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

• Market Cap: €102.45B
• Dividend Yield: 2.47%
• Average Volume (3M): 165.19K
• Price to Earnings (P/E): 14.0
• 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): 88.21
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: ¥5,335.00 ▲(12.20% 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.

Positive Factors

Balance Sheet Health

A strong balance sheet with high equity and zero debt indicates financial stability, reducing risk and enhancing the company's ability to invest in growth opportunities.

Cash Generation Ability

Robust cash generation supports operational needs and strategic investments, providing flexibility to capitalize on growth opportunities and withstand economic fluctuations.

Profit Margin Sustainability

Sustainable profit margins indicate efficient operations and cost management, enhancing long-term profitability and competitiveness in the market.

Negative Factors

Revenue Growth Decline

A decline in revenue growth can signal challenges in market expansion or product demand, potentially impacting future earnings and market position.

Earnings Per Share Decline

A decrease in EPS growth suggests potential profitability challenges, which could affect investor confidence and the company's ability to reinvest in growth.

Conservative Leverage Approach

While low leverage reduces risk, it may also limit the company's ability to finance new projects or expand operations, potentially hindering growth prospects.

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

Toyo Tanso Co., Ltd. exhibits strong financial performance with impressive revenue and profit growth. The balance sheet reflects stability with low leverage and high equity, while 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

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	49.79B	53.09B	49.25B	43.77B	37.73B	31.23B
Gross Profit	19.57B	21.49B	17.72B	14.43B	12.38B	9.52B
EBITDA	14.07B	17.50B	13.71B	9.81B	9.11B	6.19B
Net Income	7.49B	9.96B	7.51B	5.18B	4.46B	2.66B
Balance Sheet
Total Assets	109.62B	113.19B	96.61B	89.43B	83.66B	76.08B
Cash, Cash Equivalents and Short-Term Investments	13.17B	18.50B	18.13B	18.44B	18.36B	16.63B
Total Debt	3.61B	718.00M	474.00M	285.00M	199.00M	254.00M
Total Liabilities	17.15B	18.99B	12.09B	12.23B	11.40B	9.46B
Stockholders Equity	92.42B	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: 4755.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 4755 is below the 20-day moving average (MA) of 4783.50, above the 50-day MA of 4753.30, and above the 200-day MA of 4355.55, indicating a bullish trend. The MACD of 35.54 indicates Negative momentum. The RSI at 54.50 is Neutral, neither overbought nor oversold. The STOCH value of 62.35 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5310	77 Outperform	€102.45B	14.03	7.99%	2.47%	-8.00%	-17.82%
6668	71 Outperform	¥10.61B	5.27	―	1.66%	12.23%	65.42%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6882	61 Neutral	¥12.66B	34.54	―	4.44%	-11.74%	-84.61%
6943	51 Neutral	¥3.70B	-8.73	―	1.78%	-10.43%	-368.47%
6521	44 Neutral	¥16.51B	-5.97	―	―	36.90%	-311.02%

Toyo Tanso Co., Ltd. Corporate Events

Toyo Tanso Reports Decline in Nine-Month Financial Performance

Toyo Tanso Co., Ltd. reported a significant decline in its financial performance for the nine months ending September 30, 2025, with net sales decreasing by 12.7% and operating profit dropping by 41.5% compared to the previous year. The company’s comprehensive income also fell sharply by 49.0%, reflecting challenges in maintaining profitability. Despite these setbacks, the company maintains a strong equity ratio, indicating a stable financial position.

Toyo Tanso Announces Corrections to Q1 2025 Financial Results

Toyo Tanso Co., Ltd. announced corrections to its consolidated financial results for the first quarter of 2025 due to a misclassification in revenue recognition at its subsidiary, SHANGHAI TOYO TANSO CO., LTD. The corrections affect the reported figures for net sales, orders, and outstanding orders related to special graphite products and compound materials, although the overall company-wide figures remain unchanged.

Toyo Tanso Revises Q1 2025 Financial Results Due to Revenue Misclassification

Toyo Tanso Co., Ltd. announced corrections to its first-quarter fiscal results for 2025 due to a misclassification in revenue recognition at its subsidiary, SHANGHAI TOYO TANSO CO., LTD. The corrections affected the net sales figures for special graphite products and compound materials, although the overall company-wide net sales figures remained unchanged.

Toyo Tanso Announces Corrections to Financial Results Due to Revenue Misclassification

Toyo Tanso Co., Ltd. announced corrections to its consolidated financial results for the first half of 2025 due to a misclassification in revenue recognition at its subsidiary, SHANGHAI TOYO TANSO CO., LTD. These corrections affect the reported figures for net sales, orders, and outstanding orders related to special graphite products and compound materials, although the overall company-wide figures remain unchanged.

Toyo Tanso Adjusts First-Half Fiscal Year Results Due to Revenue Misclassification

Toyo Tanso Co., Ltd. announced corrections to its first-half fiscal year results due to a misclassification in revenue recognition at its Shanghai subsidiary. The adjustments affect net sales figures for special graphite products and compound materials, although overall company-wide net sales remain unchanged.

Toyo Tanso Reports Decline in Nine-Month Financial Results

Toyo Tanso Co., Ltd. reported a decline in financial performance for the nine months ending September 30, 2025, with net sales decreasing by 12.7% and operating profit falling by 41.5% compared to the same period in the previous year. The company maintains a strong equity ratio of 84.7%, indicating financial stability despite the downturn, and has announced a forecasted year-end dividend of 145 yen per share, consistent with the previous year.