Toyo Kanetsu K.K (6369) AI Stock Analysis

• Market Cap: ¥47.75B
• Dividend Yield: 4.89%
• Average Volume (3M): 30.33K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 1.03
• Revenue Growth: 0.60%
• EPS Growth: -23.08%
• Country: JP
• Employees: 1,157
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 169.41
• Shares Outstanding: 16,046,148
• 10 Day Avg. Volume: 20,690
• 30 Day Avg. Volume: 30,333
• PEG Ratio: 2.30
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.47
• P/FCF Ratio: 8.92
• 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): 167.15
• Revenue Forecast (FY): ¥62.70B

• Rating: 80 Outperform
• Price Target: ¥3,554.00 ▲(43.25% Upside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

The score is driven primarily by strong financial performance (growth, margin improvement, and a sharp free-cash-flow turnaround) and supportive valuation (low P/E with a high dividend yield). Technicals are bullish but somewhat overextended (high RSI/Stoch), tempering the overall rating.

Positive Factors

Revenue growth and margin improvement

Sustained top-line growth with simultaneous gross and net margin expansion indicates durable demand and improving unit economics. This combination supports higher operating cash flow and gives management room to invest in product development and recurring-service offers, strengthening competitiveness over months.

Free cash flow turnaround

A material shift from negative to positive free cash flow and strong OCF-to-net-income conversion reflects improved cash quality of earnings. That durable cash-generation capability increases financial flexibility for capex, maintenance of aftermarket services, and supports dividends or debt reduction over the coming quarters.

Solid balance sheet and moderate leverage

Low-to-moderate leverage and a strong equity base lower solvency risk and permit the company to bid on large EPC projects or invest in automation without immediate refinancing pressure. This structural balance-sheet strength supports stable operations across industry cycles in the medium term.

Negative Factors

Cyclical project revenue exposure

Heavy reliance on engineered-to-order and EPC projects makes revenue lumpy and sensitive to customer capex timing. Over a 2-6 month horizon, this cyclical exposure can compress utilization, delay revenue recognition, and increase working-capital volatility, reducing earnings visibility.

Execution and contract risk

Long-duration, complex installation projects carry persistent execution risk: cost overruns, schedule slips, and subcontractor issues can materially erode margins and cash flow. This is a structural operational risk that can affect profitability and client relationships across multiple reporting periods.

Slight decline in total assets

A contracting asset base may signal underinvestment or asset disposals limiting capacity to scale or take larger projects. Over several months, reduced asset capacity could constrain revenue growth or necessitate renewed capital expenditures to maintain competitive project delivery capability.

Toyo Kanetsu K.K Business Overview & Revenue Model

Company Description

Toyo Kanetsu K.K. engages in plant and machinery, material handling systems, and other businesses in Japan, Southeast Asia, and internationally. The company's Plant & Machinery Business segment designs, builds, and executes construction works of storage tanks for LNG, LPG, crude oil and other gases and liquids; and provides maintenance services and other operations for the tanks. Its Logistics Solutions Business segment develops, designs, builds, and executes construction works of material handling systems for sorting, picking, and conveying systems, as well as offers maintenance services and other operations. In addition, the company is involved in the building construction business; manufacture and sale of industrial facilities and equipment; real estate rental; leasing operations; and inspection, measurement, analysis of asbestos, etc. The company was formerly known as Toyo Kanetsu Kogyo K.K. and changed its name to Toyo Kanetsu K.K. in 1969. Toyo Kanetsu K.K. was incorporated in 1941 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Toyo Kanetsu K.K. generates revenue primarily through the sale of its industrial equipment and systems, which are tailored to meet the needs of various industries focused on environmental sustainability. Key revenue streams include direct sales of machinery, service contracts for maintenance and support, and consulting services for environmental management solutions. Additionally, the company may collaborate with government agencies and private enterprises on projects that require specialized equipment for waste treatment and energy recovery, thereby enhancing its earnings through partnerships and joint ventures.

