Tokyo Sangyo Co., Ltd. (8070) AI Stock Analysis

• Market Cap: ¥24.63B
• Dividend Yield: 3.91%
• Average Volume (3M): 102.34K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.77
• Revenue Growth: -13.72%
• EPS Growth: N/A
• Country: JP
• Employees: 381
• Sector: Industrials
• Sector Strength: 76
• Industry: Conglomerates
• EPS (TTM): 23.50
• Shares Outstanding: 28,678,486
• 10 Day Avg. Volume: 100,880
• 30 Day Avg. Volume: 102,336
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥911.00
• Price Target Upside: 0.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: ¥911.00 ▲(0.66% Upside)

Tokyo Sangyo Co., Ltd. presents a strong overall investment opportunity, driven by robust technical analysis and attractive valuation metrics. The company's financial performance reflects solid recovery, although there is potential to enhance operational efficiency and shareholder returns. The absence of earnings call and corporate events data does not detract from the positive outlook.

Tokyo Sangyo Co., Ltd. Business Overview & Revenue Model

Company Description

Tokyo Sangyo Co., Ltd. is a Japanese trading company with a diversified portfolio primarily focused on industrial machinery and equipment. The company operates across various sectors including energy, chemicals, environment, and infrastructure. It offers a wide range of products such as power generation equipment, chemical processing machinery, and environmental systems, catering to both domestic and international markets.

How the Company Makes Money

Tokyo Sangyo Co., Ltd. generates revenue through the sale and distribution of industrial machinery and equipment. The company acts as an intermediary, sourcing products from manufacturers and supplying them to businesses in need of specialized machinery. Key revenue streams include the sale of power generation equipment, chemical machinery, and environmental systems. The company also engages in project development and engineering services, which contribute to its earnings. Strategic partnerships with manufacturers and other trading companies enhance its product offerings and market reach, further supporting its revenue model.

Tokyo Sangyo Co., Ltd. Financial Statement Overview

Summary

Tokyo Sangyo Co., Ltd. demonstrates a solid financial recovery with improvements in revenue growth, profitability, and cash flow management. The balance sheet remains strong, though there is room for enhancing operational efficiency and shareholder returns.

Income Statement

The income statement shows a strong recovery with a significant revenue growth rate of 8.75% in the latest period. The gross profit margin improved to 13.10%, and the net profit margin stands at 3.06%. Despite the positive growth, the EBIT margin remains relatively low at 3.20%, indicating room for operational efficiency improvements.

Balance Sheet

The balance sheet is stable with a debt-to-equity ratio of 0.65, indicating manageable leverage levels. The equity ratio is healthy at 24.79%, reflecting a solid capital structure. However, the return on equity of 10.31% suggests that there is potential for improving shareholder returns.

Cash Flow

Cash flow analysis reveals a robust free cash flow growth rate of 989.91%, showcasing improved cash generation capabilities. The operating cash flow to net income ratio is 2.47, indicating strong cash flow management. However, historically negative free cash flows in prior years demonstrate past cash flow challenges.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	70.72B	65.03B	63.89B	58.87B	113.67B
Gross Profit	9.27B	7.03B	9.50B	8.10B	7.76B
EBITDA	4.16B	1.45B	1.55B	2.94B	2.45B
Net Income	2.16B	-1.58B	469.00M	1.22B	1.83B
Balance Sheet
Total Assets	84.59B	80.80B	80.91B	88.26B	74.50B
Cash, Cash Equivalents and Short-Term Investments	16.15B	11.29B	8.15B	8.68B	9.24B
Total Debt	13.72B	20.15B	16.75B	14.75B	13.57B
Total Liabilities	63.59B	60.92B	54.21B	61.40B	46.90B
Stockholders Equity	20.98B	19.85B	26.70B	26.87B	27.60B
Cash Flow
Free Cash Flow	3.95B	-444.00M	-1.87B	-2.18B	-6.76B
Operating Cash Flow	5.35B	12.00M	-1.40B	-1.30B	-2.79B
Investing Cash Flow	1.71B	575.00M	-408.00M	-1.01B	1.01B
Financing Cash Flow	-7.50B	2.23B	1.26B	1.18B	3.98B

Tokyo Sangyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 905.00
• 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:8070, the sentiment is Positive. The current price of 905 is above the 20-day moving average (MA) of 892.90, above the 50-day MA of 826.96, and above the 200-day MA of 736.59, indicating a bullish trend. The MACD of 28.36 indicates Positive momentum. The RSI at 61.08 is Neutral, neither overbought nor oversold. The STOCH value of 42.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8070.

Tokyo Sangyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8285	84 Outperform	¥24.63B	9.16		2.37%	9.23%	33.11%
8020	80 Outperform	¥255.98B	9.60		3.35%	3.81%	7.15%
8070	76 Outperform	¥24.63B	10.31		3.91%	-13.72%	―
8057	76 Outperform	¥104.92B	12.27		2.06%	15.78%	20.79%
8014	74 Outperform	¥95.61B	9.63		3.64%	-0.89%	-13.53%
8081	73 Outperform	¥39.73B	11.53		3.58%	16.51%	19.39%
Sector *	64 Neutral	$10.95B	16.37	8.81%	1.96%	2.68%	-15.33%

Tokyo Sangyo Co., Ltd. Corporate Events

Tokyo Sangyo Co., Ltd. Reports Increased Profits Despite Sales Decline

Tokyo Sangyo Co., Ltd. reported a significant decline in net sales by 32% for the three months ending June 30, 2025, compared to the same period last year. Despite the drop in sales, the company achieved a notable increase in operating profit by 100.4% and ordinary profit by 38.8%, indicating improved operational efficiency. The company’s equity ratio also improved from 24.8% to 29.2%, reflecting a stronger financial position. The forecast for the fiscal year ending March 31, 2026, anticipates a slight decrease in net sales but an increase in profits, suggesting a focus on profitability over revenue growth.

Tokyo Sangyo Acknowledges Administrative Penalty, Commits to Preventive Measures

Tokyo Sangyo Co., Ltd. has announced its decision to submit a written response acknowledging the facts and the amount related to an administrative monetary penalty of 17.5 million yen recommended by the Securities and Exchange Surveillance Commission. The company is committed to preventing such occurrences in the future and aims to restore trust among its stakeholders.

Tokyo Sangyo Faces Monetary Penalty Recommendation for Reporting Discrepancies

Tokyo Sangyo Co., Ltd. has been recommended for an administrative monetary penalty of 17.5 million yen by the Securities and Exchange Surveillance Commission due to discrepancies in their financial reporting for previous fiscal years. The company is taking the recommendation seriously and plans to announce its response after receiving formal notification, while also apologizing for any inconvenience caused to stakeholders.