TAKAOKA TOKO CO., LTD. (6617) AI Stock Analysis

• Market Cap: ¥93.79B
• Dividend Yield: 1.61%
• Average Volume (3M): 60.29K
• Price to Earnings (P/E): 17.3
• Beta (1Y): 0.97
• Revenue Growth: -3.41%
• EPS Growth: 13.79%
• Country: JP
• Employees: 2,521
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 118.10
• Shares Outstanding: 16,276,304
• 10 Day Avg. Volume: 51,840
• 30 Day Avg. Volume: 60,286
• PEG Ratio: -0.49
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 32.50
• 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: ¥5,100.00
• Price Target Upside: 31.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 300
• Revenue Forecast (FY): ¥110.00B

• Rating: 76 Outperform
• Price Target: ¥6,611.00 ▲(69.95% Upside)
• Action: Reiterated Date: 01/31/26
• Date: Action: Reiterated 01/31/26

The score is driven primarily by strong underlying financial quality (notably a low-leverage, high-equity balance sheet and solid operating performance). Technicals add support due to a strong uptrend and positive momentum indicators, while valuation is reasonable with a modest dividend yield.

Positive Factors

Balance sheet strength

TAKAOKA TOKO's low leverage and rising equity provide durable financial flexibility. A robust equity ratio reduces default risk, supports capex or acquisitions without heavy borrowing, and preserves the company's ability to fund operations or dividends through economic cycles over the next several months.

Revenue growth with stable gross margins

Consistent revenue expansion combined with stable gross margins indicates sustained demand and effective cost control. This structural trend supports enduring operating leverage, underpins mid-term cash flow generation, and suggests the business model retains pricing or efficiency advantages.

Healthy operating cash generation

Improving operating cash flow relative to net income shows the company converts profits into cash, enhancing funding for capex, working capital, and deleveraging. Over months, this trend supports financial resilience and the ability to pursue strategic investments without relying on external financing.

Negative Factors

Variable free cash flow

Fluctuating free cash flow reduces predictability of available funds for dividends, buybacks or reinvestment. This variability can constrain capital allocation decisions and heighten sensitivity to timing of receipts and capex, posing a structural risk to short-to-mid term financial planning.

Net profit margin volatility

Volatile net margins suggest earnings are affected by itemized costs, non-operating items, or cyclical pressures. Margin instability undermines forecast reliability for retained earnings and returns, complicating long-term planning and potentially pressuring reinvestment or shareholder distributions.

Slight decline in operating margins

A recent decline in EBIT/EBITDA margins, even if modest, signals emerging pressure on operating profitability from costs or pricing limits. If persistent, margin compression can reduce free cash flow and limit the company's ability to scale investments or absorb shocks over the medium term.

TAKAOKA TOKO CO., LTD. Business Overview & Revenue Model

Company Description

Takaoka Toko Co., Ltd., together its subsidiaries, engages in the power equipment and systems, electric equipment, energy solutions, measurement, applied optics inspection systems, and smart grid businesses. It is involved in the electrical engineering and construction works; manufacture and sale of applied macromolecular electric equipment and components, and disconnectors; SCADA systems for electric power networks; manufacture and service of electric equipment; and power line and telecommunication construction. The company also engages in the transportation, logistics, and installation of high-voltage instrument transformers; development, manufacture, and sale of electric power meters; gas instrument transformers; mold products; and meter-related electrical construction works and dispatch of workers. In addition, it manufactures and sells thin client systems, as well as develops computer and embedded software; and manufactures and sells wireless telecommunications equipment. The company was formerly known as Takaoka Toko Holdings Co., Ltd. and changed its name to Takaoka Toko Co., Ltd. in April 2014. Takaoka Toko Co., Ltd. was founded in 1918 and is headquartered in Tokyo, Japan.

How the Company Makes Money

TAKAOKA TOKO generates revenue through multiple streams, primarily by selling electronic components to various sectors, including telecommunications, automotive, and industrial markets. The company earns income from direct product sales, long-term contracts with manufacturers, and partnerships with technology firms to develop integrated solutions. Additionally, TAKAOKA TOKO may benefit from research and development collaborations, providing it with opportunities for government funding and grants in innovation. The company also focuses on expanding its international presence, which can lead to increased sales volume and market reach, further contributing to its financial performance.

TAKAOKA TOKO CO., LTD. Financial Statement Overview

Summary

Financials are solid: revenue has increased steadily with strong gross margins and robust operating efficiency. Balance sheet strength is a key positive with low leverage and rising equity. Cash flow is improving but remains somewhat variable, and net profitability has fluctuated.

Income Statement

TAKAOKA TOKO CO., LTD. has demonstrated a steady increase in revenue over the years with a notable revenue growth from 2022 to 2024. The gross profit margin has remained consistently strong, reflecting effective cost management. However, the net profit margin has seen fluctuations, impacted by variations in net income. EBIT and EBITDA margins show robust operational efficiency, although there has been a slight decline recently. Overall, the company shows a solid income statement performance with room for improvement in net profitability.

