TOTO (5332) AI Stock Analysis

• Market Cap: ¥971.34B
• Dividend Yield: 2.36%
• Average Volume (3M): 683.91K
• Price to Earnings (P/E): 205.7
• Beta (1Y): 0.62
• Revenue Growth: -0.03%
• EPS Growth: -89.02%
• Country: JP
• Employees: 33,386
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 119.18
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥5,557.12
• Price Target Upside: -9.09% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 191.88
• Revenue Forecast (FY): ¥734.67B

• Rating: 67 Neutral
• Price Target: ¥6,633.00 ▲(8.51% Upside)
• Action: Reiterated Date: 01/23/26
• Date: Action: Reiterated 01/23/26

The score is primarily supported by solid financial performance (revenue growth, healthy operating margins, and a strong balance sheet). Technicals are bullish but appear overextended, which adds near-term risk. The biggest constraint is valuation, as the very high P/E meaningfully drags the overall score despite a modest dividend yield.

Positive Factors

Revenue growth & margins

TOTO's consistent top-line expansion combined with healthy gross and operating margins demonstrates durable product pricing power and operational efficiency. This supports multi-quarter cash generation, funds reinvestment in product development, and sustained competitiveness in fixtures and sanitary ware markets.

Strong balance sheet

A high equity ratio and manageable leverage give TOTO financial flexibility to fund capital expenditures, R&D, or acquisitions without excessive refinancing risk. That structural strength provides a durable buffer in downturns and supports long-term strategic investments and payout stability.

Improving cash generation

Rising free cash flow and robust operating cash flow reflect improved capex management and stronger cash conversion from core operations. Sustained FCF enhances the company's ability to fund dividends, reduce debt, or reinvest in higher-margin product lines over several quarters.

Negative Factors

Falling profitability metrics

Declines in net income and ROE indicate weakening profitability and reduced efficiency in converting equity into returns. If persistent, this can limit capital available for growth initiatives, constrain dividend or share-return policies, and weaken shareholder value generation over the medium term.

Cash conversion concerns

A weaker FCF-to-net-income ratio suggests that reported earnings aren't fully translating to cash, possibly from working-capital or noncash items. This undermines funding flexibility for capex, dividends, or debt paydown and raises execution risk across upcoming quarters if not corrected.

Exposure to housing/construction cycle

TOTO's revenue mix tied to new construction and renovation exposes it to housing and macro cycles. Reductions in building activity or renovation spending during economic slowdowns can materially depress demand for fixtures and slow revenue growth over multiple quarters without further product or market diversification.

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

Financial statements indicate solid overall fundamentals: steady revenue growth and healthy operating margins, supported by a strong equity position and manageable leverage. Offsetting this, net income and ROE have declined, and cash conversion versus net income needs monitoring despite improved free cash flow.

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	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
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: 6113.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 6113 is above the 20-day moving average (MA) of 5826.45, above the 50-day MA of 5092.32, and above the 200-day MA of 4160.41, indicating a bullish trend. The MACD of 333.70 indicates Positive momentum. The RSI at 64.85 is Neutral, neither overbought nor oversold. The STOCH value of 53.42 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
7971	79 Outperform	¥42.94B	10.59	―	3.59%	6.91%	13.17%
5332	67 Neutral	¥971.34B	205.69	0.83%	2.36%	-0.03%	-89.02%
5943	67 Neutral	¥106.46B	33.11	2.01%	3.57%	2.69%	1.74%
6367	66 Neutral	¥5.83T	21.33	9.46%	1.52%	1.60%	5.80%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7820	55 Neutral	¥21.55B	-8.36	―	4.35%	-4.00%	-386.52%
5938	50 Neutral	¥527.50B	55.39	1.44%	4.80%	0.68%	―

TOTO Corporate Events

TOTO Revamps Board and Management to Speed Decisions Amid Market Shifts

TOTO has outlined a new board composition and management structure to be submitted to shareholders in June 2026, shifting greater authority to executive officers to speed up decision-making and business execution. The company will increase the proportion of independent outside directors, add new outside directors with experience in consumer services and international finance, and move several current directors into managing executive officer roles.

