Toli Corporation (7971) AI Stock Analysis

• Market Cap: ¥41.52B
• Dividend Yield: 3.59%
• Average Volume (3M): 150.32K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.61
• Revenue Growth: 6.91%
• EPS Growth: 13.17%
• Country: JP
• Employees: 1,883
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 12.21
• 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: ¥903.00 ▲(21.70% Upside)

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

Balance sheet strength

A strong equity ratio and low leverage provide durable financial flexibility, lowering refinancing risk and enabling the company to fund capex or withstand demand shocks without excessive debt, supporting long-term stability and strategic investment ability.

Recurring revenue from customized solutions

Customized packaging and long-term client contracts create sticky revenue streams across food, pharma and consumer goods, enhancing predictability and customer retention. This structural client lock-in supports steady demand and makes growth less cyclical over the medium term.

Consistent top-line and EPS growth

Sustained revenue and stronger EPS growth indicate the business can expand sales while improving profit per share, suggesting operational leverage. This trend supports reinvestment capacity and resilience in earnings generation over multiple quarters.

Negative Factors

Negative free cash flow from high capex

Persistent negative free cash flow driven by elevated capex can erode liquidity and force external financing or reduced returns to shareholders. Over months this constrains strategic flexibility, increases funding costs, and may limit ability to scale or respond to market opportunities.

Margin pressure and cost control needs

Declining operating margins and a low single-digit net margin reduce buffer against demand downturns and rising input costs. If expense containment isn't achieved, profitability and cash generation will be structurally weaker, limiting reinvestment and returns over the medium term.

Modest return on equity

A modest ROE signals limited efficiency in turning equity into profit, which can constrain internal funding for growth and make it harder to justify capital allocation. Over time this may pressure the company to improve productivity or alter strategy to boost shareholder returns.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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 762.30, above the 50-day MA of 737.24, and above the 200-day MA of 584.19, indicating a neutral trend. The MACD of 11.33 indicates Positive momentum. The RSI at 53.45 is Neutral, neither overbought nor oversold. The STOCH value of 28.50 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	¥19.10B	11.59	―	3.09%	0.27%	7.57%
7971	79 Outperform	¥41.52B	11.39	―	3.59%	6.91%	13.17%
5237	78 Outperform	¥12.46B	12.31	―	3.90%	0.58%	-9.72%
7949	77 Outperform	¥50.18B	16.90	―	3.74%	3.70%	12.26%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7820	55 Neutral	¥20.57B	-6.89	―	4.35%	-4.00%	-386.52%
5337	53 Neutral	¥17.44B	15.53	―	―	-5.45%	―

Toli Corporation Corporate Events

Toli Corporation Reports Strong Q2 Financial Results and Increased Dividend

Toli Corporation reported a strong financial performance for the second quarter of the fiscal year ending March 2026, with a notable increase in net sales and profits compared to the previous year. The company achieved a 10.3% rise in net sales and a significant 58.3% increase in profit attributable to owners of the parent, reflecting improved operational efficiency and market demand. The interim dividend was doubled to 10 yen per share, indicating confidence in sustained growth. The positive financial results position Toli Corporation favorably in the market, potentially enhancing shareholder value and strengthening its competitive stance in the interior products industry.

The most recent analyst rating on (JP:7971) stock is a Buy with a Yen711.00 price target. To see the full list of analyst forecasts on Toli Corporation stock, see the JP:7971 Stock Forecast page.