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TOTO Ltd (JP:5332)
:5332

TOTO (5332) AI Stock Analysis

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JP

TOTO

(OTC:5332)

Rating:61Neutral
Price Target:
¥3,885.00
▲(1.73%Upside)
TOTO's overall stock score is driven by solid financial performance, particularly in revenue growth and operational margins. However, the high P/E ratio and bearish technical indicators suggest caution. Investors should monitor profitability improvements and market trends closely.

TOTO (5332) vs. iShares MSCI Japan ETF (EWJ)

TOTO Business Overview & Revenue Model

Company DescriptionToto Ltd. manufactures and sells bathroom and kitchen plumbing products worldwide. It offers sanitary ware, such as toilet basins, urinals, sinks, washbasins, etc.; system toilets; toilet seats; plumbing accessories, etc.; bathtubs; unit bathrooms; and fittings consisting of various faucets, drain fittings, etc. The company also provides modular kitchens; bathroom vanity units; marbright artificial marble counters; bathroom ventilation, heating, and drying systems; and welfare equipment, etc. In addition, it offers green building materials, such as tiles, ceramic slabs, etc.; and ceramics consisting of air bearings, electrostatic chucks, bonding capillaries, and receptacles for the semiconductor, FPD manufacturing, and optical communication industries, as well as optical components. The company was formerly known as TOTO Kiki Ltd. and changed its name to Toto Ltd. in 2007. Toto Ltd. was founded in 1917 and is headquartered in Kitakyushu, Japan.
How the Company Makes MoneyTOTO Ltd. makes money through the sale of its wide range of sanitary ware and plumbing products. The company's revenue model is primarily based on direct sales to consumers through retail channels, including its own branded showrooms and partnerships with home improvement retailers. Additionally, TOTO engages in B2B sales by supplying products to construction companies, hotels, and commercial facilities. The company also benefits from its international presence, exporting products to various global markets. Key revenue streams include the sale of high-end toilet systems, which incorporate advanced technologies such as water-saving features and bidet functions, as well as a growing demand for eco-friendly and smart bathroom solutions. Strategic partnerships and collaborations with design firms and sustainability-focused organizations further contribute to TOTO's earnings.

TOTO Financial Statement Overview

Summary
TOTO demonstrates solid financial performance with consistent revenue growth and strong operational margins. The balance sheet is stable with a good equity base and manageable debt levels. While cash flow generation is strong, there is a need to address the declining net income and its impact on profitability metrics. Overall, TOTO is in a good financial position but should focus on improving profitability and maintaining cash flow efficiency.
Income Statement
75
Positive
TOTO's income statement shows a steady revenue growth with a significant increase from 2024 to 2025. The gross profit margin remains healthy, indicating effective cost management. However, the net profit margin declined due to a substantial drop in net income, potentially indicating increased expenses or other financial pressures. EBIT and EBITDA margins remain solid, demonstrating operational efficiency.
Balance Sheet
80
Positive
The balance sheet reflects a strong equity position with a high equity ratio, showcasing financial stability. The debt-to-equity ratio is manageable, although there is a slight increase in total debt. Return on equity shows a decline, aligning with the decrease in net income. Overall, the company maintains a robust financial structure with ample assets to cover liabilities.
Cash Flow
70
Positive
Operating cash flow remains strong, indicating good cash generation from operations. The free cash flow has improved significantly year-over-year, reflecting better capital expenditure management. However, the free cash flow to net income ratio indicates potential challenges in converting profits into cash flow, which requires monitoring.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue719.82B724.45B702.28B701.19B645.27B580.93B
Gross Profit254.28B254.07B239.00B242.97B236.89B212.50B
EBITDA84.00B59.67B88.58B80.53B79.12B66.58B
Net Income47.10B12.17B37.20B38.94B40.13B26.98B
Balance Sheet
Total Assets801.40B813.92B790.25B731.64B641.02B647.63B
Cash, Cash Equivalents and Short-Term Investments98.03B122.75B103.55B98.12B90.54B143.33B
Total Debt24.73B67.87B67.89B67.92B38.04B97.96B
Total Liabilities270.64B283.52B279.70B270.55B227.66B273.93B
Stockholders Equity522.70B522.28B502.72B453.80B405.73B367.03B
Cash Flow
Free Cash Flow0.0026.83B18.17B-4.75B14.26B15.82B
Operating Cash Flow0.0071.38B76.31B31.58B49.36B59.55B
Investing Cash Flow0.00-38.38B-53.79B-35.27B-31.89B-42.62B
Financing Cash Flow0.00-19.01B-18.95B8.78B-75.77B22.70B

