Toami Corporation (5973) AI Stock Analysis

• Market Cap: ¥3.35B
• Dividend Yield: 2.99%
• Average Volume (3M): 2.08K
• Price to Earnings (P/E): 118.9
• Beta (1Y): 0.30
• Revenue Growth: 7.70%
• EPS Growth: -80.52%
• Country: JP
• Employees: 338
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Steel
• EPS (TTM): 2.46
• Shares Outstanding: 6,400,000
• 10 Day Avg. Volume: 1,620
• 30 Day Avg. Volume: 2,083
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥551.00
• Price Target Upside: 2.80% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 56 Neutral
• Price Target: ¥551.00 ▲(2.80% Upside)

Toami Corporation's overall stock score is primarily influenced by its financial performance, which shows strong revenue growth but is hampered by profitability challenges and rising debt levels. Technical analysis indicates a lack of strong momentum, with potential overbought conditions. The high P/E ratio raises concerns about overvaluation, despite a reasonable dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Toami's products across sectors, supporting long-term business expansion and market presence.

Strong Equity Base

A strong equity base enhances financial stability, providing a buffer against economic downturns and enabling investment in growth opportunities.

Positive Operating Cash Flow

Positive operating cash flow ensures liquidity, allowing Toami to meet its short-term obligations and reinvest in business operations for sustained growth.

Negative Factors

Profitability Challenges

Declining profitability and negative margins could hinder Toami's ability to reinvest in its business, affecting long-term competitiveness and growth.

Rising Debt Levels

Rising debt levels may strain financial resources, increasing interest obligations and potentially limiting future investment capacity.

Inconsistent Free Cash Flow

Volatile free cash flow can impact Toami's ability to fund operations and growth initiatives, posing risks to financial stability and strategic planning.

Toami Corporation Business Overview & Revenue Model

Company Description

Toami Corporation (5973) is a Japanese company primarily engaged in the manufacturing and sale of wire products and materials. The company specializes in providing a wide range of wire-related products, including metal meshes, woven wire cloth, and other fabricated wire forms that are used in various industries such as construction, agriculture, and industrial machinery.

How the Company Makes Money

Toami Corporation makes money through the production and distribution of its wire and wire-related products. The company generates revenue by selling its products to a diverse customer base across multiple sectors, including construction, agriculture, and industrial machinery. These products are essential components for various applications, such as fencing, filtration, and reinforcement, which ensures a steady demand. Additionally, the company may engage in strategic partnerships or collaborations to enhance its market presence and expand its distribution network, thereby contributing to its earnings.

Toami Corporation Financial Statement Overview

Summary

Toami Corporation exhibits strong revenue growth, but profitability is a concern due to recent losses and declining margins. The balance sheet is robust with a solid equity base, though rising debt levels require caution. Cash flow generation is positive but inconsistent, highlighting the need for improved operational efficiency.

Income Statement

Toami Corporation's revenue has shown consistent growth over the years, with a notable increase from ¥12.3 billion in 2022 to ¥18.1 billion in 2025. However, profitability metrics are concerning, as the net profit margin has turned negative recently, indicating losses. The company experienced a significant decline in EBIT and EBITDA margins, reflecting operational challenges.

Balance Sheet

The company maintains a strong equity base with stockholders' equity exceeding liabilities, resulting in a healthy equity ratio. However, the debt-to-equity ratio has increased due to rising debt levels, which could pose a risk if not managed carefully. Return on equity has been negative lately, aligning with the net losses.

Cash Flow

Operating cash flow remains positive, which is a positive indicator of liquidity. However, free cash flow has fluctuated, turning negative in some years due to high capital expenditures. The volatility in free cash flow to net income ratio reflects inconsistent profitability and cash generation capacity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.10B	18.10B	17.63B	15.41B	12.27B	11.78B
Gross Profit	2.51B	2.46B	2.70B	2.10B	1.95B	2.46B
EBITDA	434.32M	597.18M	703.85M	260.70M	322.96M	633.94M
Net Income	-7.32M	-6.44M	247.35M	-72.20M	69.68M	298.45M
Balance Sheet
Total Assets	19.09B	19.09B	19.51B	18.36B	15.87B	14.12B
Cash, Cash Equivalents and Short-Term Investments	1.79B	1.79B	895.44M	1.35B	1.64B	2.07B
Total Debt	4.78B	4.78B	4.52B	4.17B	2.00B	120.43M
Total Liabilities	8.29B	8.29B	8.52B	7.58B	4.91B	3.15B
Stockholders Equity	10.78B	10.78B	10.97B	10.77B	10.96B	10.97B
Cash Flow
Free Cash Flow	0.00	150.24M	837.34M	-1.69B	-1.91B	413.86M
Operating Cash Flow	0.00	903.07M	1.34B	-674.66M	-1.32B	848.19M
Investing Cash Flow	0.00	-121.02M	-1.96B	-1.41B	-904.90M	-309.88M
Financing Cash Flow	0.00	111.52M	160.59M	1.79B	1.79B	-1.29B

Toami Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 536.00
• 50DMA: Negative
• 100DMA: Negative
• 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:5973, the sentiment is Negative. The current price of 536 is below the 20-day moving average (MA) of 537.70, below the 50-day MA of 536.88, and above the 200-day MA of 528.87, indicating a neutral trend. The MACD of -0.28 indicates Positive momentum. The RSI at 46.84 is Neutral, neither overbought nor oversold. The STOCH value of 72.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5973.

Toami Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5697	81 Outperform	¥4.26B	7.92		2.90%	3.93%	103.42%
5458	74 Outperform	¥2.90B	10.24		4.15%	-0.27%	7.20%
5491	72 Outperform	¥5.27B	6.23		―	-2.76%	-44.71%
5609	69 Neutral	¥4.25B	16.29		3.40%	-8.45%	-42.89%
5986	65 Neutral	¥4.62B	14.25		1.94%	-0.82%	-9.80%
Sector *	61 Neutral	$10.48B	7.30	-0.05%	2.85%	2.87%	-36.73%
5973	56 Neutral	¥3.35B	118.91		2.99%	7.70%	-80.52%