Toho Holdings Co., Ltd. (8129) AI Stock Analysis

• Market Cap: ¥305.32B
• Dividend Yield: 1.81%
• Average Volume (3M): 153.50K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.39
• Revenue Growth: 2.31%
• EPS Growth: 19.86%
• Country: JP
• Employees: 7,572
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 45.51
• Shares Outstanding: 73,025,940
• 10 Day Avg. Volume: 107,250
• 30 Day Avg. Volume: 153,503
• PEG Ratio: -6.56
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 0.19
• P/FCF Ratio: -9.20
• 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: ¥5,800.00
• Price Target Upside: 13.77% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 261.05
• Revenue Forecast (FY): ¥1.56T

• Rating: 60 Neutral
• Price Target: ¥5,269.00 ▲(3.35% Upside)

Toho Holdings' overall stock score is primarily impacted by its solid financial performance, despite concerns over cash flow. Technical analysis indicates bearish momentum, which weighs down the score. Valuation metrics are reasonable but do not suggest significant upside potential.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial flexibility and reduces risk, supporting sustainable growth.

Net Profit Margin Improvement

Improved net profit margins reflect efficient cost management and pricing strategies, contributing to long-term profitability.

Negative Factors

Negative Operating Cash Flow

Negative operating cash flow can strain liquidity and limit investment capacity, posing challenges for future growth.

Decline in Free Cash Flow

A decline in free cash flow may hinder the company's ability to fund operations and growth initiatives, impacting long-term prospects.

EBITDA Margin Decline

A declining EBITDA margin suggests rising costs or pricing pressures, which could erode profitability over time.

Toho Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Toho Holdings Co., Ltd. (8129) is a prominent Japanese company engaged primarily in the pharmaceutical and healthcare sectors. The company operates through various segments, including the distribution of pharmaceuticals, medical equipment, and health-related products. Toho Holdings is known for its expertise in providing comprehensive solutions for healthcare providers and institutions, ensuring a reliable supply of essential medicines and medical supplies. Additionally, the company invests in research and development to enhance its product offerings and maintain competitive edge in the market.

How the Company Makes Money

Toho Holdings generates revenue primarily through the distribution of pharmaceuticals and medical supplies to hospitals, clinics, and retail pharmacies. Its revenue model is built on a combination of wholesale distribution, direct sales, and partnerships with pharmaceutical manufacturers. Key revenue streams include the sale of prescription medications, over-the-counter drugs, and medical devices. The company may also earn income through value-added services such as logistics and supply chain management for healthcare providers. Strategic partnerships with major pharmaceutical companies enhance its product portfolio and market reach, contributing significantly to its earnings.

Toho Holdings Co., Ltd. Financial Statement Overview

Summary

Toho Holdings shows solid financial health with consistent revenue growth and a strong balance sheet. However, cash flow performance is concerning, with negative operating cash flow in 2025, which could impact future growth.

Income Statement

Toho Holdings demonstrated steady revenue growth over the past few years, with a notable increase of 3% from 2024 to 2025. Gross profit margin remained stable despite a slight decrease in gross profit. Net profit margin improved, reaching 13.1% in 2025. However, EBITDA margin showed a decline, indicating potential cost management issues.

Balance Sheet

The company's balance sheet is robust, with a debt-to-equity ratio that improved to 0.08 in 2025, indicating low leverage. The equity ratio remained healthy at 35.5%, showing strong equity financing. Return on equity improved to 7.7%, reflecting efficient use of equity capital.

Cash Flow

The cash flow analysis reveals some concerns, with operating cash flow turning negative in 2025. Free cash flow also declined significantly, showing a worrying trend in cash generation. However, the company has managed capital expenditures efficiently, which may support future cash flow improvements.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.52T	1.52T	1.48T	1.39T	1.27T	1.21T
Gross Profit	121.18B	121.65B	119.15B	110.81B	108.69B	99.37B
EBITDA	36.14B	34.19B	37.44B	26.91B	27.14B	17.15B
Net Income	21.39B	19.84B	20.66B	13.63B	13.38B	4.99B
Balance Sheet
Total Assets	741.92B	722.80B	773.43B	715.29B	702.38B	683.18B
Cash, Cash Equivalents and Short-Term Investments	99.87B	86.53B	132.97B	86.20B	94.26B	93.09B
Total Debt	19.01B	21.26B	30.24B	37.89B	40.74B	43.90B
Total Liabilities	486.21B	465.90B	523.99B	472.37B	461.10B	445.78B
Stockholders Equity	255.58B	256.78B	249.33B	242.82B	241.08B	237.40B
Cash Flow
Free Cash Flow	0.00	-30.73B	56.15B	-2.53B	12.14B	3.04B
Operating Cash Flow	0.00	-26.68B	59.93B	-9.00M	16.34B	8.77B
Investing Cash Flow	0.00	-4.18B	9.09B	4.32B	-11.03B	680.00M
Financing Cash Flow	0.00	-20.36B	-22.20B	-13.06B	-4.47B	-680.00M

