TOYO ELECTRIC MFG CO LTD (6505) AI Stock Analysis

• Market Cap: ¥21.29B
• Dividend Yield: 3.32%
• Average Volume (3M): 44.25K
• Price to Earnings (P/E): 10.9
• 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): 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: 129.34
• 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: ¥2,679.00 ▲(26.37% 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

TOYO ELECTRIC's recent double-digit revenue growth and rising gross, net and operating margins indicate durable demand and improving operational efficiency. Sustained top-line expansion with margin uplift supports long-term cash generation, reinvestment capacity, and competitive positioning.

Improved leverage and balance sheet

An improving debt-to-equity profile and stable equity ratio enhance financial flexibility, lowering refinancing risk and enabling investment or cyclical buffering. Stronger leverage metrics support capacity for capex, strategic initiatives, and weathering industry downturns without eroding solvency.

Strong free cash flow growth

Significant free cash flow growth signals reliable cash generation independent of accounting profits. Robust FCF supports sustainable dividends, debt paydown, and organic investment, improving the firm's ability to fund growth and return capital without dependence on external financing.

Negative Factors

Cash flow conversion efficiency

Operating cash flow lags net income, implying weaker earnings quality or timing differences in working capital. Persistently lower cash conversion can constrain financing for capex and dividends, increase reliance on balance sheet measures, and reduce resilience to revenue shocks over the medium term.

Historic revenue volatility

Prior volatility in revenue growth undermines predictability for margins, capex planning and resource allocation. If not addressed by broader customer diversification or product mix stability, revenue swings can stress margins and cash flows, complicating long-term investment and operational planning.

ROE has room for improvement

A positive but suboptimal ROE suggests capital is not yet being deployed with maximal efficiency. Improving asset turnover, margin expansion or capital allocation discipline is necessary to raise shareholder returns; failure to do so can limit long-term value creation versus peers.

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

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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	3.09B	1.69B	1.36B	1.43B	1.84B
Net Income	2.13B	935.00M	824.00M	-930.00M	977.00M
Balance Sheet
Total Assets	55.85B	51.65B	52.18B	48.72B	51.97B
Cash, Cash Equivalents and Short-Term Investments	5.01B	6.42B	5.52B	4.45B	3.96B
Total Debt	9.22B	10.59B	11.18B	11.77B	13.85B
Total Liabilities	28.46B	25.58B	27.60B	26.70B	27.96B
Stockholders Equity	27.39B	26.07B	24.58B	22.01B	24.01B
Cash Flow
Free Cash Flow	96.00M	1.53B	491.00M	2.15B	1.23B
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: Positive
• RSI: Neutral
• 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 2393.35, below the 50-day MA of 2214.70, and above the 200-day MA of 1960.21, indicating a neutral trend. The MACD of 49.47 indicates Positive momentum. The RSI at 53.17 is Neutral, neither overbought nor oversold. The STOCH value of 80.17 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
6104	81 Outperform	¥83.95B	136.93	5.02%	3.23%	-10.00%	-51.92%
6284	78 Outperform	¥122.05B	12.40	―	3.24%	18.70%	33.93%
6505	75 Outperform	¥21.29B	10.89	―	3.32%	21.20%	189.37%
6258	74 Outperform	¥80.08B	14.21	9.39%	1.68%	9.27%	69.52%
6482	74 Outperform	¥22.87B	46.66	―	2.77%	-4.47%	-24.47%
6440	65 Neutral	¥20.15B	10.67	―	―	-2.84%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

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.