TOYO ELECTRIC MFG CO LTD (6505) AI Stock Analysis

• Market Cap: ¥17.80B
• Dividend Yield: 3.32%
• Average Volume (3M): 44.25K
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.72
• Revenue Growth: 21.20%
• EPS Growth: 189.37%
• Country: JP
• Employees: 1,147
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): N/A
• Shares Outstanding: 9,735,000
• 10 Day Avg. Volume: 26,680
• 30 Day Avg. Volume: 44,253
• PEG Ratio: 0.04
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 496.66
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥2,240.00 ▲(5.66% Upside)

Overall score is driven by strong financial performance (notably revenue growth and improving margins) and attractive valuation (low P/E with a healthy dividend). Offsetting these positives, technical indicators show weaker near-term price trend with mixed momentum signals.

Positive Factors

Revenue Growth & Margin Expansion

Consistent double-digit revenue growth alongside improving gross, EBIT and net margins signals durable operational improvement. Margin expansion suggests better pricing power and cost control, supporting sustainable cash generation and reinvestment capacity over coming quarters.

Improved Leverage / Balance Sheet

Improving debt-to-equity and a stable equity ratio enhance financial flexibility and lower refinancing risk. Stronger leverage metrics support investment in R&D, capex and long-term contracts, helping the company withstand cyclical downturns and fund strategic initiatives.

Free Cash Flow Growth

Significant free cash flow growth indicates the business converts operating results into real cash, enabling dividends, capex and strategic investments. Reliable FCF provides long-term resilience and funding optionality even if accounting earnings fluctuate.

Negative Factors

Historical Revenue Volatility

Past revenue swings reduce visibility into future topline and reflect demand or execution variability. For a manufacturer, such volatility complicates capacity planning and margin sustainability, increasing the risk that recent growth may not persist across medium-term cycles.

Cash Conversion Efficiency

A lagging operating cash flow to net income ratio means earnings are not fully converted into cash, likely from working capital dynamics. This weakens internal funding for capex or dividends and raises dependence on external financing if margins compress or growth accelerates.

Exposure to Cyclical End-Markets

Concentration in manufacturing, construction and telecom ties revenue to capital spending cycles and project timing. Such cyclical exposure can cause order volatility and margin pressure, making medium-term revenue and profitability less predictable despite strong recent results.

TOYO ELECTRIC MFG CO LTD Business Overview & Revenue Model

Company Description

Toyo Denki Seizo K.K., together with its subsidiaries, manufactures and sells transportation, industrial, and information equipment systems in Japan and internationally. It manufactures electrical equipment for rail vehicles, including propulsion inverters, auxiliary power supply equipment, traction motors, driving gear units, pantographs, total train communication systems, passenger information display systems, twin disk couplings, door operating equipment, and circuit breakers, as well as railway power storage systems. The company also engages in the manufacture, sale, and related construction activities for testing system for automobiles, dynamometers, mechanical systems, control and measurement systems, and battery simulators; power generation and social infrastructure systems, such as generators, and water supply and sewage equipment systems; production and processing equipment systems, including network, printing, tire and rubber, films and plastics, paper manufacturing, and metal processing equipment; automotive electrical equipment; and industrial systems comprising controllers, inverters, and motors. In addition, it provides station operating equipment, such as commuter pass vending machines/composite ticket vending machines, mobile devices for conductors, compact vending machines, and decision engines; vehicle monitoring, equipment management, facilities management, sensor monitoring, and custom solutions; remote monitoring and control systems; and current, electricity, analog, and pulse sensors, as well as wireless measurement systems. Toyo Denki Seizo K.K. was incorporated in 1918 and is headquartered in Tokyo, Japan.

How the Company Makes Money

TOYO ELECTRIC MFG CO LTD generates revenue primarily through the sale of its electrical and electronic products to businesses in various sectors, including manufacturing, construction, and telecommunications. The company's revenue model is based on direct sales to customers, as well as partnerships with distributors and other manufacturers. Key revenue streams include the sale of transformers, circuit breakers, and other components used in industrial and commercial applications. Additionally, TOYO ELECTRIC may engage in long-term contracts for supply with major clients, which ensures a steady income flow. The company's focus on research and development also allows it to innovate and expand its product offerings, potentially leading to new revenue opportunities.

