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

• Market Cap: ¥24.86B
• Dividend Yield: 0.07%
• Average Volume (3M): 174.06K
• Price to Earnings (P/E): 37.0
• Beta (1Y): 1.80
• 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: 60 Neutral
• Price Target: ¥600.00 ▼(-16.55% Downside)
• Action: Reiterated Date: 12/19/25
• Date: Action: Reiterated 12/19/25

TWOSTONE&Sons Co.Ltd. has a solid financial foundation with consistent revenue growth and effective cost management. However, the stock's high P/E ratio suggests it may be overvalued, which is a significant risk. The technical indicators show a neutral trend, lacking strong momentum. The attractive dividend yield provides some offset to the valuation concerns.

Positive Factors

Strong top-line and EPS growth

Sustained high revenue growth (~29%) alongside very strong EPS growth (~89%) indicates durable demand and improving operational leverage. Over the next 2–6 months this supports reinvestment, contract renewals and pricing power versus peers, bolstering medium-term earnings visibility.

Solid cash generation and OCF conversion

Consistent positive free cash flow growth and healthy operating cash flow conversion show the business converts earnings into cash reliably. That strengthens funding for capex, dividends, or debt reduction and supports durable financial flexibility across economic cycles.

Stable gross margins and cost management

Stable gross margins alongside sustained revenue growth imply effective procurement and cost controls in core manufacturing and distribution. This margin stability underpins predictable gross profit levels, making medium-term margin planning and reinvestment decisions more reliable.

Negative Factors

Moderate leverage and debt reliance

A debt-to-equity ratio around 1.08 signals meaningful leverage; while manageable today, it increases vulnerability to interest-rate shifts and cyclical revenue troughs. Sustained debt reliance can constrain capital allocation and raise refinancing risk over the next several quarters.

Modest net and operating margins

Despite revenue growth, modest net and operating margins indicate limited profitability conversion. This reduces cushion against cost shocks and limits excess cash for strategic initiatives; improving operational efficiency is required to raise sustainable shareholder returns.

Room to improve free cash flow relative to profits

The gap between reported profits and free cash flow suggests conversion inefficiencies—working capital or capex timing issues. Persisting this gap can limit dividend sustainability and debt repayment capacity, making cash conversion a key medium-term operational priority.

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

TWOSTONE&Sons Co.Ltd. exhibits solid financial health with consistent revenue growth and effective cost management. Profitability margins are moderate, but the company maintains a strong return on equity and positive cash flow generation. The balance sheet reflects manageable leverage, though careful attention to debt levels is advisable.

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	4.10B	2.71B	2.07B	1.37B
EBITDA	1.07B	630.69M	359.05M	241.35M	138.36M
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	736.91M	581.72M
Cash Flow
Free Cash Flow	689.47M	674.91M	91.10M	111.90M	50.30M
Operating Cash Flow	749.69M	697.11M	172.60M	215.59M	54.17M
Investing Cash Flow	-1.28B	-120.25M	-652.91M	-259.08M	-80.63M
Financing Cash Flow	1.39B	1.83B	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 626.25, below the 50-day MA of 723.02, and below the 200-day MA of 834.72, indicating a bearish trend. The MACD of -36.06 indicates Negative momentum. The RSI at 41.86 is Neutral, neither overbought nor oversold. The STOCH value of 39.36 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
7805	77 Outperform	¥3.53B	7.37	―	1.93%	-1.00%	105.56%
7914	68 Neutral	¥43.71B	12.71	―	3.71%	-0.04%	93.95%
7893	65 Neutral	¥30.02B	-60.36	―	3.97%	4.10%	-121.49%
9325	65 Neutral	¥12.56B	14.77	―	2.63%	18.27%	-4.07%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7916	61 Neutral	¥5.64B	19.41	―	2.72%	-1.30%	―
7352	60 Neutral	¥24.86B	37.04	―	0.07%	26.50%	159.93%