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Toyo Tanso Co., Ltd. (JP:5310)
:5310

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

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Toyo Tanso Co., Ltd.

(Frankfurt:5310)

Rating:77Outperform
Price Target:
Toyo Tanso Co., Ltd. displays strong financial health with robust revenue and profit growth, high equity, and excellent cash flow generation. The company's conservative leverage approach provides stability but could limit growth. Technical indicators suggest mixed momentum with potential volatility, while a low P/E ratio and attractive dividend yield offer a favorable valuation. Overall, the stock is well-positioned with solid fundamentals but warrants caution due to technical and growth limitations.

Toyo Tanso Co., Ltd. (5310) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionToyo 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 MoneyToyo Tanso Co., Ltd. generates revenue primarily through the sale of its high-performance carbon and graphite products. Key revenue streams include isotropic graphite used in semiconductor manufacturing and other high-tech applications, carbon brushes for electrical machinery, and specialty carbon products for aerospace and defense. The company's strong market position is bolstered by its focus on innovation and quality, allowing it to form strategic partnerships with key players in various industries. Additionally, Toyo Tanso invests in research and development to continually enhance its product offerings and meet the evolving needs of its global customer base.

Toyo Tanso Co., Ltd. Financial Statement Overview

Summary
Toyo Tanso Co., Ltd. exhibits strong financial performance across all key areas. The income statement shows impressive revenue and profit growth, while the balance sheet reflects stability with low leverage and high equity. Cash flow generation is robust, supporting operational and strategic initiatives. The company's financial health is strong, with excellent profitability, efficient cash management, and low financial risk. However, the conservative leverage approach could limit future growth opportunities.
Income Statement
90
Very Positive
The company demonstrates robust revenue growth, with a 7.8% increase from 2023 to 2024. Gross profit margin is strong at 40.5%, indicating efficient production processes. Net profit margin has improved significantly to 18.8%, reflecting effective cost management and operational efficiency. Both EBIT margin at 23.0% and EBITDA margin at 30.0% show healthy earnings before interest and taxes, as well as depreciation and amortization, respectively. Overall, the income statement reflects a solid financial performance with consistent growth and profitability.
Balance Sheet
85
Very Positive
The balance sheet is robust with a high equity ratio of 83.2%, suggesting strong asset financing through equity and low leverage risk with zero debt. Return on equity (ROE) is impressive at 10.6%, indicating effective utilization of shareholder funds. The company maintains a solid liquidity position with significant cash reserves. However, the high equity ratio could also imply possible under-utilization of financial leverage, which might restrict growth potential. Overall, the balance sheet reflects financial stability and low risk.
Cash Flow
82
Very Positive
The cash flow statement shows a strong free cash flow growth rate of 123.9%, highlighting excellent cash generation capabilities. Operating cash flow to net income ratio is 0.95, illustrating good conversion of accounting profits into cash. The free cash flow to net income ratio is 0.28, indicating a healthy portion of earnings are translated into available cash. Despite a slightly lower conversion rate, the overall cash flow is positive and indicates efficient cash management and robust financial health.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
53.09B49.25B43.77B37.73B31.23B
Gross Profit
21.49B17.72B14.43B12.38B9.52B
EBIT
12.24B9.28B6.67B5.67B3.42B
EBITDA
17.50B13.71B9.81B8.60B6.19B
Net Income Common Stockholders
9.96B7.51B5.18B4.46B2.66B
Balance SheetCash, Cash Equivalents and Short-Term Investments
18.50B18.13B18.44B18.36B16.63B
Total Assets
113.19B96.61B89.43B83.66B76.08B
Total Debt
0.000.00285.00M199.00M254.00M
Net Debt
-16.00B-15.13B-15.15B-15.16B-13.38B
Total Liabilities
18.99B12.09B12.23B11.40B9.46B
Stockholders Equity
94.15B84.47B77.15B72.20B66.58B
Cash FlowFree Cash Flow
2.78B1.24B1.31B2.15B744.00M
Operating Cash Flow
9.49B6.22B5.63B7.33B7.02B
Investing Cash Flow
-6.31B-2.69B-5.25B-6.25B1.01B
Financing Cash Flow
-2.56B-1.97B-1.39B-1.26B-2.10B

Toyo Tanso Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4250.00
Price Trends
50DMA
4018.70
Positive
100DMA
4003.00
Positive
200DMA
4441.96
Negative
Market Momentum
MACD
71.87
Positive
RSI
54.39
Neutral
STOCH
45.40
Neutral
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 4250 is above the 20-day moving average (MA) of 4216.00, above the 50-day MA of 4018.70, and below the 200-day MA of 4441.96, indicating a neutral trend. The MACD of 71.87 indicates Positive momentum. The RSI at 54.39 is Neutral, neither overbought nor oversold. The STOCH value of 45.40 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥11.16B5.46
1.69%12.17%63.70%
77
Outperform
€90.92B10.069.92%3.54%7.80%32.69%
66
Neutral
¥12.36B23.31
6.82%-17.95%-83.01%
66
Neutral
$4.47B12.225.40%3.65%4.14%-12.00%
56
Neutral
¥25.90B
27.06%-473.48%
¥7.26B4.64
3.32%
50
Neutral
¥3.58B23.10
1.84%-19.88%-203.82%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5310
Toyo Tanso Co., Ltd.
4,250.00
-2,515.09
-37.18%
JP:6521
OXIDE Corp.
2,307.00
-165.00
-6.67%
JP:6668
Adtec Plasma Technology Co., Ltd.
1,300.00
-112.66
-7.98%
JP:6748
Seiwa Electric Mfg. Co., Ltd.
542.00
5.43
1.01%
JP:6882
Sansha Electric Manufacturing Co., Ltd.
880.00
-127.70
-12.67%
JP:6943
NKK SWITCHES CO., LTD.
4,350.00
-869.99
-16.67%

