TWOSTONE&Sons Co.Ltd. (7352) AI Stock Analysis

• Market Cap: ¥23.55B
• Dividend Yield: 0.07%
• Average Volume (3M): 174.06K
• Price to Earnings (P/E): 22.1
• Beta (1Y): 1.60
• Revenue Growth: 26.50%
• EPS Growth: 159.93%
• Country: JP
• Employees: 526
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 8.44
• Shares Outstanding: 43,536,720
• 10 Day Avg. Volume: 261,950
• 30 Day Avg. Volume: 174,056
• PEG Ratio: 0.49
• Price to Book (P/B): 11.21
• Price to Sales (P/S): 2.09
• P/FCF Ratio: 54.67
• 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: 62 Neutral
• Price Target: ¥529.00 ▼(-26.43% Downside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is anchored by solid financial performance (strong growth and cash generation) and supportive valuation (notably high dividend yield). However, a pronounced bearish technical trend (price below all key moving averages with negative MACD) materially drags the overall rating.

Positive Factors

Strong revenue growth

TWOSTONE&Sons has exhibited durable top-line momentum with a reported ~26% revenue increase in the latest year. Sustained revenue growth supports scale advantages, funds reinvestment in product and distribution, and underpins longer-term market share gains in construction materials.

Positive free cash flow growth and conversion

The company demonstrates positive free cash flow growth and efficient conversion of earnings into cash. Reliable cash generation enhances financial flexibility to fund capex, service debt, and sustain dividends or buybacks without depending heavily on external financing.

Stable gross margin and contracted demand

Stable gross margins indicate disciplined cost management and pricing resilience. Coupled with long-term contracts and distributor partnerships, this provides more predictable demand and margin protection versus spot market volatility, supporting steady operating performance over time.

Negative Factors

Moderate leverage

A debt-to-equity around 1.08 signals material leverage. While currently manageable, this level reduces financial flexibility, raises interest expense sensitivity, and increases refinancing risk if cash generation weakens or rates rise, constraining strategic options.

Modest net profit margin

Despite solid revenue and stable gross margins, modest net margins imply limited conversion to bottom-line profit. This constrains retained earnings for reinvestment and makes earnings more vulnerable to cost inflation or pricing pressure, limiting long-term return potential.

Room to improve cash flow conversion relative to profits

Although free cash flow is positive and growing, the FCF-to-net-income ratio shows conversion inefficiencies. Persistent gaps between accounting profits and cash can limit the firm's ability to reliably fund capex, dividends or debt repayment during cyclical downturns.

TWOSTONE&Sons Co.Ltd. Business Overview & Revenue Model

Company Description

TWOSTONE&Sons Co.Ltd. (7352) is a diversified company engaged in the manufacturing and distribution of high-quality construction materials and home improvement products. The company operates primarily in the construction sector, offering a wide range of products including stone materials, bricks, and various building supplies. With a commitment to sustainability and innovation, TWOSTONE&Sons focuses on delivering durable and eco-friendly solutions to builders and homeowners alike.

How the Company Makes Money

TWOSTONE&Sons Co.Ltd. generates revenue through several key streams. Primarily, the company earns money from the sale of its construction materials and home improvement products to contractors, builders, and retail customers. The company also benefits from long-term contracts with major construction firms, ensuring a steady income flow. Additionally, TWOSTONE&Sons engages in partnerships with suppliers and distributors, which enhance its market reach and operational efficiency. By focusing on quality and customer service, the company attracts repeat business and builds a loyal customer base, further contributing to its overall revenue.

TWOSTONE&Sons Co.Ltd. Financial Statement Overview

Summary

Financials are solid overall: strong revenue growth (+26.48% latest year), stable gross margin, and positive free cash flow growth. Offsetting factors include modest net profitability and moderate leverage (debt-to-equity 1.08), implying execution risk if profitability or cash efficiency does not improve.

Income Statement

TWOSTONE&Sons Co.Ltd. has demonstrated consistent revenue growth over the years, with a notable increase of 26.48% in the latest year. The gross profit margin has remained relatively stable, indicating efficient cost management. However, the net profit margin is modest, suggesting room for improvement in profitability. The EBIT and EBITDA margins are also moderate, reflecting steady operational performance but highlighting potential for enhanced efficiency.

Balance Sheet

The company's balance sheet shows a healthy equity base with a debt-to-equity ratio of 1.08, indicating manageable leverage. The return on equity is strong, reflecting effective use of shareholder funds. However, the equity ratio suggests a moderate reliance on debt financing, which could pose risks if not managed carefully.

Cash Flow

TWOSTONE&Sons Co.Ltd. has shown positive free cash flow growth, indicating good cash generation capabilities. The operating cash flow to net income ratio is healthy, suggesting efficient conversion of earnings into cash. However, the free cash flow to net income ratio indicates that there is room for improvement in cash flow management relative to profitability.

Breakdown	Aug 2025	Aug 2024	Aug 2023	Aug 2022	Aug 2021
Income Statement
Total Revenue	18.08B	14.29B	10.06B	6.87B	4.28B
Gross Profit	5.51B	4.12B	2.71B	2.07B	1.36B
EBITDA	1.04B	645.47M	410.75M	241.94M	139.95M
Net Income	494.32M	188.86M	170.12M	134.69M	75.81M
Balance Sheet
Total Assets	9.95B	7.10B	4.09B	2.51B	1.32B
Cash, Cash Equivalents and Short-Term Investments	4.56B	3.70B	1.29B	874.71M	481.68M
Total Debt	3.64B	1.97B	1.81B	819.32M	167.66M
Total Liabilities	6.48B	4.22B	3.19B	1.77B	742.83M
Stockholders Equity	3.36B	2.89B	897.07M	736.92M	581.72M
Cash Flow
Free Cash Flow	689.47M	674.91M	165.02M	154.87M	0.00
Operating Cash Flow	749.69M	697.11M	172.60M	215.59M	54.17M
Investing Cash Flow	-1.28B	-90.25M	-652.91M	-259.08M	-80.63M
Financing Cash Flow	1.39B	1.80B	895.27M	436.53M	-77.17M

TWOSTONE&Sons Co.Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 719.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7352, the sentiment is Negative. The current price of 719 is above the 20-day moving average (MA) of 565.35, above the 50-day MA of 662.36, and below the 200-day MA of 802.09, indicating a bearish trend. The MACD of -33.75 indicates Negative momentum. The RSI at 37.13 is Neutral, neither overbought nor oversold. The STOCH value of 43.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7352.

TWOSTONE&Sons Co.Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7811	83 Outperform	¥16.83B	6.60	―	3.62%	7.07%	79.18%
7805	77 Outperform	¥3.53B	4.67	―	1.93%	-1.00%	105.56%
7911	74 Outperform	¥1.37T	11.67	6.28%	1.07%	3.01%	6.48%
7914	68 Neutral	¥42.63B	7.42	―	3.71%	-0.04%	93.95%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7352	62 Neutral	¥23.55B	22.06	―	0.07%	26.50%	159.93%
7916	61 Neutral	¥5.75B	-22.35	―	2.72%	-1.30%	―