TOTO Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3819.00
Price Trends
50DMA
3693.60
Positive
100DMA
3734.93
Positive
200DMA
3995.77
Negative
Market Momentum
MACD
27.54
Negative
RSI
60.65
Neutral
STOCH
85.19
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5332, the sentiment is Positive. The current price of 3819 is above the 20-day moving average (MA) of 3654.00, above the 50-day MA of 3693.60, and below the 200-day MA of 3995.77, indicating a neutral trend. The MACD of 27.54 indicates Negative momentum. The RSI at 60.65 is Neutral, neither overbought nor oversold. The STOCH value of 85.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5332.

TOTO Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$647.40B53.252.34%2.62%3.16%-67.29%
58
Neutral
HK$10.50B4.22-2.96%7.40%3.76%-51.26%
$3.42B271.120.35%0.03%
$579.13M16.554.31%0.03%
$6.89B18.8518.79%0.01%
DE7VK
€929.96M12.0412.17%2.72%
62
Neutral
¥110.75B38.55
3.77%3.98%-65.20%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5332
TOTO
3,819.00
47.49
1.26%
JSGCF
LIXIL Group
12.39
2.09
20.29%
NRTZF
Noritz
13.15
2.56
24.17%
SNWAF
Sanwa Holdings
32.72
14.49
79.48%
DE:7VK
Bunka Shutter Co., Ltd.
13.60
4.38
47.51%
JP:7943
Nichiha Corporation
3,025.00
-331.99
-9.89%

TOTO Corporate Events

TOTO LTD. Announces Acquisition of Own Shares to Enhance Shareholder Value
Jul 1, 2025

TOTO LTD. has announced the acquisition of 644,000 of its own common shares, amounting to 2,342,636,400 yen, from June 1 to June 30, 2025. This move is part of a broader plan approved by the Board of Directors to acquire up to 8,000,000 shares, reflecting 4.7% of the total issued shares, with a budget of up to 20 billion yen. The acquisition aims to enhance shareholder value and optimize capital structure, potentially impacting market perception and investor relations.

The most recent analyst rating on (JP:5332) stock is a Hold with a Yen4500.00 price target. To see the full list of analyst forecasts on TOTO stock, see the JP:5332 Stock Forecast page.

TOTO LTD. Announces Disposal of Treasury Shares for Director Compensation
Jun 24, 2025

TOTO LTD. has announced a disposal of 21,900 treasury shares as part of a restricted share compensation plan for its eligible directors. This move aims to align directors’ interests with shareholders and incentivize long-term value creation, with a transfer restriction period set at 30 years to ensure sustained corporate growth.

The most recent analyst rating on (JP:5332) stock is a Hold with a Yen4500.00 price target. To see the full list of analyst forecasts on TOTO stock, see the JP:5332 Stock Forecast page.

TOTO Ltd. Announces Share Repurchase Plan
May 29, 2025

TOTO Ltd. has announced a strategic move to repurchase up to 2,000,000 of its own shares through the ToSTNeT-3 trading system on the Tokyo Stock Exchange. This decision is part of a broader plan approved by the Board of Directors to acquire up to 8,000,000 shares by the end of 2025, reflecting the company’s commitment to enhancing shareholder value and optimizing its capital structure.

