Toyo Shutter Co., Ltd. (5936) AI Stock Analysis

• Market Cap: ¥5.61B
• Dividend Yield: 4.06%
• Average Volume (3M): 11.42K
• Price to Earnings (P/E): 7.5
• Beta (1Y): 0.66
• Revenue Growth: 2.76%
• EPS Growth: -10.23%
• Country: JP
• Employees: 518
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 25.49
• Shares Outstanding: 6,387,123
• 10 Day Avg. Volume: 6,320
• 30 Day Avg. Volume: 11,423
• PEG Ratio: -0.37
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.25
• P/FCF Ratio: -18.48
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ¥927.00 ▲(3.23% Upside)

The overall stock score of 63 reflects a mixed outlook. The company's strong valuation is offset by bearish technical indicators and recent financial challenges, particularly in cash flow and operating margins.

Positive Factors

Strong Balance Sheet

A strong balance sheet with a high equity ratio indicates financial stability and the ability to withstand economic fluctuations, supporting long-term growth.

Revenue Growth

Consistent revenue growth reflects the company's ability to expand its market presence and adapt to industry demands, ensuring sustained business operations.

Market Position

A strong market reputation enhances customer loyalty and competitive advantage, enabling the company to maintain and potentially grow its market share.

Negative Factors

Declining Operating Margins

Declining operating margins can erode profitability and indicate difficulties in cost management, potentially impacting long-term financial health.

Negative Cash Flow

Negative cash flow suggests liquidity issues, which can restrict the company's ability to invest in growth opportunities and meet financial obligations.

Decline in EBIT and EBITDA Margins

A decline in EBIT and EBITDA margins indicates reduced operational efficiency, which can affect the company's ability to generate profits and sustain growth.

Toyo Shutter Co., Ltd. Business Overview & Revenue Model

Company Description

Toyo Shutter Co., Ltd. (5936) is a leading manufacturer based in Japan specializing in the design and production of high-quality shutters and related products. The company operates primarily in the construction and building materials sector, focusing on providing innovative solutions for both residential and commercial applications. Its core offerings include various types of shutters, window coverings, and other architectural elements that enhance security, aesthetics, and energy efficiency in buildings.

How the Company Makes Money

Toyo Shutter Co., Ltd. generates revenue primarily through the sale of its manufactured products, which include a wide range of shutters designed for different market segments. The company’s revenue model is based on direct sales to construction companies, retailers, and end consumers, alongside strategic partnerships with distributors and contractors in the construction industry. They may also engage in service contracts related to installation and maintenance, which provide additional income streams. Factors contributing to its earnings include the growing demand for energy-efficient building materials, ongoing trends in home renovation, and the company’s reputation for quality and reliability in the market.

Toyo Shutter Co., Ltd. Financial Statement Overview

Summary

Toyo Shutter Co., Ltd. shows stable revenue and profit growth with a strong balance sheet. However, recent declines in operating margins and negative cash flow highlight potential financial challenges.

Income Statement

The company has demonstrated consistent revenue growth over the years, although the recent year shows a slight decline. Gross profit margin has been stable, and net profit margin shows a positive trend, indicating improving operational efficiency. However, the decline in EBIT and EBITDA margins in the latest year is a concern, suggesting challenges in managing operating expenses.

Balance Sheet

The balance sheet is strong with a solid equity base, as evidenced by a high equity ratio. The debt-to-equity ratio is reasonable, indicating moderate leverage. Return on equity has shown improvement over the years, reflecting efficient use of shareholder funds. The stable asset base with increasing stockholders' equity suggests financial stability.

Cash Flow

The cash flow situation is mixed. While free cash flow was positive in previous years, the latest year shows a negative free cash flow, highlighting potential liquidity challenges. The operating cash flow to net income ratio has deteriorated, indicating less cash being generated from operations relative to net income. Despite past growth, current cash flow issues need attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.98B	20.87B	21.49B	20.69B	19.74B	19.71B
Gross Profit	5.75B	5.70B	6.01B	5.04B	4.65B	4.78B
EBITDA	1.73B	1.75B	1.81B	1.26B	1.12B	1.12B
Net Income	790.06M	792.00M	959.63M	559.00M	412.78M	420.88M
Balance Sheet
Total Assets	18.46B	18.72B	20.33B	18.67B	17.74B	16.81B
Cash, Cash Equivalents and Short-Term Investments	4.26B	3.80B	4.70B	3.48B	2.95B	2.24B
Total Debt	4.78B	4.63B	4.52B	4.14B	4.28B	4.48B
Total Liabilities	9.16B	9.22B	11.35B	10.73B	10.22B	9.63B
Stockholders Equity	9.30B	9.49B	8.98B	7.93B	7.52B	7.18B
Cash Flow
Free Cash Flow	0.00	-280.00M	1.40B	1.09B	1.24B	399.27M
Operating Cash Flow	0.00	-224.24M	1.54B	1.12B	1.28B	530.27M
Investing Cash Flow	0.00	-66.84M	-146.03M	-141.11M	-42.94M	-123.94M
Financing Cash Flow	0.00	-609.26M	-173.50M	-448.95M	-530.28M	-448.00M

Toyo Shutter Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 898.00
• 50DMA: Negative
• 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:5936, the sentiment is Positive. The current price of 898 is below the 20-day moving average (MA) of 900.85, below the 50-day MA of 918.52, and above the 200-day MA of 837.61, indicating a neutral trend. The MACD of -8.73 indicates Negative momentum. The RSI at 47.53 is Neutral, neither overbought nor oversold. The STOCH value of 57.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5936.

Toyo Shutter Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5929	68 Neutral	¥826.45B	13.99	18.61%	2.87%	2.90%	36.64%
5930	66 Neutral	€134.69B	11.62	12.89%	3.30%	2.98%	41.11%
5940	64 Neutral	¥9.98B	4.22	―	3.14%	2.56%	17.52%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5936	63 Neutral	¥5.61B	7.50	―	4.06%	2.76%	-10.23%
5932	52 Neutral	¥19.07B	-6.22	―	4.19%	1.03%	-92.80%
5938	49 Neutral	$496.45B	53.42	1.44%	5.26%	0.68%	―