Toyo Tanso Co., Ltd. Corporate Events

Toyo Tanso Announces Strategic Organizational and Personnel Changes
Mar 25, 2025

Toyo Tanso Co., Ltd. announced significant organizational and personnel changes to enhance its operational efficiency and strategic focus. The company is consolidating its technology and sales departments to form an Advanced Technology Division, aiming to better address the evolving challenges in the manufacturing industry. Additionally, key executive roles are being realigned to support these strategic shifts, reflecting a commitment to innovation and market responsiveness.

Toyo Tanso Reports Strong 2024 Results, Projects Challenges for 2025
Feb 19, 2025

Toyo Tanso Co., Ltd. reported a notable financial performance for the fiscal year ending December 31, 2024, with a significant increase in net sales and profits compared to the previous year. Despite the strong results in 2024, the company projects a decline in financial performance for the fiscal year 2025, expecting decreases in net sales, operating profit, and ordinary profit, indicating potential challenges ahead.

Toyo Tanso Announces Strategic Executive Changes
Feb 14, 2025

Toyo Tanso Co., Ltd. announced changes in its board of directors and executive officers, highlighting a strategic alignment with its operational and global sales divisions. These appointments reflect the company’s efforts to bolster its corporate planning and international business strategy, potentially enhancing its market position and operational efficiency.

Toyo Tanso Unveils Ambitious Growth Plan for 2025–2029
Feb 14, 2025

Toyo Tanso Co., Ltd. announced its medium-term management plan for 2025–2029, aiming to achieve high growth through its special graphite products and compound materials, anticipating recovery in the SiC semiconductor market by 2026. The company targets net sales of ¥82 billion and an operating profit of ¥22 billion by 2029, with plans for capital investment to strengthen production systems for semiconductors and other high-value applications.

Toyo Tanso Outperforms Forecasts and Raises Annual Dividend
Feb 14, 2025

Toyo Tanso announced that its actual results for the fiscal year ending December 31, 2024, exceeded the previously forecasted figures in operating profit, ordinary profit, and profit attributable to owners of the parent, primarily due to a weaker yen and increased sales of high-value-added products. The company also decided to increase its year-end dividend to 145 yen per share, reflecting its policy to return profits to shareholders while also reinvesting in future growth initiatives.

Toyo Tanso Reports Strong 2024 Results but Anticipates 2025 Challenges
Feb 14, 2025

Toyo Tanso reported strong financial results for the fiscal year ending December 31, 2024, with significant increases in net sales and profits compared to the previous year. Despite the positive results, the company forecasts a challenging year ahead with expected declines in net sales and profits for 2025, indicating potential market or operational challenges.

Toyo Tanso Announces Leadership Changes to Bolster Global Strategy
Feb 14, 2025

Toyo Tanso Co., Ltd. announced changes in its board of directors and executive officers, indicating a strategic move to reinforce its leadership team. With the reappointment of key figures such as Naotaka Kondo as CEO and Tatsuro Hamada in charge of global R&D and production, the company aims to strengthen its operational and market positioning, potentially impacting stakeholders and enhancing global business strategies.

Toyo Tanso Unveils Strategic Growth Plan for 2025-2029
Feb 14, 2025

Toyo Tanso Co., Ltd. has announced its medium-term management plan for 2025-2029, aiming to achieve significant growth despite challenges in the SiC semiconductor market due to a slowdown in EV demand. The company plans to leverage its special graphite products and compound materials as growth drivers, while also expanding applications in semiconductors and nuclear power. The plan sets ambitious targets, including reaching net sales of ¥82 billion and an operating profit margin of 27% by 2029, supported by a capital investment of ¥57 billion.

Toyo Tanso Reports Profit Surge and Announces Increased Dividend
Feb 14, 2025

Toyo Tanso Co., Ltd. reported a significant increase in its operating, ordinary, and attributable profits for the fiscal year ending December 31, 2024, despite net sales being slightly below forecasts. The increase in profits was attributed to a weaker yen, increased sales of high-value-added products, and gains from foreign exchange and subsidies. Consequently, the company decided to increase its year-end dividend to 145 yen per share from the previously forecasted 120 yen, aligning with its policy to return profits to shareholders while considering future expansion and investment needs.

Toyo Tanso Co., Ltd. Reports Strong 2024 Financial Performance Amid Forecasted 2025 Challenges
Feb 14, 2025

Toyo Tanso Co., Ltd. reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, with net sales rising by 7.8% and operating profits by 31.8% year-on-year. Despite the current year’s growth, the company forecasts a decrease in profits for the next fiscal year ending December 31, 2025, due to anticipated challenges, which may impact its industry positioning and shareholder returns.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.