Topy Industries, Limited (7231) AI Stock Analysis

• Market Cap: ¥70.49B
• Dividend Yield: 3.4%
• Average Volume (3M): 77.67K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 1.10
• Revenue Growth: -8.56%
• EPS Growth: 83.61%
• Country: JP
• Employees: 5,621
• Sector: Consumer Cyclical
• Sector Strength: 83
• Industry: Auto - Parts
• EPS (TTM): 45.66
• Shares Outstanding: 24,077,510
• 10 Day Avg. Volume: 60,950
• 30 Day Avg. Volume: 77,666
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥2,807.00
• Price Target Upside: -7.21% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• Price Target: ¥2,807.00 ▼(-7.21% Downside)

The stock is rated 77.1, reflecting strong technicals and valuation. The financial performance shows operational improvements but revenue and cash flow concerns. The bullish technical trend and attractive valuation are key positives, while financial challenges need addressing.

Topy Industries, Limited Business Overview & Revenue Model

Company Description

Topy Industries, Limited, headquartered in Japan, is a diversified manufacturing company specializing in the production of steel, automotive and industrial components, and other machinery. The company operates through several business segments, including steel products, automotive and industrial machinery parts, and environmental and recycling services. Topy Industries is recognized for its expertise in manufacturing steel wheels for automobiles and construction machinery, as well as being a leading supplier of undercarriage components and various steel products for different industries.

How the Company Makes Money

Topy Industries, Limited generates revenue through its diversified business segments. The primary revenue stream comes from the manufacturing and sale of steel products, including steel wheels and other automotive components, which are supplied to major automobile manufacturers globally. Additionally, the company earns income from its industrial machinery parts segment, providing undercarriage components for construction and mining equipment. Topy Industries also benefits from its environmental and recycling segment, which focuses on resource recovery and waste management solutions, contributing to its overall revenue. Strategic partnerships with automotive and construction machinery manufacturers further enhance its market position and revenue potential.

Topy Industries, Limited Financial Statement Overview

Summary

Topy Industries shows mixed financial health. Strong operational efficiency is noted with improved EBIT and EBITDA margins, but a revenue drop and free cash flow decline highlight challenges. The balance sheet is stable with moderate leverage.

Income Statement

Topy Industries has demonstrated a strong recovery in its income statement. The gross profit margin for 2025 stands at 14.11%, with a net profit margin of 2.12%. Although revenue decreased by 9.99% from 2024 to 2025, the company improved its EBIT and EBITDA margins to 1.76% and 7.34% respectively. These improvements indicate enhanced operational efficiency, though the drop in revenue highlights potential market challenges.

Balance Sheet

The balance sheet shows a moderate financial position with a debt-to-equity ratio of 0.51, reflecting a balanced approach to leverage. The equity ratio is 48.03%, indicating a stable financial structure. Return on equity is 4.72%, which is modest but shows profitability. The company has managed to maintain stability despite fluctuations in its asset base.

Cash Flow

The cash flow statement indicates challenges, with a significant drop in free cash flow by 42.32% from 2024 to 2025. The operating cash flow to net income ratio stands at 2.41, suggesting efficient conversion of income to cash. However, the free cash flow to net income ratio of 1.17 suggests potential constraints in cash generation. Overall, while operating cash flow remains robust, the decline in free cash flow poses a risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	300.61B	300.61B	333.99B	334.50B	271.18B	225.12B
Gross Profit	42.43B	42.43B	45.88B	44.62B	31.06B	26.80B
EBITDA	22.06B	22.06B	17.26B	21.61B	15.19B	14.02B
Net Income	6.39B	6.39B	4.68B	6.32B	386.00M	578.00M
Balance Sheet
Total Assets	281.75B	281.75B	298.29B	292.32B	282.19B	264.67B
Cash, Cash Equivalents and Short-Term Investments	27.47B	27.47B	25.01B	23.74B	21.04B	24.48B
Total Debt	68.79B	68.79B	74.98B	83.92B	86.43B	81.67B
Total Liabilities	145.03B	145.03B	157.30B	170.90B	168.49B	156.29B
Stockholders Equity	135.28B	135.28B	139.68B	120.27B	112.66B	107.43B
Cash Flow
Free Cash Flow	0.00	7.49B	12.98B	6.47B	-14.01B	-5.90B
Operating Cash Flow	0.00	15.39B	22.32B	15.06B	-5.53B	5.73B
Investing Cash Flow	0.00	-1.97B	-9.40B	-8.36B	-2.61B	-8.93B
Financing Cash Flow	0.00	-10.83B	-12.58B	-4.68B	3.53B	3.67B

Topy Industries, Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3025.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7231, the sentiment is Positive. The current price of 3025 is above the 20-day moving average (MA) of 2914.30, above the 50-day MA of 2653.70, and above the 200-day MA of 2193.80, indicating a bullish trend. The MACD of 88.58 indicates Positive momentum. The RSI at 77.33 is Negative, neither overbought nor oversold. The STOCH value of 86.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7231.

