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

• Market Cap: ¥27.09B
• Dividend Yield: 3.66%
• Average Volume (3M): 67.93K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.79
• Revenue Growth: -18.88%
• EPS Growth: 42.17%
• Country: JP
• Employees: 381
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 28.57
• Shares Outstanding: 28,678,486
• 10 Day Avg. Volume: 76,850
• 30 Day Avg. Volume: 67,926
• PEG Ratio: -0.04
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.26
• P/FCF Ratio: 4.56
• 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: 74 Outperform
• Price Target: ¥1,211.00 ▲(21.59% Upside)

Tokyo Sangyo Co., Ltd. receives a strong overall stock score driven by solid financial performance and favorable valuation. The technical analysis indicates strong bullish momentum, although overbought conditions suggest caution. The absence of earnings call and corporate events data does not impact the score significantly.

Positive Factors

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, allowing for reinvestment in growth opportunities and debt reduction, supporting long-term stability.

Revenue Growth

Consistent revenue growth indicates effective market strategies and product demand, contributing to sustained business expansion and competitive positioning.

Balance Sheet Health

A stable balance sheet with manageable leverage supports financial resilience, enabling the company to withstand economic fluctuations and invest in strategic initiatives.

Negative Factors

Revenue Decline in Past

Past revenue decline highlights potential vulnerabilities in market demand or operational execution, which could impact future growth if not addressed.

Low EBIT Margin

A low EBIT margin suggests limited operational efficiency, which could constrain profitability and competitiveness unless improved through cost management or pricing strategies.

Historical Cash Flow Challenges

Past cash flow challenges indicate potential risks in liquidity management, which may affect the company's ability to fund operations and growth initiatives if not mitigated.

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

Company Description

Tokyo Sangyo Co., Ltd. manufactures and sells machinery, plant facilities, materials, tools, and chemicals in Japan and internationally. It offers electric power products, including commercial power generation equipment, industrial power generation equipment, and renewable energy solutions. The company also provides environment power solutions, including waste solutions, wastewater treatment facilities, exhaust gas processing and purification equipment, and decontamination systems; and plant facilities for the chemical, pharmaceutical, food, film equipment, and building and construction industries, as well as lifeline equipment and devices. In addition, it offers machine tools and processing machines comprising casting, processing, forging, assembly, and other products; power and water supply products, including power equipment, air conditioning equipment, water equipment, and other products; and packaging materials, industrial chemicals, and other products, as well as general industry, manufacturing, construction machinery, measuring, and shipping/marine equipment. Further, the company engages in real estate leasing activities. The company was formerly known as Tokyo Kenzai Kogyo Co., Ltd. and changed its name to Tokyo Sangyo Co., Ltd. in July 1947. Tokyo Sangyo Co., Ltd. was incorporated in 1942 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Tokyo Sangyo Co., Ltd. generates revenue through several key streams. Primarily, the company earns income from trading activities, where it purchases products from manufacturers and sells them to retailers or other businesses. This includes a wide range of items, such as industrial chemicals and machinery. Additionally, the company may provide value-added services like logistics and supply chain management, which offer further revenue opportunities. Significant partnerships with manufacturers and suppliers enhance its product offerings and market reach, while its established network allows for competitive pricing and increased sales volume. Overall, the combination of trading, service offerings, and strategic alliances contributes substantially to the company’s financial performance.

