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TOTO Ltd (JP:5332)
:5332

TOTO (5332) AI Stock Analysis

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JP

TOTO

(OTC:5332)

Rating:57Neutral
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 (5332) vs. iShares MSCI Japan ETF (EWJ)

TOTO Business Overview & Revenue Model

Company DescriptionTOTO 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 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.
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.
Breakdown
TTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
719.82B724.45B702.28B701.19B645.27B580.93B
Gross Profit
254.28B254.07B239.00B242.97B236.89B212.50B
EBIT
51.36B48.48B42.77B49.12B52.18B41.35B
EBITDA
84.00B59.67B88.58B80.53B79.12B66.58B
Net Income Common Stockholders
47.10B12.17B37.20B38.94B40.13B26.98B
Balance SheetCash, Cash Equivalents and Short-Term Investments
81.91B122.75B103.55B98.12B90.54B143.33B
Total Assets
513.81B813.92B790.25B731.64B641.02B647.63B
Total Debt
27.00B67.87B67.89B67.92B38.04B97.96B
Net Debt
-41.90B-54.88B-35.66B-30.20B-52.50B-45.37B
Total Liabilities
232.43B283.52B279.70B270.55B227.66B273.93B
Stockholders Equity
273.85B522.28B502.72B453.80B405.73B367.03B
Cash FlowFree Cash Flow
0.0026.83B18.17B-4.75B14.26B15.82B
Operating Cash Flow
0.0071.38B76.31B31.58B49.36B59.55B
Investing Cash Flow
0.00-38.38B-53.79B-35.27B-31.89B-42.62B
Financing Cash Flow
0.00-19.01B-18.95B8.78B-75.77B22.70B

TOTO Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3672.00
Price Trends
50DMA
3671.52
Positive
100DMA
3738.36
Negative
200DMA
4088.19
Negative
Market Momentum
MACD
-26.10
Positive
RSI
48.30
Neutral
STOCH
25.83
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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥143.42B11.5412.17%3.60%3.32%21.23%
76
Outperform
$1.11T19.3018.79%1.99%8.39%34.99%
71
Outperform
¥111.30B38.74
3.76%3.98%-64.82%
67
Neutral
$82.92B15.854.31%3.47%3.21%
66
Neutral
$4.49B12.345.40%248.65%4.13%-12.33%
57
Neutral
$606.88B49.912.34%2.60%3.16%-67.29%
57
Neutral
¥466.81B233.140.35%5.26%1.45%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5332
TOTO
3,672.00
-1.67
-0.05%
JP:7943
Nichiha Corporation
3,005.00
-323.01
-9.71%
JP:5930
Bunka Shutter Co., Ltd.
2,173.00
514.75
31.04%
JP:5929
Sanwa Holdings
5,005.00
2,196.76
78.23%
JP:5938
LIXIL Group
1,624.50
18.46
1.15%
JP:5943
Noritz
1,895.00
193.47
11.37%

TOTO Corporate Events

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.