tiprankstipranks
Trending News
More News >
Toho Co., Ltd. (JP:8142)
:8142
Japanese Market

Toho Co., Ltd. (8142) AI Stock Analysis

Compare
0 Followers

Top Page

JP:8142

Toho Co., Ltd.

(8142)

Select Model
Select Model
Select Model
Neutral 69 (OpenAI - 5.2)
Rating:69Neutral
Price Target:
¥1,399.00
▼(-64.13% Downside)
Action:DowngradedDate:03/13/26
The score is driven primarily by improved and more stable financial performance (earnings recovery, better leverage, and positive free cash flow) and supported by attractive valuation (low P/E and strong dividend yield). Offsetting factors are mixed technicals, with near-term weakness versus the 20/50-day averages and largely neutral momentum indicators.
Positive Factors
Resilient foodservice distribution model
Toho’s core wholesale distribution to restaurants and foodservice operators is structurally resilient: recurring, frequency-driven orders and the need for cold-chain logistics create sticky customer relationships and steady demand, supporting predictable revenue streams over the medium term.
Multi-year earnings recovery
The shift from losses to consistent positive earnings across 2024–2026 indicates durable operational improvement. Sustained profitability and lower leverage enhance financial flexibility, reduce refinancing risk, and provide a stronger foundation for reinvestment and strategic initiatives over the next several quarters.
Consistent positive free cash flow
Repeated positive free cash flow across multiple years demonstrates the business can convert earnings into cash to fund operations, dividends, or debt reduction. This cash-generation ability supports medium-term financial resilience despite margin pressure and capital needs.
Negative Factors
Structurally thin net margins
Net margins near 1.5%–1.8% leave a very small earnings buffer against cost increases or pricing pressure. Low margins constrain the company's capacity to absorb shocks, limit internal funding for growth, and keep returns on equity modest over the medium term unless margins structurally improve.
Declining gross margins
A recent downward trend in gross margin signals weakening pricing power or rising input/logistics costs. If this trend persists, it will compress operating profit and free cash flow, forcing either cost restructuring or price increases that could hurt competitive positioning in the foodservice channel.
Cash-flow volatility and past leverage
Volatile FCF driven by working-capital swings complicates planning and can necessitate short-term financing during troughs. Combined with a history of elevated leverage and volatile ROE, intermittent cash shortfalls could reintroduce balance-sheet stress and limit strategic flexibility in adverse cycles.

Toho Co., Ltd. (8142) vs. iShares MSCI Japan ETF (EWJ)

Toho Co., Ltd. Business Overview & Revenue Model

Company DescriptionToho Co., Ltd., through its subsidiaries, engages in the food wholesale, cash and carry, and supermarket businesses primarily in Japan. It is involved in the development, procurement, and purchase of commercial food; and manufacture of coffee. The company also engages in the wholesale of commercial foods, and fruits and vegetables to the food service industry; operation of community based food supermarkets; entrustment of various office works; and provision of information systems for restaurants. In addition, it is involved in the interior design of restaurants; food related building design and maintenance; and store development, real estate brokerage, facility management, and daily/regular cleaning activities, as well as insurance agency activities. Further, the company engages in the import, manufacture, sale, and maintenance of commercial cooking equipment, coffee machines, confectionery equipment, etc., as well as quality control services. Toho Co., Ltd. was incorporated in 1929 and is headquartered in Kobe, Japan.
How the Company Makes MoneyToho makes money primarily by purchasing food and foodservice-related products from manufacturers and suppliers and reselling them to business customers (especially restaurants and other foodservice operators) at a markup, generating revenue from wholesale distribution. Earnings are driven by sales volume, product mix (e.g., ambient, chilled, and frozen items), and the company’s ability to operate an efficient distribution network (warehousing, cold-chain handling, and delivery) that supports frequent, small-lot deliveries typical of foodservice customers. Profitability is influenced by gross margin management (pricing and procurement terms), logistics and operating cost control, and customer retention/penetration in the foodservice channel. Specific details on major partnerships, contract structures, or segment-level revenue breakdowns: null.

