Topre (5975) AI Stock Analysis

• Market Cap: ¥139.31B
• Dividend Yield: 3.36%
• Average Volume (3M): 75.96K
• Price to Earnings (P/E): 5.5
• Beta (1Y): 1.14
• Revenue Growth: 1.28%
• EPS Growth: 204.20%
• Country: JP
• Employees: 6,834
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 107.50
• Shares Outstanding: 54,021,824
• 10 Day Avg. Volume: 81,360
• 30 Day Avg. Volume: 75,960
• PEG Ratio: -0.45
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.26
• P/FCF Ratio: 4.92
• 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): 260.4
• Revenue Forecast (FY): ¥368.10B

• Rating: 83 Outperform
• Price Target: ¥2,954.00 ▲(21.21% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

High score driven primarily by strong financial performance and an attractive valuation (low P/E with a solid dividend). The main offset is technical overbought signals (high RSI/Stoch) that raise near-term pullback risk despite a strong uptrend.

Positive Factors

High revenue growth

Reported revenue growth of ~78% reflects durable demand expansion and larger order volumes in Topre's core automotive and tooling businesses. Sustained top-line growth supports scale economies, better fixed-cost absorption and strengthens long-term supplier relationships with OEMs.

Strong free cash flow generation

Consistent operating and free cash flow gives Topre the ability to fund capex, tooling and capacity expansion, service debt and sustain dividends without equity dilution. Reliable cash conversion enhances resilience through automotive cycles and enables strategic reinvestment.

Solid balance sheet and improving ROE

A strong equity base, moderate leverage and rising ROE provide financial flexibility for investments and cushioning in downturns. This structural strength reduces refinancing risk, supports supplier/customer financing and allows targeted capital allocation for long-term competitiveness.

Negative Factors

Automotive customer concentration

Heavy reliance on automotive OEMs concentrates revenue in a cyclical end market. Structural shifts like EV adoption, platform consolidation, or OEM sourcing changes could materially alter volumes or content per vehicle, increasing long-term demand risk for Topre's core products.

Debt needs monitoring as growth continues

Management's note that debt control is a key watch item suggests growth may pressure leverage. If borrowing rises to fund capacity or M&A, interest costs and covenant risks could increase, limiting flexibility to invest or absorb cyclical downturns without impairing credit metrics.

Net profit margin volatility

Observed margin swings imply earnings sensitivity to input costs, pricing in supplier contracts, or volume mix. Persistent margin variability can weaken predictability of free cash flow, complicate multi-period planning, and increase reliance on operational levers to protect long-term profitability.

Topre Business Overview & Revenue Model

Company Description

Topre Corporation manufactures and sells components and products for automobiles, temperature-controlled logistics, air conditioning systems, and electronic equipment in Japan, the United States, China, Mexico, Thailand, Indonesia, and India. The company offers metal press forming products and high-tensile steel plates for automobiles and office automation equipment; and constant temperature logistics products for light vehicles and heavy vehicles, as well as compact, 2t, 3t, and 4t trucks. It also provides air-conditioning equipment comprising fans, home ventilation systems, and ductless ventilation systems for use in office buildings, factories, hospitals, and houses; and electronic equipment, including keyboards, PIN pads, touch monitors, touch panels, and embedded computers. The company was formerly known as Tokyo Press Kogyo Co., Ltd. and changed its name to Topre Corporation in October 1985. Topre Corporation was incorporated in 1935 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Topre makes money primarily by selling manufactured products to business customers. Key revenue streams include: (1) Automotive-related sales: revenue from producing and supplying automotive components/assemblies to automakers and tier suppliers, typically under long-term supplier relationships where Topre earns income based on contracted part prices and delivered volumes. (2) Press, tooling, and mold-related products: revenue from manufacturing and selling press-formed components and/or tooling/mold products and related manufacturing services, where earnings are driven by project orders, production runs, and the company’s metal processing know-how. (3) Thermal/air-conditioning-related equipment: revenue from producing and selling air-conditioning/thermal equipment and associated products to commercial/industrial customers, where income is generated from equipment sales (and potentially installation/aftermarket services if applicable). Significant factors that contribute to earnings generally include production volumes from major customers, pricing and cost performance (materials, energy, labor), capacity utilization across plants, and the strength of relationships with large automotive clients. Specific customer names, segment revenue mix, and partnership details are null.

Topre Financial Statement Overview

Summary

Strong overall fundamentals: robust revenue and profitability trends (Income Statement score 88), solid balance sheet with a healthy equity base and moderate leverage (Balance Sheet score 82), and consistent free cash flow generation with good cash conversion (Cash Flow score 85). Key watch item is keeping debt levels controlled as the company grows.

Income Statement

Topre has demonstrated robust growth in its revenue and profitability over the past few years. The gross profit margin is strong, supported by increasing revenue and a consistent rise in EBIT and EBITDA margins. The net profit margin has shown slight volatility but remains healthy, indicating effective cost management and operational efficiency. A positive revenue growth trajectory is evident, suggesting strong market demand and competitive positioning.

