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

• Market Cap: ¥6.09B
• Dividend Yield: 4.13%
• Average Volume (3M): 11.42K
• Price to Earnings (P/E): 8.0
• Beta (1Y): 0.62
• Revenue Growth: 2.76%
• EPS Growth: -10.23%
• Country: JP
• Employees: 518
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 47.58
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ¥1,023.00 ▲(8.14% 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 / high equity ratio

A solid equity base and reasonable leverage provide financial resilience against construction cyclicality. This supports sustained investment in production, installation capabilities and working capital, enabling the company to fund capex, weather downturns and maintain long-term operations without urgent refinancing.

Consistent revenue growth history

Steady top-line growth indicates persistent demand for shutters and closure products, reflecting durable end-market exposure to residential and commercial construction and maintenance. This trend supports predictable backlog conversion and long-term revenue visibility for planning and capacity decisions.

Improving return on equity

Rising ROE signals improving capital efficiency and management’s ability to generate returns from shareholder funds. Over months, this tends to reflect better product mix, pricing or operational execution, enhancing reinvestment capacity and the potential to sustain dividends or fund strategic initiatives.

Negative Factors

Declining operating margins

Compression in EBIT/EBITDA margins points to structural pressure on profitability from cost inflation, pricing limits, or inefficiencies. If persistent, margin erosion reduces free cash generation and the firm's ability to fund capex or absorb demand slowdowns, weakening long-term earnings power.

Negative free cash flow in latest year

A shift to negative free cash flow undermines liquidity and the capacity to self-fund investments or dividends. Over months, this may force reliance on external financing or working-capital adjustments, increasing financial risk and constraining strategic initiatives like product development or network expansion.

Declining EPS growth

A material decline in EPS growth signals weakening profitability trends that can stem from margin pressure, rising costs, or slower revenue momentum. Sustained EPS contraction hampers reinvestment, reduces shareholder return capacity, and may indicate underlying competitiveness or operational execution issues.

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

Company Description

Toyo Shutter Co., Ltd. manufactures, installs, and sells various building materials in Japan. It provides heavy, lightweight, aluminum, high speed sheet, and high speed shutters; over, hanger, steel, entrance, and special doors; disaster prevention, compact type, bill fine, and other products; hardware; shutter blinds; lever handles; and building exterior repair systems. The company was founded in 1955 and is headquartered in Osaka, Japan.

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: 946.00
• 50DMA: Positive
• 100DMA: Positive
• 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:5936, the sentiment is Positive. The current price of 946 is below the 20-day moving average (MA) of 958.15, above the 50-day MA of 929.74, and above the 200-day MA of 869.05, indicating a bullish trend. The MACD of 8.81 indicates Positive momentum. The RSI at 56.93 is Neutral, neither overbought nor oversold. The STOCH value of 78.16 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
5940	74 Outperform	¥11.67B	4.23	―	2.89%	2.56%	17.52%
5929	72 Outperform	¥738.28B	12.85	18.61%	2.94%	2.90%	36.64%
5930	66 Neutral	¥135.76B	10.49	12.89%	3.40%	2.98%	41.11%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5936	63 Neutral	¥6.09B	7.97	―	4.13%	2.76%	-10.23%
5932	52 Neutral	¥20.16B	-4.49	―	4.03%	1.03%	-92.80%
5938	50 Neutral	¥509.53B	53.50	1.44%	4.80%	0.68%	―