Toyo Kanetsu K.K (6369) AI Stock Analysis

• Market Cap: ¥42.90B
• Dividend Yield: 4.89%
• Average Volume (3M): 30.33K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 1.05
• 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: ¥3,172.00 ▲(27.85% 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 and margin improvement

Sustained double-digit revenue growth and rising gross and net margins indicate stronger pricing power and improved cost control across projects. Over 2-6 months this supports a larger installed base, better project economics, and greater ability to absorb fixed costs, improving long-term profitability resilience.

Free cash flow turnaround

A material shift to positive free cash flow and strong operating cash conversion signals durable cash-generation capacity. This reduces reliance on external financing, enables reinvestment in automation and service offerings, and provides flexibility for dividends or debt reduction over the medium term.

Solid balance sheet and moderate leverage

Low to moderate leverage with a high equity ratio gives the company capacity to bid on large EPC contracts and absorb project timing shocks. Financial flexibility supports strategic investments and working-capital needs, lowering bankruptcy risk and preserving ability to pursue growth over coming quarters.

Negative Factors

Project-based, cyclical revenue mix

Heavy reliance on engineered-to-order projects exposes revenue and margins to customer capex cycles and timing of large orders. Over the medium term this can create lumpy revenue, increase working-capital needs, and raise execution risk on long-duration contracts, pressuring stable earnings growth.

Slight decline in total assets

A fall in total assets could reflect asset sales, lower reinvestment, or shrinking scale, which may constrain capacity for larger projects or signal underinvestment in equipment and systems. If sustained, this could limit long-term revenue growth and competitiveness in equipment-heavy bids.

Moderate return profile

ROE and net margins are positive but moderate for a capital-intensive engineering firm. Over time, modest returns can limit retained earnings for reinvestment and reduce buffer against project overruns, making it harder to scale high-return initiatives without external capital.

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 primarily makes money by delivering engineered-to-order industrial projects and equipment, recognized as revenue through contracts tied to manufacturing, installation, and construction milestones. A major revenue stream is the logistics/automation business, where the company sells and integrates material-handling systems (e.g., automated warehousing, sorting, conveying, and related control software) for customers such as distribution centers and manufacturers; revenue is generated from system design, equipment sales, installation/commissioning, and project management. Another key stream is plant/industrial engineering, where it earns contract revenue from designing and building industrial facilities and handling/storage-related infrastructure as project-based work; this includes engineering services, fabrication/procurement of equipment, on-site construction, and commissioning. In addition to upfront project revenue, the company also earns recurring/aftermarket income from maintenance, inspection, parts supply, and upgrade/retrofit services for installed systems. Profitability is influenced by project mix (large one-off projects versus smaller recurring service work), execution and cost control on long-duration contracts, customer capital-expenditure cycles, and the company’s ability to secure orders and manage subcontractors and suppliers. Specific significant partnerships: null.

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: Negative
• Last Price: 2481.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6369, the sentiment is Negative. The current price of 2481 is below the 20-day moving average (MA) of 2931.15, below the 50-day MA of 2749.18, and above the 200-day MA of 2298.47, indicating a neutral trend. The MACD of 6.94 indicates Positive momentum. The RSI at 43.17 is Neutral, neither overbought nor oversold. The STOCH value of 30.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥83.73B	136.93	5.02%	3.23%	-10.00%	-51.92%
6369	80 Outperform	¥42.90B	9.86	9.55%	4.89%	0.60%	-23.08%
6118	74 Outperform	¥61.09B	24.26	―	2.54%	2.00%	39.80%
6143	69 Neutral	¥69.75B	10.78	7.00%	3.02%	15.78%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6125	62 Neutral	¥29.97B	-53.89	―	3.56%	-3.85%	-45.64%
6135	61 Neutral	¥278.91B	8.88	7.67%	0.91%	9.03%	10.76%