gaskets and packing. It also offers mechanical carbon for sliding parts in high-temperature environments and submersion in chemicals, and in fields where lubricated parts cannot be used, as well as copper-impregnated carbon materials for a pantograph slider; carbon brushes for home appliances and power tools; PERMA KOTE, a SiC coated graphite for use in the semiconductor manufacturing industry; PYROGRAPH, a high purity graphite product; and GLASTIX KOTE, a graphite substrate impregnated or coated with glass-like carbon. In addition, the company provides CNovel, a porous carbon; EVEREDKOTE-B, a high-purity isotropic graphite substrate; TaC/Ta Composite EVEREDKOTE-K, a high-purity tantalum; and KLASTA MATE, a metal-carbon composite. Further, it offers technical services, such as machining, heat treatment, high purity treatment, surface treatment, impregnation, forming, and measurement. The company was formerly known as Kondo Carbon Manufacturing Co., Ltd. and changed its name to Toyo Tanso Co., Ltd. in November 1949. Toyo Tanso Co., Ltd. was founded in 1941 and is headquartered in Osaka, Japan.

How the Company Makes Money

Toyo Tanso generates revenue through the sale of its specialized carbon products, which cater to various sectors including electronics and aerospace. The company's revenue model is primarily based on direct sales to manufacturers and industries that require high-performance carbon materials. Key revenue streams include the sale of graphite electrodes used in electric arc furnaces, thermal management materials for semiconductor applications, and custom carbon solutions tailored to specific customer requirements. Significant partnerships with leading technology firms in the semiconductor industry enhance Toyo Tanso's market presence and contribute to its earnings by securing long-term contracts and expanding its customer base. Additionally, the company's focus on research and development enables the creation of innovative products that command premium pricing, further driving profitability.

Toyo Tanso Co., Ltd. Financial Statement Overview

Summary

Strong balance-sheet quality (very low leverage; debt-to-equity still low at ~0.06) supports resilience, but 2025 showed a clear operational downshift (revenue -7.2%, net margin down to ~11.8% from ~18.8%) and free cash flow turning meaningfully negative, reducing earnings quality near term.

Income Statement

Profitability remains solid, with healthy gross margin (~34% in 2025 vs ~40% in 2024) and still-strong operating and EBITDA margins (~15% and ~24% in 2025). However, the 2025 annual report shows a clear downshift: revenue declined (-7.2%) and profitability compressed materially versus 2024 (net margin ~11.8% vs ~18.8%), signaling cyclical or pricing/mix pressure despite still-positive earnings.

Balance Sheet

The balance sheet is a major strength, supported by very low leverage across the period (debt-to-equity generally near zero in 2020–2024 and still low in 2025 at ~0.06). Equity is large relative to assets, providing significant financial flexibility and resilience; the main watch item is the 2025 step-up in debt versus prior years, though leverage remains conservative.

Cash Flow

Cash generation is mixed. Operating cash flow is consistently positive, but cash conversion is only moderate versus earnings (operating cash flow to net income roughly ~0.41–0.83 over the period, with a weaker 2025). More importantly, 2025 free cash flow turned meaningfully negative, reversing the positive free cash flow profile seen in 2021–2024—suggesting heavier investment or working-capital drag and increasing near-term cash-flow volatility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	49.79B	46.19B	53.09B	49.25B	43.77B	37.73B
Gross Profit	19.57B	15.73B	21.49B	17.72B	14.43B	12.38B
EBITDA	14.07B	11.10B	17.50B	13.71B	9.81B	9.11B
Net Income	7.49B	5.46B	9.96B	7.51B	5.18B	4.46B
Balance Sheet
Total Assets	109.62B	117.92B	113.19B	96.61B	89.43B	83.66B
Cash, Cash Equivalents and Short-Term Investments	13.17B	15.26B	18.50B	18.13B	18.44B	18.36B
Total Debt	3.61B	5.67B	718.00M	474.00M	285.00M	199.00M
Total Liabilities	17.15B	20.36B	18.99B	12.09B	12.23B	11.40B
Stockholders Equity	92.42B	97.49B	94.15B	84.47B	77.15B	72.20B
Cash Flow
Free Cash Flow	0.00	-5.77B	2.78B	1.24B	1.31B	2.15B
Operating Cash Flow	0.00	6.07B	9.49B	6.22B	5.63B	7.33B
Investing Cash Flow	0.00	-11.31B	-6.31B	-2.69B	-5.25B	-6.25B
Financing Cash Flow	0.00	2.40B	-2.56B	-1.97B	-1.39B	-1.26B

Toyo Tanso Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4820.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5310, the sentiment is Positive. The current price of 4820 is below the 20-day moving average (MA) of 5807.00, below the 50-day MA of 5429.36, and above the 200-day MA of 4644.03, indicating a bullish trend. The MACD of 210.27 indicates Negative momentum. The RSI at 68.04 is Neutral, neither overbought nor oversold. The STOCH value of 88.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5310.