Toyo Kanetsu K.K Financial Statement Overview

Summary

Strong overall fundamentals: revenue grew ~12.4% (2024 to 2025) with improving gross (21.9%) and net (6.0%) margins, and cash flow rebounded from negative to positive free cash flow. Balance sheet is solid with moderate leverage (debt-to-equity 0.36) and a strong equity ratio (57.7%), though total assets declined slightly.

Income Statement

Toyo Kanetsu K.K. has shown strong revenue growth with a sharp increase from 53.79 billion JPY in 2024 to 60.47 billion JPY in 2025, marking a growth rate of approximately 12.4%. The gross profit margin improved to 21.9% in 2025, reflecting efficient cost management. Net profit margin also strengthened to 6.0%, indicating enhanced profitability. The EBIT and EBITDA margins have improved, showcasing effective operational performance.

Balance Sheet

The company maintains a solid balance sheet with a debt-to-equity ratio of 0.36, indicating moderate leverage. Return on equity stands at 9.4%, showing a reasonable return for shareholders. The equity ratio remains strong at 57.7%, demonstrating a substantial equity base. However, a slight decrease in total assets from 2024 to 2025 suggests potential areas for asset optimization.

Cash Flow

The company has significantly improved its cash flow position, turning from negative free cash flow of -2.20 billion JPY in 2024 to a positive 3.17 billion JPY in 2025. The operating cash flow to net income ratio of 1.46 indicates strong cash generation relative to net income. Additionally, a robust free cash flow to net income ratio further emphasizes the company's effective cash management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	59.15B	60.47B	53.79B	47.35B	59.18B	43.62B
Gross Profit	13.21B	13.24B	11.77B	10.81B	10.16B	9.25B
EBITDA	5.92B	6.03B	5.66B	4.27B	4.52B	3.48B
Net Income	3.52B	3.64B	3.55B	2.38B	2.33B	1.78B
Balance Sheet
Total Assets	70.63B	67.44B	67.89B	64.00B	64.29B	58.76B
Cash, Cash Equivalents and Short-Term Investments	9.37B	6.52B	8.35B	6.99B	8.76B	7.41B
Total Debt	18.70B	13.98B	17.02B	11.44B	13.70B	9.21B
Total Liabilities	32.38B	28.52B	30.14B	25.91B	27.81B	22.28B
Stockholders Equity	38.24B	38.90B	37.75B	38.08B	36.47B	36.48B
Cash Flow
Free Cash Flow	2.56B	3.17B	-2.20B	-82.00M	-2.11B	351.00M
Operating Cash Flow	3.04B	5.30B	-739.00M	1.10B	-1.10B	1.48B
Investing Cash Flow	-347.50M	-1.76B	-1.04B	826.00M	-830.00M	-338.00M
Financing Cash Flow	-3.32B	-5.42B	3.12B	-3.72B	3.21B	-5.18B

Toyo Kanetsu K.K Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2481.00
• 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:6369, the sentiment is Positive. The current price of 2481 is below the 20-day moving average (MA) of 2905.60, below the 50-day MA of 2686.20, and above the 200-day MA of 2258.98, indicating a bullish trend. The MACD of 126.16 indicates Negative momentum. The RSI at 71.07 is Negative, neither overbought nor oversold. The STOCH value of 74.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6369.

Toyo Kanetsu K.K Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6104	81 Outperform	¥99.47B	48.30	5.02%	3.23%	-10.00%	-51.92%
6369	80 Outperform	¥47.75B	11.36	9.76%	4.89%	0.60%	-23.08%
6118	74 Outperform	¥64.67B	12.89	―	2.54%	2.00%	39.80%
6143	69 Neutral	¥77.89B	17.06	7.00%	3.02%	15.78%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6125	62 Neutral	¥32.01B	20.12	―	3.56%	-3.85%	-45.64%
6135	61 Neutral	¥281.81B	15.21	6.63%	0.91%	9.03%	10.76%