Toho Co., Ltd. Financial Statement Overview

Summary
Financials show a multi-year recovery with consistently positive earnings in 2024–2026, improving leverage (debt-to-equity ~0.56 by 2026), and positive free cash flow across 2022–2026. Offsetting this, net margins remain structurally thin (~1.5%–1.8%) and cash flow has shown volatility tied to working-capital swings.
Income Statement
72
Positive
Profitability has materially improved versus earlier years, moving from losses in 2021 and very thin profits in 2022–2023 to consistently positive earnings in 2024–2026. Revenue is trending upward (2026 revenue up ~4.6% year over year after a flat 2025), but overall profit margins remain low for the business (TTM/annual net margin around ~1.5%–1.8% in 2024–2026). Gross margin has drifted down over the last two years (2024 to 2026), suggesting some pressure from pricing or costs even as operating performance improved.
Balance Sheet
66
Positive
Leverage has improved meaningfully: debt relative to equity has declined from elevated levels in 2021–2023 to a more moderate level by 2026 (debt-to-equity ~0.56). Equity has grown steadily from 2021 through 2026, supporting a stronger capital base. However, the company operated with high leverage as recently as 2023 and returns on equity were modest/volatile in earlier periods (negative in 2021), which still points to some historical balance-sheet risk even though the current trend is favorable.
Cash Flow
70
Positive
Cash generation is solid and generally supports reported earnings: free cash flow is positive in 2022–2026 and free cash flow as a share of net income is healthy in most recent years (roughly ~0.50–0.78 in 2024–2026). Operating cash flow rebounded strongly from 2021 and remains positive, with a sharp improvement in 2026 free cash flow versus 2025. The main weakness is volatility—2025 saw a notable free cash flow pullback versus 2024, and operating cash flow relative to net income is not consistently strong, implying working-capital swings can meaningfully affect cash results.
BreakdownTTMJan 2026Jan 2025Jan 2024Jan 2023Jan 2022
Income Statement
Total Revenue248.36B259.75B246.47B244.93B215.57B188.57B
Gross Profit48.29B47.75B47.19B48.07B41.20B35.00B
EBITDA10.18B10.80B10.11B10.61B6.60B2.61B
Net Income4.00B4.58B4.48B3.60B1.01B336.00M
Balance Sheet
Total Assets92.43B96.45B88.32B88.30B87.35B82.70B
Cash, Cash Equivalents and Short-Term Investments10.43B11.20B9.23B9.65B8.16B8.70B
Total Debt19.72B19.27B19.85B22.73B28.19B31.99B
Total Liabilities61.08B61.91B57.20B60.73B64.60B62.46B
Stockholders Equity31.24B34.43B30.73B27.20B22.41B19.92B
Cash Flow
Free Cash Flow1.63B5.33B3.24B7.29B3.00B2.53B
Operating Cash Flow3.14B7.93B6.49B9.30B4.11B3.55B
Investing Cash Flow-1.38B-500.00M-2.16B-1.25B-931.00M2.08B
Financing Cash Flow-408.00M-5.48B-4.63B-6.52B-4.48B-4.00B

Toho Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3900.00
Price Trends
50DMA
1304.71
Positive
100DMA
1236.59
Positive
200DMA
1156.86
Positive
Market Momentum
MACD
3.85
Negative
RSI
52.29
Neutral
STOCH
61.25
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8142, the sentiment is Positive. The current price of 3900 is above the 20-day moving average (MA) of 1314.90, above the 50-day MA of 1304.71, and above the 200-day MA of 1156.86, indicating a bullish trend. The MACD of 3.85 indicates Negative momentum. The RSI at 52.29 is Neutral, neither overbought nor oversold. The STOCH value of 61.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8142.

Toho Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
¥43.96B9.573.82%3.39%29.30%
69
Neutral
¥165.31B9.611.39%3.91%-0.28%
67
Neutral
¥38.69B-44.491.36%14.83%12.35%
64
Neutral
¥72.38B21.731.48%8.41%-3.65%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
62
Neutral
¥139.09B14.713.02%2.16%-24.33%
61
Neutral
¥50.10B3.770.52%20.97%-56.39%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8142
Toho Co., Ltd.
1,322.00
193.26
17.12%
JP:2268
BR 31 Ice Cream Co., Ltd.
4,010.00
87.83
2.24%
JP:2281
Prima Meat Packers,Ltd.
2,693.00
510.48
23.39%
JP:2692
Itochu-Shokuhin Co., Ltd.
13,000.00
5,329.29
69.48%
JP:3182
Oisix ra daichi, Inc.
1,330.00
10.81
0.82%
JP:8079
Shoei Foods Corporation
4,185.00
123.57
3.04%

Toho Co., Ltd. Corporate Events

Toho’s February Sales Rise 8.4% on Strong Foodservice Demand
Mar 12, 2026

Toho Co., Ltd. reported that group sales revenue in February 2026 rose 8.4% year on year, as both its Distributor Business and Cash and Carry Business exceeded the previous year’s performance. The Distributor Business benefited from steady demand in the domestic foodservice industry, supported by inbound tourism, and additional contributions from newly consolidated Sankyo Shokucho Co., Ltd., lifting segment sales to 111.5% of the prior-year level.

