Toho Zinc Co (5707) AI Stock Analysis

• Market Cap: $8.72B
• Dividend Yield: N/A
• Average Volume (3M): 239.24K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.62
• Revenue Growth: -12.02%
• EPS Growth: 88.82%
• Country: JP
• Employees: 1,007
• Sector: Basic Materials
• Sector Strength: 57
• Industry: Industrial Materials
• EPS (TTM): -37.64
• Shares Outstanding: 13,585,521
• 10 Day Avg. Volume: 408,910
• 30 Day Avg. Volume: 239,243
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 9.59
• Enterprise Value/Revenue: 0.64
• Enterprise Value/Gross Profit: 5.54
• Enterprise Value/Ebitda: 9.02
• 1Y Price Target: $635.69
• Price Target Upside: -0.83% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 47 Neutral
• Price Target: ¥636.00 ▼(-0.78% Downside)

The overall stock score is primarily impacted by financial performance challenges, including high leverage and inconsistent cash flow. Technical analysis shows bearish trends, but potential bullish momentum could arise. Valuation is weak due to negative earnings and lack of dividends.

Toho Zinc Co Business Overview & Revenue Model

Company Description

Toho 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 Money

Toho 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

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	126.27B	130.80B	145.76B	124.28B	103.47B
Gross Profit	13.20B	8.44B	12.36B	18.17B	13.44B
EBITDA	1.57B	-40.79B	8.44B	14.82B	10.49B
Net Income	-1.46B	-46.45B	794.00M	7.92B	5.51B
Balance Sheet
Total Assets	99.30B	108.44B	143.00B	145.80B	113.64B
Cash, Cash Equivalents and Short-Term Investments	20.98B	13.41B	9.54B	7.93B	5.93B
Total Debt	73.53B	75.85B	66.42B	66.51B	49.97B
Total Liabilities	89.21B	105.73B	92.48B	99.83B	72.17B
Stockholders Equity	10.08B	2.86B	50.52B	45.96B	41.46B
Cash Flow
Free Cash Flow	1.31B	-3.08B	5.39B	-10.00B	-518.00M
Operating Cash Flow	2.90B	3.75B	11.01B	-5.18B	4.31B
Investing Cash Flow	-370.00M	-7.61B	-8.13B	-8.40B	45.00M
Financing Cash Flow	5.03B	7.69B	-1.37B	15.57B	-6.61B

Toho Zinc Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 641.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 641 is below the 20-day moving average (MA) of 720.35, below the 50-day MA of 707.60, and below the 200-day MA of 665.50, indicating a bearish trend. The MACD of -15.97 indicates Positive momentum. The RSI at 37.76 is Neutral, neither overbought nor oversold. The STOCH value of 12.59 is Positive, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5715	82 Outperform	€96.80B	5.13	15.20%	2.22%	7.28%	22.26%
1515	80 Outperform	€136.37B	16.26	5.92%	2.72%	12.71%	-1.52%
5711	71 Outperform	$332.04B	36.60	1.33%	3.96%	11.12%	-80.21%
Sector *	70 Outperform	¥183.51B	11.39	5.69%	3.04%	2.62%	-12.22%
5714	68 Neutral	¥301.98B	13.90	5.76%	2.93%	-9.15%	-31.58%
5541	48 Neutral	¥34.48B	―		6.80%	-21.40%	-637.50%
5707	47 Neutral	$8.72B	―	-82.83%	―	-12.02%	88.82%

Toho Zinc Co Corporate Events

Toho Zinc Reports Decline in Q1 2025 Financial Results

Toho Zinc Co. reported a significant decline in its financial performance for the three months ended June 30, 2025, with net sales dropping by 23% year-on-year and a notable operating loss. The company’s financial position weakened, with total assets and net assets decreasing compared to the previous quarter, indicating challenges in maintaining profitability and capital adequacy.

Toho Zinc Co. Aims to Meet TSE Prime Market Listing Criteria

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

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

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

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.