TOTO (5332) AI Stock Analysis

• Market Cap: $623.83B
• Dividend Yield: 2.34%
• Average Volume (3M): 683.91K
• Price to Earnings (P/E): 160.3
• Beta (1Y): 0.53
• Revenue Growth: -0.03%
• EPS Growth: -89.02%
• Country: JP
• Employees: 33,386
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 15.35
• Shares Outstanding: 166,358,400
• 10 Day Avg. Volume: 690,950
• 30 Day Avg. Volume: 683,906
• PEG Ratio: -0.81
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 0.91
• P/FCF Ratio: 24.62
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 0.76
• Enterprise Value/Gross Profit: 2.19
• Enterprise Value/Ebitda: 12.63
• 1Y Price Target: $4,529.22
• Price Target Upside: 4.77% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ¥4,141.00 ▼(-4.21% Downside)

TOTO's overall stock score is primarily driven by its solid financial performance, despite challenges in profitability. Technical analysis shows mixed signals, with no strong momentum. The high P/E ratio suggests overvaluation, which impacts the overall score negatively. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for TOTO's products and effective market penetration, supporting long-term business expansion.

Operational Margins

Healthy operational margins suggest TOTO's ability to manage costs efficiently, which supports sustainable profitability and competitive pricing.

Cash Flow Generation

Strong cash flow generation enhances TOTO's ability to reinvest in growth opportunities and maintain financial flexibility, ensuring long-term stability.

Negative Factors

Declining Net Income

Declining net income may indicate rising costs or inefficiencies, potentially impacting profitability and requiring strategic adjustments.

Debt Increase

An increase in debt levels could pressure TOTO's financial structure, affecting its ability to invest in growth and manage economic downturns.

Profitability Challenges

Challenges in converting profits to cash may limit TOTO's capacity to fund operations and growth initiatives, impacting long-term financial health.

TOTO Business Overview & Revenue Model

Company Description

Toto 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 Money

TOTO generates revenue through the sale of its extensive range of bathroom and kitchen products, with key revenue streams coming from the manufacturing and distribution of toilets, washlets, faucets, and other sanitary ware. The company also benefits from a strong presence in both domestic and international markets, with significant sales in North America, Europe, and Asia. Additionally, TOTO engages in strategic partnerships with construction firms, architects, and interior designers, which helps to secure large-scale contracts for commercial projects. The company's focus on innovation, such as the development of smart toilets and water-saving technologies, further enhances its market appeal and contributes to increased sales. Moreover, TOTO's commitment to sustainability and eco-friendly practices positions it favorably in a market that increasingly values environmentally responsible products.

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.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	725.69B	724.45B	702.28B	701.19B	645.27B	577.84B
Gross Profit	253.68B	254.07B	239.00B	242.97B	236.89B	212.50B
EBITDA	43.90B	59.67B	88.58B	80.53B	84.92B	64.14B
Net Income	9.73B	12.17B	37.20B	38.94B	40.13B	26.98B
Balance Sheet
Total Assets	770.44B	813.92B	790.25B	731.64B	641.02B	647.63B
Cash, Cash Equivalents and Short-Term Investments	92.59B	122.75B	103.55B	98.12B	90.54B	143.33B
Total Debt	24.65B	67.87B	67.89B	67.92B	38.04B	97.96B
Total Liabilities	262.41B	283.52B	279.70B	270.55B	227.66B	273.93B
Stockholders Equity	500.41B	522.28B	502.72B	453.80B	405.73B	367.03B
Cash Flow
Free Cash Flow	0.00	26.83B	18.17B	-4.75B	14.26B	15.82B
Operating Cash Flow	0.00	71.38B	76.31B	31.58B	49.36B	59.55B
Investing Cash Flow	0.00	-38.38B	-53.79B	-35.27B	-31.89B	-42.62B
Financing Cash Flow	0.00	-19.01B	-18.95B	8.78B	-75.77B	22.70B

TOTO Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4323.00
• 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:5332, the sentiment is Positive. The current price of 4323 is above the 20-day moving average (MA) of 4051.05, above the 50-day MA of 3975.80, and above the 200-day MA of 3809.36, indicating a bullish trend. The MACD of 90.58 indicates Negative momentum. The RSI at 67.40 is Neutral, neither overbought nor oversold. The STOCH value of 75.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5332.

TOTO Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5929	68 Neutral	¥835.31B	14.14	18.61%	2.98%	2.90%	36.64%
7943	66 Neutral	¥102.17B	30.55	―	3.62%	-0.58%	-46.15%
5930	66 Neutral	€134.69B	11.62	12.89%	3.45%	2.98%	41.11%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5332	62 Neutral	$623.83B	160.31	0.83%	2.34%	-0.03%	-89.02%
5943	56 Neutral	$83.88B	32.95	2.01%	3.65%	2.69%	1.74%
5938	49 Neutral	$496.45B	53.42	1.44%	4.93%	0.68%	―

TOTO Corporate Events

TOTO Ltd. Revises Financial Forecasts Amid Strong Q2 Performance

TOTO Ltd. announced a revision of its financial forecasts for the fiscal year ending March 2026, highlighting a stronger-than-expected performance in the second quarter due to robust sales in Asia and the semiconductor market. Despite a decrease in net sales forecast, the company experienced gains in operating profit and foreign exchange, leading to a positive adjustment in its interim results.

TOTO LTD. Reports Strong First-Half Results and Expands Advanced Ceramics Business

TOTO LTD. has announced its first-half results for the fiscal year ending March 2026, highlighting its strengths in the sanitary ware business and the development of advanced ceramics for semiconductor and display manufacturing equipment. The company’s core business, which is the remodeling sector, continues to drive growth without relying on new construction demand, and its focus on water efficiency and design positions it as a leader in the global housing equipment market.

TOTO Corporation Reports Decline in Six-Month Financial Results with Revised Forecasts

TOTO Corporation reported a decline in net sales and operating profit for the six months ended September 30, 2025, with a significant drop in profit attributable to owners of the parent. Despite these challenges, the company has revised its financial forecasts for the fiscal year ending March 31, 2026, indicating a slight increase in net sales and operating profit. This adjustment reflects TOTO’s strategic response to market conditions and its efforts to stabilize financial performance.