Toli Corporation (7971) AI Stock Analysis

• Market Cap: ¥41.95B
• Dividend Yield: 3.59%
• Average Volume (3M): 150.32K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.58
• Revenue Growth: 6.91%
• EPS Growth: 13.17%
• Country: JP
• Employees: 1,883
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 23.93
• Shares Outstanding: 60,129,250
• 10 Day Avg. Volume: 154,000
• 30 Day Avg. Volume: 150,323
• PEG Ratio: -2.36
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.26
• P/FCF Ratio: -10.49
• 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: 79 Outperform
• Price Target: ¥899.00 ▲(21.16% Upside)
• Action: Reiterated Date: 11/15/25
• Date: Action: Reiterated 11/15/25

The overall stock score is driven by strong technical analysis and attractive valuation, indicating potential for price appreciation and income generation. Financial performance is solid but faces challenges in cash flow management, which could impact future liquidity. The absence of earnings call data and corporate events does not affect the score.

Positive Factors

Strong Balance Sheet

A ~51% equity ratio and low 0.20 debt-to-equity show durable financial stability. This conservative leverage profile supports capital allocation for cyclical construction demand, preserves borrowing capacity, and reduces refinancing risk during downturns, aiding multi-quarter resilience.

Consistent Revenue Growth

Sustained top-line growth indicates steady demand for interior materials across new builds and renovations. Consistent revenue expansion supports capacity utilization, long-term customer relationships, and the ability to invest in product development and distribution for continued structural market share gains.

Solid Operating Cash Generation

An OCF-to-net-income ratio of 0.70 signals the core business converts earnings into cash reasonably well. Reliable operating cash generation underpins dividend sustainability and funds working capital, enabling the company to support operations and invest incrementally without sole reliance on external financing.

Negative Factors

Negative Free Cash Flow

Persistent negative free cash flow driven by elevated capex creates structural pressure on liquidity. Over multiple quarters this can constrain discretionary investments, increase reliance on debt or equity funding, and limit the firm's flexibility to respond to market opportunities or fund shareholder returns.

Compressed Profit Margins

Declining operating margins and a low net margin (~3.3%) reduce resilience to input cost inflation and competitive pricing pressure. With narrow profitability, the company has less room to absorb adverse cyclical swings, making long-term margin recovery and operating efficiency critical to sustainable returns.

Modest Return on Equity

A ~7.3% ROE points to moderate efficiency in converting equity into profits. For a capital-intensive building materials business, this suggests returns may lag expectations, potentially limiting shareholder value creation unless the company improves margins, asset turnover, or capital allocation over coming quarters.

Toli Corporation Business Overview & Revenue Model

Company Description

TOLI Corporation manufactures and sells floor coverings, wallpapers, drapes, and related installation accessories in Japan and internationally. It offers carpet tiles, vinyl tiles, vinyl sheets, carpets, curtains, wall coverings, and other products, as well as interior goods. The company was formerly known as TOYO LINOLEUM and changed its name to TOLI Corporation in October 1991. TOLI Corporation was founded in 1919 and is headquartered in Itami, Japan.

How the Company Makes Money

Toli Corporation generates revenue through multiple key streams, primarily from the sale of its packaging products to businesses in various sectors. The company's revenue model is built on the production of customized packaging solutions that meet the specific needs of clients, which often leads to long-term contracts and repeat business. Additionally, Toli may engage in partnerships with manufacturers and suppliers to expand its market reach and improve its product offerings. Factors contributing to its earnings include the growing demand for sustainable packaging solutions, advancements in packaging technology, and the expansion of its operations into emerging markets.

Toli Corporation Financial Statement Overview

Summary

Toli Corporation demonstrates a strong financial position with consistent revenue growth and a stable balance sheet. However, challenges in cash flow management due to high capital expenditures may impact future liquidity. Continued focus on operational efficiency and expense management will be crucial for sustaining profitability.

Income Statement

The company has shown steady revenue growth with a 3.16% increase from 2024 to 2025. Gross profit margin is consistent, and the net profit margin is stable at approximately 3.32% for 2025. However, EBIT and EBITDA margins have decreased slightly, indicating a need to control operating expenses to maintain profitability.

