Toyo Seikan Group Holdings (5901) AI Stock Analysis

• Market Cap: ¥510.84B
• Dividend Yield: 2.71%
• Average Volume (3M): 420.89K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.47
• Revenue Growth: -0.06%
• EPS Growth: 137.47%
• Country: JP
• Employees: 19,673
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Packaging & Containers
• EPS (TTM): 116.02
• Shares Outstanding: 153,162,160
• 10 Day Avg. Volume: 365,990
• 30 Day Avg. Volume: 420,890
• PEG Ratio: 6.09
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.44
• P/FCF Ratio: 6.76
• 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): 29,889.7
• Revenue Forecast (FY): ¥10.00T>

• Rating: 79 Outperform
• Price Target: ¥4,364.00 ▲(30.00% Upside)

Toyo Seikan Group Holdings scores well due to strong technical indicators and a solid financial foundation. The stock's low P/E ratio and attractive dividend yield further enhance its appeal. While revenue growth challenges exist, the company's effective leverage management and robust equity position provide a strong base for future performance.

Positive Factors

Strong Balance Sheet

A strong balance sheet with a favorable debt-to-equity ratio indicates prudent financial management, providing stability and flexibility for future investments.

Cash Flow Management

Efficient cash flow management enhances the company's ability to fund operations and growth initiatives, reducing reliance on external financing.

Profitability

Stable profitability metrics reflect the company's ability to manage costs and maintain pricing power, supporting long-term financial health.

Negative Factors

Revenue Growth Challenges

Challenges in revenue growth may indicate market saturation or competitive pressures, potentially impacting future earnings potential.

Free Cash Flow Volatility

Volatility in free cash flow can hinder the company's ability to consistently fund operations and strategic initiatives, posing a risk to financial stability.

Revenue Decline

A decline in revenue may suggest operational inefficiencies or adverse market conditions, potentially affecting long-term growth prospects.

Toyo Seikan Group Holdings Business Overview & Revenue Model

Company Description

Toyo Seikan Group Holdings (5901) is a leading Japanese company specializing in the manufacturing and marketing of packaging solutions, particularly metal and plastic containers for the food and beverage industry. The company operates in various sectors, including packaging, container manufacturing, and related equipment. Its core product offerings include cans, bottles, and packaging materials designed to meet the needs of both domestic and international markets.

How the Company Makes Money

Toyo Seikan Group Holdings generates revenue primarily through the sale of its packaging products, which serve a wide range of industries, including food, beverages, and household goods. The company has established key revenue streams through its extensive portfolio of metal and plastic packaging solutions. Additionally, it benefits from long-term contracts and partnerships with major food and beverage companies, ensuring a steady demand for its products. The company's focus on innovation and sustainability in packaging also contributes to its earnings, as it meets the growing consumer and regulatory demand for environmentally friendly solutions. Overall, the combination of diverse product offerings, strategic partnerships, and a commitment to quality positions Toyo Seikan for continued financial success.

Toyo Seikan Group Holdings Financial Statement Overview

Summary

Toyo Seikan Group Holdings presents a solid financial position with stable profitability and a strong balance sheet. The company has demonstrated resilience in maintaining its margins and improving its cash flow management after a difficult period. While revenue growth has faced some challenges, the effective management of leverage and robust equity position provide a strong foundation for future growth.

Income Statement

Toyo Seikan Group Holdings has shown a stable gross profit margin and has managed to maintain a relatively consistent net profit margin over the years. Despite a slight decrease in revenue for the latest period, the company has managed to keep its EBIT and EBITDA margins stable. There is a notable dip in revenue growth rate between 2024 and 2025, which could indicate some challenges in market conditions or operational efficiency. However, the overall profitability remains solid.

Balance Sheet

The company exhibits a strong equity position with a favorable debt-to-equity ratio, showing a prudent approach to leverage. Return on equity is healthy, indicating effective management of shareholder funds. The equity ratio is strong, reflecting a robust balance sheet. Although there is an increase in total debt, it remains manageable given the company's equity base.