Balance Sheet

The company's balance sheet reflects a solid equity base with a favorable equity ratio, showcasing financial stability. The debt-to-equity ratio is moderate, indicating a balanced approach to leveraging, while the return on equity has been improving, reflecting efficient use of equity capital. However, maintaining control over debt levels will be crucial to sustaining balance sheet strength.

Cash Flow

Topre's cash flow position is strong, with a solid operating cash flow and consistent generation of free cash flow. The free cash flow growth is notable, enhancing the company's ability to reinvest and manage debt. The operating cash flow to net income ratio is healthy, indicating good cash conversion efficiency. Ensuring continuous cash flow growth will be key to supporting future investments and debt obligations.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	371.11B	373.57B	354.92B	290.42B	233.60B	214.54B
Gross Profit	46.38B	46.30B	39.95B	23.84B	21.55B	25.10B
EBITDA	33.76B	47.09B	62.60B	43.01B	41.60B	37.41B
Net Income	9.17B	14.14B	17.10B	10.01B	11.00B	12.56B
Balance Sheet
Total Assets	355.30B	371.09B	365.52B	339.38B	320.01B	309.79B
Cash, Cash Equivalents and Short-Term Investments	59.58B	71.06B	56.63B	49.92B	50.10B	39.33B
Total Debt	48.16B	50.39B	49.96B	56.30B	63.73B	72.84B
Total Liabilities	134.79B	147.82B	148.80B	144.83B	139.55B	144.16B
Stockholders Equity	216.87B	219.65B	213.24B	191.10B	176.74B	162.14B
Cash Flow
Free Cash Flow	0.00	19.44B	16.22B	7.46B	16.60B	-9.84B
Operating Cash Flow	0.00	52.25B	38.77B	25.23B	38.60B	24.72B
Investing Cash Flow	0.00	-44.55B	-26.54B	-18.26B	-18.50B	-33.94B
Financing Cash Flow	0.00	-4.41B	-12.06B	-9.57B	-12.46B	19.52B

Topre Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2437.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5975, the sentiment is Neutral. The current price of 2437 is below the 20-day moving average (MA) of 2792.25, below the 50-day MA of 2620.38, and above the 200-day MA of 2243.55, indicating a neutral trend. The MACD of 10.64 indicates Positive momentum. The RSI at 43.13 is Neutral, neither overbought nor oversold. The STOCH value of 13.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5975.

Topre Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5975	83 Outperform	¥139.31B	5.50	7.55%	3.36%	1.28%	204.20%
7259	77 Outperform	¥1.83T	14.23	8.34%	2.03%	4.33%	524.86%
7282	75 Outperform	¥533.43B	7.76	8.58%	2.62%	1.44%	-0.92%
5991	74 Outperform	¥562.65B	11.33	―	2.60%	1.06%	-5.99%
7220	71 Outperform	¥194.77B	-8.32	―	1.93%	-3.23%	24.93%
6473	63 Neutral	¥587.17B	15.03	3.35%	3.18%	0.44%	-11.36%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Topre Corporate Events

Topre Lifts Profit but Cuts Full-Year Outlook as Balance Sheet Strengthens

Topre reported consolidated net sales of ¥273.2 billion for the first nine months of the fiscal year ending March 31, 2026, a slight year-on-year decline, while operating profit rose 6.8% and profit attributable to owners of parent jumped 28.7%, boosting net profit per share and driving a stronger equity ratio. The company maintained its dividend stance with an interim payout of ¥40 per share and a full-year forecast of ¥80, but revised its full-year outlook to slightly lower sales and a notable decline in operating and net profit, while also streamlining its consolidation scope by removing two overseas auto parts affiliates, signaling cautious earnings expectations despite improved current profitability.

Topre’s equity capital ratio improved to 63.6% as of December 31, 2025, supported by higher comprehensive income and increased equity per share, underscoring a strengthened balance sheet. However, the downward revision to the full-year profit forecast, including an expected 16.2% drop in operating profit, suggests headwinds ahead for its core businesses even as recent quarterly performance and enhanced capital efficiency offer some reassurance to investors.

The most recent analyst rating on (JP:5975) stock is a Buy with a Yen3063.00 price target. To see the full list of analyst forecasts on Topre stock, see the JP:5975 Stock Forecast page.

Topre Lifts Full-Year Forecast on FX Tailwinds Despite Subsidiary Impairments

Topre Corporation has raised its full-year forecast for the period ending March 31, 2026, citing stronger-than-expected performance in its press-related products business and favorable foreign exchange effects. The company now expects net sales of ¥370 billion, operating profit of ¥24 billion, ordinary profit of ¥27 billion and profit attributable to owners of the parent of ¥13 billion, all above its November guidance despite impairment losses at three subsidiaries.

The company also booked ¥4.744 billion in foreign exchange gains in the third quarter, driven mainly by revaluation of foreign currency-denominated receivables, resulting in net foreign exchange gains of ¥4.3 billion for the first nine months. These FX gains, under an assumed full-year exchange rate of ¥150 to the U.S. dollar, bolster Topre’s earnings profile and underscore the material impact of currency volatility on its profitability and financial outlook.

The most recent analyst rating on (JP:5975) stock is a Buy with a Yen3063.00 price target. To see the full list of analyst forecasts on Topre stock, see the JP:5975 Stock Forecast page.