TOYO ELECTRIC MFG CO LTD (6505) AI Stock Analysis

• Market Cap: ¥18.20B
• Dividend Yield: 3.44%
• Average Volume (3M): 44.25K
• Price to Earnings (P/E): 7.4
• Beta (1Y): 0.78
• Revenue Growth: 21.20%
• EPS Growth: 189.37%
• Country: JP
• Employees: 1,147
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 51.48
• 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: 72 Outperform
• Price Target: ¥2,127.00 ▲(4.47% Upside)

TOYO ELECTRIC MFG CO LTD's strong financial performance and attractive valuation are significant positives, suggesting the stock is fundamentally sound and potentially undervalued. However, technical indicators show bearish momentum, which could pose short-term risks. Investors should consider the strong financials and valuation while being cautious of the current technical weakness.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and product demand, supporting long-term business sustainability.

Profitability Margins

Improved margins suggest better cost management and operational efficiency, enhancing long-term profitability and competitiveness.

Cash Generation

Strong cash generation provides financial flexibility for investments and debt management, supporting sustainable growth.

Negative Factors

Fluctuating Revenue Growth

Inconsistent revenue growth can indicate market volatility or operational challenges, posing risks to long-term stability.

Cash Flow Efficiency

Inefficient cash flow relative to net income may limit reinvestment and growth opportunities, affecting long-term financial health.

Debt Monitoring

Ongoing debt monitoring is crucial to prevent financial strain, ensuring long-term stability and operational flexibility.

TOYO ELECTRIC MFG CO LTD Business Overview & Revenue Model

Company Description

TOYO ELECTRIC MFG CO LTD (6505) is a Japanese company engaged in the manufacturing and sale of electrical equipment and electronic components. The company operates in various sectors, including industrial automation, power systems, and telecommunications, providing a diverse range of products such as transformers, circuit breakers, and semiconductors. With a focus on innovation and quality, TOYO ELECTRIC serves both domestic and international markets, contributing to the advancement of technology in multiple industries.

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

TOYO ELECTRIC MFG CO LTD demonstrates strong financial performance with robust revenue growth and improving profitability margins. The balance sheet reflects a stable financial position with manageable debt levels. Cash flow generation is strong, but there is potential for improvement in cash flow efficiency.

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: Positive
• Last Price: 2036.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 2036 is above the 20-day moving average (MA) of 1969.65, above the 50-day MA of 1984.32, and above the 200-day MA of 1675.65, indicating a bullish trend. The MACD of 10.93 indicates Negative momentum. The RSI at 57.21 is Neutral, neither overbought nor oversold. The STOCH value of 76.14 is Neutral, 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
6373	79 Outperform	¥15.78B	13.38	―	1.73%	1.61%	117.39%
6317	78 Outperform	¥16.18B	4.94	―	3.47%	-3.27%	572.42%
6496	76 Outperform	¥20.36B	14.66	―	1.84%	34.70%	-8.44%
6505	72 Outperform	¥18.20B	7.45	―	3.44%	21.20%	189.37%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6210	57 Neutral	¥13.25B	-87.84	―	5.42%	1.46%	89.88%
6203	53 Neutral	¥14.15B	44.61	―	1.75%	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.