Toho Zinc Co (5707) AI Stock Analysis

• Market Cap: $9.44B
• Dividend Yield: N/A
• Average Volume (3M): 210.44K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.60
• Revenue Growth: -12.02%
• EPS Growth: 88.82%
• Country: JP
• Employees: 1,007
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -37.64
• Shares Outstanding: 13,585,521
• 10 Day Avg. Volume: 190,510
• 30 Day Avg. Volume: 210,436
• 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: 8.86
• Enterprise Value/Revenue: 0.71
• Enterprise Value/Gross Profit: 10.41
• Enterprise Value/Ebitda: -27.71
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 48 Neutral
• Price Target: ¥664.00 ▼(-7.00% Downside)

Toho Zinc Co's overall stock score is primarily impacted by its financial performance challenges, including high leverage and inconsistent cash flow. Technical analysis suggests some potential for recovery, but valuation concerns due to negative earnings and lack of dividends weigh heavily on the score.

Toho Zinc Co Business Overview & Revenue Model

Company Description

Toho Zinc Co., Ltd. engages in the smelting and refining, mineral resources, electronic components and materials, environment and recycling, and building materials businesses in Japan. The company offers electrolytic zinc, die-casting zinc alloys, zinc powder, cadmium oxide, sulfuric acid, electrolytic lead, lead alloys, and electrolytic silver and bismuth. It also operates zinc and lead mines; and produces iron and amorphous powders, as well as Fe-Al-Si based powder core materials for use in automotive electronics, office automation equipment, and industrial equipment. In addition, the company provides MAIRON and ATOMIRON electrolytic irons; gold, silver, nickel, tin, and reflow tin electro plates; and machine parts, such as balancing weights, powdered metallurgy products, molds, etc. Further, it recycles zinc oxide from electric furnace dust and small rechargeable batteries; and offers SOFT CALM sound insulation materials. Additionally, the company provides X-ray protection and shielding lead-based building materials for use by housing manufacturers, and medical and industrial fields. Toho Zinc Co., Ltd. was incorporated in 1937 and is headquartered in Tokyo, Japan.

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	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: 714.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 714 is above the 20-day moving average (MA) of 682.30, above the 50-day MA of 681.92, and above the 200-day MA of 630.89, indicating a bullish trend. The MACD of 9.19 indicates Negative momentum. The RSI at 52.17 is Neutral, neither overbought nor oversold. The STOCH value of 46.44 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	79 Outperform	¥105.58B	5.59	15.20%	1.98%	7.28%	22.26%
1515	76 Outperform	¥143.02B	17.03	5.92%	2.57%	12.71%	-1.52%
5714	69 Neutral	$337.32B	15.58	5.76%	2.69%	-9.15%	-31.58%
5711	66 Neutral	¥384.95B	42.44	1.33%	3.43%	11.12%	-80.21%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5541	56 Neutral	¥34.64B	―	―	9.79%	-21.40%	-637.50%
5707	48 Neutral	$9.44B	―	-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.