The Cash and Carry Business saw firm sales to small and medium-sized restaurants, but overall growth was limited to 100.7% year on year due to sluggish demand from general customers, with same-store sales also at 100.7%. In contrast, the Food Solutions Business declined to 89.5% of the previous year’s level, reflecting fewer project completions by construction-related companies, while the C&C store network expanded modestly to 96 locations after a net increase of one store, signaling continued but selective footprint growth.

The most recent analyst rating on (JP:8142) stock is a Hold with a Yen4156.00 price target. To see the full list of analyst forecasts on Toho Co., Ltd. stock, see the JP:8142 Stock Forecast page.

Toho Co. Unveils Fiscal 2026 Results and Outlook Under ‘SHIFT-UP 2027’ Plan
Mar 12, 2026

Toho Co., Ltd. has released a comprehensive outline of its financial results for the fiscal year ended January 31, 2026, together with quarterly performance details and consolidated financial statements. The company also disclosed segment-based results and cash flow data, offering stakeholders a structured view of its recent operational and financial performance.

Alongside the historical results, Toho presented its forecast for the fiscal year ending January 31, 2027, including full-year earnings projections, segment outlooks, capital expenditure and depreciation plans, and a dividend forecast. The release further situates these figures within its medium-term management plan “SHIFT-UP 2027” and ongoing sustainability initiatives, underscoring a strategic focus on long-term growth and responsible business practices in the food sector.

The most recent analyst rating on (JP:8142) stock is a Hold with a Yen4156.00 price target. To see the full list of analyst forecasts on Toho Co., Ltd. stock, see the JP:8142 Stock Forecast page.

Toho Co. Posts Earnings Growth, Boosts Dividend and Executes Stock Split
Mar 12, 2026

Toho Co., Ltd. reported consolidated net sales of ¥259.7 billion for the fiscal year ended January 31, 2026, up 5.4% year on year, with operating profit rising 4.8% to ¥7.85 billion and profit attributable to owners of the parent increasing 2.0% to ¥4.58 billion. Profitability metrics remained solid, with an operating margin of 3.0%, return on equity of 14.0%, and equity ratio of 35.7%, while total assets expanded to ¥96.5 billion and cash and cash equivalents climbed to ¥11.15 billion, underscoring a strengthened financial base.

The company raised its annual dividend for FY2026 to ¥150 per share (pre-split basis), implying a consolidated payout ratio of 35.0%, and has implemented a three-for-one stock split effective February 1, 2026, which will reduce the per-share dividend to ¥61 on a split-adjusted basis in FY2027. For the year ending January 31, 2027, Toho forecasts further growth with net sales of ¥274.0 billion and profit attributable to owners of the parent of ¥4.8 billion, signaling continued modest earnings expansion and a stable shareholder return policy despite a higher projected payout ratio.

The most recent analyst rating on (JP:8142) stock is a Hold with a Yen4156.00 price target. To see the full list of analyst forecasts on Toho Co., Ltd. stock, see the JP:8142 Stock Forecast page.

Toho’s January Sales Jump 16% as All Foodservice Segments Outperform
Feb 13, 2026

Toho Co., Ltd. reported strong monthly results for January 2026, with consolidated sales revenue reaching 116.2% of the previous year, as all business segments exceeded last year’s performance. The company’s C&C business operated 96 stores at month-end, reflecting a net increase in outlets over the past year, including the opening of the A-PRICE Piocity-Sakuragicho store on January 30.

The Distributor Business benefited from steady domestic foodservice demand supported by inbound tourism and additional contributions from newly consolidated Sankyo Shokucho, driving year-on-year growth of 120.3%. The Food Solutions Business also advanced, with revenue at 110.7% of the prior year thanks to increased project completions by construction-related companies, underscoring Toho’s post-FSM-withdrawal focus on its core wholesale and solutions operations.

