TORQ, Inc. (8077) AI Stock Analysis

• Market Cap: ¥6.36B
• Dividend Yield: 2.4%
• Average Volume (3M): 27.08K
• Price to Earnings (P/E): 6.1
• Beta (1Y): 0.45
• Revenue Growth: 3.90%
• EPS Growth: 36.95%
• Country: JP
• Employees: 223
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 9.41
• Shares Outstanding: 28,007,448
• 10 Day Avg. Volume: 19,660
• 30 Day Avg. Volume: 27,080
• PEG Ratio: 0.84
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.24
• P/FCF Ratio: -78.23
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥283.00 ▲(12.30% Upside)

The overall stock score is primarily driven by a solid valuation, with a low P/E ratio and attractive dividend yield. Financial performance is stable, but high debt levels and cash flow challenges need addressing. Technical analysis indicates a lack of strong momentum, contributing to a moderate overall score.

TORQ, Inc. Business Overview & Revenue Model

Company Description

TORQ, Inc. (8077) is a technology-driven company specializing in innovative solutions for the automotive and transportation sectors. The company focuses on developing advanced torque management systems and automation technologies that enhance vehicle performance, safety, and efficiency. With a commitment to sustainability, TORQ, Inc. also offers products that support the transition to electric and hybrid vehicles, positioning itself as a key player in the evolving automotive landscape.

How the Company Makes Money

TORQ, Inc. generates revenue primarily through the sale of its specialized torque management systems and related automotive technologies. The company has established key partnerships with major automotive manufacturers, allowing it to integrate its products into their vehicle designs. Additionally, TORQ, Inc. offers consulting services and technical support, which contribute to its revenue streams. The growing demand for electric and hybrid vehicle technologies further enhances its earnings potential, as the company develops tailored solutions for this market segment.

TORQ, Inc. Financial Statement Overview

Summary

TORQ, Inc. demonstrates strong revenue growth and stable profitability, with room for operational improvements. The balance sheet is solid but carries high debt levels, which could pose risks. Cash flow challenges, particularly in generating positive free cash flow, need attention to ensure long-term financial health.

Income Statement

TORQ, Inc. has shown consistent revenue growth over the years, with a revenue growth rate of 3.0% from 2023 to 2024. The gross profit margin is stable at approximately 22.6% for 2024, indicating efficient cost management. The net profit margin improved slightly to 4.0% in 2024, reflecting better profitability. However, the EBIT margin remains relatively low at 4.0%, suggesting room for operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio is 1.00, indicating a balanced approach to leveraging. The return on equity (ROE) is 6.8%, which is moderate and shows potential for improvement. The equity ratio is 39.4%, reflecting a solid equity base. Overall, the balance sheet is stable, but high debt levels could pose a risk if not managed carefully.

Cash Flow

TORQ, Inc. experienced a significant decline in operating cash flow, turning negative in 2024. The free cash flow also decreased, indicating challenges in cash generation. The free cash flow to net income ratio is negative, highlighting issues in converting profits into cash. These factors suggest potential liquidity concerns that need to be addressed.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.99B	22.41B	21.76B	20.48B	19.25B	18.95B
Gross Profit	5.06B	5.07B	4.91B	4.57B	4.02B	3.93B
EBITDA	1.25B	1.87B	1.84B	1.18B	582.16M	117.99M
Net Income	970.05M	895.48M	845.38M	532.24M	258.95M	-132.25M
Balance Sheet
Total Assets	33.37B	33.68B	32.69B	31.12B	28.44B	24.30B
Cash, Cash Equivalents and Short-Term Investments	3.05B	2.77B	3.24B	1.78B	2.37B	1.96B
Total Debt	13.00B	13.28B	13.27B	13.76B	11.55B	8.20B
Total Liabilities	19.89B	20.41B	20.35B	20.08B	17.82B	13.69B
Stockholders Equity	13.48B	13.27B	12.34B	11.04B	10.62B	10.61B
Cash Flow
Free Cash Flow	0.00	-67.78M	1.77B	-2.03B	-2.65B	-491.25M
Operating Cash Flow	0.00	-20.03M	1.87B	-869.95M	-28.65M	601.37M
Investing Cash Flow	0.00	78.05M	-61.15M	-1.70B	-3.17B	-1.12B
Financing Cash Flow	0.00	-508.98M	-634.42M	2.06B	3.20B	221.11M

TORQ, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 252.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8077, the sentiment is Negative. The current price of 252 is below the 20-day moving average (MA) of 256.44, below the 50-day MA of 260.49, and above the 200-day MA of 245.71, indicating a neutral trend. The MACD of -2.00 indicates Positive momentum. The RSI at 41.36 is Neutral, neither overbought nor oversold. The STOCH value of 6.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8077.

TORQ, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7417	77 Outperform	¥17.31B	8.16	―	4.07%	-1.64%	6.18%
8147	74 Outperform	¥6.18B	12.05	―	1.84%	5.28%	-13.61%
9986	69 Neutral	¥14.03B	19.51	―	4.05%	-7.01%	-30.15%
8077	68 Neutral	¥6.36B	6.12	―	2.40%	3.90%	36.95%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
8089	63 Neutral	¥20.98B	6.60	―	3.89%	10.01%	47.35%
7624	59 Neutral	¥7.61B	20.03	―	2.88%	1.08%	82.69%

TORQ, Inc. Corporate Events

TORQ, Inc. Reports Increased Sales and Profits for Nine Months Ending July 2025

TORQ, Inc. reported its consolidated financial results for the nine months ended July 31, 2025, showing a year-on-year increase in net sales by 3.5% to ¥17,169 million and a significant rise in operating profit by 33.5% to ¥872 million. The company’s equity-to-asset ratio improved slightly to 40.4%, indicating a stable financial position. Despite a decrease in comprehensive income, the company maintained its dividend forecast, reflecting confidence in its fiscal stability.

The most recent analyst rating on (JP:8077) stock is a Buy with a Yen285.00 price target. To see the full list of analyst forecasts on TORQ, Inc. stock, see the JP:8077 Stock Forecast page.