Toho Titanium Company (5727) AI Stock Analysis

• Market Cap: ¥89.89B
• Dividend Yield: 1.38%
• Average Volume (3M): 628.04K
• Price to Earnings (P/E): 26.1
• Beta (1Y): 1.22
• 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: 711,990
• 30 Day Avg. Volume: 628,043
• 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): 51.25
• Revenue Forecast (FY): ¥99.80B

• Rating: 57 Neutral
• Price Target: ¥1,427.00 ▼(-1.31% Downside)

Toho Titanium's overall stock score is driven by strong financial performance, despite high debt levels and cash flow volatility. Technical indicators show bearish momentum, and valuation metrics suggest the stock is overvalued, impacting the overall score negatively.

Toho Titanium Company Business Overview & Revenue Model

Company Description

Toho Titanium Company (5727) is a leading Japanese manufacturer specializing in titanium and titanium-related products. The company operates primarily in the aerospace, automotive, medical, and industrial sectors, providing high-quality titanium materials and components that are essential for various applications. Toho Titanium is recognized for its advanced metallurgical technology and commitment to innovation, which enables it to deliver a diverse range of products, including titanium ingots, bars, and sheets, as well as specialty alloys and powders.

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

Toho Titanium Company shows strong financial performance with significant revenue growth and healthy profitability margins. The balance sheet is robust with improved leverage ratios, although high debt levels pose a risk. Cash flow recovery is promising, but historical volatility needs careful 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	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: Negative
• Last Price: 1446.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 1446 is above the 20-day moving average (MA) of 1420.05, below the 50-day MA of 1548.23, and above the 200-day MA of 1277.59, indicating a bearish trend. The MACD of -80.07 indicates Positive momentum. The RSI at 33.38 is Neutral, neither overbought nor oversold. The STOCH value of 27.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥132.70B	8.72	11.58%	1.98%	9.81%	30.20%
5714	69 Neutral	$333.16B	15.33	5.02%	2.55%	-7.98%	-42.51%
5726	67 Neutral	¥95.16B	20.18	―	0.99%	-3.56%	-30.17%
5711	66 Neutral	¥390.89B	26.25	2.14%	3.21%	-0.64%	-65.65%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5727	57 Neutral	¥89.89B	26.13	5.78%	1.38%	0.82%	-1.72%
5541	56 Neutral	¥40.10B	―	―	9.52%	-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.