Cash Flow

Toyo Seikan Group Holdings has seen a positive trend in free cash flow growth after a challenging period in 2023. The operating cash flow to net income ratio is robust, indicating efficient cash conversion. However, fluctuations in free cash flow, particularly the significant negative figure in 2023, highlight potential volatility in cash flow generation. The company has since improved its cash flow management, which is a positive sign.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	932.79B	922.52B	950.66B	906.02B	821.57B	748.72B
Gross Profit	124.52B	122.54B	119.61B	86.53B	108.86B	108.84B
EBITDA	101.40B	92.73B	93.26B	60.33B	112.19B	72.10B
Net Income	27.59B	22.39B	23.08B	10.36B	44.42B	15.95B
Balance Sheet
Total Assets	1.18T	1.20T	1.18T	1.17T	1.08T	1.04T
Cash, Cash Equivalents and Short-Term Investments	104.46B	119.84B	90.02B	99.70B	126.45B	117.49B
Total Debt	216.64B	226.29B	189.57B	179.34B	107.45B	126.37B
Total Liabilities	499.94B	506.79B	483.10B	493.88B	417.99B	384.44B
Stockholders Equity	649.75B	666.97B	665.16B	643.05B	637.35B	625.84B
Cash Flow
Free Cash Flow	0.00	60.44B	10.75B	-82.84B	26.76B	14.07B
Operating Cash Flow	0.00	94.06B	64.58B	-18.86B	75.42B	79.33B
Investing Cash Flow	0.00	-51.11B	-52.44B	-57.04B	-27.17B	-68.41B
Financing Cash Flow	0.00	-18.77B	-27.81B	41.53B	-42.19B	-16.34B

Toyo Seikan Group Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3357.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5901, the sentiment is Positive. The current price of 3357 is below the 20-day moving average (MA) of 3662.25, below the 50-day MA of 3493.61, and above the 200-day MA of 2962.98, indicating a bullish trend. The MACD of 87.13 indicates Negative momentum. The RSI at 63.57 is Neutral, neither overbought nor oversold. The STOCH value of 91.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5901.

Toyo Seikan Group Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3950	82 Outperform	¥74.79B	12.41	―	6.79%	2.85%	-9.13%
5901	79 Outperform	¥510.84B	13.49	6.55%	2.71%	-0.06%	137.47%
7917	78 Outperform	¥86.80B	12.24	7.53%	3.08%	5.44%	45.99%
7864	78 Outperform	$149.80B	11.46	10.46%	2.39%	4.56%	49.23%
5902	76 Outperform	¥26.11B	8.53	―	4.40%	-1.28%	30.53%
7942	73 Outperform	¥69.19B	11.37	―	3.45%	0.83%	-9.16%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Toyo Seikan Group Holdings Corporate Events

Toyo Seikan Reports Strong First Half Fiscal 2025 Results

Toyo Seikan Group Holdings reported a significant increase in its financial performance for the first half of fiscal 2025, with net sales rising by 4.3% and profit attributable to owners of the parent surging by 177% year-on-year. The company also announced an increase in its annual dividend per share, reflecting its strong financial health and commitment to returning value to shareholders.

Toyo Seikan to Cancel 10 Million Treasury Shares

Toyo Seikan Group Holdings has announced a resolution to cancel 10 million of its treasury shares, which constitutes 6.1% of the total shares issued before the cancellation. This strategic move, scheduled for October 6, 2025, is expected to optimize the company’s capital structure and potentially enhance shareholder value.

Toyo Seikan Completes Share Repurchase Program

Toyo Seikan Group Holdings has concluded its share repurchase program, which was initiated following a Board resolution in February 2025. The company successfully purchased over 10 million shares, spending nearly 30 billion yen, indicating a strategic move to enhance shareholder value and optimize capital structure.