Totenko Co., Ltd. (8181) AI Stock Analysis

• Market Cap: ¥2.89B
• Dividend Yield: 1.33%
• Average Volume (3M): 2.08K
• Price to Earnings (P/E): 6.8
• Beta (1Y): 0.45
• Revenue Growth: 5.03%
• EPS Growth: 129.14%
• Country: JP
• Employees: 314
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 58.56
• Shares Outstanding: 2,572,871
• 10 Day Avg. Volume: 1,850
• 30 Day Avg. Volume: 2,083
• PEG Ratio: -0.01
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 0.48
• P/FCF Ratio: 3.56
• 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: 75 Outperform
• Price Target: ¥1,279.00 ▲(13.29% Upside)

Totenko Co., Ltd. demonstrates strong financial performance with significant revenue growth and profitability, supported by robust cash flow generation. The stock's technical indicators show a positive trend, and its valuation metrics suggest it is undervalued. These factors contribute to a favorable overall stock score.

Positive Factors

Revenue Growth

Totenko's consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Cash Generation

Strong cash generation provides Totenko with the flexibility to invest in growth opportunities and manage debt, ensuring financial stability.

Balance Sheet Health

A strong equity base enhances Totenko's financial resilience, allowing it to weather economic fluctuations and invest in strategic initiatives.

Negative Factors

Leverage Concerns

While leverage is reasonable, maintaining this level is crucial to avoid financial strain, especially if revenue growth slows or costs rise.

Profitability Risks

Recent profitability is a positive sign, but sustaining this trend is critical to ensure long-term financial health and investor confidence.

Operational Efficiency

While margins have improved, ongoing efficiency improvements are needed to maintain competitive advantage and support profitability.

Totenko Co., Ltd. Business Overview & Revenue Model

Company Description

Totenko Co., Ltd. operates restaurants and banquet halls in Japan. The company offers food and drinks for weddings and other events, as well as for season banquets. It operates 16 stores. The company was formerly known as Ueno Kanko Onsen Co., Ltd. and changed its name to Totenko Co., Ltd. in May 1961. Totenko Co., Ltd. was founded in 1958 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Totenko Co., Ltd. generates revenue primarily through the sale of its electronic components and systems to manufacturers in various sectors. The company has established key revenue streams through direct sales of its products, long-term contracts with major clients, and partnerships with technology firms for joint development projects. Additionally, Totenko benefits from a growing demand for advanced electronic components in emerging technologies such as IoT and AI, which further contributes to its earnings. The company's focus on research and development ensures a steady introduction of new products, keeping it competitive in the market and allowing for higher profit margins.

Totenko Co., Ltd. Financial Statement Overview

Summary

Totenko Co., Ltd. has shown a commendable turnaround in its financial performance with solid revenue growth, improved margins, a stable balance sheet, and robust cash flow generation. The transition to profitability and effective management strategies are notable, though sustaining this performance amidst industry challenges remains crucial.

Income Statement

Totenko Co., Ltd. has demonstrated a strong recovery in its financial performance. The company reported a significant revenue growth rate of 0.67% in 2025 compared to 2024, recovering from prior years of declining revenue. Gross profit margin improved as well, reaching 55.38% in 2025. The net profit margin also turned positive at 9.13%, indicating profitability after multiple years of losses. The EBIT and EBITDA margins improved to 10.40% and 15.86%, respectively, showing effective cost management and operational efficiency.

Balance Sheet

The balance sheet displays moderate strength with a debt-to-equity ratio of 0.45 in 2025, indicating a reasonable level of leverage. Return on equity (ROE) improved to 6.43%, reflecting better utilization of shareholder funds compared to previous losses. The equity ratio stands at 61.38%, signifying a strong equity position relative to total assets, which supports financial stability. Despite improvements, potential risks include the company's ability to maintain this performance trend.

Cash Flow

Cash flow metrics reflect strong cash generation capabilities. Operating cash flow to net income ratio improved, indicating efficient conversion of profits into cash. The free cash flow growth rate was robust at 28.88%, driven by improved operational performance and disciplined capital expenditure. The free cash flow to net income ratio suggests strong cash generation relative to reported profits, providing a solid base for future investments or debt reduction.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.51B	4.71B	4.68B	3.70B	2.00B	1.61B
Gross Profit	2.63B	2.61B	2.61B	1.93B	919.99M	570.97M
EBITDA	-260.78M	746.76M	111.02M	-507.46M	-592.50M	-1.66B
Net Income	-515.04M	430.07M	-134.75M	-828.40M	-946.93M	-1.94B
Balance Sheet
Total Assets	10.49B	10.90B	10.51B	10.76B	11.22B	12.18B
Cash, Cash Equivalents and Short-Term Investments	1.02B	1.66B	1.22B	727.28M	549.52M	609.23M
Total Debt	3.22B	3.02B	3.19B	3.24B	2.72B	2.54B
Total Liabilities	4.44B	4.21B	4.31B	4.44B	4.09B	4.11B
Stockholders Equity	6.04B	6.69B	6.21B	6.32B	7.12B	8.07B
Cash Flow
Free Cash Flow	499.58M	633.90M	491.61M	-253.50M	-501.41M	-1.42B
Operating Cash Flow	499.58M	726.77M	522.76M	-252.47M	-497.44M	-1.33B
Investing Cash Flow	0.00	-111.66M	18.60M	-87.35M	260.23M	-178.78M
Financing Cash Flow	0.00	-177.53M	-47.28M	517.58M	177.50M	1.48B

Totenko Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1129.00
• 50DMA: Negative
• 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:8181, the sentiment is Neutral. The current price of 1129 is below the 20-day moving average (MA) of 1131.40, below the 50-day MA of 1145.46, and above the 200-day MA of 966.01, indicating a neutral trend. The MACD of -1.31 indicates Positive momentum. The RSI at 47.73 is Neutral, neither overbought nor oversold. The STOCH value of 54.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8181.

Totenko Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3223	75 Outperform	¥1.65B	12.63	―	―	-0.53%	-17.97%
8181	75 Outperform	¥2.89B	6.84	―	1.33%	5.03%	129.14%
2789	70 Neutral	¥2.93B	8.78	―	1.02%	5.70%	-12.36%
3077	67 Neutral	¥2.99B	8.76	―	―	6.16%	86.76%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3358	57 Neutral	¥3.08B	155.92	―	―	3.85%	-59.79%
2762	46 Neutral	¥4.10B	-3.97	―	―	3.26%	4.62%