Toho Titanium Company (5727) AI Stock Analysis

• Market Cap: $87.47B
• Dividend Yield: 1.73%
• Average Volume (3M): 888.10K
• Price to Earnings (P/E): 23.5
• Beta (1Y): 1.20
• Revenue Growth: 13.48%
• EPS Growth: -24.74%
• Country: JP
• Employees: 1,195
• Sector: Industrials
• Sector Strength: 85
• Industry: Industrial Materials
• EPS (TTM): 7.17
• Shares Outstanding: 71,270,910
• 10 Day Avg. Volume: 1,528,320
• 30 Day Avg. Volume: 888,096
• PEG Ratio: 0.20
• Price to Book (P/B): 2.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -130.56
• 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: $1,649.94
• Price Target Upside: 34.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: ¥1,395.00 ▲(13.51%Upside)

Toho Titanium's overall stock score is driven by its strong financial performance and positive technical indicators. However, valuation concerns temper enthusiasm, particularly with a high P/E ratio and potential overbought technical signals. The lack of recent earnings call insights means no additional guidance impacts the score.

Toho Titanium Company Business Overview & Revenue Model

Company Description

Toho Titanium Company Ltd. is a Japan-based company primarily engaged in the production and sale of titanium metals and related products. Its core business sectors include titanium sponge, titanium ingots, and fabricated titanium products. The company serves a diverse range of industries, including aerospace, chemical, and industrial machinery, providing high-quality titanium materials known for their strength, light weight, and corrosion resistance.

How the Company Makes Money

Toho Titanium Company generates revenue through the manufacturing and sale of titanium products, which are used in various industrial applications. The company's primary revenue streams include the production of titanium sponge, which is a raw material for titanium products, titanium ingots, and fabricated products like plates and sheets. These products are sold to manufacturers in sectors such as aerospace, where titanium's lightweight and durable characteristics are crucial. Additionally, Toho Titanium may engage in strategic partnerships and collaborations to enhance its production capabilities and expand its market reach, contributing to its earnings.

Toho Titanium Company Financial Statement Overview

Summary

Toho Titanium Company exhibits strong financial performance, with impressive revenue growth and profitability margins. The balance sheet is solid with improved leverage ratios and a stable equity base, although debt levels require monitoring. Cash flow recovery is promising, but historical volatility suggests the need for cautious cash management.

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 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
87.72B	88.97B	78.40B	80.35B	55.52B	36.16B
	Gross Profit
16.42B	16.05B	15.32B	21.32B	13.76B	8.79B
	EBIT
6.19B	5.88B	5.63B	10.69B	5.23B	3.13B
	EBITDA
14.20B	13.21B	13.81B	17.50B	11.28B	3.02B
	Net Income Common Stockholders
5.12B	3.73B	4.95B	7.50B	3.69B	-3.16B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.36B	4.60B	1.88B	3.42B	2.13B	2.53B
	Total Assets
125.79B	124.78B	126.00B	111.43B	98.09B	91.15B
	Total Debt
54.79B	53.04B	56.13B	44.59B	40.43B	39.37B
	Net Debt
48.43B	48.44B	54.25B	41.18B	38.30B	36.83B
	Total Liabilities
67.91B	66.45B	69.45B	58.15B	50.93B	46.69B
	Stockholders Equity
57.88B	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: 1229.00
• 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:5727, the sentiment is Positive. The current price of 1229 is above the 20-day moving average (MA) of 1106.25, above the 50-day MA of 1028.54, and above the 200-day MA of 1056.26, indicating a bullish trend. The MACD of 41.76 indicates Negative momentum. The RSI at 65.41 is Neutral, neither overbought nor oversold. The STOCH value of 62.73 is Neutral, 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	81 Outperform	€80.05B	4.32	14.23%	0.91%	6.88%	19.10%
5714	68 Neutral	¥270.68B	9.98	6.92%	3.30%	-5.37%	-2.62%
5711	68 Neutral	$290.23B	8.52	5.00%	4.50%	27.35%	14.36%
Sector *	66 Neutral	$4.47B	12.21	5.40%	3.65%	4.14%	-12.00%
5727	65 Neutral	$87.47B	23.48	6.35%	1.73%	13.48%	-24.74%
5726	65 Neutral	¥53.14B	7.49		2.77%	-6.16%	-26.82%
5541	48 Neutral	¥33.51B	―		15.72%	-25.73%	84.97%

Toho Titanium Company Corporate Events

Toho Titanium Introduces New Executive Compensation System

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

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

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

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

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

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.