Toho Titanium Company (5727) AI Stock Analysis

• Market Cap: ¥132.45B
• Dividend Yield: 1.49%
• Average Volume (3M): 588.15K
• Price to Earnings (P/E): 38.5
• Beta (1Y): 1.30
• Revenue Growth: 0.82%
• EPS Growth: -1.72%
• Country: JP
• Employees: 1,195
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 5.55
• Shares Outstanding: 71,270,910
• 10 Day Avg. Volume: 472,330
• 30 Day Avg. Volume: 588,146
• PEG Ratio: -0.86
• Price to Book (P/B): 1.37
• Price to Sales (P/S): 0.90
• P/FCF Ratio: 11.53
• 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: 68 Neutral
• Price Target: ¥2,060.00 ▲(33.33% Upside)

The score is driven primarily by strong financial performance (rapid revenue growth, healthy margins, and improved free cash flow), partially offset by valuation risk (P/E 32.4 with only a 1.21% yield). Technicals show an established uptrend, but overbought indicators (RSI 77.3, Stoch 92.8) reduce the near-term technical score.

Positive Factors

Sustained Revenue Growth

The company’s multi-year revenue increase demonstrates durable demand for titanium across aerospace, automotive and medical sectors. Sustained top-line expansion supports capacity utilisation, underwriting continued investment in R&D and plant upgrades that reinforce long-term competitive position.

Healthy Gross Margins

An 18% gross margin and improving operating profitability indicate structural cost control and pricing power in specialty titanium products. Stable margins support resiliency through commodity cycles, enabling reinvestment in advanced metallurgy and preserving long-term cash generation capacity.

Recovered Free Cash Flow

The rebound to positive FCF and a stronger operating cash to net income ratio reflects improved cash conversion. Durable cash generation reduces reliance on external financing, funds capex for capacity or tech upgrades, and enhances ability to weather demand cycles over coming quarters.

Negative Factors

Significant Debt Levels

Meaningful outstanding debt increases interest and refinancing risk for a capital-intensive manufacturer. If cyclical demand softens or margins compress, debt servicing could constrain capital allocation, limit strategic flexibility and pressure free cash flow available for growth or shareholder returns.

Cash Flow Volatility

Past swings including negative FCF highlight volatility in working capital and pricing for titanium. Persistent variability can hamper consistent funding of capex and R&D, complicate forecasting, and increase reliance on debt or equity during downturns, weakening long-term financial resilience.

Earnings Volatility

A sharp decline in EPS and a reported net income drop despite revenue growth signals margin pressure or one-off costs. Continued earnings volatility undermines predictability of cash available for reinvestment or deleveraging, raising execution risk as the company scales specialty product lines.

Toho Titanium Company Business Overview & Revenue Model

Company Description

Toho Titanium Co., Ltd. manufactures and sells titanium metals, catalysts for propylene polymerization, and electronic materials in Japan. It offers titanium metals, such as titanium sponge, titanium ingots, titanium powder, and titanium products. The company also provides propylene polymerization catalysts for producing polypropylene. In addition, it offers electronic materials, including titanium dioxide for use in multi-layered ceramic capacitors (MLCC), positive temperature coefficient thermistors, dielectric filters, and piezo injector products, as well as an additive for optical lenses, and medicines and food; and ultra-fine nickel powder for use as an internal electrodes of MLCCs. Further, the company offers chemicals, such as titanium tetrachloride for the manufacture of titanium sponge, high purity titanium dioxide, barium titanate, polymerization catalyst, and titanium tetrachloride aqueous solutions; titanium tetrachloride aqueous solutions for use in cosmetics, pigments, and barium titanate applications; and potassium titanates. Additionally, it provides lanthanum lithium titanate ceramics for next generation battery application; and WEBTi, a porous titanium sheet for use in filter, electrode, noise absorber, and photocatalyst applications. The company was incorporated in 1948 and is headquartered in Chigasaki, Japan.

