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Tomy Company, Ltd. (JP:7867)
:7867
Japanese Market

Tomy Company, Ltd. (7867) AI Stock Analysis

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JP

Tomy Company, Ltd.

(7867)

Rating:75Outperform
Price Target:
¥3,616.00
▲(9.21%Upside)
Tomy Company, Ltd. is well-positioned in the leisure industry with strong financial performance as its main strength, indicated by robust revenue growth and efficient cost management. Short-term technical indicators are favorable, though long-term trends show some weakness. Valuation metrics suggest the stock is fairly priced with modest income potential. The absence of recent earnings call data and notable corporate events did not impact the evaluation.

Tomy Company, Ltd. (7867) vs. iShares MSCI Japan ETF (EWJ)

Tomy Company, Ltd. Business Overview & Revenue Model

Company DescriptionTOMY Company, Ltd. plans, manufactures, and sells toys, general merchandise, card games, baby care products, etc. for infants, preschoolers, children, and adults. The company offers dolls, plastic train and rail sets, spinning tops, amusement machines, stuffed toys, and detailed replica products, as well as die-cast Japanese miniature car and robot products. It also provides baby bottles, dishes, and strollers supporting child-rearing products; card games; and licenses miscellaneous goods, and apparels and accessories. In addition, the company is involved in the content development and broadcast of BAKUGAN, PHANTOMIRAGE!, and PAW PATROL. Further, it operates a store, which offers toys, fancy goods, character merchandise, and books under the KIDDY LAND brand name. The company sells its products under approximately 60 brands, which primarily include the TRANSFORMERS, ZOIDS WILD, ANIA, POLICE X HEROINE LOVEPATRINA!, BEYBLADE BURST, DUEL MASTERS, T-ARTS, TOMYTEC, KIDDY LAND, THE FIRST YEARS, JOHN DEERE, Lamaze, BOON, TOMICA, PLARAIL, and LICCA brands. It operates in Japan, rest of Asia, Europe, Americas, and Oceania. The company was founded in 1924 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyTomy Company, Ltd. generates revenue primarily through the design, production, and sale of toys and related merchandise. The company's revenue streams are diversified across various product categories and geographies. Sales are driven by the company's strong brand portfolio and the continuous introduction of innovative and appealing products. Additionally, Tomy leverages licensing agreements with popular franchises and characters, enhancing its product offerings and market reach. The company also forms strategic partnerships with other entertainment and media companies to co-develop products and expand its consumer base. Retail sales, both through brick-and-mortar stores and online platforms, play a significant role in its earnings, supported by a robust supply chain and marketing efforts.

Tomy Company, Ltd. Financial Statement Overview

Summary
Tomy Company, Ltd. shows strong financial health with significant revenue and profit growth, efficient cost management, and a solid equity base. However, the declining cash reserves and variability in free cash flow suggest areas for improvement.
Income Statement
85
Very Positive
The company has demonstrated strong revenue growth, increasing from ¥141.2 billion in 2021 to ¥250.2 billion in 2025, leading to a solid Revenue Growth Rate. Gross profit margin has improved consistently, reaching 40.5% in 2025, indicating efficient cost management. Net profit margin has also shown a positive trajectory, improving to 6.5% in 2025. These metrics suggest robust profitability and effective operational strategies.
Balance Sheet
78
Positive
The balance sheet shows a strong equity position with an Equity Ratio of 64.2% in 2025, indicating financial stability. Debt-to-Equity Ratio has improved, reducing leverage risk. ROE is healthy at 15.4%, reflecting efficient use of equity. However, the declining cash position over the years poses a potential liquidity risk.
Cash Flow
70
Positive
Free Cash Flow has seen fluctuations but has improved significantly in 2025. Operating Cash Flow to Net Income Ratio is strong, indicating sound cash flow management. However, the Free Cash Flow to Net Income Ratio has seen variability, suggesting some inconsistency in free cash generation relative to net income.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue243.05B250.24B208.33B187.30B165.45B141.22B
Gross Profit98.97B101.35B84.96B72.35B66.61B55.26B
EBITDA30.24B32.49B23.52B21.19B19.70B14.51B
Net Income15.21B16.35B9.81B8.31B9.11B5.37B
Balance Sheet
Total Assets175.16B165.77B166.25B159.52B156.09B147.61B
Cash, Cash Equivalents and Short-Term Investments46.71B56.16B64.28B66.45B65.42B63.66B
Total Debt11.74B10.80B16.90B35.99B39.67B46.24B
Total Liabilities66.23B59.37B66.25B72.35B76.92B77.69B
Stockholders Equity108.92B106.40B100.00B87.17B79.17B69.93B
Cash Flow
Free Cash Flow0.0011.17B24.52B13.61B12.00B12.46B
Operating Cash Flow0.0017.00B29.18B16.22B16.41B18.06B
Investing Cash Flow0.00-8.10B-5.32B-2.13B-2.49B-8.61B
Financing Cash Flow0.00-16.77B-27.15B-13.69B-12.99B6.82B

Tomy Company, Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3311.00
Price Trends
50DMA
3100.52
Positive
100DMA
3356.22
Negative
200DMA
3742.28
Negative
Market Momentum
MACD
47.70
Negative
RSI
55.69
Neutral
STOCH
58.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7867, the sentiment is Neutral. The current price of 3311 is above the 20-day moving average (MA) of 3184.45, above the 50-day MA of 3100.52, and below the 200-day MA of 3742.28, indicating a neutral trend. The MACD of 47.70 indicates Negative momentum. The RSI at 55.69 is Neutral, neither overbought nor oversold. The STOCH value of 58.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7867.

