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

• Market Cap: €98.36B
• Dividend Yield: 2.57%
• Average Volume (3M): 165.19K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 1.17
• Revenue Growth: -3.92%
• EPS Growth: -12.29%
• Country: JP
• Employees: 1,785
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 66.97
• Shares Outstanding: 20,992,588
• 10 Day Avg. Volume: 236,600
• 30 Day Avg. Volume: 165,186
• PEG Ratio: 0.28
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 1.69
• P/FCF Ratio: 32.28
• 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: €5,699.29
• Price Target Upside: 22.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• Price Target: ¥5,335.00 ▲(14.36% Upside)

Toyo Tanso Co., Ltd. demonstrates strong financial performance with robust growth and profitability, contributing significantly to the overall score. The technical analysis indicates bullish momentum, though the overbought RSI suggests caution. The valuation is reasonable, providing a balanced view of the stock's potential. The absence of earnings call and corporate events data did not impact the score.

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 primarily through the sale of its carbon-related products, which serve critical functions in industrial processes, particularly in steel production through graphite electrodes. The company also earns income from its semiconductor materials, which are essential for the electronics industry. Key revenue streams include direct sales to manufacturing companies, long-term contracts with major players in the steel and technology sectors, and partnerships with research institutions for product development. Additionally, the company's focus on high-quality and specialized products allows it to command premium pricing, contributing significantly to its earnings.

Toyo Tanso Co., Ltd. Financial Statement Overview

Summary

Toyo Tanso Co., Ltd. exhibits strong financial performance with impressive revenue and profit growth. The income statement shows robust margins, while the balance sheet reflects stability with low leverage and high equity. Cash flow generation is excellent, supporting operational and strategic initiatives. However, the conservative leverage approach could limit future growth opportunities.

Income Statement

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	51.99B	53.09B	49.25B	43.77B	37.73B	31.23B
Gross Profit	21.18B	21.49B	17.72B	14.43B	12.38B	9.52B
EBITDA	15.95B	17.50B	13.71B	9.81B	9.11B	6.19B
Net Income	8.86B	9.96B	7.51B	5.18B	4.46B	2.66B
Balance Sheet
Total Assets	109.80B	113.19B	96.61B	89.43B	83.66B	76.08B
Cash, Cash Equivalents and Short-Term Investments	14.34B	18.50B	18.13B	18.44B	18.36B	16.63B
Total Debt	1.79B	718.00M	474.00M	285.00M	199.00M	254.00M
Total Liabilities	18.61B	18.99B	12.09B	12.23B	11.40B	9.46B
Stockholders Equity	91.14B	94.15B	84.47B	77.15B	72.20B	66.58B
Cash Flow
Free Cash Flow	0.00	2.78B	1.24B	1.31B	2.15B	744.00M
Operating Cash Flow	0.00	9.49B	6.22B	5.63B	7.33B	7.02B
Investing Cash Flow	0.00	-6.31B	-2.69B	-5.25B	-6.25B	1.01B
Financing Cash Flow	0.00	-2.56B	-1.97B	-1.39B	-1.26B	-2.10B

Toyo Tanso Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4665.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 4665 is below the 20-day moving average (MA) of 4688.50, above the 50-day MA of 4341.90, and above the 200-day MA of 4237.50, indicating a neutral trend. The MACD of 87.15 indicates Positive momentum. The RSI at 53.47 is Neutral, neither overbought nor oversold. The STOCH value of 8.54 is Positive, 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	―	€98.36B	13.14	8.63%	2.57%	-3.92%	-12.29%
6668	―	¥11.04B	5.49	―	2.20%	12.23%	65.43%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6882	―	¥12.71B	116.12	―	4.42%	-17.49%	-96.33%
6943	―	¥3.70B	23.10	―	1.53%	-16.30%	-281.92%
6521	―	¥23.99B	―	―	―	36.90%	-311.02%

Toyo Tanso Co., Ltd. Corporate Events

Toyo Tanso Reports Decline in First Half 2025 Financial Results

Toyo Tanso Co., Ltd. reported a significant decline in its financial performance for the first half of 2025, with net sales dropping by 12.6% and operating profit falling by 33.9% compared to the same period in the previous year. This downturn reflects broader challenges the company faces in maintaining its market position and profitability, impacting stakeholders’ expectations for the fiscal year.

The most recent analyst rating on (JP:5310) stock is a Buy with a Yen7700.00 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 Reports Decline in Financial Performance for First Half of 2025

Toyo Tanso Co., Ltd. reported a significant decline in its financial performance for the first half of 2025, with net sales decreasing by 12.6% and operating profit dropping by 33.9% compared to the same period last year. The company has revised its earnings forecast for the fiscal year ending December 31, 2025, anticipating a 9.6% decrease in net sales and a 49.8% decline in profit attributable to owners of the parent, indicating challenging market conditions and potential impacts on stakeholders.

The most recent analyst rating on (JP:5310) stock is a Buy with a Yen8800.00 price target. To see the full list of analyst forecasts on Toyo Tanso Co., Ltd. stock, see the JP:5310 Stock Forecast page.