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

• Market Cap: ¥6.08B
• Dividend Yield: 4.13%
• Average Volume (3M): 11.42K
• Price to Earnings (P/E): 5.0
• Beta (1Y): 0.59
• 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: ¥1,021.00 ▲(7.93% Upside)
• Action: Downgraded Date: 11/08/25
• Date: Action: Downgraded 11/08/25

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 high equity ratio and reasonable debt-to-equity indicate durable financial resilience. Improved return on equity noted in the summary implies capital is being deployed efficiently. This structural strength supports investment, weathering construction cyclicality and sustaining operations over months.

Consistent revenue growth

Steady top-line expansion (reported revenue growth ~4.6%) demonstrates persistent demand for shutters and closures. Consistent revenue provides a reliable base for margin recovery, supports recurring service revenue, and underpins medium-term planning and reinvestment decisions.

Stable gross, improving net margins

Stable gross margins indicate consistent product economics while improving net margins point to better cost control or mix gains. Together they suggest the company can sustain profitability if revenue holds, supporting cash generation and shareholder returns over the next several quarters.

Negative Factors

Negative free cash flow

A shift to negative free cash flow and weaker operating cash conversion is a durable concern: it limits the company's ability to fund capex, pay dividends or reduce leverage without external financing. If sustained, it raises liquidity and strategic flexibility risks.

Declining operating margins

Erosion in EBIT/EBITDA margins signals pressure on core operating efficiency or higher fixed costs. Falling operating profitability can persist through cost cycles, reducing cash flow and weakening the firm's ability to invest in product development or maintain competitive pricing.

Earnings contraction

Material negative EPS growth reflects profit volatility or one-off impacts that have compressed earnings. Persistent earnings decline undermines retained earnings accumulation and investment capacity, and could indicate exposure to cyclical construction demand or margin stress.

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

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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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Neutral
• Last Price: 946.00
• 50DMA: Negative
• 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 Neutral. The current price of 946 is below the 20-day moving average (MA) of 962.60, below the 50-day MA of 960.76, and above the 200-day MA of 893.26, indicating a neutral trend. The MACD of 2.53 indicates Positive momentum. The RSI at 48.18 is Neutral, neither overbought nor oversold. The STOCH value of 38.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
7971	79 Outperform	¥40.59B	7.75	―	3.59%	6.91%	13.17%
7949	77 Outperform	¥49.72B	14.35	―	3.74%	3.70%	12.26%
5940	74 Outperform	¥12.62B	16.74	―	2.89%	2.56%	17.52%
5930	66 Neutral	¥132.80B	10.42	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	¥6.08B	4.98	―	4.13%	2.76%	-10.23%
5938	50 Neutral	$499.76B	16.11	1.44%	4.80%	0.68%	―