Topy Industries, Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7231	77 Outperform	¥70.49B	10.26		3.40%	-8.56%	83.61%
Sector *	61 Neutral	$17.95B	12.83	-3.20%	2.97%	1.18%	-14.28%
TCISF	―	$475.71M	7.39	10.83%	4.73%	―	―
2YO	―	€365.07M	11.86	4.98%	―	―	―
7250	81 Outperform	¥139.94B	10.67		2.25%	-1.29%	-26.66%
7241	70 Outperform	¥88.84B	13.76		3.53%	-11.96%	-46.82%
5992	57 Neutral	¥82.61B	56.17		1.01%	8.25%	-31.16%

Topy Industries, Limited Corporate Events

Topy Industries Completes Treasury Stock Acquisition

Topy Industries, Limited has completed the acquisition of 316,000 shares of its own stock, representing 1.43% of the total outstanding shares, for a total of 890,172,000 yen. This move is part of a flexible capital policy aimed at adapting to changes in the management environment, and it reflects the company’s strategic efforts to optimize its capital structure.

Topy Industries Announces Treasury Stock Acquisition Plan

Topy Industries, Limited announced a resolution by its Board of Directors to acquire treasury stock as part of a flexible capital policy in response to changes in the management environment. The acquisition will involve purchasing up to 400,000 shares, representing 1.81% of the total outstanding shares, through the Tokyo Stock Exchange’s off-auction own share repurchase trading system. This move is aimed at optimizing the company’s capital structure and could impact shareholder value and market perception.

Topy Industries Sees Profit Growth Amid Sales Decline in Q1 FY2025

Topy Industries reported its first-quarter results for fiscal year 2025, showing a slight decline in net sales by 3.3% compared to the previous year. However, the company experienced significant improvements in operating and ordinary profits, with a notable increase in profit attributable to owners of the parent by 38.8%. This financial performance suggests a positive trajectory in profitability despite a challenging sales environment.

Topy Industries Maintains Independence Amidst Nippon Steel’s Significant Shareholding

Topy Industries, Limited has announced its relationship with Nippon Steel Corporation, which holds 22.7% of its voting rights and is classified as an ‘other affiliate.’ Despite this significant shareholding, Topy Industries maintains its independence in management decisions and has no governance agreements with Nippon Steel. The business alliance with Nippon Steel aims to address steel demand fluctuations and global competition, while ensuring Topy Industries retains autonomy in its operations.

TOPY INDUSTRIES Discontinues Takeover Defense Measures

TOPY INDUSTRIES, LIMITED has decided to abolish its takeover defense measures, which were initially introduced in 2006 to protect corporate value and shareholder interests. This decision reflects the company’s response to changes in the business environment and shareholder opinions. Despite this change, TOPY INDUSTRIES remains committed to sustainable growth and corporate governance, ensuring shareholders can make informed decisions in the event of large-scale share purchases.

Topy Industries Unveils New Medium-term Management Plan to Drive Growth and Sustainability

Topy Industries has launched a new Medium-term Management Plan, ‘TOPY Active & Challenge 2027,’ to adapt swiftly to changes in the business environment. The plan emphasizes improving profitability through structural innovation, fostering growth businesses, and enhancing sustainability efforts, including carbon neutrality and digital transformation. The company aims for a 6% ROE and an operating profit of 13 billion yen by FY2027, with strategies for shareholder returns through dividends and share buybacks.

Topy Industries Maintains Stable Dividend for FY 2025

Topy Industries announced a dividend of ¥73 per share for the fiscal year ending March 2025, maintaining the same dividend as the previous year. This decision reflects the company’s stable financial performance and commitment to returning value to shareholders, with an annual dividend totaling ¥103 per share when including the interim dividend.