Toho Zinc Co (5707) AI Stock Analysis

• Market Cap: ¥22.17B
• Dividend Yield: N/A
• Average Volume (3M): 262.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.37
• 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: 53 Neutral
• Price Target: ¥1,570.00 ▲(124.29% Upside)

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

Diversified revenue streams (by-products & recycling)

Toho Zinc's business includes core zinc/lead products plus by-product recovery and environmental/recycling services. These complementary revenue streams reduce reliance on a single commodity cycle, provide higher-margin recovery opportunities, and create recurring services revenue that supports steadier cash flow over months.

Operating cash flow improvement in 2025

A measurable improvement in operating cash flow in 2025 suggests operational adjustments or better working capital management. Sustained OCF improvement strengthens the company’s ability to fund maintenance capex, service debt, and support recycling business investments over the medium term without relying exclusively on external financing.

Margin recovery (EBIT & gross profit) in 2025

Recovery in gross profit and EBIT margins indicates improved cost control or better input/realization dynamics. If these margin gains persist, they can materially enhance resilience to metal price swings and enable reinvestment into efficiency or environmental initiatives, supporting medium-term profitability.

Negative Factors

Declining revenue and net losses

A multi-year revenue decline paired with ongoing net losses erodes scale economics and reduces funds available for strategic investment. Persisting top-line contraction makes it harder to leverage fixed-cost operations typical in smelting, prolongs recovery timelines, and heightens execution risk over the next several quarters.

High leverage and low equity base

Substantial leverage and a low equity base constrain financial flexibility and increase vulnerability to commodity price volatility. High debt servicing needs can crowd out capex or environmental investments, raise refinancing risk, and amplify earnings volatility, limiting strategic options over a multi-month horizon.

Low free cash flow and inconsistent cash generation

Persistent low free cash flow and inconsistent conversion from earnings to cash undermine the company's ability to self-fund growth or delever. This raises the likelihood of recurring external financing, which could be costly or dilutive, and restricts steady investment in operational upgrades or recycling expansion.

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	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: Neutral
• 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 Neutral. The current price of 700 is below the 20-day moving average (MA) of 1679.05, below the 50-day MA of 1178.48, and below the 200-day MA of 799.61, indicating a neutral trend. The MACD of 122.52 indicates Positive momentum. The RSI at 50.96 is Neutral, neither overbought nor oversold. The STOCH value of 20.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥182.73B	12.01	11.58%	1.62%	9.81%	30.20%
1515	74 Outperform	¥317.87B	31.88	6.77%	2.30%	8.19%	34.88%
5714	64 Neutral	¥570.39B	28.21	5.02%	2.12%	-7.98%	-42.51%
5711	63 Neutral	¥610.90B	41.03	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	¥55.12B	-72.30	―	9.18%	-35.81%	-138.00%
5707	53 Neutral	¥22.17B	-3.24	-111.61%	―	-11.92%	61.16%