Balance Sheet

The balance sheet is robust with a healthy equity ratio of approximately 51.07% in 2025, indicating strong financial stability. The debt-to-equity ratio remains manageable at 0.20, showing prudent use of leverage. ROE is modest at around 7.30%, suggesting moderate efficiency in generating returns from equity.

Cash Flow

The cash flow situation indicates challenges with negative free cash flow due to high capital expenditures. However, the operating cash flow to net income ratio of 0.70 in 2025 indicates solid cash generation relative to earnings, though the free cash flow to net income ratio is negative, reflecting cash outflows exceeding net income.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	108.09B	105.71B	102.47B	95.23B	88.51B	85.93B
Gross Profit	31.37B	30.66B	29.92B	27.18B	24.13B	24.49B
EBITDA	8.49B	8.56B	8.40B	6.65B	3.84B	4.61B
Net Income	3.49B	3.51B	3.69B	2.56B	720.00M	1.39B
Balance Sheet
Total Assets	93.68B	94.06B	90.85B	84.79B	79.98B	76.82B
Cash, Cash Equivalents and Short-Term Investments	9.37B	8.21B	9.63B	9.74B	10.34B	10.36B
Total Debt	10.78B	9.78B	6.70B	6.70B	6.70B	6.63B
Total Liabilities	45.95B	45.68B	45.09B	43.90B	41.70B	38.73B
Stockholders Equity	47.39B	48.05B	45.43B	40.61B	38.01B	37.82B
Cash Flow
Free Cash Flow	0.00	-2.65B	1.51B	115.00M	1.19B	1.63B
Operating Cash Flow	0.00	2.47B	5.29B	3.60B	4.96B	4.16B
Investing Cash Flow	0.00	-4.77B	-3.90B	-3.27B	-4.02B	-3.11B
Financing Cash Flow	0.00	842.00M	-1.57B	-934.00M	-1.06B	-987.00M

Toli Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 742.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7971, the sentiment is Positive. The current price of 742 is below the 20-day moving average (MA) of 776.90, below the 50-day MA of 760.72, and above the 200-day MA of 612.60, indicating a neutral trend. The MACD of 2.66 indicates Positive momentum. The RSI at 51.28 is Neutral, neither overbought nor oversold. The STOCH value of 36.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7971.

Toli Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7871	80 Outperform	¥19.08B	11.05	―	3.09%	0.27%	7.57%
7971	79 Outperform	¥41.95B	10.35	―	3.59%	6.91%	13.17%
5237	78 Outperform	¥12.44B	14.65	―	3.90%	0.58%	-9.72%
7949	77 Outperform	¥52.32B	17.62	―	3.74%	3.70%	12.26%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7820	55 Neutral	¥21.60B	-8.36	―	4.35%	-4.00%	-386.52%
5337	54 Neutral	¥20.94B	28.11	―	―	-5.45%	―

Toli Corporation Corporate Events

TOLI Corp Lifts Profits and Dividends on Strong Nine-Month Results

TOLI Corporation reported solid growth for the first nine months of the fiscal year ending March 2026, with net sales rising 9.0% year on year to ¥81.8 billion and profit attributable to owners of parent jumping 49.9% to ¥2.48 billion, supported by strong improvements in operating and ordinary profit margins. The company’s financial position remained sound, with total assets up to ¥97.5 billion and an equity ratio of 51.4%, and it confirmed its full-year forecast calling for 5.0% sales growth and a 14.1% increase in bottom-line profit. Reflecting the earnings momentum, TOLI has already doubled its interim dividend to ¥10 per share versus the prior year and plans a full-year payout of ¥32 per share, signaling management’s confidence and offering a higher return to shareholders while maintaining stable capital structure metrics.

The most recent analyst rating on (JP:7971) stock is a Buy with a Yen872.00 price target. To see the full list of analyst forecasts on Toli Corporation stock, see the JP:7971 Stock Forecast page.