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

• Market Cap: ¥6.12B
• 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: ¥1,029.00 ▲(8.77% 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

Aftermarket Services & Integration

Integrated product, installation and maintenance services create recurring aftermarket revenue and stronger customer relationships. This service layer can deliver higher-margin, less cyclical cashflows and increase switching costs, supporting longer-term revenue stability and differentiation.

Consistent Revenue Trend

Multi-year revenue consistency (Fundamentals revenue growth ~4.55%) signals stable demand for its core shutter and closure products. Predictable top-line trends aid planning, support steady investment in operations, and lower execution risk compared with more volatile project-driven peers.

Balance Sheet Strength

The company’s high equity ratio, reasonable leverage and improving ROE provide durable financial flexibility. That balance-sheet strength supports capital expenditure, absorbs working-capital swings in construction cycles and reduces reliance on external financing over the medium term.

Negative Factors

Earnings Volatility

Negative EPS growth combined with a slight recent revenue decline indicates profit volatility and constrained earnings momentum. Continued EPS weakness can limit retained earnings for growth, reduce buffer for adverse cycles and pressure management priorities on cost reduction over investment.

Operating Margin Pressure

Recent declines in operating, EBIT and EBITDA margins — despite stable gross margin — point to rising operating costs or efficiency shortfalls. If persistent, margin compression will erode cash generation and limit reinvestment capacity, making the business more vulnerable to cost shocks.

Negative Free Cash Flow

A shift to negative free cash flow and a deteriorating operating cash flow-to-net-income ratio weaken internal funding capacity. Over several quarters this raises financing needs for capex or dividends, constrains strategic flexibility, and increases reliance on external financing or working-capital management.

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: 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 963.25, below the 50-day MA of 961.16, and above the 200-day MA of 894.19, indicating a bullish trend. The MACD of 2.34 indicates Positive momentum. The RSI at 51.13 is Neutral, neither overbought nor oversold. The STOCH value of 32.78 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
7971	79 Outperform	¥39.18B	7.75	―	3.59%	6.91%	13.17%
7949	77 Outperform	¥48.48B	14.35	―	3.74%	3.70%	12.26%
5940	74 Outperform	¥12.40B	16.74	―	2.89%	2.56%	17.52%
5930	66 Neutral	¥131.46B	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	¥6.12B	4.98	―	4.13%	2.76%	-10.23%
5938	50 Neutral	¥496.31B	16.11	1.44%	4.80%	0.68%	―