Toho Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5098.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8129, the sentiment is Negative. The current price of 5098 is above the 20-day moving average (MA) of 4676.10, above the 50-day MA of 4797.90, and above the 200-day MA of 4828.96, indicating a bearish trend. The MACD of -26.38 indicates Negative momentum. The RSI at 44.78 is Neutral, neither overbought nor oversold. The STOCH value of 15.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8129.

Toho Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4553	81 Outperform	¥181.36B	8.79	11.81%	2.14%	9.32%	30.85%
4569	69 Neutral	¥80.70B	9.44	―	3.36%	11.65%	93.46%
4551	65 Neutral	―	―	―	―	10.91%	2.93%
4887	63 Neutral	¥232.76B	-236.10	―	2.28%	12.78%	-105.43%
8129	60 Neutral	¥305.32B	14.31	―	1.81%	2.31%	19.86%
4538	60 Neutral	¥20.68B	-5.00	―	3.71%	7.50%	-281.41%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Toho Holdings Co., Ltd. Corporate Events

Toho Holdings Adjusts Convertible Bond Conversion Price

Toho Holdings Co., Ltd. announced an adjustment to the conversion price of its Zero Coupon Convertible Bonds due 2028, reducing it from ¥2,767.1 to ¥2,760.1. This adjustment follows the approval of an interim dividend of 45 yen per share by the Board of Directors, reflecting the company’s adherence to the terms and conditions of the bonds, potentially impacting investor returns and market positioning.

Toho Holdings Reports Increased Profit and Dividend Forecast

Toho Holdings Co., Ltd. reported its consolidated financial results for the six months ending September 30, 2025, showing a modest increase in net sales by 1.7% compared to the previous year. Despite a slight decline in operating and ordinary profits, the company saw a significant 16% increase in profit attributable to owners of the parent, indicating improved profitability. The company also announced an increase in its annual dividend forecast, reflecting confidence in its financial stability and commitment to returning value to shareholders.

Toho Holdings Reports Q2 Financial Results with Increased Profitability

Toho Holdings Co., Ltd. reported a slight increase in net sales by 1.7% for the second quarter of fiscal year 2025, reaching 767,899 million yen. Despite a decrease in operating and ordinary profit, the company saw a significant rise in profit attributable to owners of the parent by 16.0%, indicating improved profitability. The company’s financial position remains stable with a slight increase in total assets and net assets, maintaining a capital adequacy ratio of over 35%.

TOHO HOLDINGS Announces Progress in Share Buyback Program

TOHO HOLDINGS CO., LTD. announced the status of its share buyback program, acquiring 508,000 common shares at a cost of ¥2,642,607,090 between October 1 and October 31, 2025. This buyback is part of a broader resolution to acquire up to 3,000,000 shares, aiming to enhance shareholder value and optimize capital structure.

Toho Holdings Implements Policy Against Large-Scale Share Acquisitions

Toho Holdings Co., Ltd. has introduced a policy to counter large-scale share purchases following a significant acquisition of its shares by 3D Investment Partners Pte. Ltd. This move aims to protect the company’s management from external influence and ensure decisions align with the company’s strategic goals. The company has been actively engaging with 3D and other stakeholders to address concerns and enhance governance, reflecting its commitment to maintaining control over its strategic direction.

Toho Holdings Strengthens Governance with New Action Policies

Toho Holdings Co., Ltd. has received the final report from its Governance Enhancement Special Committee, which was established to strengthen the company’s governance systems. The report includes 12 recommendations aimed at improving decision-making processes, risk management, and the effectiveness of the Board of Directors. The company has formulated specific action policies to implement these recommendations, emphasizing the importance of a majority of outside directors and continuous review of governance practices to enhance oversight and operational effectiveness.

TOHO HOLDINGS Announces Progress in Share Buyback Program

TOHO HOLDINGS CO., LTD. announced the status of its share buyback program, acquiring 215,300 common shares at a cost of ¥1,201,076,293 between September 1 and September 30, 2025. This is part of a larger initiative authorized by the Board of Directors to repurchase up to 3,000,000 shares, aiming to enhance shareholder value and optimize capital structure.