Toso Company, Limited (5956) AI Stock Analysis

• Market Cap: ¥5.96B
• Dividend Yield: 1.76%
• Average Volume (3M): 4.82K
• Price to Earnings (P/E): 4.8
• Beta (1Y): 0.17
• Revenue Growth: 7.17%
• EPS Growth: 214.23%
• Country: JP
• Employees: 928
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 29.81
• Shares Outstanding: 10,000,000
• 10 Day Avg. Volume: 3,390
• 30 Day Avg. Volume: 4,823
• PEG Ratio: 0.13
• Price to Book (P/B): 0.32
• Price to Sales (P/S): 0.21
• P/FCF Ratio: -214.41
• 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: 76 Outperform
• Price Target: ¥741.00 ▲(28.42% Upside)
• Action: Reiterated Date: 02/13/26
• Date: Action: Reiterated 02/13/26

The score is driven primarily by strong financial stability and improving margins, supported by a low P/E valuation. Technicals are positive due to a strong uptrend, but very overbought momentum readings temper the outlook and add pullback risk.

Positive Factors

Strong balance sheet

Very low leverage and a high equity ratio give the company durable financial flexibility. This reduces default and refinancing risk, supports capital allocation for growth or resilience in downturns, and enables multi-quarter investment or M&A without immediate funding pressure.

Improving margins & revenue

Consistent revenue growth with rising EBIT and net margins reflects improving operations and pricing or cost control. Over a 2-6 month horizon this signals sustainable profit expansion potential and stronger cash generation if trends persist across product lines.

High gross margins

A near-40% gross margin implies favorable manufacturing economics or product differentiation in window-treatment hardware. This provides a durable buffer against input inflation and supports reinvestment in product development, distribution, or margin-enhancing initiatives.

Negative Factors

Negative free cash flow

Negative free cash flow despite positive operating cash indicates capex or working-capital outlays outpacing cash generation. If sustained, it can constrain dividends, share buybacks, or require external financing, reducing strategic flexibility over coming quarters.

Low return on equity

A ROE around 3.4% signals modest effectiveness in converting equity into earnings. Even with improving margins, this low return suggests limited capital efficiency and weak shareholder value creation unless earnings or asset turnover improve structurally.

Cyclical end-market exposure

Dependence on construction and renovation demand exposes revenue to macro and cyclical swings. Structural downturns in housing or commercial investment can reduce orders and extend recovery timelines, limiting predictable multi-quarter growth and cash flow stability.

Toso Company, Limited Business Overview & Revenue Model

Company Description

Toso Company, Limited engages in the development, manufacturing, and marketing of interior products worldwide. It offers decorative and functional curtain tracks, motorized curtain tracks, venetian and roller blinds, roman shades, vertical and pleated blinds, and panel tracks, as well as peripheral parts for motorized products. Toso Company, Limited was incorporated in 1949 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Toso primarily makes money by manufacturing and selling interior building products—especially window treatment hardware like curtain rails and associated parts—through distribution channels serving the construction, renovation, and home-interior markets. Revenue is generated from product sales (unit-based sales to wholesalers, retailers, contractors, and other building-material channels), with earnings influenced by demand in housing starts, remodeling activity, and commercial fit-outs. Specific information on the company’s segment breakdown, pricing model details, major customers, or named partnerships is null.

Toso Company, Limited Financial Statement Overview

Summary

Strong balance sheet (low leverage with 0.13 debt-to-equity and 66.2% equity ratio) and improving profitability (net margin up to 2.2%, EBIT margin up to 3.3%) with 5.5% revenue growth. The main offset is negative free cash flow, which raises near-term cash discipline risk despite positive operating cash flow.

Income Statement

Toso Company, Limited shows a stable gross profit margin of approximately 39.6% in the latest year, with a net profit margin improving to 2.2% from 1.4% the previous year, indicating enhanced profitability. Revenue growth is positive at 5.5% year-over-year, reflecting healthy sales expansion. The EBIT margin increased to 3.3%, suggesting better operational efficiency, and EBITDA margin improved to 6.3%. Overall, the company demonstrates solid revenue growth and profitability improvement, though with room for further margin enhancements.

Balance Sheet

The balance sheet is strong, with a debt-to-equity ratio of 0.13, reflecting low leverage and financial stability. The return on equity is stable at 3.4%, and the equity ratio is high at 66.2%, indicating a robust equity base. The company's low debt levels and strong equity position contribute to financial health and stability, providing flexibility for future growth opportunities.

Cash Flow

Free cash flow has turned negative, indicating potential cash management challenges, though the operating cash flow remains positive at 0.91 times net income, which is a healthy indicator. Free cash flow to net income ratio is negative, pointing to increased capital expenditures. While there are positive aspects to cash flow generation, the recent decline in free cash flow warrants attention.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	23.14B	22.79B	21.61B	21.30B	20.86B	21.42B
Gross Profit	9.33B	9.04B	8.58B	8.65B	8.80B	9.22B
EBITDA	1.59B	1.43B	1.07B	1.30B	1.56B	1.81B
Net Income	653.75M	500.15M	294.88M	367.02M	531.77M	750.93M
Balance Sheet
Total Assets	22.10B	22.21B	21.66B	20.47B	20.50B	20.71B
Cash, Cash Equivalents and Short-Term Investments	4.22B	3.95B	3.57B	3.59B	4.06B	4.02B
Total Debt	2.36B	1.97B	1.40B	1.35B	1.89B	2.62B
Total Liabilities	7.53B	7.42B	7.24B	6.86B	7.22B	8.05B
Stockholders Equity	14.49B	14.70B	14.34B	13.55B	13.22B	12.60B
Cash Flow
Free Cash Flow	0.00	-22.02M	77.75M	110.78M	782.55M	902.55M
Operating Cash Flow	0.00	457.28M	690.93M	606.57M	1.33B	1.33B
Investing Cash Flow	0.00	-539.14M	-581.78M	-581.54M	-564.16M	-472.65M
Financing Cash Flow	0.00	377.55M	-193.24M	-653.30M	-839.57M	-646.77M

Toso Company, Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 577.00
• 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:5956, the sentiment is Neutral. The current price of 577 is below the 20-day moving average (MA) of 680.90, below the 50-day MA of 652.72, and above the 200-day MA of 572.36, indicating a neutral trend. The MACD of 0.20 indicates Positive momentum. The RSI at 47.56 is Neutral, neither overbought nor oversold. The STOCH value of 59.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5956.

Toso Company, Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5956	76 Outperform	¥5.96B	4.84	―	1.76%	7.17%	214.23%
7887	76 Outperform	¥10.62B	3.04	―	1.66%	8.56%	2690.35%
8130	76 Outperform	¥184.81B	11.81	―	4.91%	6.35%	14.05%
7840	75 Outperform	¥45.13B	13.60	―	2.97%	0.89%	-14.25%
7981	72 Outperform	¥175.24B	8.20	―	3.41%	6.17%	61.39%
7898	66 Neutral	¥9.71B	3.19	―	2.65%	1.11%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%