Toyo Tanso Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5310	78 Outperform	¥133.39B	24.41	7.99%	2.50%	-8.00%	-17.82%
6516	75 Outperform	¥193.52B	24.60	―	1.53%	3.37%	21.35%
6637	72 Outperform	¥56.87B	12.54	―	0.91%	5.28%	18.38%
6804	72 Outperform	¥147.83B	9.44	8.07%	2.64%	79.29%	35.48%
5803	72 Outperform	¥7.38T	51.29	32.32%	0.91%	27.53%	137.34%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6905	59 Neutral	¥56.27B	-141.26	―	5.01%	-32.74%	-117.06%

Toyo Tanso Co., Ltd. Corporate Events

Toyo Tanso Profit Slumps in 2025 but Dividend Held Steady as 2026 Outlook Stays Cautious

Toyo Tanso reported a sharp earnings decline for the fiscal year ended December 31, 2025, with net sales down 13.0% to ¥46.2 billion and operating profit falling 44.8% to ¥6.8 billion, as profitability ratios and earnings per share weakened. Despite lower profit, total assets and net assets both increased slightly, the equity ratio remained above 80%, and the company maintained a stable annual dividend of ¥145 per share, resulting in a higher payout ratio and signaling an emphasis on shareholder returns.

For 2026, the company forecasts a modest recovery in net sales to ¥49.0 billion, but expects operating and ordinary profit to stay below prior levels, with full-year profit attributable to owners projected at ¥5.0 billion. The guidance suggests continued earnings pressure amid a soft profit environment, though the unchanged dividend forecast indicates management’s confidence in cash generation and a stable capital position for investors and other stakeholders.

The most recent analyst rating on (JP:5310) stock is a Hold with a Yen6548.00 price target. To see the full list of analyst forecasts on Toyo Tanso Co., Ltd. stock, see the JP:5310 Stock Forecast page.

Toyo Tanso Profits Slump in 2025 as Margins Tighten, Dividend Held Steady

Toyo Tanso reported a sharp profit downturn for the fiscal year ended December 31, 2025, with net sales falling 13% to ¥46.2 billion and operating profit plunging nearly 45%, while profit attributable to owners of parent dropped 45.1%, dragging basic earnings per share down to ¥260.58. Despite weaker earnings, total assets and net assets edged up, the equity ratio remained high at 82.7%, and the company maintained its annual dividend at ¥145 per share, signaling confidence in its balance-sheet strength and commitment to shareholder returns.

Cash flow from operating activities declined but stayed positive, while investment outflows increased and cash and cash equivalents fell to ¥12.1 billion, indicating continued spending on longer-term assets amid softer cash generation. For 2026, Toyo Tanso projects a modest recovery in sales to ¥49 billion but expects operating and ordinary profit to remain below prior-year levels, implying ongoing margin pressure even as it aims to stabilize earnings and keep shareholder payouts steady.

The most recent analyst rating on (JP:5310) stock is a Buy with a Yen6298.00 price target. To see the full list of analyst forecasts on Toyo Tanso Co., Ltd. stock, see the JP:5310 Stock Forecast page.

Toyo Tanso Raises Target Dividend Payout Ratio to 40%

Toyo Tanso has revised its dividend policy to further emphasize shareholder returns while maintaining a focus on capital efficiency and long-term growth investments. The company will continue to prioritize strategic spending on facilities and R&D, but will now aim for a higher level of profit distribution to equity holders.

Under the updated policy, the targeted dividend payout ratio is raised from at least 30% to at least 40%, reflecting a commitment to more substantial and stable dividends. The change applies starting with the fiscal year ended December 31, 2025, signaling a potentially more attractive yield profile for shareholders without altering the firm’s investment priorities.

The most recent analyst rating on (JP:5310) stock is a Buy with a Yen6298.00 price target. To see the full list of analyst forecasts on Toyo Tanso Co., Ltd. stock, see the JP:5310 Stock Forecast page.

Toyo Tanso Sets 2026–2030 Plan With Aggressive Growth and Investment Targets

Toyo Tanso has adopted a new medium-term management plan for 2026–2030 that targets accelerated growth in high-value markets, particularly semiconductor and energy applications, while reflecting recent restructuring of its small carbon brush business. The plan positions the energy sector, including nuclear and renewables, as a key market linked to the company’s sustainability priorities, and emphasizes strengthening governance and human capital to support long-term value creation.

By the fiscal year ending December 2030, Toyo Tanso aims to lift net sales to ¥74 billion and operating profit to ¥18 billion, implying a 24% operating margin and 10% ROE under specified FX assumptions. The company plans ¥37.5 billion in selective capital investments over five years to expand production capacity for special graphite products and materials for semiconductors and next-generation nuclear power, targeting nearly 10% average annual sales growth across its portfolio.

The most recent analyst rating on (JP:5310) stock is a Buy with a Yen6298.00 price target. To see the full list of analyst forecasts on Toyo Tanso Co., Ltd. stock, see the JP:5310 Stock Forecast page.

Toyo Tanso Refreshes Board and Audit Lineup Ahead of March Shareholders Meeting

Toyo Tanso announced a slate of board and governance changes to be formalized at its 84th ordinary shareholders meeting on March 27, 2026, including the reappointment of CEO Naotaka Kondo and several incumbent directors. The company will also add outside director Kazuhiro Imai, revise its Audit & Supervisory Board lineup with new outside members, and designate a substitute auditor, while certain current outside directors and auditors will step down at the end of their terms.

These moves underscore a continued emphasis on external legal, accounting, and tax expertise in Toyo Tanso’s governance structure, with multiple outside professionals retained in director and auditor roles. For shareholders and other stakeholders, the reshuffle signals both continuity in top management and a refreshed oversight framework that may strengthen compliance, transparency, and risk management as the company navigates its competitive materials markets.

The most recent analyst rating on (JP:5310) stock is a Buy with a Yen6298.00 price target. To see the full list of analyst forecasts on Toyo Tanso Co., Ltd. stock, see the JP:5310 Stock Forecast page.