tiprankstipranks
Trending News
More News >
Toho Titanium Company (JP:5727)
:5727
Advertisement

Toho Titanium Company (5727) AI Stock Analysis

Compare
0 Followers

Top Page

JP:5727

Toho Titanium Company

(OTC:5727)

Rating:77Outperform
Price Target:
¥1,554.00
▲(12.20%Upside)
Toho Titanium's stock scores well due to strong financial performance and positive technical indicators. However, a high P/E ratio and moderate dividend yield slightly offset the overall positive outlook. The absence of recent earnings call insights or new corporate events maintains focus on existing strengths.

Toho Titanium Company (5727) vs. iShares MSCI Japan ETF (EWJ)

Toho Titanium Company Business Overview & Revenue Model

Company DescriptionToho Titanium Company (5727) is a Japanese corporation primarily engaged in the production and sale of titanium and titanium-related products. The company operates in several sectors, including the production of titanium sponge, titanium ingots, and fabricated titanium products. It serves a diverse range of industries, such as aerospace, automotive, chemical, and consumer electronics, providing high-quality titanium materials essential for manufacturing processes that require strength, durability, and light weight.
How the Company Makes MoneyToho Titanium Company makes money through the production and sale of titanium products. The company's primary revenue model involves manufacturing titanium sponge, which is a raw material for producing titanium ingots and other fabricated titanium products. These products are then sold to various industries such as aerospace, where lightweight and strong materials are critical, and to the chemical industry for corrosion-resistant applications. Key revenue streams include contracts with manufacturers in the aerospace and automotive sectors, as well as partnerships with chemical companies that require titanium for their production processes. The company's earnings are bolstered by its ability to produce high-purity titanium efficiently, maintaining competitive pricing and strong relationships with industrial clients.

Toho Titanium Company Financial Statement Overview

Summary
Toho Titanium Company has demonstrated strong revenue growth, effective cost management, and operational efficiency. The balance sheet shows improved leverage management and a stable capital structure, though significant debt levels pose potential risks. Cash flow recovery is promising, but historical volatility requires careful management.
Income Statement
85
Very Positive
Toho Titanium Company has demonstrated a strong revenue growth trajectory, with a notable increase from 55.5 billion JPY in 2022 to 88.9 billion JPY by 2025. The gross profit margin has remained healthy, rising to 18.0% in 2025. Despite a drop in net income from 2024 to 2025, the overall performance in margins such as EBIT and EBITDA has been positive, showcasing effective cost management and operational efficiency.
Balance Sheet
72
Positive
The company's balance sheet reflects a robust equity position, with stockholders’ equity increasing to 58.3 billion JPY in 2025. The debt-to-equity ratio has improved, indicating better leverage management. However, total debt levels remain significant, posing a potential risk if not managed carefully. The equity ratio has been stable, suggesting a solid capital structure overall.
Cash Flow
67
Positive
Toho Titanium's cash flow statement highlights a commendable recovery in free cash flow, rising to 6.91 billion JPY in 2025. The operating cash flow to net income ratio has improved significantly, indicating enhanced cash generation capabilities. Nonetheless, historical fluctuations and a negative free cash flow in past years highlight potential volatility in cash management.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue88.97B78.40B80.35B55.52B36.16B
Gross Profit16.05B15.32B21.32B13.76B8.79B
EBITDA13.21B13.81B17.50B11.28B3.02B
Net Income3.73B4.95B7.50B3.69B-3.16B
Balance Sheet
Total Assets124.78B126.00B111.43B98.09B91.15B
Cash, Cash Equivalents and Short-Term Investments4.60B1.88B3.42B2.13B2.53B
Total Debt53.04B56.13B44.59B40.43B39.37B
Total Liabilities66.45B69.45B58.15B50.93B46.69B
Stockholders Equity58.33B56.55B53.15B47.03B44.33B
Cash Flow
Free Cash Flow6.91B-11.29B-1.20B-794.00M-7.04B
Operating Cash Flow19.28B-3.13B5.29B9.79B1.40B
Investing Cash Flow-11.63B-8.01B-6.76B-10.43B-8.39B
Financing Cash Flow-4.93B9.61B2.73B206.00M6.83B

Toho Titanium Company Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1385.00
Price Trends
50DMA
1246.10
Positive
100DMA
1142.42
Positive
200DMA
1085.86
Positive
Market Momentum
MACD
32.46
Negative
RSI
68.75
Neutral
STOCH
88.94
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5727, the sentiment is Positive. The current price of 1385 is above the 20-day moving average (MA) of 1306.75, above the 50-day MA of 1246.10, and above the 200-day MA of 1085.86, indicating a bullish trend. The MACD of 32.46 indicates Negative momentum. The RSI at 68.75 is Neutral, neither overbought nor oversold. The STOCH value of 88.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5727.

Toho Titanium Company Peers Comparison

Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
¥88.46B4.7814.23%1.64%6.88%19.15%
77
Outperform
¥98.57B35.484.87%1.30%7.37%-47.09%
72
Outperform
¥60.64B8.55
2.73%-6.16%-26.82%
71
Outperform
$306.69B9.005.00%4.26%27.35%14.36%
71
Outperform
¥175.80B10.396.20%3.17%3.62%-0.47%
68
Neutral
¥299.95B11.066.92%2.98%-5.37%-2.62%
48
Neutral
¥36.24B
7.27%-25.73%84.97%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5727
Toho Titanium Company
1,385.00
409.43
41.97%
JP:5541
Pacific Metals Co., Ltd.
1,858.00
784.87
73.14%
JP:5726
OSAKA Titanium Technologies Co., Ltd.
1,648.00
-116.24
-6.59%
JP:5715
Furukawa Co., Ltd.
2,440.00
1,039.27
74.19%
JP:5714
Dowa Holdings Co
5,041.00
846.75
20.19%
JP:5711
Mitsubishi Materials
2,347.50
215.74
10.12%

Toho Titanium Company Corporate Events

Toho Titanium Revises Financial Forecast Amid Currency Fluctuations
Aug 1, 2025

Toho Titanium Co., Ltd. has revised its financial forecast for the six months ending September 30, 2025, indicating a slight decrease in net sales due to lower sales volume from inventory adjustments in its chemicals business. However, the company expects an increase in income due to favorable currency exchange rates, particularly the depreciation of the yen. The company is maintaining its full-year forecast but may revise it based on ongoing market trends and currency fluctuations.

