TOTO (5332) AI Stock Analysis

• Market Cap: $606.88B
• Dividend Yield: 2.6%
• Average Volume (3M): 854.58K
• Price to Earnings (P/E): 49.9
• Beta (1Y): 0.57
• Revenue Growth: 3.16%
• EPS Growth: -67.29%
• Country: JP
• Employees: 33,386
• Sector: Industrials
• Sector Strength: 90
• Industry: Construction
• EPS (TTM): -142.85
• Shares Outstanding: 176,981,300
• 10 Day Avg. Volume: 901,700
• 30 Day Avg. Volume: 854,576
• PEG Ratio: -6.44
• Price to Book (P/B): 1.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -157.72
• 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: $4,207.32
• Price Target Upside: 14.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 57 Neutral
• Price Target: ¥3,874.00 ▲(5.50%Upside)

The overall stock score is primarily influenced by solid financial performance, although profitability challenges and high valuation metrics restrain the score. The lack of momentum from technical and valuation perspectives further impacts the overall assessment.

TOTO Business Overview & Revenue Model

Company Description

TOTO Ltd. is a leading manufacturer in the sanitary ware industry, renowned for its innovative and high-quality bathroom products. The company operates primarily in the sectors of sanitary ware, plumbing fixtures, and related products, offering a diverse range of items including toilets, faucets, bathtubs, and washbasins. With a commitment to sustainability and design excellence, TOTO has established itself as a global leader in water efficiency and modern bathroom technology.

How the Company Makes Money

TOTO 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.

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 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
719.82B	724.45B	702.28B	701.19B	645.27B	580.93B
	Gross Profit
254.28B	254.07B	239.00B	242.97B	236.89B	212.50B
	EBIT
51.36B	48.48B	42.77B	49.12B	52.18B	41.35B
	EBITDA
84.00B	59.67B	88.58B	80.53B	79.12B	66.58B
	Net Income Common Stockholders
47.10B	12.17B	37.20B	38.94B	40.13B	26.98B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
81.91B	122.75B	103.55B	98.12B	90.54B	143.33B
	Total Assets
513.81B	813.92B	790.25B	731.64B	641.02B	647.63B
	Total Debt
27.00B	67.87B	67.89B	67.92B	38.04B	97.96B
	Net Debt
-41.90B	-54.88B	-35.66B	-30.20B	-52.50B	-45.37B
	Total Liabilities
232.43B	283.52B	279.70B	270.55B	227.66B	273.93B
	Stockholders Equity
273.85B	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: Neutral
• Last Price: 3672.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 3672 is below the 20-day moving average (MA) of 3727.60, above the 50-day MA of 3671.52, and below the 200-day MA of 4088.19, indicating a neutral trend. The MACD of -26.10 indicates Positive momentum. The RSI at 48.30 is Neutral, neither overbought nor oversold. The STOCH value of 25.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5332.

TOTO Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5930	79 Outperform	¥143.42B	11.54	12.17%	3.60%	3.32%	21.23%
5929	76 Outperform	$1.11T	19.30	18.79%	1.99%	8.39%	34.99%
7943	71 Outperform	¥111.30B	38.74		3.76%	3.98%	-64.82%
5943	67 Neutral	$82.92B	15.85	4.31%	3.47%	3.21%	―
Sector *	66 Neutral	$4.49B	12.34	5.40%	248.65%	4.13%	-12.33%
5332	57 Neutral	$606.88B	49.91	2.34%	2.60%	3.16%	-67.29%
5938	57 Neutral	¥466.81B	233.14	0.35%	5.26%	1.45%	―

TOTO Corporate Events

TOTO Ltd. Announces Share Repurchase Plan

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

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

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

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

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

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

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

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%.