TOYO ELECTRIC MFG CO LTD (6505) AI Stock Analysis

• Market Cap: ¥17.48B
• Dividend Yield: 3.58%
• Average Volume (3M): 44.25K
• Price to Earnings (P/E): 7.2
• Beta (1Y): 0.80
• 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 ▲(8.85% 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 specializing in the manufacturing and development of electrical and electronic equipment. The company operates primarily in the sectors of industrial machinery, electrical components, and automation systems. TOYO ELECTRIC offers a wide range of products, including transformers, power supplies, and control devices, catering to various industries such as manufacturing, energy, and telecommunications.

How the Company Makes Money

TOYO ELECTRIC MFG CO LTD generates revenue through the sales of its electrical and electronic products to a diverse clientele across various industries. The company's primary revenue streams include the manufacturing and sale of transformers, power supplies, and automation systems. By establishing partnerships with key players in industrial sectors, TOYO ELECTRIC enhances its market reach and leverages collaborative projects to drive sales. Additionally, the company may engage in after-sales services and maintenance contracts, providing ongoing revenue and fostering customer loyalty. The global demand for efficient electrical solutions and advancements in automation technology further contribute to the company's earnings.

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	38.94B	40.54B	32.14B	31.02B	30.16B	33.14B
Gross Profit	9.91B	10.60B	8.17B	7.20B	6.82B	7.34B
EBITDA	3.12B	3.49B	2.20B	2.05B	84.00M	2.64B
Net Income	1.75B	2.13B	935.00M	824.00M	-930.00M	977.00M
Balance Sheet
Total Assets	53.82B	53.21B	51.65B	49.68B	46.92B	51.97B
Cash, Cash Equivalents and Short-Term Investments	3.91B	5.01B	6.42B	5.52B	4.45B	3.96B
Total Debt	12.83B	9.21B	10.59B	11.17B	11.76B	13.84B
Total Liabilities	27.64B	25.83B	25.58B	25.10B	24.91B	27.96B
Stockholders Equity	26.18B	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: 1954.00
• 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:6505, the sentiment is Positive. The current price of 1954 is below the 20-day moving average (MA) of 1988.05, below the 50-day MA of 1970.92, and above the 200-day MA of 1621.46, indicating a neutral trend. The MACD of -13.48 indicates Positive momentum. The RSI at 48.89 is Neutral, neither overbought nor oversold. The STOCH value of 54.09 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	¥14.64B	12.42	―	1.76%	1.61%	117.39%
6317	78 Outperform	¥16.45B	5.03	―	3.49%	-3.27%	572.42%
6496	76 Outperform	¥20.46B	14.74	―	1.83%	34.70%	-8.44%
6505	72 Outperform	¥17.48B	7.15	―	3.58%	21.20%	189.37%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6210	57 Neutral	¥13.60B	-28.46	―	5.18%	1.46%	89.88%
6203	53 Neutral	¥13.56B	42.77	―	1.81%	26.09%	―

TOYO ELECTRIC MFG CO LTD Corporate Events

Toyo Denki Announces Board Changes

Toyo Denki Seizo K.K. has announced a change in its board of directors, with Yasuaki Sugizaki being nominated as a new outside director, replacing Koji Mizumoto who will retire. This change is part of the company’s ongoing efforts to strengthen its governance and align with Tokyo Stock Exchange regulations, potentially impacting its strategic direction and stakeholder confidence.

Toyo Denki Introduces Restricted Stock Compensation Plan

Toyo Denki Seizo K.K. has announced the introduction of a restricted stock compensation plan aimed at incentivizing its directors to enhance corporate value and align their interests with shareholders. The plan, pending approval at the upcoming General Meeting of Shareholders, will provide eligible directors with common stock or monetary claims to acquire stock, with a maximum annual remuneration set at 32 million yen. This initiative is part of Toyo Denki’s strategy to strengthen its governance and reward system, potentially impacting its operational dynamics and stakeholder relations.

Toyo Denki Seizo K.K. Reviews Capital Cost and Stock Price Strategies

Toyo Denki Seizo K.K. announced that its Board of Directors has reviewed and evaluated its current strategies to enhance management with a focus on capital cost and stock price. The company reported a significant increase in profits for the fiscal year ending May 31, 2025, achieving its ROE target ahead of schedule due to large overseas projects. However, Toyo Denki acknowledges the need to strengthen profitability and asset efficiency for sustainable growth. The company plans to improve its PBR by boosting growth rates and enhancing shareholder returns.

Toyo Denki Exceeds Forecasts and Increases Dividends Amid Strong Demand

Toyo Denki Seizo K.K. reported better-than-expected financial results for the fiscal year ended May 2025, driven by strong demand for maintenance parts in the Transportation Business and successful cost reduction initiatives. The company recorded a deferred tax gain and increased its year-end dividend per share from the previous forecast, reflecting its commitment to enhancing shareholder value and aligning with its Medium-Term Management Plan 2026.