Toyo Seikan Group Holdings (5901) AI Stock Analysis

• Market Cap: ¥516.76B
• Dividend Yield: 2.71%
• Average Volume (3M): 371.57K
• Price to Earnings (P/E): 10.1
• 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): 94.65
• Shares Outstanding: 153,162,160
• 10 Day Avg. Volume: 287,340
• 30 Day Avg. Volume: 371,573
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: ¥4,735.00 ▲(41.05% Upside)
• Action: Upgraded Date: 11/11/25
• Date: Action: Upgraded 11/11/25

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 robust equity ratio and favourable debt-to-equity imply prudent leverage and financial resilience. This balance-sheet strength supports capital spending, cushions cyclical demand in packaging, and preserves access to financing for capex or M&A over the next several months.

Stable margins

Consistent gross, net, and operating margins indicate durable pricing power and cost control across packaging lines. Margin stability helps sustain cash generation and profitability even if revenue growth stalls, supporting reinvestment and shareholder distributions.

Improving cash generation

An improving free cash flow trajectory and strong OCF-to-net-income conversion show the business is translating profits into cash. That enhances flexibility for dividends, targeted capex, and debt management, strengthening operational sustainability over months.

Negative Factors

Revenue growth weakness

A clear slowdown in top-line growth reduces operating leverage and constrains earnings upside. Persistent revenue softness in core food/beverage packaging could limit the firm's ability to expand margins, invest in new lines, or grow free cash flow without regaining organic demand.

Free cash flow volatility

Material swings in free cash flow—including a large negative in 2023—signal volatility from working capital, capex timing, or one-offs. Even with recent improvement, this variability raises execution risk for consistent capital allocation and makes planning for shareholder returns less predictable.

Rising total debt

An uptick in total debt, while currently manageable, increases leverage sensitivity to demand or margin shocks. If industry conditions deteriorate, higher debt could strain liquidity or limit strategic flexibility, making the company more exposed to macro or input-cost shifts.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Negative
• Last Price: 3357.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5901, the sentiment is Negative. The current price of 3357 is below the 20-day moving average (MA) of 3996.80, below the 50-day MA of 3930.34, and below the 200-day MA of 3438.13, indicating a neutral trend. The MACD of 2.83 indicates Positive momentum. The RSI at 38.05 is Neutral, neither overbought nor oversold. The STOCH value of 38.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
5901	79 Outperform	¥516.76B	10.13	6.55%	2.71%	-0.06%	137.47%
7917	77 Outperform	¥108.71B	7.99	7.53%	3.01%	5.44%	45.99%
3950	76 Outperform	¥78.26B	12.05	―	6.64%	2.85%	-9.13%
7942	73 Outperform	¥76.61B	5.78	―	3.31%	0.83%	-9.16%
5210	72 Outperform	¥33.14B	6.58	―	6.14%	-2.08%	-28.12%
7864	70 Outperform	¥151.28B	4.25	10.46%	2.35%	4.56%	49.23%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Toyo Seikan Group Holdings Corporate Events

Toyo Seikan Lifts Profit Outlook as Nine-Month Earnings Nearly Double

Toyo Seikan Group Holdings reported consolidated net sales of ¥721.5 billion for the first nine months of fiscal 2025, up 3.3% year on year, with operating income surging 33.8% to ¥41.0 billion and profit attributable to owners of parent almost doubling to ¥48.3 billion. Earnings per share rose to ¥316.66, supported in part by the finalization of a prior business consolidation, while the company’s equity ratio stayed robust at about 55%, indicating continued financial stability.

The group maintained its dividend stance, having already paid a ¥57 interim dividend and keeping its full-year dividend forecast at ¥114 per share, unchanged from prior guidance. It also revised its full-year earnings outlook, now forecasting ¥960 billion in net sales and a 117.9% jump in full-year profit to ¥49 billion, signaling improved profitability and potentially stronger returns for shareholders amid a modestly growing top line.

The most recent analyst rating on (JP:5901) stock is a Buy with a Yen4325.00 price target. To see the full list of analyst forecasts on Toyo Seikan Group Holdings stock, see the JP:5901 Stock Forecast page.

Toyo Seikan Launches Restricted Share Plan for Employees via Treasury Share Disposal

Toyo Seikan Group Holdings will introduce a new restricted share incentive plan for employees of the company and its subsidiaries via the Toyo Seikan Group Holdings Employee Shareholding Association, and will dispose of up to 738,300 treasury shares through a third-party allotment to the association, with an estimated total value of about ¥2.83 billion at an allotment price of ¥3,830 per share. The scheme is designed to tie employee interests more closely to the company’s long-term corporate value by granting monetary claims that are converted into restricted shares subject to transfer restrictions and potential clawback, a move that may strengthen employee engagement, expand participation in the shareholding association and better align the workforce with shareholder interests without immediate cash outlay by staff.

The most recent analyst rating on (JP:5901) stock is a Buy with a Yen4364.00 price target. To see the full list of analyst forecasts on Toyo Seikan Group Holdings stock, see the JP:5901 Stock Forecast page.