The most recent analyst rating on (JP:5727) stock is a Buy with a Yen1650.00 price target. To see the full list of analyst forecasts on Toho Titanium Company stock, see the JP:5727 Stock Forecast page.

Toho Titanium Reports Decline in Profits Despite Sales Growth
Aug 1, 2025

Toho Titanium Company reported its consolidated financial results for the three months ended June 30, 2025, showing a slight increase in net sales by 3.7% year-on-year. However, the company experienced a significant decline in operating profit, ordinary profit, and profit attributable to owners of the parent, with decreases of 53.5%, 80.3%, and 79.5% respectively. The company has also revised its financial results forecast for the fiscal year ending March 31, 2026, anticipating a decrease in operating profit and ordinary profit, despite a projected increase in net sales.

The most recent analyst rating on (JP:5727) stock is a Buy with a Yen1650.00 price target. To see the full list of analyst forecasts on Toho Titanium Company stock, see the JP:5727 Stock Forecast page.

Toho Titanium Introduces Restricted Stock Compensation System
Jun 19, 2025

Toho Titanium has announced the disposal of treasury stock as part of a new restricted stock compensation system aimed at enhancing corporate value and aligning interests with shareholders. This initiative involves granting restricted stock to executive directors, officers, and employees, with a minor dilution effect on the total issued shares, reflecting a strategic move to incentivize key personnel and strengthen stakeholder relationships.

The most recent analyst rating on (JP:5727) stock is a Buy with a Yen2000.00 price target. To see the full list of analyst forecasts on Toho Titanium Company stock, see the JP:5727 Stock Forecast page.

Toho Titanium Introduces New Executive Compensation System
May 14, 2025

Toho Titanium Co., Ltd. announced the introduction of a Restricted Stock Compensation System aimed at incentivizing executive directors by aligning their interests with shareholders and enhancing corporate value. This system, pending shareholder approval, will allocate restricted stock to directors, with specific conditions and restrictions on transfer, to promote long-term commitment and performance.

The most recent analyst rating on (JP:5727) stock is a Buy with a Yen2000.00 price target. To see the full list of analyst forecasts on Toho Titanium Company stock, see the JP:5727 Stock Forecast page.

Toho Titanium Announces Dividend Payout for Fiscal Year 2025
May 14, 2025

Toho Titanium Co., Ltd. has announced a dividend payout of 10 yen per share for the fiscal year ending March 2025, with total dividends amounting to 712 million yen. This decision reflects the company’s policy to align dividends with business performance, maintaining a payout ratio of 30-35% while ensuring stable returns for shareholders. The annual dividend for this period totals 18 yen per share, which is a decrease from the previous year’s 24 yen per share, due to the absence of a commemorative dividend.

The most recent analyst rating on (JP:5727) stock is a Buy with a Yen2000.00 price target. To see the full list of analyst forecasts on Toho Titanium Company stock, see the JP:5727 Stock Forecast page.

Toho Titanium Reports Strong Financial Growth for FY 2025
May 8, 2025

Toho Titanium Co., Ltd. reported a significant increase in its financial performance for the fiscal year ended March 2025, with net sales rising by 14.6% due to strong demand for sponge titanium in the aerospace sector and a recovery in catalysts and ultrafine nickel powder sales. The company’s operating profit, ordinary profit, and net income also saw improvements, aided by favorable exchange rate movements, indicating a positive impact on its operations and market positioning.

Toho Titanium Revises Dividend Forecast for FY 2025
May 8, 2025

Toho Titanium Co., Ltd. has revised its dividend forecast for the fiscal year ending March 31, 2025, increasing the year-end dividend per share from 8 yen to 10 yen, resulting in an annual cash dividend of 18 yen per share. This decision reflects a new dividend policy aimed at ensuring stable shareholder returns and supporting future growth, with a target payout ratio of 30-35% of consolidated net assets.

Toho Titanium Affirms Independence Amid Parent Company Control
May 8, 2025

Toho Titanium Co., Ltd. has announced details regarding its parent company, JX Advanced Metals Corporation, which holds a 50.41% stake in the company. Despite this significant ownership, Toho Titanium operates independently and ensures that transactions with its parent company are conducted fairly, protecting the interests of minority shareholders. The company has mechanisms in place, such as reviews by independent directors, to safeguard these interests.

Toho Titanium Reports Increased Sales but Declining Profits for FY 2025
May 8, 2025

Toho Titanium Company reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a 13.5% increase in net sales to ¥88,974 million. However, the company experienced a decline in ordinary profit and profit attributable to owners of the parent by 12.1% and 24.7% respectively. The company’s financial position remains stable with a slight increase in net assets and a capital adequacy ratio of 46.7%. Despite the challenges, the company maintains its dividend policy with a total annual dividend of ¥18.00 per share. The forecast for the next fiscal year indicates a modest growth in net sales but a decline in profits, reflecting ongoing challenges in the market.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 31, 2025