How the Company Makes Money

Toho Titanium generates revenue primarily through the production and sale of titanium and titanium-based products. The company’s core revenue streams include the manufacturing of titanium materials for aerospace applications, which is driven by the increasing demand for lightweight and durable materials in aircraft manufacturing. Additionally, the automotive and medical sectors contribute significantly to its earnings through the supply of titanium components for high-performance vehicles and medical implants. Strategic partnerships with key players in these industries enhance its market reach and support research and development initiatives, further solidifying Toho Titanium's position in the market. The company also benefits from fluctuations in titanium prices, which can impact its margins, and it continuously seeks to optimize production efficiencies to improve profitability.

Toho Titanium Company Financial Statement Overview

Summary

Strong top-line growth (revenue rising from 55.5B JPY in 2022 to 88.9B JPY by 2025) and healthy profitability (gross margin 18.0% in 2025) support the score. Balance sheet is solid with improving leverage and higher equity, but meaningful debt remains a risk. Cash flow has recovered (free cash flow 6.91B JPY in 2025), though prior volatility and earlier negative FCF temper the rating.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	89.77B	88.97B	78.40B	80.35B	55.52B	36.16B
Gross Profit	15.76B	16.05B	15.32B	21.32B	13.76B	8.79B
EBITDA	9.70B	13.21B	13.81B	17.35B	11.28B	3.02B
Net Income	2.78B	3.73B	4.95B	7.50B	3.69B	-3.16B
Balance Sheet
Total Assets	125.36B	124.78B	126.00B	111.43B	98.09B	91.15B
Cash, Cash Equivalents and Short-Term Investments	4.72B	4.60B	1.88B	3.42B	2.13B	2.53B
Total Debt	56.71B	53.04B	56.13B	44.59B	40.43B	39.37B
Total Liabilities	67.47B	66.45B	69.45B	58.15B	50.93B	46.69B
Stockholders Equity	57.90B	58.33B	56.55B	53.15B	47.03B	44.33B
Cash Flow
Free Cash Flow	0.00	6.91B	-11.29B	-1.20B	-794.00M	-7.04B
Operating Cash Flow	0.00	19.28B	-3.13B	5.29B	9.79B	1.40B
Investing Cash Flow	0.00	-11.63B	-8.01B	-6.76B	-10.43B	-8.39B
Financing Cash Flow	0.00	-4.93B	9.61B	2.73B	206.00M	6.83B

Toho Titanium Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1545.00
• 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:5727, the sentiment is Positive. The current price of 1545 is below the 20-day moving average (MA) of 1654.05, above the 50-day MA of 1429.10, and above the 200-day MA of 1372.67, indicating a bullish trend. The MACD of 124.84 indicates Negative momentum. The RSI at 74.49 is Negative, neither overbought nor oversold. The STOCH value of 80.59 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5715	77 Outperform	¥167.86B	11.04	11.58%	1.62%	9.81%	30.20%
5726	71 Outperform	¥84.56B	13.90	―	1.38%	-3.56%	-30.17%
5727	68 Neutral	¥132.45B	38.50	5.78%	1.49%	0.82%	-1.72%
5714	64 Neutral	¥548.26B	27.12	5.02%	2.12%	-7.98%	-42.51%
5711	63 Neutral	¥581.11B	39.03	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	¥51.09B	-70.80	―	9.18%	-35.81%	-138.00%

Toho Titanium Company Corporate Events

Toho Titanium Revises Financial Forecasts Amid Market Challenges

Toho Titanium has announced a revision of its financial forecasts for the fiscal year ending March 31, 2026, due to discrepancies between previously predicted and actual results for the first six months. The company experienced lower-than-expected net sales, primarily due to prolonged inventory adjustments in its titanium metal business and slower recovery in demand for its chemicals division. Despite this, operating and ordinary income figures are expected to align with prior forecasts, aided by the depreciation of the yen, which offsets some negative impacts.

The most recent analyst rating on (JP:5727) stock is a Hold with a Yen1661.00 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 Financial Performance for 2025

Toho Titanium Company reported a decrease in its financial performance for the six months ending September 30, 2025, with net sales and profits showing significant declines compared to the previous year. The company has revised its financial forecast for the fiscal year ending March 31, 2026, indicating expected reductions in net sales and profits, which may impact its market positioning and stakeholder interests.

The most recent analyst rating on (JP:5727) stock is a Hold with a Yen1661.00 price target. To see the full list of analyst forecasts on Toho Titanium Company stock, see the JP:5727 Stock Forecast page.