TOYO ELECTRIC MFG CO LTD (6505) AI Stock Analysis

• Market Cap: ¥22.32B
• Dividend Yield: 3.32%
• Average Volume (3M): 44.25K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.77
• 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: ¥2,809.00 ▲(32.50% Upside)
• Action: Reiterated Date: 01/15/26
• Date: Action: Reiterated 01/15/26

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 and Margin Improvement

Sustained double-digit revenue growth with concurrent gross, net, EBIT and EBITDA margin improvement indicates the firm is scaling sales while enhancing operational efficiency. This combination supports durable profitability, stronger internal funding for capex/R&D, and resilience over coming quarters.

Improving Balance Sheet / Leverage

Improved leverage and a stable equity ratio provide long-term financial flexibility, lowering refinancing and solvency risk. A healthier balance sheet enables sustained investment in product development and customer projects, supporting growth through industry cycles and buffering downturns.

Diversified Product Lines and End Markets

A broad product portfolio across automation, power and telecom reduces single-market dependency and spreads demand risk. Exposure to structural themes like industrial automation and telecom infrastructure supports steady demand and cross-selling opportunities that reinforce revenue durability over months.

Negative Factors

Cash Conversion Efficiency

Despite notable free cash flow growth, weaker operating cash flow versus net income points to potential earnings quality or working capital strain. Persistent cash conversion gaps can limit discretionary spending, increase reliance on external financing, and pressure dividend or capex plans over the medium term.

Historical Revenue Volatility

Prior inconsistent revenue trends imply exposure to variable order cycles or market demand fluctuations. Even with recent strong growth, this history raises forecasting uncertainty and operational planning risk, which can affect capacity utilization and margin stability in the next several quarters.

Limited Public Guidance / Investor Communication

Absence of guidance or disclosed highlights on recent calls reduces transparency for investors and stakeholders. Limited communication can hinder visibility into future orders or margins, complicating capital allocation decisions and increasing perceived execution risk across the upcoming reporting periods.

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	May 2025	May 2024	May 2023	May 2022	May 2021
Income Statement
Total Revenue	40.54B	32.14B	31.02B	30.16B	33.14B
Gross Profit	10.60B	8.17B	7.20B	6.82B	7.34B
EBITDA	3.49B	2.20B	2.05B	84.00M	2.64B
Net Income	2.13B	935.00M	824.00M	-930.00M	977.00M
Balance Sheet
Total Assets	53.21B	51.65B	49.68B	46.92B	51.97B
Cash, Cash Equivalents and Short-Term Investments	5.01B	6.42B	5.52B	4.45B	3.96B
Total Debt	9.21B	10.59B	11.17B	11.76B	13.84B
Total Liabilities	25.83B	25.58B	25.10B	24.91B	27.96B
Stockholders Equity	27.38B	26.07B	24.58B	22.01B	24.01B
Cash Flow
Free Cash Flow	25.00M	1.45B	474.00M	2.13B	1.19B
Operating Cash Flow	601.00M	1.85B	815.00M	2.50B	1.78B
Investing Cash Flow	-290.00M	-413.00M	635.00M	289.00M	-155.00M
Financing Cash Flow	-2.00B	-979.00M	-390.00M	-2.36B	-971.00M

TOYO ELECTRIC MFG CO LTD Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2120.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6505, the sentiment is Positive. The current price of 2120 is below the 20-day moving average (MA) of 2242.20, below the 50-day MA of 2135.34, and above the 200-day MA of 1884.92, indicating a bullish trend. The MACD of 101.95 indicates Negative momentum. The RSI at 78.33 is Negative, neither overbought nor oversold. The STOCH value of 87.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥17.86B	6.57	―	3.41%	-3.27%	572.42%
6505	75 Outperform	¥22.32B	10.32	―	3.32%	21.20%	189.37%
6496	69 Neutral	¥26.93B	16.86	―	1.82%	34.70%	-8.44%
6203	65 Neutral	¥23.00B	49.90	―	1.73%	26.09%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6210	57 Neutral	¥14.32B	-28.99	―	5.43%	1.46%	89.88%

TOYO ELECTRIC MFG CO LTD Corporate Events

Toyo Denki Holds FY2025 Guidance Despite Softer First-Half Sales

The company reported first-half fiscal 2025 net sales of ¥18.2 billion, down 4.4% year on year, with operating profit slipping 11.1% to ¥677 million, while profit attributable to owners rose 8.1% to ¥865 million; equity strengthened to ¥28.95 billion and the firm maintained its interim dividend suspension. Management kept full-year guidance unchanged at ¥40 billion in sales and ¥2.25 billion in net profit, implying modest top-line contraction but stable earnings, and upheld plans for a ¥75 year-end dividend, suggesting confidence in cash generation despite softer demand.

The most recent analyst rating on (JP:6505) stock is a Buy with a Yen2240.00 price target. To see the full list of analyst forecasts on TOYO ELECTRIC MFG CO LTD stock, see the JP:6505 Stock Forecast page.