Toho Lamac Co., Ltd. (7422) AI Stock Analysis

• Market Cap: ¥2.76B
• Dividend Yield: 2.1%
• Average Volume (3M): 7.42K
• Price to Earnings (P/E): 316.2
• Beta (1Y): 0.29
• Revenue Growth: 0.04%
• EPS Growth: -64.31%
• Country: JP
• Employees: 162
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): -7.69
• Shares Outstanding: 5,120,700
• 10 Day Avg. Volume: 3,670
• 30 Day Avg. Volume: 7,420
• PEG Ratio: -0.02
• Price to Book (P/B): 0.05
• Price to Sales (P/S): 0.05
• P/FCF Ratio: 3.15
• 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: 57 Neutral
• Price Target: ¥569.00 ▲(5.37% Upside)

Toho Lamac Co., Ltd. shows a strong financial foundation with improved profitability and stability. However, technical indicators suggest weak momentum, and the stock appears overvalued with a high P/E ratio. The lack of earnings call data and corporate events limits further insights.

Positive Factors

Margin Improvement

The improvement in gross profit margin indicates effective cost management, enhancing profitability and providing a buffer against revenue fluctuations.

Balance Sheet Strength

A strong equity base and low leverage enhance financial stability, providing resilience against economic downturns and flexibility for strategic investments.

Cash Flow Management

Efficient capital expenditure management and positive free cash flow indicate robust cash generation, supporting reinvestment and shareholder returns.

Negative Factors

Revenue Decline

Declining revenue poses a challenge to growth, potentially limiting the company's ability to scale operations and invest in new opportunities.

Earnings Volatility

Volatile earnings growth can undermine investor confidence and affect the company's ability to plan long-term strategic initiatives effectively.

Operating Cash Flow Decrease

A decline in operating cash flow could strain liquidity, impacting the company's ability to fund operations and pursue growth opportunities.

Toho Lamac Co., Ltd. Business Overview & Revenue Model

Company Description

Toho Lamac Co., Ltd. engages in the wholesale and retail of shoes. The company offers pumps, sandals, boots, rubber, sneakers, rain shoes, casual shoes, kids shoes, men's and women's shoes, genuine leather shoes, and safety boots; and accessories, such as bags, belts, and socks. The company was formerly known as Toho Rubber Industries Co., Ltd. and changed its name to Toho Lamac Co., Ltd. in January 1988. Toho Lamac Co., Ltd. was incorporated in 1958 and is based in Bunkyo, Japan.

How the Company Makes Money

Toho Lamac Co., Ltd. generates revenue primarily through the sale of its aluminum products and related services. The company has a robust revenue model that includes direct sales to end-users in various industries, as well as partnerships with distributors and manufacturers. Key revenue streams include bulk sales of raw aluminum materials, custom fabrication services, and specialized products tailored to specific industry requirements. Additionally, Toho Lamac benefits from long-term contracts with major clients, which provide a steady income stream. The company's focus on quality and innovation also allows it to command premium pricing for its specialized products, further enhancing its profitability.

Toho Lamac Co., Ltd. Financial Statement Overview

Summary

Toho Lamac Co., Ltd. shows a recovery in profitability with improved margins and financial stability. Despite declining revenue, cost management has led to a positive net profit margin and a strong balance sheet with a high equity ratio and low debt-to-equity ratio.

Income Statement

Toho Lamac Co., Ltd. has seen a significant drop in total revenue from 2019 to 2024, with a negative revenue growth rate in recent years. However, the company improved its gross profit margin from 20.5% in 2023 to 30% in 2024, indicating cost management efforts. The net profit margin turned positive in 2024 after losses in previous years, reflecting a recovery in profitability.

Balance Sheet

The company's balance sheet shows a strong equity base with a high equity ratio of approximately 76.5% in 2024. The debt-to-equity ratio is low at 0.17, indicating financial stability. Return on Equity (ROE) improved significantly in 2024 to 2.66% from negative in previous years, showing enhanced shareholder value creation.

Cash Flow

Operating cash flow decreased significantly from 2019 to 2024, but free cash flow remained positive, suggesting efficient capital expenditure management. The free cash flow to net income ratio improved to 0.58 in 2024, highlighting better cash generation relative to net income.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.76B	5.10B	6.38B	6.34B	6.73B
Gross Profit	1.43B	1.27B	1.49B	1.61B	1.73B
EBITDA	174.94M	-113.17M	33.61M	-173.79M	-156.75M
Net Income	124.35M	-135.66M	-6.14M	-217.78M	-192.51M
Balance Sheet
Total Assets	6.11B	5.96B	6.20B	6.41B	6.79B
Cash, Cash Equivalents and Short-Term Investments	1.89B	1.83B	1.41B	2.08B	1.61B
Total Debt	800.00M	800.00M	901.58M	1.00B	1.01B
Total Liabilities	1.44B	1.51B	1.70B	1.75B	1.92B
Stockholders Equity	4.67B	4.44B	4.50B	4.66B	4.87B
Cash Flow
Free Cash Flow	71.77M	346.46M	-666.05M	143.46M	371.17M
Operating Cash Flow	106.79M	384.80M	-654.17M	154.50M	371.76M
Investing Cash Flow	9.95M	192.59M	235.79M	277.73M	428.90M
Financing Cash Flow	-55.19M	-155.93M	-158.13M	-59.80M	-182.45M

Toho Lamac Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 540.00
• 50DMA: Negative
• 100DMA: Negative
• 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:7422, the sentiment is Positive. The current price of 540 is above the 20-day moving average (MA) of 536.25, below the 50-day MA of 543.52, and above the 200-day MA of 494.40, indicating a neutral trend. The MACD of -0.78 indicates Negative momentum. The RSI at 50.24 is Neutral, neither overbought nor oversold. The STOCH value of 21.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7422.

Toho Lamac Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3416	82 Outperform	¥2.33B	12.47	―	4.43%	-10.69%	-60.56%
7932	79 Outperform	¥37.22B	13.79	―	3.76%	-2.97%	18.38%
2668	76 Outperform	¥8.79B	14.45	―	2.32%	1.12%	33.94%
2666	67 Neutral	¥2.21B	7.30	―	1.96%	11.96%	30.75%
7938	67 Neutral	¥7.65B	17.36	―	2.92%	-2.87%	-19.37%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7422	57 Neutral	¥2.76B	316.18	―	2.10%	0.04%	-64.31%