Toyo Engineering Corporation (6330) AI Stock Analysis

• Market Cap: ¥39.62B
• Dividend Yield: 3.7%
• Average Volume (3M): 208.30K
• Price to Earnings (P/E): 19.6
• Beta (1Y): 1.37
• Revenue Growth: 6.62%
• EPS Growth: -79.43%
• Country: JP
• Employees: 4,094
• Sector: Industrials
• Sector Strength: 85
• Industry: Engineering & Construction
• EPS (TTM): -4.77
• Shares Outstanding: 38,558,510
• 10 Day Avg. Volume: 182,950
• 30 Day Avg. Volume: 208,296
• PEG Ratio: 11.82
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.66
• 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

• Rating: 64 Neutral
• Price Target: ¥722.00 ▲(6.80%Upside)

Toyo Engineering Corporation's overall stock score is moderately positive. The company's stable balance sheet and fair valuation are strengths. However, declining profitability, cash flow issues, and bearish technical indicators are significant concerns that offset potential growth.

Toyo Engineering Corporation Business Overview & Revenue Model

Company Description

Toyo Engineering Corporation (6330) is a prominent Japanese engineering company specializing in providing comprehensive engineering, procurement, and construction (EPC) services. The company operates across several sectors, including oil and gas, petrochemicals, infrastructure, and environmental solutions. Toyo Engineering is well-regarded for its expertise in delivering large-scale, complex projects with a strong emphasis on safety, quality, and sustainability.

How the Company Makes Money

Toyo Engineering Corporation generates revenue primarily through its EPC services, where it undertakes large-scale projects in various industries such as oil and gas, chemicals, and infrastructure. The company earns money by designing, procuring, and constructing facilities and plants, often on a contractual basis with governments and private sector companies. Key revenue streams include project management, engineering design services, procurement of equipment and materials, and construction. Additionally, Toyo Engineering may engage in strategic partnerships and joint ventures to enhance its project capabilities and market reach, contributing to its financial performance.

Toyo Engineering Corporation Financial Statement Overview

Summary

Toyo Engineering Corporation exhibits steady revenue growth but faces challenges with declining profitability and operational efficiency. The balance sheet is stable with manageable leverage, though significant cash flow issues are evident, requiring urgent attention.

Income Statement

Toyo Engineering Corporation shows a mixed performance in its income statement. The gross profit margin is 9.38% for 2025, indicating a moderate ability to manage production costs relative to revenue. The net profit margin has decreased significantly from 3.77% in 2024 to 0.73% in 2025, reflecting reduced profitability. Revenue growth rate from 2024 to 2025 is 6.62%, indicating a positive upward trend, although the EBIT margin dropped to 0.93% from 2.57% in 2024, suggesting declining operational efficiency. The EBITDA margin for 2025 is 3.23%, also reflecting a decrease in earnings before interest, taxes, depreciation, and amortization.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.86 for 2025, indicating a balanced leverage level. The return on equity (ROE) decreased significantly to 3.37%, reflecting less efficient use of equity to generate profit. The equity ratio is 20.93%, showing a healthy proportion of equity financing relative to total assets.

Cash Flow

The cash flow statement highlights significant challenges, with a negative free cash flow of -27,182 million JPY in 2025, showing a substantial drop from the previous year's positive figure. The operating cash flow to net income ratio is negative, indicating operational cash flow issues. The free cash flow to net income ratio is also negative, reflecting poor cash conversion efficiency.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
277.04B	278.09B	260.82B	192.91B	202.99B	184.00B
	Gross Profit
26.66B	26.09B	28.39B	24.27B	20.84B	18.56B
	EBIT
3.30B	2.59B	6.71B	4.76B	2.96B	1.61B
	EBITDA
13.42B	8.98B	15.00B	6.87B	5.28B	4.71B
	Net Income Common Stockholders
9.04B	2.02B	9.82B	1.65B	1.62B	814.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
86.47B	90.32B	119.86B	108.52B	92.15B	97.61B
	Total Assets
290.73B	286.60B	286.00B	256.31B	240.85B	218.25B
	Total Debt
47.18B	51.45B	35.76B	36.06B	36.17B	27.75B
	Net Debt
-39.29B	-38.88B	-84.10B	-72.46B	-55.99B	-69.86B
	Total Liabilities
227.52B	226.35B	221.84B	207.21B	196.29B	178.18B
	Stockholders Equity
63.00B	60.01B	63.94B	48.92B	44.39B	39.93B
Cash Flow		Free Cash Flow
0.00	-27.18B	2.56B	12.44B	-9.59B	16.48B
	Operating Cash Flow
0.00	-23.09B	6.00B	15.59B	-6.79B	17.75B
	Investing Cash Flow
0.00	-19.77B	7.34B	-9.47B	-7.85B	-2.71B
	Financing Cash Flow
0.00	674.00M	-1.06B	-1.57B	7.61B	-451.00M

Toyo Engineering Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 676.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6330, the sentiment is Neutral. The current price of 676 is above the 20-day moving average (MA) of 665.50, above the 50-day MA of 651.96, and below the 200-day MA of 685.50, indicating a neutral trend. The MACD of 7.62 indicates Negative momentum. The RSI at 52.16 is Neutral, neither overbought nor oversold. The STOCH value of 71.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6330.

Toyo Engineering Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1890	74 Outperform	¥138.15B	16.61		7.89%	-7.59%	18.77%
1820	70 Outperform	¥192.58B	10.98		4.92%	-8.67%	40.83%
6366	70 Outperform	$88.05B	3.26	186.66%	―	-9.69%	―
1860	68 Neutral	¥276.55B	10.79		3.22%	12.29%	59.70%
Sector *	66 Neutral	$4.47B	12.21	5.40%	3.65%	4.14%	-12.00%
6330	64 Neutral	¥39.62B	19.61	3.19%	3.70%	6.62%	-79.43%
1963	56 Neutral	¥317.86B	―	-0.17%	3.18%	3.06%	94.99%

Toyo Engineering Corporation Corporate Events

Toyo Engineering Reports Discrepancies in Financial Results Due to Project Delays

Toyo Engineering Corporation announced discrepancies between its financial forecast and actual results for the fiscal year ending March 31, 2025. The company faced challenges in its projects in Brazil and Japan, leading to increased expenses and lower profits than anticipated. Despite some profit gains in other international projects, these were insufficient to offset the losses. Consequently, the operating and ordinary profits fell short of expectations, and the after-tax profit attributable to owners also declined. However, Toyo plans to maintain its year-end dividend payout unchanged, reflecting confidence in its liquidity and future outlook.

Toyo Engineering Faces Profit Decline Despite Sales Growth

Toyo Engineering Corporation reported a challenging fiscal year ending March 31, 2025, with a significant decline in profits despite an increase in net sales. The company’s operating profit dropped by 61.4%, and profit attributable to owners of the parent fell by 79.4%, indicating operational challenges. The financial results reflect a decrease in comprehensive income and a lower capital adequacy ratio, suggesting potential impacts on stakeholder confidence and future strategic decisions.

Toyo Engineering Fined by Brazilian Authorities, Plans to Challenge Decision

Toyo Engineering Corporation and its Brazilian subsidiary, Projeto de Plantas Industriais Ltda, have been fined approximately R$ 560 million by the Comptroller General of Brazil for alleged improper activities related to a project at the Comperj Petrochemical Complex. Despite the fine, Toyo Engineering maintains its stance that it was not involved in any wrongdoing and plans to challenge the decision.