Toli Corporation (7971) AI Stock Analysis

• Market Cap: ¥32.42B
• Dividend Yield: 3.53%
• Average Volume (3M): 177.77K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.56
• Revenue Growth: 5.10%
• EPS Growth: -4.12%
• Country: JP
• Employees: 1,883
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 6.52
• Shares Outstanding: 60,129,250
• 10 Day Avg. Volume: 136,200
• 30 Day Avg. Volume: 177,773
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥597.00
• Price Target Upside: 0.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ¥597.00 ▲(0.34% Upside)

The stock's solid overall score is primarily driven by its strong valuation, indicating potential undervaluation with a low P/E ratio and a good dividend yield. Financial performance is robust, with consistent revenue growth and a stable balance sheet, although cash flow challenges need attention. Technical analysis suggests bullish momentum, but overbought indicators warrant caution.

Toli Corporation Business Overview & Revenue Model

Company Description

Toli Corporation (7971) is a Japanese company primarily engaged in the manufacture and sale of interior products. The company specializes in flooring materials, wall coverings, and other related interior products. With a focus on quality and design, Toli Corporation caters to both residential and commercial markets, providing innovative and sustainable solutions for interior decoration and renovation.

How the Company Makes Money

Toli Corporation makes money through the production and sale of its diverse range of interior products, including flooring materials like vinyl tiles, carpets, and wooden floors, as well as wall coverings such as wallpapers and decorative panels. The company generates revenue by supplying these products to retailers, wholesalers, and directly to businesses involved in construction and interior design projects. Additionally, Toli Corporation may engage in partnerships with construction firms and developers to supply materials for large-scale projects, which can significantly contribute to its revenue. The company also focuses on developing eco-friendly products to meet the growing demand for sustainable interior solutions, which can enhance its market position and profitability.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	105.71B	105.71B	102.47B	95.23B	88.51B	85.93B
Gross Profit	30.66B	30.66B	29.92B	27.18B	24.13B	24.49B
EBITDA	8.64B	8.56B	8.40B	6.65B	3.84B	4.61B
Net Income	3.51B	3.51B	3.69B	2.56B	720.00M	1.39B
Balance Sheet
Total Assets	94.06B	94.06B	90.85B	84.79B	79.98B	76.82B
Cash, Cash Equivalents and Short-Term Investments	8.21B	8.21B	9.63B	9.74B	10.34B	10.36B
Total Debt	9.78B	9.78B	6.70B	6.70B	6.70B	6.63B
Total Liabilities	45.68B	45.68B	45.09B	43.90B	41.70B	38.73B
Stockholders Equity	48.05B	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: 595.00
• 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 595 is above the 20-day moving average (MA) of 589.20, above the 50-day MA of 565.50, and above the 200-day MA of 488.93, indicating a bullish trend. The MACD of 8.01 indicates Positive momentum. The RSI at 61.43 is Neutral, neither overbought nor oversold. The STOCH value of 59.72 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
5237	79 Outperform	¥12.02B	12.89	5.60%	3.80%	-2.90%	-24.21%
7871	73 Outperform	¥18.78B	12.56	4.01%	3.16%	1.51%	-13.05%
7949	73 Outperform	¥46.39B	17.33	7.01%	2.48%	2.77%	8.52%
7971	71 Outperform	¥32.42B	9.98	―	3.53%	5.10%	-4.12%
5337	53 Neutral	¥23.05B	20.12	0.44%	―	-11.27%	―
7820	52 Neutral	¥20.77B	-6.50	-9.24%	4.34%	-7.57%	-316.77%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Toli Corporation Corporate Events

Toli Corporation’s Q1 Financial Performance: Sales Up, Profits Down

Toli Corporation reported a 10.5% increase in net sales for the first quarter ending March 2026, reaching 25,056 million yen. However, the company experienced a decline in operating profit by 13% and a decrease in comprehensive income by 64.7% compared to the previous year, indicating challenges in maintaining profitability despite increased sales.

Toli Corporation Reports Fiscal Year 2025 Financial Results

Toli Corporation reported a slight increase in net sales for the fiscal year ending March 2025, despite a decline in operating and ordinary profits compared to the previous year. The company’s financial performance indicates a challenging market environment, with decreased profitability and comprehensive income. The dividend payout ratio increased, reflecting a commitment to returning value to shareholders. Looking ahead, the company forecasts further growth in net sales for the year ending March 2026, although profits are expected to decline, suggesting ongoing operational challenges.