Toyo Corp. (8151) AI Stock Analysis

• Market Cap: ¥39.86B
• Dividend Yield: 3.92%
• Average Volume (3M): 40.33K
• Price to Earnings (P/E): 32.9
• Beta (1Y): 0.57
• Revenue Growth: -7.09%
• EPS Growth: -50.75%
• Country: JP
• Employees: 650
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -5.66
• Shares Outstanding: 26,085,000
• 10 Day Avg. Volume: 53,120
• 30 Day Avg. Volume: 40,326
• PEG Ratio: -0.57
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 1.06
• P/FCF Ratio: 19.94
• 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): 120.7
• Revenue Forecast (FY): ¥38.57B

• Rating: 67 Neutral
• Price Target: ¥2,081.00 ▲(21.06% Upside)
• Action: Downgraded Date: 12/18/25
• Date: Action: Downgraded 12/18/25

Toyo Corp.'s overall stock score is driven primarily by its solid balance sheet and positive technical indicators. However, declining revenue and profitability margins, along with a high P/E ratio, present challenges. The strong dividend yield provides some offsetting value for income-focused investors.

Positive Factors

Balance Sheet Strength

Toyo's very low financial leverage (D/E ~0.096) and strong equity backing provide durable flexibility to fund working capital for global trading, withstand commodity or trade shocks, and pursue supplier/customer agreements without overreliance on costly external debt, supporting long-term resilience.

High Gross Margin

A gross margin near 43% reflects structural product and pricing strength in specialty chemicals and related materials. High gross margins create a persistent buffer to absorb input cost swings, sustain SG&A, and fund selective reinvestment, bolstering durable profitability even if volumes soften.

Diversified Trading Model & Networks

Toyo's diversified trading footprint across chemicals, electronics, industrial materials and logistics and its strategic supplier relationships underpin multiple revenue channels and reliable supply access. This breadth reduces single-market dependency and supports stable customer relationships and cross-selling over time.

Negative Factors

Declining Revenue

Persistent revenue declines (recent metrics show negative growth) indicate loss of sales momentum in core trading operations. Sustained top-line contraction erodes operating leverage, limits the company's ability to invest in growth or expand margins, and makes long-term earnings recovery more difficult without strategic changes.

Weakened Cash Generation

Material deterioration in operating and free cash flow reduces internal funding for inventories, capex and distributions. Over time this can force higher reliance on external financing, constrain investment in supply-chain or product initiatives, and limit the firm's ability to respond to market shifts.

Margin Compression

Falling net and operating margins signal pressure on profitability beyond gross margins, reducing retained earnings and return on equity (ROE ~4.23%). Sustained margin compression weakens the company's capacity to fund growth, maintain dividends, or reinvest in higher-value activities absent efficiency or mix improvements.

Toyo Corp. Business Overview & Revenue Model

Company Description

Toyo Corp. (8151) is a prominent trading company based in Japan, specializing in the import and export of a diverse range of products across various sectors including chemicals, electronics, and industrial materials. The company operates as a key player in facilitating global trade, leveraging its extensive network and partnerships to provide quality products and services to its clients. Toyo Corp. is particularly known for its focus on the chemical sector, offering specialty chemicals and raw materials to manufacturers, as well as engaging in logistics and supply chain management services.

How the Company Makes Money

Toyo Corp. generates revenue primarily through its trading activities, where it buys and sells products in bulk to various industries. The company's core revenue streams include the sale of specialty chemicals, industrial materials, and electronic components. Additionally, Toyo Corp. earns income from providing logistical support and supply chain management services, enhancing its value proposition to clients. Strategic partnerships with manufacturers and suppliers enable the company to secure competitive pricing and access to a wide array of products, which further contributes to its earnings. The company's ability to adapt to market demands and maintain strong relationships with customers and suppliers is crucial in sustaining its revenue model.

Toyo Corp. Financial Statement Overview

Summary

Toyo Corp. shows a mixed financial performance. The balance sheet is strong with low leverage, but the income statement reflects declining revenue and profitability margins. Cash flow generation has weakened, posing challenges for future investments and growth.

Income Statement

Toyo Corp. has shown a decline in revenue growth with a negative growth rate of -2.6% in the latest year, indicating challenges in maintaining sales momentum. The gross profit margin remains strong at approximately 43%, but the net profit margin has decreased to 3.65%, reflecting reduced profitability. EBIT and EBITDA margins have also declined, suggesting pressure on operational efficiency.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.096, indicating prudent financial leverage. Return on equity is moderate at 4.23%, showing reasonable returns for shareholders. The equity ratio is strong, highlighting a stable capital structure with significant equity backing.

Cash Flow

Operating cash flow has decreased significantly, impacting the cash flow to net income ratios. Free cash flow has also declined, with a negative growth rate, indicating challenges in generating cash from operations. The operating cash flow to net income ratio is healthy, but the free cash flow to net income ratio has weakened.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	32.56B	35.04B	28.17B	26.49B	23.51B
Gross Profit	14.01B	15.18B	11.54B	11.56B	10.32B
EBITDA	3.15B	4.48B	3.12B	3.77B	3.54B
Net Income	1.20B	2.52B	1.53B	1.92B	1.73B
Balance Sheet
Total Assets	39.94B	39.13B	39.95B	41.59B	38.88B
Cash, Cash Equivalents and Short-Term Investments	5.74B	5.03B	4.03B	6.22B	14.18B
Total Debt	2.70B	2.00B	0.00	0.00	0.00
Total Liabilities	11.82B	11.01B	11.64B	12.19B	9.14B
Stockholders Equity	28.12B	28.08B	28.31B	29.40B	29.74B
Cash Flow
Free Cash Flow	1.72B	2.13B	-1.98B	-5.82B	5.46B
Operating Cash Flow	2.20B	4.11B	-105.39M	1.83B	6.05B
Investing Cash Flow	-770.20M	-2.89B	1.81B	-1.74B	-5.33B
Financing Cash Flow	-972.42M	-736.17M	-2.86B	-1.49B	-2.15B

Toyo Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1719.00
• 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:8151, the sentiment is Positive. The current price of 1719 is below the 20-day moving average (MA) of 1857.00, below the 50-day MA of 1807.26, and above the 200-day MA of 1610.38, indicating a bullish trend. The MACD of 17.31 indicates Positive momentum. The RSI at 56.53 is Neutral, neither overbought nor oversold. The STOCH value of 40.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8151.

Toyo Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5344	81 Outperform	¥733.48B	41.66	14.38%	0.23%	2.66%	7.90%
6770	78 Outperform	¥461.74B	9.24	11.96%	3.04%	2.70%	―
6806	78 Outperform	¥736.31B	24.91	8.09%	2.85%	11.18%	-0.75%
6981	74 Outperform	¥7.46T	39.28	8.95%	1.88%	2.88%	28.76%
8151	67 Neutral	¥39.86B	32.95	4.29%	3.92%	-7.09%	-50.75%
6787	67 Neutral	¥557.09B	32.41	―	0.76%	15.02%	46.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%