The governance overhaul responds to a rapidly changing environment marked by geopolitical and climate risks, evolving consumer behavior, and uneven performance across TOTO’s business lines. Management cited a sharp downturn in the Mainland China housing equipment business, weakening profitability in Japan, and robust growth in advanced ceramics as key factors behind the reorganization, which aims to better balance stakeholder interests and support the group’s long-term value creation.

The most recent analyst rating on (JP:5332) stock is a Buy with a Yen6815.00 price target. To see the full list of analyst forecasts on TOTO stock, see the JP:5332 Stock Forecast page.

TOTO Revamps Executive Lineup to Drive WILL2030 Transformation

TOTO Ltd. announced a comprehensive overhaul of its management and executive structure effective April 1, 2026, aligning its leadership roles with the “TOTO WILL2030” strategy that targets new value creation in lifestyles, society, and the environment by 2030. The president, Shinya Tamura, will oversee the housing equipment business and key corporate planning and audit functions, while senior managing executive officers will take charge of technology, customer quality, green materials, advanced ceramics, and corporate administrative divisions, including finance, HR, and risk management.

Managing executive officers will lead core product segments such as bathrooms, kitchens, faucets, and appliances, as well as supply chain management, Japan housing equipment, marketing, and overseas housing equipment businesses under the WILL2030 framework. A wide slate of executive officers, including several newly appointed leaders, will head major domestic branches, global business promotion, regional housing equipment divisions in China, Asia Oceania, and the Americas, and specialized divisions for sanitary ware, washlets, advanced ceramics, and production technology innovation.

The reorganization embeds WILL2030 themes into specific executive mandates such as demand chain and marketing innovation and management resource innovation, indicating that TOTO is tightly linking governance with strategic transformation. By consolidating divisional leadership with the presidencies of key subsidiaries and regional entities, the company aims to strengthen operational control, accelerate global business development, and enhance its competitive positioning in both domestic and international housing equipment markets.

The most recent analyst rating on (JP:5332) stock is a Buy with a Yen6815.00 price target. To see the full list of analyst forecasts on TOTO stock, see the JP:5332 Stock Forecast page.

TOTO Leverages Core Remodeling Business While Expanding into Advanced Ceramics for Semiconductors

TOTO reported that its core housing equipment business, built over more than a century and led by its remodeling-focused sanitary ware and WASHLET lines, remains the main driver of profitability and global growth, particularly in the Americas and Asia, even as it restructures its underperforming Mainland China operations. Alongside this, TOTO is advancing a high-margin new business in advanced ceramics, leveraging its sanitary ceramics know-how and efficient production systems to supply high-grade, high-durability, low-particle ceramic components such as electrostatic chucks and AD films to semiconductor manufacturing equipment makers serving logic and memory chip markets, positioning the company to benefit from demand in data centers, PCs, and smartphones.

The most recent analyst rating on (JP:5332) stock is a Hold with a Yen5260.00 price target. To see the full list of analyst forecasts on TOTO stock, see the JP:5332 Stock Forecast page.

TOTO Posts Slight Sales Growth but Lower Nine-Month Profit, Keeps Dividend and Full-Year Outlook Intact

TOTO reported consolidated net sales of ¥547.1 billion for the nine months ended December 31, 2025, a modest 0.9% year-on-year increase, while operating profit slipped 2.6% to ¥40.4 billion and profit attributable to owners of parent fell 21.6% to ¥28.5 billion, reflecting margin pressure despite stable revenues. The company’s equity ratio remained solid at 64.1% and total assets edged down versus the prior fiscal year-end, indicating a still-strong balance sheet, and TOTO maintained its annual dividend forecast of ¥100 per share for the fiscal year ending March 31, 2026. For the full year, it projects slight growth in net sales and operating profit and broadly flat ordinary profit, but a sharp rebound in profit attributable to owners of parent compared with the previous fiscal year, signaling an expectation of earnings recovery and continued shareholder returns despite recent profit softness.

The most recent analyst rating on (JP:5332) stock is a Hold with a Yen5260.00 price target. To see the full list of analyst forecasts on TOTO stock, see the JP:5332 Stock Forecast page.