Toho Titanium Company (5727) AI Stock Analysis

• Market Cap: ¥216.37B
• Dividend Yield: 1.49%
• Average Volume (3M): 588.15K
• Price to Earnings (P/E): 78.6
• Beta (1Y): 1.49
• Revenue Growth: 0.82%
• EPS Growth: -1.72%
• Country: JP
• Employees: 1,195
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 18.50
• 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): 37.3
• Revenue Forecast (FY): ¥84.60B

• Rating: 67 Neutral
• Price Target: ¥3,298.00 ▲(113.46% Upside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is primarily supported by strong financial performance (solid growth and margins) and bullish technical momentum (price above major moving averages). These positives are tempered by expensive valuation (very high P/E and low yield) and overbought technical readings that increase pullback risk.

Positive Factors

Revenue Growth Trajectory

Sustained top-line expansion from 55.5B to 88.9B JPY through 2025 indicates improving market penetration and higher shipment volumes. Over 2-6 months this trend supports scale advantages, stronger bargaining power with suppliers and customers, and more predictable capacity utilization for capital planning.

Healthy Profit Margins

An 18% gross margin and positive EBIT/EBITDA reflect durable operational efficiency and cost control. These margins provide a structural buffer against input-cost swings common in materials, enabling reinvestment in process improvements and R&D for higher-purity products used in aerospace and specialized industrial markets.

Improved Equity & Cash Generation

A stronger equity base and recovered free cash flow to 6.91B JPY enhance financial flexibility for capex and working capital. Over the medium term, this reduces reliance on external financing, supports qualification cycles with customers, and underpins investment in high-purity and catalyst businesses that drive durable revenue streams.

Negative Factors

Meaningful Debt Levels

Persistently material debt on the balance sheet limits strategic flexibility and raises refinancing risk if market conditions shift. For a capital-intensive titanium producer, elevated debt increases vulnerability to cyclical downturns and can constrain funding for modernization or capacity expansion over the next several quarters.

Cash Flow Volatility

Prior periods of negative free cash flow and volatile cash conversion indicate earnings can be lumpy and sensitive to working capital, input costs, or shipment timing. This structural volatility complicates consistent reinvestment, dividend policy, and creates potential funding needs during weaker demand cycles.

Earnings / EPS Instability

Sharp EPS contraction and a drop in net income signal profitability sensitivity to market and cost dynamics. This undermines earnings predictability for industrial customers and investors, and may reflect exposure to cyclical aerospace/industrial demand or one-off items that could persist over multiple quarters.

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 revenue growth and healthy profitability margins support the score, with improved leverage and a stable equity base. Offsetting factors include still-meaningful debt and historically volatile cash flow despite a recent free-cash-flow recovery.

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	Mar 2025	Mar 2024	Mar 2024	Mar 2023	Mar 2022
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 2020.55, below the 50-day MA of 1745.56, and above the 200-day MA of 1481.50, indicating a bullish trend. The MACD of 213.22 indicates Negative momentum. The RSI at 85.73 is Negative, neither overbought nor oversold. The STOCH value of 100.00 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
5726	71 Outperform	¥124.20B	22.86	―	1.38%	-3.56%	-30.17%
5713	68 Neutral	¥3.59T	35.98	1.33%	1.98%	3.15%	-63.65%
3036	68 Neutral	¥98.00B	16.04	―	2.98%	8.89%	102.20%
5727	67 Neutral	¥216.37B	78.62	5.78%	1.49%	0.82%	-1.72%
5711	66 Neutral	¥797.33B	36.87	2.14%	2.83%	-0.64%	-65.65%
5714	66 Neutral	¥703.92B	31.40	5.02%	2.12%	-7.98%	-42.51%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Toho Titanium Company Corporate Events

JX Advanced Metals to Take Toho Titanium Private in Simplified Share Exchange

JX Advanced Metals Corporation and Toho Titanium Co., Ltd. have agreed to integrate their businesses via a share exchange that will make Toho Titanium a wholly owned subsidiary of JX Advanced Metals. The boards of both companies have approved a share exchange and business integration agreement, with Toho Titanium shareholders scheduled to vote on the deal on April 24, 2026.

The transaction will proceed as a simplified share exchange on JX Advanced Metals’ side under Japan’s Companies Act, avoiding the need for its own shareholder meeting. Ahead of the planned June 1, 2026 effective date, Toho Titanium intends to delist from the Tokyo Stock Exchange Prime Market on May 28, 2026, a move that will concentrate ownership under JX Advanced Metals and remove Toho Titanium from public markets.

The most recent analyst rating on (JP:5727) stock is a Hold with a Yen2066.00 price target. To see the full list of analyst forecasts on Toho Titanium Company stock, see the JP:5727 Stock Forecast page.

Toho Titanium Sets Record Date for Vote on Becoming Wholly Owned Subsidiary of JX Advanced Metals

Toho Titanium has set March 12, 2026, as the record date to determine shareholders eligible to vote at an extraordinary general meeting scheduled for April 24, 2026. Only shareholders recorded in the final shareholder register on that date will be entitled to exercise voting rights, with notice of the record date being provided by electronic public announcement on the company’s website.

At the April meeting, Toho Titanium plans to seek shareholder approval of a share exchange agreement that will make it a wholly owned subsidiary of JX Advanced Metals Corporation. The proposed transaction, part of a broader business integration between the two companies, marks a significant strategic shift in ownership structure that could reshape Toho Titanium’s governance, integration synergies, and positioning within the advanced materials market.

The most recent analyst rating on (JP:5727) stock is a Hold with a Yen2066.00 price target. To see the full list of analyst forecasts on Toho Titanium Company stock, see the JP:5727 Stock Forecast page.

Toho Titanium Posts Lower Profits for Nine Months, Changes Inventory Valuation Method

Toho Titanium reported consolidated financial results for the nine months ended December 31, 2025, showing declines across key profit metrics despite solid sales levels. Net sales fell to ¥61.3 billion from ¥65.8 billion year-on-year, while operating income dropped to ¥2.9 billion, ordinary income to ¥3.2 billion, and net income to ¥2.0 billion, reflecting weaker profitability amid a slightly stronger yen on average. The company also changed its inventory valuation from the FIFO method to a moving average method and retroactively adjusted prior-period figures, a shift that may alter the volatility and comparability of future earnings and is relevant for investors assessing underlying performance trends.

The most recent analyst rating on (JP:5727) stock is a Hold with a Yen2071.00 price target. To see the full list of analyst forecasts on Toho Titanium Company stock, see the JP:5727 Stock Forecast page.

Toho Titanium Posts Profit Decline but Keeps Full-Year Forecast and Higher Dividend Plan

Toho Titanium reported consolidated net sales of ¥61.3 billion for the nine months to 31 December 2025, down 6.8% year on year, with operating profit falling 39.2% to ¥2.93 billion and profit attributable to owners of parent dropping 42.0% to ¥2.02 billion. Despite the earnings deterioration, the company’s financial position remained stable, with total assets edging up to ¥126.0 billion and an unchanged equity ratio of 46.8%, while it confirmed an unchanged full-year forecast calling for an 8.6% decline in sales and a more than 50% slide in net profit, and maintained its plan to raise the annual dividend to ¥18 per share, signaling a commitment to shareholder returns even amid weaker profitability.

The most recent analyst rating on (JP:5727) stock is a Hold with a Yen2071.00 price target. To see the full list of analyst forecasts on Toho Titanium Company stock, see the JP:5727 Stock Forecast page.