The most recent analyst rating on (JP:5332) stock is a Hold with a Yen4500.00 price target. To see the full list of analyst forecasts on TOTO stock, see the JP:5332 Stock Forecast page.

TOTO LTD. Announces Structural Reform and Extraordinary Losses in China
May 26, 2025

TOTO LTD. announced the recording of extraordinary losses due to a structural reform of its Mainland China Business, which involves closing and liquidating two manufacturing bases to improve productivity and eco-friendliness. This reform is expected to result in a ¥15.0 billion extraordinary loss for the fiscal year ending March 31, 2026, but aims to improve profits by ¥7.0 billion for the fiscal year ending March 31, 2027. The company is committed to revitalizing its Mainland China operations and contributing to a sustainable society.

The most recent analyst rating on (JP:5332) stock is a Hold with a Yen4500.00 price target. To see the full list of analyst forecasts on TOTO stock, see the JP:5332 Stock Forecast page.

TOTO Ltd. Announces Structural Reform for Mainland China Business
Apr 28, 2025

TOTO Ltd. has announced a structural reform plan for its Mainland China Business in response to declining profits due to a stagnant real estate market and increased competition. The company plans to concentrate resources on remodeling activities and introduce competitively priced products for the middle and luxury-grade markets. Additionally, TOTO will restructure its production system by closing two manufacturing bases in Beijing and East China, optimizing personnel, and improving productivity and eco-friendliness.

TOTO LTD. Reports 2025 Results and Strategic Growth Initiatives
Apr 28, 2025

TOTO LTD. has announced its results for the year ended March 31, 2025, highlighting the company’s strategic focus on leveraging its technological expertise in the sanitary ware business to develop ceramic products for semiconductor and flat panel display manufacturing equipment. This move is part of TOTO’s growth strategy to diversify its product offerings and strengthen its market position. The company is also focusing on remodeling demand rather than new housing, with significant growth expected in the Americas and Asia, driven by its WASHLET and water-saving toilet products.

TOTO Ltd. Announces Share Acquisition and Cancellation Strategy
Apr 28, 2025

TOTO Ltd. has announced a strategic decision to acquire and subsequently cancel a portion of its own shares, aiming to enhance capital efficiency and adapt to a changing business environment as outlined in their Mid-Term Management Issues WILL2030 STAGE 2. This move involves acquiring up to 8,000,000 common shares, representing 4.7% of the total issued shares, with a budget of up to 20 billion yen, and is expected to impact the company’s capital structure positively by promoting agile capital policies.

TOTO LTD. Announces Structural Reform for Mainland China Business
Apr 28, 2025

TOTO LTD. has announced a structural reform plan for its Mainland China Business due to deteriorating profits caused by a stagnant real estate market and increased competition. The plan includes concentrating resources on remodeling activities, launching competitively priced products, and restructuring production by closing two manufacturing bases in China to improve efficiency and eco-friendliness.

TOTO Ltd. Reports Extraordinary Loss Amid Strong Sales Performance
Apr 28, 2025

TOTO Ltd. reported an extraordinary loss of ¥34 billion due to impairment of non-current assets in China, attributed to delayed responses to rapid market changes. Despite exceeding forecasts in operating and ordinary profit due to strong sales in the Americas and Asia, the company’s profit attributable to owners fell short due to this impairment loss.

TOTO Corporation Reports Fiscal Year 2025 Financial Results with Mixed Outcomes
Apr 28, 2025

TOTO Corporation reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a 3.2% increase in net sales to ¥724,454 million. However, the profit attributable to owners of the parent dropped significantly by 67.3% to ¥12,168 million. The company experienced a decline in comprehensive income by 44.3% compared to the previous year. Despite the challenges, TOTO’s equity-to-asset ratio improved slightly to 64.1%, indicating a stable financial position. The company anticipates a 4% increase in net sales for the next fiscal year, with a significant rebound in profit attributable to owners of the parent by 154.7%.

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.Date of analysis: Jul 02, 2025