Toa Corporation (6809) AI Stock Analysis

• Market Cap: ¥57.66B
• Dividend Yield: 3.69%
• Average Volume (3M): 53.29K
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.66
• Revenue Growth: 4.46%
• EPS Growth: 127.52%
• Country: JP
• Employees: 3,025
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): 27.00
• Shares Outstanding: 38,136,635
• 10 Day Avg. Volume: 57,700
• 30 Day Avg. Volume: 53,286
• PEG Ratio: 0.46
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.55
• P/FCF Ratio: 5.55
• 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: 78 Outperform
• Price Target: ¥1,839.00 ▲(14.79% Upside)

Toa Corporation's stock is supported by a strong financial performance and attractive valuation, making it a promising investment within the Security & Protection Services industry. The technical analysis indicates strong momentum, although the overbought RSI suggests caution for short-term investors. Overall, the stock presents a solid opportunity with a balanced risk-reward profile.

Positive Factors

Revenue Growth

Consistent revenue growth indicates the company's ability to expand its market presence and adapt to evolving market demands, supporting long-term financial stability.

Balance Sheet Health

A low debt-to-equity ratio and strong equity backing provide financial stability and reduce risk, enhancing the company's ability to invest in growth opportunities.

Cash Generation Ability

Strong cash generation from operations ensures the company can fund its activities, invest in new projects, and maintain financial flexibility, supporting long-term growth.

Negative Factors

Cash Flow Growth

While cash flow is strong, the slower growth rate may limit the company's ability to quickly scale operations or respond to new opportunities, impacting long-term competitiveness.

Profit Margin Concerns

Although the net profit margin is positive, enhancing it could improve profitability and provide more resources for reinvestment, crucial for sustaining competitive advantage.

Free Cash Flow Utilization

While cash management is effective, optimizing free cash flow utilization could enhance financial flexibility, enabling the company to better capitalize on strategic opportunities.

Toa Corporation Business Overview & Revenue Model

Company Description

TOA Corporation manufactures and sells sound and video equipment worldwide. The company offers public address systems, including PA systems, voice evacuation systems, wireless systems, network PA systems, intercom systems, professional audio systems, megaphones, and portable PA systems; security systems, such as network camera systems, full HD coaxial camera systems, and analog camera systems; and railway care equipment comprising railway car PA systems, camera systems, and electronic display devices, as well all other service parts, rental services, etc. The company was founded in 1934 and is headquartered in Kobe, Japan.

How the Company Makes Money

Toa Corporation generates revenue primarily through the sale of its electronic products and systems. Key revenue streams include the manufacturing and distribution of audio equipment, public address systems, and custom electronic solutions tailored to specific client needs. The company also benefits from long-term contracts with governmental and educational institutions for the provision of its communication systems. Additionally, Toa Corporation engages in strategic partnerships with other technology firms to enhance its product offerings and expand its market reach, which contributes significantly to its earnings. The company invests in innovation and development, ensuring a steady influx of new products that meet evolving market demands, further bolstering its financial growth.

Toa Corporation Financial Statement Overview

Summary

Toa Corporation exhibits a solid financial foundation characterized by consistent revenue and profit growth, strong margins, a stable balance sheet with low leverage, and effective cash flow management. The company's financial health is robust, although there is room for improvement in cash flow growth.

Income Statement

Toa Corporation shows a strong financial performance with consistent revenue growth, achieving a 3.71% increase from 2024 to 2025. The gross profit margin remains healthy at 44.42%, and the net profit margin is solid at 4.67%. EBIT and EBITDA margins of 7.09% and 11.16% respectively indicate robust operational efficiency. Overall, the company's profitability is strong, supported by a steady increase in revenue and margins.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.06, indicating minimal leverage. The equity ratio stands at 72.15%, reflecting a strong capital structure with significant equity backing its assets. Return on equity is commendable at 4.78%, showcasing efficient use of shareholders' equity to generate profits. The balance sheet demonstrates stability and low financial risk.

