Topy Industries, Limited (7231) AI Stock Analysis

• Market Cap: ¥67.09B
• Dividend Yield: 3.58%
• Average Volume (3M): 53.60K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 1.02
• Revenue Growth: -6.79%
• EPS Growth: 303.74%
• Country: JP
• Employees: 5,621
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 67.42
• Shares Outstanding: 24,077,510
• 10 Day Avg. Volume: 46,530
• 30 Day Avg. Volume: 53,603
• PEG Ratio: 0.20
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 6.45
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥3,156.00 ▲(11.68% Upside)

Topy Industries' overall stock score is driven by its solid valuation, with a low P/E ratio and attractive dividend yield. Financial performance shows operational improvements but faces challenges in revenue growth and cash flow sustainability. Technical analysis indicates a neutral market position. The absence of earnings call data and corporate events limits further insights.

Topy Industries, Limited Business Overview & Revenue Model

Company Description

Topy Industries, Limited (7231) is a leading manufacturer based in Japan, primarily focused on the production of steel products and components for the automotive and industrial sectors. The company operates in various segments including the manufacturing of forged and cast products, as well as specialized steel products designed for high-performance applications. Topy Industries is well-known for its commitment to quality and innovation, serving both domestic and international markets.

How the Company Makes Money

Topy Industries generates revenue through multiple key streams, primarily from the sale of its steel products to automotive and industrial manufacturers. The company engages in long-term contracts with major automotive companies, ensuring a steady demand for its forged and cast components. Additionally, Topy Industries capitalizes on its technological expertise by offering customized solutions and high-performance materials, which often command premium pricing. The company also benefits from strategic partnerships with other firms in the supply chain, enhancing its market presence and operational efficiencies. Factors contributing to its earnings include fluctuations in global steel prices, demand in the automotive sector, and the company's ability to innovate and adapt to changing industry needs.

Topy Industries, Limited Financial Statement Overview

Summary

Topy Industries shows a mixed financial picture. The income statement reflects improved operational efficiency but faces revenue challenges. The balance sheet remains stable with a prudent leverage approach. Cash flow management shows efficiency in operations but highlights potential risks in free cash flow sustainability. Overall, the company is on a recovery trajectory but needs to address revenue growth and cash generation to enhance financial health.

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	298.19B	300.61B	333.99B	334.50B	271.18B	225.12B
Gross Profit	44.37B	42.43B	45.88B	44.62B	31.06B	26.80B
EBITDA	23.78B	22.06B	17.26B	21.61B	15.19B	14.02B
Net Income	6.67B	6.39B	4.68B	6.32B	386.00M	578.00M
Balance Sheet
Total Assets	268.60B	281.75B	298.29B	292.32B	282.19B	264.67B
Cash, Cash Equivalents and Short-Term Investments	26.20B	27.47B	25.01B	23.74B	21.04B	24.48B
Total Debt	63.83B	68.79B	74.98B	83.92B	86.43B	81.67B
Total Liabilities	135.13B	145.03B	157.30B	170.90B	168.49B	156.29B
Stockholders Equity	132.09B	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: 2826.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 2826 is below the 20-day moving average (MA) of 2829.85, below the 50-day MA of 2876.12, and above the 200-day MA of 2381.63, indicating a neutral trend. The MACD of -0.52 indicates Negative momentum. The RSI at 52.40 is Neutral, neither overbought nor oversold. The STOCH value of 41.37 is Neutral, 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
7250	78 Outperform	¥185.07B	11.65	―	1.05%	3.62%	3.64%
7239	76 Outperform	$68.02B	6.85	10.83%	5.24%	-7.35%	44.66%
7246	73 Outperform	€62.77B	12.64	4.98%	4.58%	-4.45%	-32.68%
7231	71 Outperform	¥67.09B	9.76	―	3.58%	-6.79%	303.74%
5992	69 Neutral	¥81.63B	41.95	―	1.74%	6.81%	6.68%
7241	68 Neutral	¥84.19B	7.64	―	3.95%	-7.35%	43.31%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

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.