Toyo Engineering Corporation (6330) AI Stock Analysis

• Market Cap: ¥80.17B
• Dividend Yield: 2.02%
• Average Volume (3M): 1.92M
• Price to Earnings (P/E): 39.7
• Beta (1Y): 1.38
• Revenue Growth: 6.62%
• EPS Growth: -79.43%
• Country: JP
• Employees: 4,094
• Sector: Industrials
• Sector Strength: 86
• Industry: Engineering & Construction
• EPS (TTM): -4.77
• Shares Outstanding: 38,558,510
• 10 Day Avg. Volume: 2,223,720
• 30 Day Avg. Volume: 1,921,156
• PEG Ratio: -0.35
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥721.92
• Price Target Upside: -47.23% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: ¥1,474.00 ▲(7.75%Upside)

The overall stock score is influenced most significantly by strong technical momentum, despite concerns over high valuation and significant cash flow issues. The company's revenue growth is positive, but profitability and operational challenges weigh on the financial performance score.

Toyo Engineering Corporation Business Overview & Revenue Model

Company Description

Toyo Engineering Corporation (6330) is a globally recognized engineering company headquartered in Japan. It specializes in providing comprehensive engineering, procurement, and construction (EPC) services across various sectors, including oil and gas, petrochemicals, infrastructure, and renewable energy. The company is known for its expertise in delivering large-scale projects, offering solutions that range from feasibility studies to project management and construction.

How the Company Makes Money

Toyo Engineering Corporation generates revenue primarily through its EPC services, which involve designing, procuring, and constructing industrial facilities and infrastructure projects. The company's key revenue streams include contracts with major oil and gas companies, petrochemical firms, and government bodies for infrastructure development. Toyo Engineering also engages in long-term partnerships and collaborations with global industry leaders, which often lead to repeat business and ongoing project engagements. Additionally, the company is increasingly focusing on renewable energy projects, which is becoming a significant factor in its earnings as global demand for sustainable energy solutions rises.

Toyo Engineering Corporation Financial Statement Overview

Summary

Toyo Engineering Corporation shows steady revenue growth but faces declining profitability and operational efficiency. The balance sheet is stable with manageable leverage, yet cash flow issues pose significant challenges that need 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	278.09B	260.82B	192.91B	202.99B	184.00B
Gross Profit	26.09B	28.39B	24.27B	20.84B	18.56B
EBITDA	8.98B	15.00B	6.87B	5.28B	4.71B
Net Income	2.02B	9.82B	1.65B	1.62B	814.00M
Balance Sheet
Total Assets	286.60B	286.00B	256.31B	240.85B	218.25B
Cash, Cash Equivalents and Short-Term Investments	90.32B	119.86B	108.52B	92.15B	97.61B
Total Debt	51.45B	35.76B	36.06B	36.17B	27.75B
Total Liabilities	226.35B	221.84B	207.21B	196.29B	178.18B
Stockholders Equity	60.01B	63.94B	48.92B	44.39B	39.93B
Cash Flow
Free Cash Flow	-27.18B	2.56B	12.44B	-9.59B	16.48B
Operating Cash Flow	-23.09B	6.00B	15.59B	-6.79B	17.75B
Investing Cash Flow	-19.77B	7.34B	-9.47B	-7.85B	-2.71B
Financing Cash Flow	674.00M	-1.06B	-1.57B	7.61B	-451.00M

Toyo Engineering Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1368.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6330, the sentiment is Positive. The current price of 1368 is above the 20-day moving average (MA) of 1088.35, above the 50-day MA of 855.00, and above the 200-day MA of 728.14, indicating a bullish trend. The MACD of 111.66 indicates Negative momentum. The RSI at 75.57 is Negative, neither overbought nor oversold. The STOCH value of 78.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6330.

Toyo Engineering Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1860	75 Outperform	¥296.12B	11.55		3.03%	12.29%	59.92%
1890	74 Outperform	¥150.00B	18.04		5.42%	-7.59%	18.77%
Sector *	71 Outperform	¥269.60B	14.19	8.47%	2.85%	6.33%	12.37%
1820	71 Outperform	¥194.71B	11.10		4.45%	-8.67%	40.83%
6366	70 Neutral	¥91.67B	3.45	186.66%	―	-9.69%	―
6330	66 Neutral	¥80.17B	39.69	3.19%	2.02%	6.62%	-79.43%
1963	64 Neutral	$343.40B	―	-0.17%	3.00%	3.06%	94.98%

Toyo Engineering Corporation Corporate Events

Toyo Engineering Faces Arbitration Over Alleged Equipment Defects

Toyo Engineering Corporation and its subsidiary have been notified of an arbitration filed by GULF NC COMPANY LIMITED and its affiliates at the Singapore International Arbitration Centre. The dispute involves alleged defects in gas turbine generators delivered by Toyo Engineering for power generation facilities in Thailand, with claims amounting to approximately 5.5 billion yen. Toyo Engineering disputes the claims, citing expired warranty periods and a lack of prior discussions, and believes the arbitration will not impact its business performance.

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.