The most recent analyst rating on (JP:8142) stock is a Buy with a Yen4250.00 price target. To see the full list of analyst forecasts on Toho Co., Ltd. stock, see the JP:8142 Stock Forecast page.

Toho Posts Double-Digit December Sales Growth on Strong Foodservice Demand
Jan 26, 2026

Toho Co., Ltd. reported strong group sales performance for December 2025, with consolidated sales revenue reaching 112.2% year-on-year as all segments exceeded the prior year’s results, underscoring solid demand across its core professional foodservice channels. The Distributor Business benefited from steady domestic foodservice demand supported by inbound tourism, an additional business day versus the prior year, and contribution from newly consolidated Sankyo Shokucho Co., Ltd., driving a robust 115.6% year-on-year increase. The Cash and Carry business saw steady sales to small and medium-sized restaurants but was weighed down by sluggish demand from general consumers, resulting in a marginal 100.1% year-on-year rise, or 100.3% on a same-store basis, while the Food Solutions business recorded a strong 116.6% year-on-year gain on firm sales of commercial kitchen equipment and business support systems. Store count in the C&C business remained effectively stable at 95 outlets, with one opening and one closure, as the company continues to refocus on its professional foodservice customer base following its withdrawal from the food supermarket business, a shift that enhances the clarity of its growth profile for stakeholders.

The most recent analyst rating on (JP:8142) stock is a Buy with a Yen4250.00 price target. To see the full list of analyst forecasts on Toho Co., Ltd. stock, see the JP:8142 Stock Forecast page.

Toho Sets Price and Terms for ¥5.3 Billion Secondary Share Offering
Jan 21, 2026

Toho Co., Ltd. announced the pricing details for a secondary offering of its common stock, following a resolution by its board of directors on January 13, 2026. The company set the selling price at 3,753 yen per share, corresponding to a total selling value of approximately 5.3 billion yen, with underwriters purchasing the shares at a subscription price of 3,598.2 yen per share for a total subscription amount of about 5.1 billion yen, and scheduled share delivery for January 26, 2026. This secondary offering, executed via underwriters rather than as a new issue, is expected to affect the company’s shareholder base and trading liquidity but does not directly raise new capital for Toho itself, instead facilitating the redistribution of existing shares in the market.

The most recent analyst rating on (JP:8142) stock is a Buy with a Yen4250.00 price target. To see the full list of analyst forecasts on Toho Co., Ltd. stock, see the JP:8142 Stock Forecast page.

Toho Approves Secondary Offering of 1.41 Million Shares by Major Shareholders
Jan 13, 2026

Toho Co., Ltd. has approved a secondary offering of 1,413,400 existing common shares to be sold by a group of current shareholders, including regional banks and prominent food and consumer companies such as THE NISHI-NIPPON CITY BANK, The Bank of Fukuoka, Kagome, Kewpie, The Nisshin OilliO Group, Megmilk Snow Brand, Maruha Nichiro, and others. The shares will be underwritten and purchased by securities underwriters, with the final selling price to be set between 90% and 100% of the market closing price on a pricing date scheduled between January 21 and 23, 2026, and settlement expected between January 26 and 28, 2026; as this is a secondary sale by existing shareholders rather than a new share issuance, it will not dilute Toho’s equity base but may broaden its investor base and increase share liquidity in the Prime Market.

The most recent analyst rating on (JP:8142) stock is a Buy with a Yen4250.00 price target. To see the full list of analyst forecasts on Toho Co., Ltd. stock, see the JP:8142 Stock Forecast page.

Toho Announces Three-for-One Stock Split and Tripling of Authorized Shares
Jan 13, 2026

Toho Co., Ltd. will implement a three-for-one stock split of its common shares, effective February 1, 2026, aiming to lower the minimum investment unit, improve trading liquidity, and broaden its investor base. In conjunction with the split, the company will increase its total number of authorized shares from 27,950,800 to 83,852,400 through a partial amendment to its Articles of Incorporation, a move that aligns its capital framework with the expanded share count and may provide greater flexibility for future capital policy without changing its total capital at the time of the split.

The most recent analyst rating on (JP:8142) stock is a Buy with a Yen4250.00 price target. To see the full list of analyst forecasts on Toho Co., Ltd. stock, see the JP:8142 Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Mar 13, 2026