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Topy Industries, Limited
(7231)
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Rating:64Neutral
Price Target:
¥2,936.00
▼(-5.14% Downside)
Action:Downgraded
Date:05/13/26
The score is driven primarily by improving financial performance (better profitability and reduced leverage) and strong valuation support (low P/E and high dividend yield), offset by weak technicals with the stock trading below key moving averages and negative MACD.
Positive Factors
Diversified manufacturing portfolio
Topy's dual focus on steel wheels for vehicles and industrial machinery creates two complementary revenue streams. This diversification reduces dependence on any single end-market, supports long-term OEM relationships and aftermarket opportunities, and enhances revenue resilience across cycles.
Negative Factors
Multi-year revenue contraction
Sustained top-line decline erodes scale economics, constrains pricing power with OEMs, and limits ability to spread fixed costs. Even with margin gains, continued revenue shrinkage makes earnings improvements fragile and increases reliance on restructuring or new markets for growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified manufacturing portfolio
Topy's dual focus on steel wheels for vehicles and industrial machinery creates two complementary revenue streams. This diversification reduces dependence on any single end-market, supports long-term OEM relationships and aftermarket opportunities, and enhances revenue resilience across cycles.
Read all positive factors
Topy Industries, Limited (7231) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥68.46B
Dividend Yield4.42%
Average Volume (3M)53.60K
Price to Earnings (P/E)6.3
Beta (1Y)1.04
Revenue Growth-0.95%
EPS Growth66.43%
CountryJP
Employees5,290
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)467.72
Shares Outstanding24,077,510
10 Day Avg. Volume46,530
30 Day Avg. Volume53,603
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)0.44
Price to Sales (P/S)0.21
P/FCF Ratio19.66
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)274.6
Revenue Forecast (FY)¥325.00B
Topy Industries, Limited Business Overview & Revenue Model
Company Description
Operating primarily in Japan, Topy Industries, Limited is a diversified manufacturer with interests spanning steel production, automotive parts, industrial machinery components, power generation, and various other sectors. Its extensive product po...
How the Company Makes Money
Topy Industries primarily makes money by manufacturing and selling products in its main operating segments. A major revenue stream comes from the production and sale of steel wheels supplied to vehicle manufacturers and other customers (with earni...
Topy Industries, Limited Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
70
Positive
Cash Flow
55
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 297.75B | 300.61B | 333.99B | 334.50B | 271.18B |
| Gross Profit | 46.32B | 42.43B | 45.88B | 44.62B | 31.06B |
| EBITDA | 19.69B | 22.06B | 17.26B | 21.61B | 15.19B |
| Net Income | 10.15B | 6.39B | 4.68B | 6.32B | 386.00M |
Balance Sheet | |||||
| Total Assets | 271.58B | 281.75B | 298.29B | 292.32B | 282.19B |
| Cash, Cash Equivalents and Short-Term Investments | 29.42B | 27.47B | 25.01B | 23.74B | 21.04B |
| Total Debt | 59.43B | 68.79B | 74.98B | 83.92B | 86.43B |
| Total Liabilities | 126.16B | 145.03B | 157.30B | 170.89B | 168.49B |
| Stockholders Equity | 143.97B | 135.28B | 139.68B | 120.27B | 112.66B |
Cash Flow | |||||
| Free Cash Flow | 3.22B | 7.49B | 12.98B | 6.47B | -14.01B |
| Operating Cash Flow | 13.13B | 15.39B | 22.32B | 15.06B | -5.53B |
| Investing Cash Flow | 1.64B | -1.97B | -9.40B | -8.36B | -2.61B |
| Financing Cash Flow | -13.68B | -10.83B | -12.58B | -4.68B | 3.53B |
Topy Industries, Limited Technical Analysis
Positive
3095.00
Price Trends
2799.02
Positive
2869.66
Positive
2947.36
Negative
Market Momentum
25.60
Positive
57.20
Neutral
67.34
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 3095 is above the 20-day moving average (MA) of 2892.35, above the 50-day MA of 2799.02, and above the 200-day MA of 2947.36, indicating a neutral trend. The MACD of 25.60 indicates Positive momentum. The RSI at 57.20 is Neutral, neither overbought nor oversold. The STOCH value of 67.34 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥731.29B | 26.26 | ― | 2.60% | 1.89% | -39.75% | |
74 Outperform | ¥220.58B | 15.36 | 7.38% | 5.39% | 0.38% | 30.22% | |
64 Neutral | ¥68.46B | 6.28 | ― | 3.66% | -0.95% | 66.43% | |
64 Neutral | ¥181.84B | 6.97 | 12.23% | 2.87% | 9.86% | 120.23% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | ¥705.43B | 36.56 | 1.57% | 2.96% | 4.64% | 106.98% | |
49 Neutral | ¥211.47B | 167.01 | ― | 1.93% | <0.01% | -83.75% |
* Consumer Cyclical Sector Average
JP:7231
Topy Industries, Limited
2,932.00
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Topy Industries, Limited Corporate Events
Topy Industries Reaffirms Independence Despite Nippon Steel Stake
Jun 25, 2026
Topy Industries has clarified its relationship with Nippon Steel Corporation, which holds 23.0% of its voting rights and is classified as an “other affiliate” and equity-method associate. The company buys some raw materials from Nippon...
Topy Industries Lifts Annual Dividend to ¥130 Under Progressive Payout Policy
May 21, 2026
Topy Industries’ board has approved a year-end dividend of ¥90 per share for the fiscal year ended March 31, 2026, with a total payout of ¥1.97 billion funded from retained earnings. This brings the full-year dividend to ¥130 ...
Topy Industries to Overhaul Governance Structure With Audit and Supervisory Committee
May 21, 2026
Topy Industries plans to shift its governance structure from a company with an Audit Supervisory Board to a company with an Audit and Supervisory Committee, subject to shareholder approval at its 132nd Ordinary General Meeting on June 25, 2026. T...
Topy Industries Lifts Full-Year Profit on Cross-Shareholding Sales Despite Softer Revenue
May 12, 2026
Topy Industries reported that full-year consolidated net sales for the fiscal year ended March 31, 2026 fell slightly short of its earlier forecast, but profits significantly outperformed expectations. Operating profit, ordinary profit, and profit...
Topy Industries Boosts Profit and Dividends Despite Flat Sales, Signals Earnings Normalization
May 12, 2026
Topy Industries reported fiscal 2026 net sales of ¥297.8 billion, down 1% year on year, but delivered a sharp recovery in profitability, with operating profit up 46.8% to ¥7.8 billion and profit attributable to owners of parent climbing ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.