Balance Sheet

The company's balance sheet reflects a strong equity position with a consistent increase in stockholders' equity over the years. The debt-to-equity ratio is low, indicating prudent financial leverage and limited risk from debt obligations. The equity ratio is robust, highlighting financial stability and a sound capital structure. These factors contribute to a solid balance sheet performance.

Cash Flow

TAKAOKA TOKO CO., LTD. has shown variable free cash flow growth, with significant improvement in the latest periods. The operating cash flow to net income ratio is healthy, demonstrating good cash generation relative to profits. However, the free cash flow to net income ratio has fluctuated, indicating variability in cash availability after capital expenditures. Overall, the cash flow statement shows a positive trajectory with some fluctuations that need to be managed.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	106.03B	106.62B	107.38B	97.75B	91.94B	91.94B
Gross Profit	25.78B	25.46B	26.65B	21.55B	20.57B	19.13B
EBITDA	9.24B	8.82B	10.06B	6.79B	6.98B	5.37B
Net Income	4.20B	3.82B	4.67B	2.92B	3.28B	1.41B
Balance Sheet
Total Assets	110.54B	113.65B	116.63B	106.32B	100.24B	101.02B
Cash, Cash Equivalents and Short-Term Investments	16.38B	13.43B	15.47B	10.66B	12.45B	15.12B
Total Debt	3.12B	3.71B	5.54B	3.29B	4.60B	9.57B
Total Liabilities	43.80B	47.19B	52.79B	47.86B	44.68B	48.49B
Stockholders Equity	61.43B	60.97B	58.25B	53.78B	51.45B	49.18B
Cash Flow
Free Cash Flow	0.00	1.03B	3.57B	151.00M	2.72B	5.01B
Operating Cash Flow	0.00	5.04B	5.94B	2.25B	4.14B	7.05B
Investing Cash Flow	0.00	-3.75B	-2.31B	-1.92B	-1.46B	-1.91B
Financing Cash Flow	0.00	-3.35B	1.18B	-2.20B	-5.78B	1.23B

TAKAOKA TOKO CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3890.00
• 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:6617, the sentiment is Positive. The current price of 3890 is below the 20-day moving average (MA) of 5303.50, below the 50-day MA of 4616.60, and above the 200-day MA of 3336.76, indicating a bullish trend. The MACD of 343.64 indicates Negative momentum. The RSI at 75.26 is Negative, neither overbought nor oversold. The STOCH value of 84.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6617.

TAKAOKA TOKO CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6643	81 Outperform	¥31.78B	12.78	―	3.12%	6.60%	0.27%
6763	80 Outperform	¥27.45B	17.28	―	3.16%	12.72%	53.85%
6617	76 Outperform	¥93.79B	17.30	―	1.61%	-3.41%	13.79%
6637	72 Outperform	¥56.22B	12.54	―	0.91%	5.28%	18.38%
6882	65 Neutral	¥15.24B	173.69	―	4.42%	-11.74%	-84.61%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6905	59 Neutral	¥56.23B	-141.15	―	5.01%	-32.74%	-117.06%

TAKAOKA TOKO CO., LTD. Corporate Events

TAKAOKA TOKO Lifts Full-Year Earnings and Dividend Forecasts on Strong Power Equipment Demand

TAKAOKA TOKO Co., Ltd. has raised its full-year consolidated earnings forecast for the fiscal year ending March 2026, projecting higher net sales, operating income, ordinary income, and profit attributable to owners of the parent than previously announced, driven by stronger-than-expected demand in high‑margin maintenance and service projects for extra‑high voltage substation plants and increased sales of small distribution and other transformers. Reflecting this improved profit outlook and its performance-linked dividend policy, the company has also lifted its year-end dividend forecast by ¥9 per share to ¥58, bringing the total annual dividend for the year to ¥95 per share, significantly higher than the previous fiscal year and signaling enhanced returns to shareholders.

The most recent analyst rating on (JP:6617) stock is a Buy with a Yen5119.00 price target. To see the full list of analyst forecasts on TAKAOKA TOKO CO., LTD. stock, see the JP:6617 Stock Forecast page.

TAKAOKA TOKO Lifts Profit and Dividend Outlook on Strong Nine-Month Results

TAKAOKA TOKO reported solid results for the nine months ended December 31, 2025, with net sales rising 2.8% year on year to ¥75.6 billion and operating profit jumping 52.7% to ¥6.4 billion, driving a 64.6% increase in profit attributable to owners of the parent and strengthening the equity ratio to 56.4%. Reflecting this earnings momentum, the company raised its dividend forecast for the fiscal year ending March 31, 2026 to a total of ¥95 per share and upgraded its full-year outlook, now projecting net sales of ¥112 billion and profit attributable to owners of the parent of ¥5.2 billion, signaling improved profitability and a stronger return to shareholders.

The most recent analyst rating on (JP:6617) stock is a Buy with a Yen5119.00 price target. To see the full list of analyst forecasts on TAKAOKA TOKO CO., LTD. stock, see the JP:6617 Stock Forecast page.