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

• Market Cap: ¥6.13B
• Dividend Yield: 4.13%
• Average Volume (3M): 11.42K
• Price to Earnings (P/E): 5.0
• Beta (1Y): 0.60
• 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: -0.38
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.25
• P/FCF Ratio: -18.35
• 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: ¥1,048.00 ▲(10.78% 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 a solid equity base provide durable financial flexibility. This strengthens the firm’s ability to fund capital expenditures, withstand construction-cycle downturns, and maintain operations without heavy reliance on external financing, supporting long-term stability.

Consistent revenue growth

Sustained revenue growth signals steady demand for shutters and related services and supports predictable top-line performance. Over the medium term this underpins capacity utilization, enables incremental margin improvements, and provides a base for reinvestment and service expansion.

Focused product & service model

A concentrated product lineup plus installation and maintenance services creates recurring aftersales revenue and expertise-based differentiation. This niche focus builds customer relationships and service stickiness, which can sustain cash flows across construction and retrofit cycles.

Negative Factors

Weak recent cash generation

A recent shift to negative free cash flow reduces financial headroom for capex, dividends, and strategic moves. If persistent, weaker cash conversion undermines self-funding, forces greater external financing, and constrains the company’s ability to invest in product upgrades or scaling.

Declining operating margins

Compression of EBIT/EBITDA margins indicates rising operating costs or pricing pressure versus peers. Sustained margin deterioration weakens returns on capital, limits reinvestment capacity, and makes earnings more vulnerable to cyclical downturns in construction demand.

EPS contraction

Material EPS decline points to reduced earnings power, potentially driven by margin pressure or non-cash items. Continued EPS contraction can limit retained earnings for growth, constrain dividend sustainability, and signal operational issues needing management attention.

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	4.97B	4.58B	4.68B
EBITDA	1.72B	1.71B	1.84B	1.23B	1.06B	1.04B
Net Income	791.63M	792.63M	959.63M	559.00M	412.78M	420.88M
Balance Sheet
Total Assets	18.46B	19.02B	20.64B	18.88B	17.96B	17.03B
Cash, Cash Equivalents and Short-Term Investments	4.26B	3.80B	4.70B	3.48B	2.95B	2.24B
Total Debt	4.54B	4.63B	4.52B	4.14B	4.28B	4.48B
Total Liabilities	9.16B	9.53B	11.66B	10.95B	10.44B	9.84B
Stockholders Equity	9.30B	9.49B	8.98B	7.93B	7.52B	7.18B
Cash Flow
Free Cash Flow	0.00	-282.00M	1.40B	1.08B	1.18B	370.61M
Operating Cash Flow	0.00	-224.24M	1.54B	1.12B	1.22B	501.78M
Investing Cash Flow	0.00	-66.84M	-146.03M	-141.11M	-42.94M	-123.94M
Financing Cash Flow	0.00	-609.26M	-173.50M	-445.45M	-466.68M	-420.24M

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 966.75, below the 50-day MA of 963.12, and above the 200-day MA of 899.37, indicating a bullish trend. The MACD of 1.90 indicates Positive momentum. The RSI at 51.08 is Neutral, neither overbought nor oversold. The STOCH value of 72.95 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	¥37.65B	7.75	―	3.59%	6.91%	13.17%
7949	77 Outperform	¥48.00B	14.35	―	3.74%	3.70%	12.26%
5940	74 Outperform	¥12.10B	16.74	―	2.89%	2.56%	17.52%
5930	66 Neutral	¥129.11B	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	¥6.13B	4.98	―	4.13%	2.76%	-10.23%
5938	50 Neutral	¥475.90B	16.11	1.44%	4.80%	0.68%	―