Tomy Company, Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥296.83B18.17
1.72%20.12%69.12%
61
Neutral
AU$2.82B26.065.01%5.25%2.63%-29.95%
$22.79B26.2617.13%2.23%
$3.44B39.052.69%1.23%
78
Outperform
¥27.69B16.46
3.85%3.59%-34.72%
73
Outperform
¥12.82B11.02
2.61%7.79%22.67%
¥2.04B30.85
8.87%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7867
Tomy Company, Ltd.
3,242.00
79.36
2.51%
NCBDF
BANDAI NAMCO Holdings
33.32
14.60
77.99%
YAMCF
Yamaha
7.08
-0.36
-4.84%
JP:6238
FURYU CORP.
1,016.00
-1.06
-0.10%
JP:7809
KOTOBUKIYA CO., LTD.
1,520.00
-290.66
-16.05%
JP:7865
People Co., Ltd.
528.00
-403.00
-43.29%

Tomy Company, Ltd. Corporate Events

TOMY Company Completes Treasury Share Purchase
Jun 25, 2025

TOMY Company, Ltd. has completed the purchase of 435,900 treasury shares for a total cost of 1,353,798,600 yen, as per the resolution made by its Board of Directors. This strategic move, executed on the Tokyo Stock Exchange, is part of the company’s efforts to manage its capital structure and enhance shareholder value.

TOMY Company Announces Treasury Share Acquisition
Jun 3, 2025

TOMY Company, Ltd. has announced the acquisition of 542,900 of its own common shares, amounting to approximately ¥1.65 billion, through market purchases on the Tokyo Stock Exchange. This move is part of a broader strategy approved by the Board of Directors to acquire up to 1,000,000 shares, reflecting the company’s efforts to manage its capital structure and potentially enhance shareholder value.

Tomy Company Reports Strong Financial Growth in FY 2025
May 13, 2025

Tomy Company, Ltd. reported a significant increase in its non-consolidated financial results for the fiscal year ended March 31, 2025, compared to the previous year. The company experienced a notable rise in net sales and profits, driven by strong performance in product sales and the success of the DUEL MASTERS PLAY’S smartphone app. This growth reflects positively on Tomy’s market positioning and indicates robust demand for its products, benefiting stakeholders.

Tomy Company Discontinues Anti-Takeover Measures and Amends Articles of Incorporation
May 13, 2025

Tomy Company, Ltd. has announced the discontinuation of its anti-takeover measures, which were initially introduced to protect the company’s corporate value and shareholder interests. This decision, made during a Board of Directors meeting, reflects Tomy’s confidence in its strengthened management base and corporate governance, as well as its commitment to enhancing corporate value through its Medium- to Long-Term Management Strategy 2030. The company will also amend its Articles of Incorporation to remove provisions related to these measures, while remaining vigilant against any large-scale share purchases that could harm its corporate value.

TOMY Revises Director Stock Compensation Plan
May 13, 2025

TOMY Company, Ltd. announced a revision to its performance-based stock compensation plan for directors, aiming to better align director compensation with the company’s performance and stock value. The revised plan adjusts the maximum funds for acquiring shares, reflecting recent stock price trends, and is set to be proposed at the upcoming General Meeting of Shareholders.

TOMY Company Introduces Special Incentive Plan for Employee Stock Ownership
May 13, 2025

TOMY Company, Ltd. has announced the introduction of a Special Incentive Plan as part of its Employee Stock Ownership Plan (ESOP). This initiative aims to enhance corporate value and employee participation by allowing eligible employees to acquire company shares. The plan involves a special incentive allocation for employees who are part of the ESOP, with a maximum expected total amount of ¥255 million for the shares to be disposed of under this scheme. The move is expected to contribute to asset building and foster a sense of ownership among employees, potentially impacting the company’s operations and stakeholder engagement positively.

Tomy Company Announces Treasury Share Purchase to Boost Shareholder Returns
May 13, 2025

Tomy Company, Ltd. has announced a decision by its Board of Directors to purchase up to 1,000,000 of its own shares, representing 1.12% of its total issued shares, as part of a strategy to enhance shareholder returns and improve capital efficiency. This move is also aimed at supporting an incentive plan for employee stock ownership, reflecting the company’s commitment to flexible capital policies in response to the evolving business environment.

Tomy Company, Ltd. Reports Strong Financial Growth and Increased Dividends
May 13, 2025

Tomy Company, Ltd. reported a significant increase in its financial performance for the fiscal year ended March 31, 2025, with net sales rising by 20.1% and profit attributable to owners of the parent increasing by 66.7%. The company also announced an increase in annual dividends, reflecting its strong financial health and commitment to returning value to shareholders.

TOMY Company Revises Earnings and Dividend Forecasts Upward
May 9, 2025

TOMY Company, Ltd. has revised its consolidated earnings and dividend forecasts for the fiscal year ended March 31, 2025, due to strong sales performance. The company’s net sales are expected to reach a record high of 250 billion yen, driven by successful product lines and well-received flagship stores. Consequently, the company anticipates record profits and has increased its year-end dividend forecast to 36 yen per share, reflecting a commitment to shareholder returns.

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.Date of analysis: Jun 26, 2025