Topy Industries, Limited (7231) AI Stock Analysis

• Market Cap: ¥76.20B
• Dividend Yield: 3.66%
• Average Volume (3M): 53.60K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 1.01
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥3,647.00 ▲(17.84% 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.

Positive Factors

Operational Efficiency

Improved operational efficiency, as seen in better EBIT and EBITDA margins, suggests the company is optimizing its cost structure, which can enhance profitability over the long term.

Stable Financial Structure

A balanced debt-to-equity ratio indicates prudent leverage management, providing financial stability and flexibility to navigate market fluctuations.

Technological Expertise

Technological expertise in providing customized solutions positions the company to command premium pricing, enhancing competitive advantage and market differentiation.

Negative Factors

Revenue Decline

A significant revenue decline indicates potential market challenges, which could impact the company's ability to sustain growth and profitability in the long term.

Cash Flow Challenges

A substantial decline in free cash flow suggests potential constraints in cash generation, which could limit investment capacity and financial flexibility.

Revenue Growth Challenges

Ongoing challenges in revenue growth highlight the need for strategic initiatives to drive sales and improve market positioning to ensure long-term financial health.

Topy Industries, Limited Business Overview & Revenue Model

Company Description

Topy Industries, Limited engages in the steel, automotive, industrial machinery components, power generation, and other businesses in Japan. The company provides section steel, such as H-section steel, channel steel, equal and unequal angle steel, unequal non-isopachous steel, flat steel, R-flat steel, bulb plate, ultra-thick wide flat, and deformed section steel products, including rims, super giant off-the-road rim wheels, track shoes, blades, forklift mast materials, segment components, HSST rails, and Z-steel products, as well as deformed bar steel products. It also offers steel wheels, aluminum wheels, and construction machinery wheels for passenger cars, trucks, buses, and small and large construction vehicles; and undercarriage components, such as tracks, rollers, cutting edges for motor graders, and city pads for hydraulic shovels, bulldozers, and other construction equipment, as well as parts. In addition, the company provides crawler robots and synthetic mica products. Topy Industries, Limited was founded in 1921 and is headquartered in Tokyo, Japan.

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: 3095.00
• 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:7231, the sentiment is Positive. The current price of 3095 is below the 20-day moving average (MA) of 3129.80, above the 50-day MA of 2997.78, and above the 200-day MA of 2596.85, indicating a bullish trend. The MACD of 81.29 indicates Negative momentum. The RSI at 77.52 is Negative, neither overbought nor oversold. The STOCH value of 89.62 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
7246	79 Outperform	¥80.51B	14.67	5.20%	3.67%	-3.78%	-16.61%
7250	78 Outperform	¥194.16B	11.88	―	1.03%	3.62%	3.64%
7239	76 Outperform	¥72.54B	5.65	13.32%	5.00%	-10.87%	153.16%
7231	71 Outperform	¥76.20B	9.13	―	3.66%	-6.79%	303.74%
7241	68 Neutral	¥95.83B	8.80	―	3.88%	-7.35%	43.31%
5992	64 Neutral	¥87.43B	45.06	―	1.61%	6.81%	6.68%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Topy Industries, Limited Corporate Events

Topy Industries Recognizes Extraordinary Income from Securities Sale

Topy Industries, Limited has announced the sale of a portion of its investment securities, resulting in extraordinary income of 2,869 million yen. This move is part of the company’s strategy to reduce cross-shareholdings to less than 10% of consolidated net assets by March 2026, with no expected revisions to the earnings forecast.

The most recent analyst rating on (JP:7231) stock is a Buy with a Yen3156.00 price target. To see the full list of analyst forecasts on Topy Industries, Limited stock, see the JP:7231 Stock Forecast page.

Topy Industries Completes Treasury Stock Acquisition

Topy Industries, Limited has completed the acquisition of 127,000 shares of its own stock, representing 0.58% of the total outstanding shares, through the Off-Auction Treasury Share Repurchase Trading System. This move is part of a flexible capital policy to respond to changes in the management environment, with the total acquisition amounting to 358,394,000 yen.

The most recent analyst rating on (JP:7231) stock is a Buy with a Yen3156.00 price target. To see the full list of analyst forecasts on Topy Industries, Limited stock, see the JP:7231 Stock Forecast page.

Topy Industries Announces Strategic Treasury Stock Acquisition

Topy Industries, Limited has announced a resolution by its Board of Directors to acquire treasury stock, aiming to implement a flexible capital policy in response to shifts in the management environment. The acquisition involves purchasing up to 160,000 shares through the Tokyo Stock Exchange’s off-auction trading system, with a maximum expenditure of 500 million yen, reflecting the company’s strategic approach to managing its capital structure.

The most recent analyst rating on (JP:7231) stock is a Buy with a Yen3156.00 price target. To see the full list of analyst forecasts on Topy Industries, Limited stock, see the JP:7231 Stock Forecast page.

Topy Industries Enhances Shareholder Benefits Program

Topy Industries, Limited has announced a revision to its shareholder benefits program, transitioning from catalog gifts to QUO CARDS due to challenges in delivering products amidst price increases and high temperatures. This change aims to enhance shareholder convenience and promote long-term shareholding, with additional benefits for those holding shares continuously for three or more years.

The most recent analyst rating on (JP:7231) stock is a Buy with a Yen3156.00 price target. To see the full list of analyst forecasts on Topy Industries, Limited stock, see the JP:7231 Stock Forecast page.

Topy Industries Transfers Equity in Chinese Subsidiary Amid Market Restructuring

Topy Industries has announced the transfer of its equity interest in Ring-Techs Guangzhou Co., Ltd., a subsidiary involved in manufacturing wheels for automobiles, to a domestic Chinese company. This decision is part of Topy’s Medium-term Management Plan aimed at restructuring its steel wheel business in China due to declining market share of Japanese automakers in the region. The financial impact on Topy is expected to be minor, and the company will continue to monitor and disclose any further developments.

The most recent analyst rating on (JP:7231) stock is a Buy with a Yen3156.00 price target. To see the full list of analyst forecasts on Topy Industries, Limited stock, see the JP:7231 Stock Forecast page.

Topy Industries Exceeds Profit Forecasts Amidst Steel Segment Challenges

Topy Industries, Limited reported a significant improvement in its interim financial results for the first half of the fiscal year ending March 31, 2026, despite a decline in net sales. The company’s operating profit, ordinary profit, and profit attributable to owners of the parent exceeded previous forecasts due to successful pricing strategies and structural innovations in its Automotive & Industrial Machinery Components Segment, despite sluggish demand in the Steel Segment.

The most recent analyst rating on (JP:7231) stock is a Buy with a Yen3156.00 price target. To see the full list of analyst forecasts on Topy Industries, Limited stock, see the JP:7231 Stock Forecast page.

Topy Industries Reports Strong Profit Growth in First Half of FY2025

Topy Industries, Limited reported a significant improvement in its financial performance for the first half of FY2025, with a notable increase in operating and ordinary profit compared to the previous year. Despite a slight decline in net sales, the company achieved substantial growth in profit attributable to owners of the parent, reflecting a strong recovery in its operations and a positive outlook for stakeholders.

The most recent analyst rating on (JP:7231) stock is a Buy with a Yen3156.00 price target. To see the full list of analyst forecasts on Topy Industries, Limited stock, see the JP:7231 Stock Forecast page.