Toyo Engineering Corporation (6330) AI Stock Analysis

• Market Cap: €140.18B
• Dividend Yield: 1.06%
• Average Volume (3M): 1.77M
• Price to Earnings (P/E): 77.7
• Beta (1Y): 1.56
• Revenue Growth: -5.80%
• EPS Growth: -126.63%
• Country: JP
• Employees: 4,094
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -60.83
• Shares Outstanding: 38,558,510
• 10 Day Avg. Volume: 2,851,550
• 30 Day Avg. Volume: 1,771,820
• PEG Ratio: -0.25
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.15
• P/FCF Ratio: -1.49
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: ¥2,491.00 ▲(5.55% Upside)

The overall stock score reflects steady revenue growth and a strong balance sheet, but is weighed down by declining profitability, operational efficiency, and significant cash flow challenges. Technical analysis suggests potential for long-term growth, but current valuation metrics raise concerns about earnings performance.

Positive Factors

Revenue Growth

A consistent revenue growth trend suggests that Toyo Engineering is successfully expanding its market reach and enhancing its service offerings, which is crucial for long-term business sustainability and competitiveness.

Strong Balance Sheet

A balanced leverage level indicates financial stability and provides Toyo Engineering with the flexibility to invest in growth opportunities and withstand economic fluctuations.

Market Position

As a leading firm in the engineering and construction industry, Toyo Engineering benefits from strong brand recognition and established client relationships, which are critical for securing large-scale projects and maintaining a competitive edge.

Negative Factors

Declining Profitability

The significant decline in net profit margin indicates challenges in cost management and pricing power, potentially impacting the company's ability to generate sustainable profits over the long term.

Operational Efficiency

Decreasing operational efficiency may hinder Toyo Engineering's ability to execute projects profitably and could lead to increased costs, affecting overall financial performance and competitiveness.

Cash Flow Challenges

Significant cash flow challenges can limit Toyo Engineering's ability to invest in growth initiatives and meet financial obligations, posing risks to its long-term financial health and operational capacity.

Toyo Engineering Corporation Business Overview & Revenue Model

Company Description

Toyo Engineering Corporation engages in the engineering and construction of industrial facilities in Japan, India, Russia, and internationally. It provides various services, such as research and development support, design, engineering, procurement, construction, commissioning, and technical assistance for industrial facilities, including oil, gas, petrochemical, chemical, water treatment, power generation, nuclear power, pharmaceutical, fine chemical, biotechnology, environment, and other facilities, as well as transportation, advanced production, and distribution systems. The company was incorporated in 1961 and is headquartered in Narashino, Japan.

How the Company Makes Money

Toyo Engineering Corporation generates revenue through multiple streams, primarily by providing engineering, procurement, and construction (EPC) services for large industrial projects. The company earns money by entering into contracts with clients, where they charge fees for their expertise in project design and management, as well as for the procurement of materials and construction services. Significant revenue also comes from long-term maintenance contracts and consultancy services. Additionally, partnerships with major companies in the oil, gas, and energy sectors further enhance Toyo's revenue, allowing them to participate in joint ventures and collaborative projects that expand their market reach and capabilities. The firm may also engage in technology licensing and the sale of proprietary technologies, contributing to its overall earnings.

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, but significant cash flow issues 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	264.59B	278.09B	260.82B	192.91B	202.99B	184.00B
Gross Profit	26.45B	26.09B	28.39B	24.27B	20.84B	18.56B
EBITDA	8.18B	8.98B	15.00B	6.87B	5.28B	4.71B
Net Income	1.51B	2.02B	9.82B	1.65B	1.62B	814.00M
Balance Sheet
Total Assets	252.57B	286.60B	286.00B	256.31B	240.85B	218.25B
Cash, Cash Equivalents and Short-Term Investments	79.55B	90.32B	119.86B	108.52B	92.15B	97.61B
Total Debt	51.14B	51.45B	35.76B	36.06B	36.17B	27.75B
Total Liabilities	195.01B	226.35B	221.84B	207.21B	196.29B	178.18B
Stockholders Equity	57.35B	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: Positive
• Last Price: 2360.00
• 50DMA: Positive
• 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:6330, the sentiment is Positive. The current price of 2360 is below the 20-day moving average (MA) of 2569.35, above the 50-day MA of 2320.36, and above the 200-day MA of 1327.39, indicating a neutral trend. The MACD of 2.80 indicates Positive momentum. The RSI at 44.63 is Neutral, neither overbought nor oversold. The STOCH value of 10.59 is Positive, 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
6366	78 Outperform	$106.95B	3.65	117.82%	―	-12.14%	―
1860	76 Outperform	¥367.12B	11.66	―	2.74%	18.92%	73.08%
1820	75 Outperform	¥210.85B	13.21	―	3.75%	-3.72%	59.02%
1890	75 Outperform	¥163.43B	18.30	―	5.03%	12.80%	34.19%
1963	65 Neutral	$488.25B	―	-0.24%	2.15%	-0.41%	80.25%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6330	58 Neutral	€140.18B	77.72	2.62%	1.06%	-5.80%	-126.63%

Toyo Engineering Corporation Corporate Events

Toyo Engineering Reports Decline in Financial Performance Amid Strategic Expansion

Toyo Engineering Corporation reported a significant decline in its financial performance for the six months ending September 30, 2025, with a 22.9% drop in net sales and a notable operating loss. The company has also included Offshore Frontier Solutions Malaysia Sdn. Bhd. in its consolidation scope, indicating strategic expansion efforts despite current financial challenges.