TOYO ELECTRIC MFG CO LTD Financial Statement Overview

Summary

Strong income statement (Score 85) with 11.56% revenue growth and improving gross/net and EBIT/EBITDA margins. Balance sheet is solid (Score 78) with improved leverage and stable structure, while cash flow is positive but less efficient vs. net income (Score 72).

Income Statement

TOYO ELECTRIC MFG CO LTD has shown strong revenue growth of 11.56% in the latest period, with improving gross and net profit margins. The EBIT and EBITDA margins have also improved, indicating enhanced operational efficiency. However, the company experienced fluctuating revenue growth in previous years, which could pose a risk if not stabilized.

Balance Sheet

The company's debt-to-equity ratio has improved over the years, indicating better leverage management. The return on equity has been positive, showing profitability, but there is room for improvement. The equity ratio suggests a stable financial structure, but the company should continue to monitor its debt levels to maintain financial health.

Cash Flow

TOYO ELECTRIC MFG CO LTD has shown significant free cash flow growth, indicating strong cash generation capabilities. However, the operating cash flow to net income ratio suggests that cash flow generation relative to net income could be improved. The free cash flow to net income ratio is healthy, but the company should focus on sustaining cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	40.54B	40.54B	32.14B	31.02B	30.16B	33.14B
Gross Profit	10.60B	10.60B	8.17B	7.20B	6.82B	7.34B
EBITDA	3.25B	3.49B	2.20B	2.05B	84.00M	2.64B
Net Income	2.13B	2.13B	935.00M	824.00M	-930.00M	977.00M
Balance Sheet
Total Assets	53.21B	53.21B	51.65B	49.68B	46.92B	51.97B
Cash, Cash Equivalents and Short-Term Investments	5.01B	5.01B	6.42B	5.52B	4.45B	3.96B
Total Debt	9.21B	9.21B	10.59B	11.17B	11.76B	13.84B
Total Liabilities	25.83B	25.83B	25.58B	25.10B	24.91B	27.96B
Stockholders Equity	27.38B	27.38B	26.07B	24.58B	22.01B	24.01B
Cash Flow
Free Cash Flow	0.00	25.00M	1.45B	474.00M	2.13B	1.19B
Operating Cash Flow	0.00	601.00M	1.85B	815.00M	2.50B	1.78B
Investing Cash Flow	0.00	-290.00M	-413.00M	635.00M	289.00M	-155.00M
Financing Cash Flow	0.00	-2.00B	-979.00M	-390.00M	-2.36B	-971.00M

TOYO ELECTRIC MFG CO LTD Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2120.00
• 50DMA: Negative
• 100DMA: Negative
• 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:6505, the sentiment is Neutral. The current price of 2120 is above the 20-day moving average (MA) of 2050.25, above the 50-day MA of 2024.38, and above the 200-day MA of 1786.44, indicating a neutral trend. The MACD of -19.27 indicates Positive momentum. The RSI at 43.04 is Neutral, neither overbought nor oversold. The STOCH value of 34.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6505.

TOYO ELECTRIC MFG CO LTD Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6317	78 Outperform	¥16.54B	5.05	―	3.41%	-3.27%	572.42%
6505	75 Outperform	¥17.80B	8.23	―	3.32%	21.20%	189.37%
6496	69 Neutral	¥23.50B	14.72	―	1.82%	34.70%	-8.44%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6210	57 Neutral	¥13.95B	-28.24	―	5.43%	1.46%	89.88%
6203	53 Neutral	¥17.06B	53.81	―	1.73%	26.09%	―

TOYO ELECTRIC MFG CO LTD Corporate Events

Toyo Denki Seizo K.K. Reports Strong Financial Performance for Q3 2025

Toyo Denki Seizo K.K. reported a significant improvement in its financial performance for the three months ended August 31, 2025, with net sales increasing by 3% and profit attributable to owners of the parent rising by 379.4% compared to the same period last year. The company also announced a forecast for the fiscal year ending May 31, 2026, with expected stable net sales and a slight increase in operating profit, indicating a positive outlook for stakeholders.

The most recent analyst rating on (JP:6505) stock is a Buy with a Yen2403.00 price target. To see the full list of analyst forecasts on TOYO ELECTRIC MFG CO LTD stock, see the JP:6505 Stock Forecast page.