Toho Zinc Co (5707) AI Stock Analysis

• Market Cap: ¥22.53B
• Dividend Yield: N/A
• Average Volume (3M): 262.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.66
• Revenue Growth: -11.92%
• EPS Growth: 61.16%
• Country: JP
• Employees: 1,007
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -8.22
• 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: 48 Neutral
• Price Target: ¥1,642.00 ▲(134.57% Upside)

Overall score is constrained primarily by weak financial performance (net losses, high leverage, and low free cash flow). Technicals are a partial offset due to strong trend and positive MACD, but overbought momentum raises near-term risk. Valuation is also pressured by loss-making status (negative P/E) and no dividend yield data.

Positive Factors

Market position & diversification

Toho Zinc's integrated presence across mining, smelting and processing anchors a diversified revenue base across construction, automotive and electronics. That vertical integration and broad end-market exposure support steady demand and supply control, reducing single-sector cyclicality over months.

Recycling and sustainability

The company’s recycling capability provides a structural advantage: access to secondary feedstock, potential cost cushioning against raw material swings, and alignment with rising ESG and regulatory pressure. This supports sustainable margins and customer preference over a multi-month horizon.

Improving 2025 margins and cash flow trajectory

Reported margin improvement in 2025 alongside modest cash-flow gains indicates operational adjustments are taking hold. If sustained, improving margins and incremental operating cash flow enhance the firm's ability to service debt and invest, providing a durable path toward stabilization over coming quarters.

Negative Factors

Revenue decline trend

A multi-year revenue decline erodes scale and pricing leverage, challenging margin sustainability and investment capacity. Persistent top-line contraction makes it harder to absorb fixed costs and weakens competitive positioning if not reversed within several quarters.

Profitability weakness & negative ROE

Net losses and negative ROE signal the company is not generating returns on shareholder capital, limiting reinvestment and dividend prospects. Sustained unprofitability undermines long-term capital allocation flexibility and investor confidence if structural profitability drivers remain absent.

Leverage and weak free cash flow

Low free cash flow, combined with a high debt burden noted elsewhere in the balance sheet, constrains financial flexibility. Limited cash generation restricts debt repayment, capital spending and operational resilience, increasing refinancing and solvency risk over the medium term.

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

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

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Negative
• RSI: Negative
• STOCH: Negative

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 1015.40, below the 50-day MA of 828.32, and below the 200-day MA of 702.27, indicating a bullish trend. The MACD of 142.38 indicates Negative momentum. The RSI at 82.78 is Negative, neither overbought nor oversold. The STOCH value of 86.50 is Negative, 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	77 Outperform	¥178.92B	11.76	11.58%	1.62%	9.81%	30.20%
1515	75 Outperform	¥234.94B	23.56	6.77%	2.30%	8.19%	34.88%
5714	64 Neutral	¥525.05B	25.97	5.02%	2.12%	-7.98%	-42.51%
5711	63 Neutral	¥573.14B	38.50	2.14%	2.83%	-0.64%	-65.65%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5541	59 Neutral	¥51.57B	-71.48	―	9.18%	-35.81%	-138.00%
5707	48 Neutral	¥22.53B	-3.51	-111.61%	―	-11.92%	61.16%