Toho Zinc Co (5707) AI Stock Analysis

• Market Cap: ¥23.76B
• Dividend Yield: N/A
• Average Volume (3M): 262.07K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 2.34
• Revenue Growth: -11.92%
• EPS Growth: 61.16%
• Country: JP
• Employees: 1,007
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 104.50
• Shares Outstanding: 13,585,521
• 10 Day Avg. Volume: 331,360
• 30 Day Avg. Volume: 262,066
• PEG Ratio: 0.06
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 0.07
• P/FCF Ratio: 6.78
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: ¥1,556.00 ▲(122.29% Upside)
• Action: Upgraded Date: 01/27/26
• Date: Action: Upgraded 01/27/26

The score is held back primarily by weak financial performance (declining revenue, net losses, and high leverage) and a loss-driven negative P/E. These risks are partially offset by strong technical strength, with the stock trading well above key moving averages and showing positive momentum.

Positive Factors

Operating cash flow improvement

A reported slight improvement in operating cash flow in 2025 indicates the core smelting/refining operations are beginning to convert sales into cash more reliably. If sustained, stronger OCF enhances liquidity, funds working capital and maintenance capex, and reduces reliance on external financing during metal price cycles.

By-product recovery and recycling business

Diversified revenue from by-product recovery and recycling/environmental services provides durable non-commodity income streams. These activities capture value from minor/precious metals and service contracts, helping offset cyclical zinc/lead prices and supporting steadier margin and cash generation over multi-quarter horizons.

Margin recovery observed in 2025

Improved EBIT and net income margins in 2025 suggest operational cost controls or better throughput at plants. Sustained margin recovery increases earnings resilience to raw material and energy cost swings, improving the company's ability to absorb price volatility and support reinvestment or deleveraging over the medium term.

Negative Factors

Declining revenue trend

A multi-year decline in revenue from 2023 to 2025 points to structural demand or pricing pressure for core zinc/lead products. For a capital-intensive smelting business, shrinking top-line undermines scale economics, raises unit costs, and makes it harder to fund fixed costs and necessary plant investment without external support.

High leverage and weak equity base

Substantial leverage and a low equity base limit financial flexibility. High debt increases interest obligations and refinancing risk, especially in a cyclical commodity business. This constrains the company’s ability to invest in modernization or environmental upgrades and raises solvency risk if cash flows weaken.

Continued net losses and low free cash flow

Ongoing net losses and persistently low free cash flow impair the company's capacity to self-fund capex, repay debt, or build reserves. This forces reliance on external financing or asset sales, weakens credit metrics, and can limit strategic flexibility to navigate prolonged commodity downturns or fund growth initiatives.

Toho Zinc Co Business Overview & Revenue Model

Company Description

Toho Zinc Co. (5707) is a leading Japanese company specializing in the production and processing of non-ferrous metals, primarily zinc and its alloys. Established in 1949, the company operates in various sectors including mining, smelting, and recycling, with a commitment to sustainability and environmental responsibility. Its core products include zinc ingots, zinc alloys, and other metal products, catering to industries such as construction, automotive, and electronics.

How the Company Makes Money

Toho Zinc generates revenue primarily through the sale of its zinc products, including ingots and alloys, which are sold to various sectors such as construction, automotive, and electronics. The company also engages in the recycling of zinc and other non-ferrous metals, which provides an additional revenue stream. Key revenue drivers include global zinc prices, demand from industrial customers, and long-term contracts with major clients. Additionally, Toho Zinc benefits from partnerships with mining companies and other industry players, which enhance its supply chain and operational efficiency. The company's focus on sustainable practices and environmental stewardship may also attract investment and enhance its market position.

Toho Zinc Co Financial Statement Overview

Summary

Weak fundamentals: declining revenue from 2023 to 2025, continued net losses, high leverage and low equity base, and inconsistent cash generation despite a slight operating cash flow improvement in 2025.

Income Statement

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

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

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.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	118.25B	126.27B	130.80B	145.76B	124.28B	103.47B
Gross Profit	8.03B	13.20B	8.44B	12.36B	18.17B	13.44B
EBITDA	-3.02B	1.57B	-40.79B	6.29B	14.13B	12.21B
Net Income	-5.18B	-1.46B	-46.45B	794.00M	7.92B	5.51B
Balance Sheet
Total Assets	95.22B	99.30B	108.44B	143.00B	145.80B	113.64B
Cash, Cash Equivalents and Short-Term Investments	10.22B	20.98B	13.41B	9.54B	7.93B	5.93B
Total Debt	73.34B	73.53B	75.85B	66.42B	66.51B	49.97B
Total Liabilities	86.31B	89.21B	105.73B	92.48B	99.83B	72.17B
Stockholders Equity	8.90B	10.08B	2.71B	50.52B	45.96B	41.46B
Cash Flow
Free Cash Flow	1.31B	1.31B	-3.08B	5.39B	-10.00B	-518.00M
Operating Cash Flow	2.90B	2.90B	3.75B	11.01B	-5.18B	4.31B
Investing Cash Flow	-370.00M	-370.00M	-7.61B	-8.13B	-8.40B	45.00M
Financing Cash Flow	5.03B	5.03B	7.69B	-1.37B	15.57B	-6.61B

Toho Zinc Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 700.00
• 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:5707, the sentiment is Positive. The current price of 700 is below the 20-day moving average (MA) of 1621.95, below the 50-day MA of 1468.42, and below the 200-day MA of 885.75, indicating a bullish trend. The MACD of 45.36 indicates Positive momentum. The RSI at 58.77 is Neutral, neither overbought nor oversold. The STOCH value of 66.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5707.

Toho Zinc Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5715	76 Outperform	¥188.96B	13.60	11.58%	1.62%	9.81%	30.20%
5713	68 Neutral	$3.47T	35.98	1.33%	1.98%	3.15%	-63.65%
3036	68 Neutral	¥99.66B	16.04	―	2.98%	8.89%	102.20%
5711	66 Neutral	¥784.66B	36.87	2.14%	2.83%	-0.64%	-65.65%
5714	66 Neutral	¥687.26B	31.40	5.02%	2.12%	-7.98%	-42.51%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5707	53 Neutral	¥23.76B	12.57	-111.61%	―	-11.92%	61.16%