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Toho Zinc Co., Ltd. (JP:5707)
:5707
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Toho Zinc Co (5707) AI Stock Analysis

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Toho Zinc Co

(OTC:5707)

Rating:47Neutral
Price Target:
¥677.00
▼(-1.46%Downside)
Toho Zinc Co's overall stock score is primarily impacted by its financial performance challenges, including fluctuating revenues, net losses, and high leverage. The technical analysis indicates some positive momentum but is offset by valuation concerns due to the negative P/E ratio and lack of dividend yield. These factors collectively highlight significant risks but also potential for improvement if financial stability is achieved.

Toho Zinc Co (5707) vs. iShares MSCI Japan ETF (EWJ)

Toho Zinc Co Business Overview & Revenue Model

Company DescriptionToho Zinc Co. (5707) is a Japanese company primarily engaged in the production and sale of non-ferrous metals, with a focus on zinc. The company operates through various segments, including the zinc segment, which is involved in the smelting, refining, and sale of zinc and zinc alloys. Additionally, Toho Zinc engages in the production of lead, silver, and other related products, and provides environmental and recycling services, which are integral to its operations.
How the Company Makes MoneyToho Zinc Co. generates revenue primarily through the sale of refined zinc and zinc alloys, which are essential materials in various industries, including construction, automotive, and manufacturing. The company maintains smelting and refining facilities that process raw materials into high-purity zinc and other metals, which are then sold to industrial clients. Toho Zinc also earns income from its environmental and recycling services, which involve the recovery and sale of valuable metals from industrial waste. Partnerships with other companies and the development of efficient production technologies further support its financial performance by optimizing operations and reducing costs.

Toho Zinc Co Financial Statement Overview

Summary
Toho Zinc Co faces notable financial challenges characterized by inconsistent revenue and profit margins, high leverage, and unstable cash flow generation. Despite some short-term improvements, the company must address these issues to enhance financial stability and shareholder value.
Income Statement
45
Neutral
Toho Zinc Co has faced fluctuating revenues with a decline in total revenue from 2023 to 2025. Despite some improvements in EBIT and net income margins in 2025, the company still reported a net loss, reflecting challenges in profitability. The gross profit margin has shown some recovery in 2025, but past volatility indicates potential risk in revenue generation.
Balance Sheet
40
Negative
The company's debt-to-equity ratio remains high, indicating substantial leverage. Although total assets have decreased, stockholders' equity remains low compared to liabilities, affecting stability. Return on equity is negative due to net losses, which suggests inefficiency in generating returns for shareholders.
Cash Flow
50
Neutral
Toho Zinc Co's operating cash flow has improved slightly in 2025, but free cash flow remains low, indicating challenges in generating sufficient cash from operations. The operating cash flow to net income ratio has been inconsistent, reflecting uncertainty in cash generation relative to earnings.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue126.27B130.80B145.76B124.28B103.47B
Gross Profit13.20B8.44B12.36B18.17B13.44B
EBITDA1.57B-40.79B8.44B14.82B10.49B
Net Income-1.46B-46.45B794.00M7.92B5.51B
Balance Sheet
Total Assets99.30B108.44B143.00B145.80B113.64B
Cash, Cash Equivalents and Short-Term Investments20.98B13.41B9.54B7.93B5.93B
Total Debt73.53B75.85B66.42B66.51B49.97B
Total Liabilities89.21B105.73B92.48B99.83B72.17B
Stockholders Equity10.08B2.86B50.52B45.96B41.46B
Cash Flow
Free Cash Flow1.31B-3.08B5.39B-10.00B-518.00M
Operating Cash Flow2.90B3.75B11.01B-5.18B4.31B
Investing Cash Flow-370.00M-7.61B-8.13B-8.40B45.00M
Financing Cash Flow5.03B7.69B-1.37B15.57B-6.61B

Toho Zinc Co Technical Analysis

Technical Analysis Sentiment
Negative
Last Price687.00
Price Trends
50DMA
676.64
Positive
100DMA
629.53
Positive
200DMA
698.88
Negative
Market Momentum
MACD
6.64
Positive
RSI
49.78
Neutral
STOCH
54.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5707, the sentiment is Negative. The current price of 687 is below the 20-day moving average (MA) of 689.10, above the 50-day MA of 676.64, and below the 200-day MA of 698.88, indicating a neutral trend. The MACD of 6.64 indicates Positive momentum. The RSI at 49.78 is Neutral, neither overbought nor oversold. The STOCH value of 54.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5707.