Cash Flow

Operating cash flow to net income ratio is robust at 2.38, indicating strong cash generation from operations relative to net income. The free cash flow to net income ratio of 2.12 highlights effective cash management and the ability to generate free cash flow. However, the free cash flow growth rate of 20.58% from 2024 to 2025 could be improved for better financial flexibility. Overall, the cash flow position is solid with potential for further growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	50.83B	50.63B	48.81B	45.12B	40.86B	40.58B
Gross Profit	23.20B	22.48B	20.92B	18.16B	17.38B	17.31B
EBITDA	6.00B	5.65B	5.40B	4.22B	3.88B	4.09B
Net Income	2.50B	2.37B	2.00B	1.76B	1.47B	1.60B
Balance Sheet
Total Assets	65.69B	68.63B	64.73B	63.91B	60.69B	58.57B
Cash, Cash Equivalents and Short-Term Investments	17.61B	18.97B	16.35B	16.94B	17.91B	16.84B
Total Debt	4.13B	3.50B	3.02B	3.84B	2.91B	2.18B
Total Liabilities	15.00B	16.04B	15.50B	15.14B	13.75B	12.21B
Stockholders Equity	47.74B	49.51B	46.58B	46.24B	44.72B	44.40B
Cash Flow
Free Cash Flow	0.00	5.01B	4.16B	-819.00M	867.00M	3.07B
Operating Cash Flow	0.00	5.62B	5.07B	583.00M	1.63B	5.29B
Investing Cash Flow	0.00	-2.40B	-928.00M	-2.79B	-752.00M	-2.07B
Financing Cash Flow	0.00	-2.08B	-5.23B	-1.44B	-458.00M	-3.06B

Toa Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1602.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6809, the sentiment is Positive. The current price of 1602 is below the 20-day moving average (MA) of 1617.10, below the 50-day MA of 1642.40, and above the 200-day MA of 1192.18, indicating a bullish trend. The MACD of 18.46 indicates Negative momentum. The RSI at 67.26 is Neutral, neither overbought nor oversold. The STOCH value of 93.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6809.

Toa Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9740	80 Outperform	¥43.60B	13.81	―	1.95%	9.05%	14.38%
6809	78 Outperform	¥57.66B	16.63	―	3.69%	4.46%	127.52%
1909	78 Outperform	¥72.53B	15.03	―	0.82%	7.10%	36.47%
9686	77 Outperform	¥17.88B	8.36	―	3.28%	34.15%	324.87%
6744	76 Outperform	¥240.31B	22.00	―	2.42%	9.55%	9.52%
7734	73 Outperform	¥155.60B	17.88	―	1.39%	11.23%	16.49%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Toa Corporation Corporate Events

TOA Corporation Announces Strategic Share Transactions to Enhance Market Position

TOA Corporation has announced a strategic financial move involving the disposal of treasury stock, a secondary offering of shares, and the issuance of new shares. The proceeds from these activities will be directed towards the development of an Information Delivery Platform, enhancing overseas product competitiveness, and various digital and environmental initiatives. This move is expected to strengthen TOA’s market position and operational capabilities, benefiting stakeholders through improved product offerings and sustainability efforts.

The most recent analyst rating on (JP:6809) stock is a Buy with a Yen1839.00 price target. To see the full list of analyst forecasts on Toa Corporation stock, see the JP:6809 Stock Forecast page.

TOA Corporation Unveils Long-term Strategy ‘NEXT 100 TOA’

TOA Corporation has announced its long-term management strategy, ‘NEXT 100 TOA,’ and an overview of its medium-term management plan. This strategy is designed to guide the company through a nine-year transformation divided into three stages: ‘Redefinition,’ ‘Refinement,’ and ‘Rebirth,’ aiming to ensure the company’s sustainability and growth towards its centennial in 2034. The initiatives are a response to the rapidly changing and complex environment, as well as evolving stakeholder expectations, and are intended to position TOA Corporation for long-term success.

The most recent analyst rating on (JP:6809) stock is a Buy with a Yen1491.00 price target. To see the full list of analyst forecasts on Toa Corporation stock, see the JP:6809 Stock Forecast page.

TOA Corporation Announces Enhanced Dividend Policy and Forecast

TOA Corporation has announced a significant change in its dividend policy, aiming to enhance shareholder returns by increasing the interim dividend and revising the year-end dividend forecast for the fiscal year ending March 31, 2026. The company has introduced a new indicator, the Consolidated Dividend on Equity Ratio (DOE), to determine dividend amounts, emphasizing financial soundness while pursuing high-level shareholder returns and long-term corporate value.

The most recent analyst rating on (JP:6809) stock is a Buy with a Yen1491.00 price target. To see the full list of analyst forecasts on Toa Corporation stock, see the JP:6809 Stock Forecast page.

TOA Corporation Reports Strong Financial Growth and Dividend Increase

TOA Corporation reported a significant increase in profits for the six months ending September 30, 2025, with a 5.6% rise in net sales and a substantial jump in operating and ordinary profits. The company also announced a revised dividend forecast, indicating a stable dividend increase for the fiscal year ending March 31, 2026, reflecting strong financial health and a positive outlook for stakeholders.

The most recent analyst rating on (JP:6809) stock is a Buy with a Yen1491.00 price target. To see the full list of analyst forecasts on Toa Corporation stock, see the JP:6809 Stock Forecast page.