Tokyo Sangyo Co., Ltd. Financial Statement Overview

Summary

Tokyo Sangyo Co., Ltd. shows a solid financial recovery with revenue growth and improved cash flow generation. However, there is room for improvement in 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	63.53B	70.72B	65.03B	65.45B	58.87B	113.03B
Gross Profit	9.75B	9.27B	7.03B	7.11B	8.10B	7.72B
EBITDA	3.89B	4.16B	1.45B	2.42B	3.12B	3.34B
Net Income	2.31B	2.16B	-1.58B	-4.96B	1.15B	1.83B
Balance Sheet
Total Assets	75.15B	84.59B	80.80B	80.91B	88.26B	75.78B
Cash, Cash Equivalents and Short-Term Investments	15.28B	16.15B	11.29B	8.15B	8.68B	9.24B
Total Debt	13.23B	13.72B	20.15B	16.75B	14.75B	13.57B
Total Liabilities	53.18B	63.59B	60.92B	54.87B	64.11B	48.81B
Stockholders Equity	21.94B	20.98B	19.85B	21.20B	26.87B	26.97B
Cash Flow
Free Cash Flow	0.00	3.95B	-444.00M	-1.87B	-2.18B	-6.76B
Operating Cash Flow	0.00	5.35B	12.00M	-1.40B	-1.30B	-2.79B
Investing Cash Flow	0.00	1.71B	575.00M	-408.00M	-1.01B	1.01B
Financing Cash Flow	0.00	-7.50B	2.23B	1.26B	1.18B	3.98B

Tokyo Sangyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 996.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 996 is below the 20-day moving average (MA) of 1005.50, above the 50-day MA of 995.20, and above the 200-day MA of 842.86, indicating a bullish trend. The MACD of 6.04 indicates Negative momentum. The RSI at 61.38 is Neutral, neither overbought nor oversold. The STOCH value of 67.04 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	82 Outperform	¥35.22B	11.71	―	1.90%	12.47%	21.98%
8081	78 Outperform	¥45.48B	11.81	―	3.48%	18.42%	51.06%
8070	74 Outperform	¥27.09B	9.07	―	3.66%	-18.88%	42.17%
8014	73 Outperform	¥101.02B	10.39	―	3.74%	-2.33%	-16.42%
8020	73 Outperform	¥315.11B	10.97	―	3.13%	1.50%	9.82%
8057	68 Neutral	¥107.86B	9.91	―	2.91%	31.48%	83.15%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Tokyo Sangyo Co., Ltd. Corporate Events

Tokyo Sangyo Reports Profit Growth Amid Decline in Sales

Tokyo Sangyo Co., Ltd. reported a significant decrease in net sales by 24.2% for the six months ending September 30, 2025, compared to the previous year. However, the company experienced substantial growth in profits, with operating profit increasing by 63.3% and ordinary profit by 84.0%. The profit attributable to owners of the parent surged by 122.7%, indicating improved operational efficiency. The company also announced a slight increase in dividends for the fiscal year ending March 31, 2026, reflecting confidence in its financial stability and commitment to shareholder returns.

The most recent analyst rating on (JP:8070) stock is a Buy with a Yen1047.00 price target. To see the full list of analyst forecasts on Tokyo Sangyo Co., Ltd. stock, see the JP:8070 Stock Forecast page.

Tokyo Sangyo Enhances Employee Incentives with Treasury Share Disposal

Tokyo Sangyo Co., Ltd. has announced a decision to dispose of 175,000 treasury shares to contribute to its Stock Grant ESOP Trust, aimed at boosting employee commitment and corporate value over the medium to long term. The disposal, scheduled for December 4, 2025, is expected to have minimal impact on the stock market due to the limited scale of dilution, representing only 0.61% of issued shares.

The most recent analyst rating on (JP:8070) stock is a Buy with a Yen1047.00 price target. To see the full list of analyst forecasts on Tokyo Sangyo Co., Ltd. stock, see the JP:8070 Stock Forecast page.

Tokyo Sangyo Co., Ltd. Faces Administrative Monetary Penalty

Tokyo Sangyo Co., Ltd. has been ordered by the Financial Services Agency to pay an administrative monetary penalty of 17.5 million yen due to a recommendation by the Securities and Exchange Surveillance Commission. The company has recorded this amount as non-operating expenses and is taking measures to prevent future occurrences, aiming to restore trust among its stakeholders.

The most recent analyst rating on (JP:8070) stock is a Buy with a Yen911.00 price target. To see the full list of analyst forecasts on Tokyo Sangyo Co., Ltd. stock, see the JP:8070 Stock Forecast page.