Toho Zinc Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (70)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
€84.77B4.5814.23%0.85%6.88%19.15%
80
Outperform
€122.70B13.466.29%3.42%17.91%37.76%
70
Outperform
¥175.59B10.946.29%4.99%3.93%3.23%
70
Outperform
¥294.67B8.655.00%4.43%27.35%14.36%
68
Neutral
$283.95B10.476.92%3.14%-5.37%-2.62%
48
Neutral
¥34.23B
7.69%-25.73%84.97%
47
Neutral
¥9.33B-22.81%-3.47%96.86%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5707
Toho Zinc Co
687.00
-110.00
-13.80%
JP:5541
Pacific Metals Co., Ltd.
1,755.00
598.47
51.75%
JP:5715
Furukawa Co., Ltd.
2,338.00
583.47
33.25%
JP:1515
Nittetsu Mining Co., Ltd.
7,360.00
2,756.85
59.89%
JP:5714
Dowa Holdings Co
4,772.00
-604.68
-11.25%
JP:5711
Mitsubishi Materials
2,255.50
-472.48
-17.32%

Toho Zinc Co Corporate Events

Toho Zinc Co. Aims to Meet TSE Prime Market Listing Criteria
Jun 27, 2025

Toho Zinc Co., Ltd announced that it currently does not meet the criteria for continued listing on the Tokyo Stock Exchange Prime Market due to insufficient tradable share market capitalization. The company has outlined a plan to address this issue by March 31, 2026, to avoid delisting, including a recent capital increase and ongoing efforts to enhance corporate value.

Toho Zinc Exits Mineral Resources Business with Abra Share Transfer
Jun 16, 2025

Toho Zinc Co., Ltd. has completed its withdrawal from the mineral resources business by transferring its shares in Abra Mining Pty Ltd to Endurance Mining Pty Ltd, following Abra’s entry into Voluntary Administration and subsequent restructuring. This move, along with previous divestitures of the Endeavor and Rasp Mines, marks Toho Zinc’s full exit from mining operations, allowing the company to focus on its core and growth businesses. The financial impact of these transactions on the company’s results for the fiscal year ending March 31, 2026, is expected to be minimal.

Toho Zinc Co. Announces Capital Reduction for Financial Flexibility
Jun 6, 2025

Toho Zinc Co., Ltd has announced a proposal to reduce its share capital and legal capital surplus as part of its Business Revitalization Plan. This move aims to enhance the company’s financial flexibility without affecting the number of shares held by shareholders or the net assets per share, ensuring no impact on the company’s business performance.

Toho Zinc Co. Corrects Financial Results, Shows Improved Financial Health
May 30, 2025

Toho Zinc Co., Ltd. announced corrections to its consolidated financial results for the fiscal year ending March 31, 2025, due to errors in the calculation of per share information. The corrections reflect a more accurate financial position, with notable improvements in net assets and capital adequacy ratio compared to the previous year, indicating a positive shift in the company’s financial health.

Toho Zinc Co Reports FY2024 Financial Growth and Outlines FY2025 Outlook
May 15, 2025

Toho Zinc Co reported its financial results for FY2024, showing significant profit growth with revenue reaching 126.3 billion yen and a net income of ▲1.5 billion yen, surpassing the previous year’s figures. The company is undergoing a business revitalization plan, focusing on reorganizing or exiting unprofitable ventures while boosting core and growth businesses. For FY2025, Toho Zinc forecasts a revenue of 115.7 billion yen and a net income of 3.0 billion yen, driven by increased production in lead and silver smelting, but remains cautious of market fluctuations affecting profitability.

Toho Zinc Reports Improved Financial Results Amid Market Gains
May 15, 2025

Toho Zinc Co., Ltd. reported a difference between its forecasted and actual financial results for the fiscal year ending March 31, 2025. While net sales were close to expectations, operating income and ordinary profit exceeded forecasts due to gains in inventory sales and increased profits from rising zinc prices. The loss attributable to owners improved significantly due to additional deferred tax assets, reflecting a positive outlook on business performance trends.

Toho Zinc Co. Reports Improved Financial Performance for FY 2025
May 15, 2025

Toho Zinc Co., Ltd. reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a decrease in net sales by 3.5% compared to the previous year. Despite this, the company managed to improve its operating profit and ordinary profit, recovering from losses in the previous fiscal year, which indicates a positive shift in its financial performance. The company’s financial position also strengthened, with an increase in net assets and a higher capital adequacy ratio, suggesting improved stability and potential for future growth.

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 19, 2025