Tosho Co., Ltd. (8920) AI Stock Analysis

• Market Cap: ¥36.47B
• Dividend Yield: 0.93%
• Average Volume (3M): 75.37K
• Price to Earnings (P/E): 21.5
• Beta (1Y): 0.88
• Revenue Growth: 10.22%
• EPS Growth: N/A
• Country: JP
• Employees: 368
• Sector: Industrials
• Sector Strength: 72
• Industry: Leisure
• EPS (TTM): 27.29
• Shares Outstanding: 38,315,000
• 10 Day Avg. Volume: 72,580
• 30 Day Avg. Volume: 75,366
• PEG Ratio: -0.12
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.65
• 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): 74.76
• Revenue Forecast (FY): ¥27.79B

• Rating: 72 Outperform
• Price Target: ¥1,057.00 ▲(33.80% Upside)
• Action: Upgraded Date: 10/23/25
• Date: Action: Upgraded 10/23/25

Tosho Co., Ltd. receives a score of 72, driven primarily by its strong technical analysis indicators and moderate financial performance. The stock shows positive momentum with prices above key moving averages, supported by a stable financial structure and improving profitability. However, concerns about debt levels and challenges in sustaining free cash flow growth slightly temper the overall score. The valuation is fair, with a reasonable P/E ratio and modest dividend yield.

Positive Factors

Improving Profitability

Tosho's shift from loss to positive net margin and mid-teens revenue growth reflects a structural recovery in profitability. Sustained margin recovery indicates improved pricing, cost control or portfolio mix that can support reinvestment, debt servicing and longer-term earnings stability.

Strong Cash Generation

High operating cash conversion versus reported earnings shows durable cash-generating operations, enabling internal funding of capex, working capital and debt payments. Robust cash generation provides a buffer in cyclical leisure demand and supports longer-term strategic flexibility.

Balanced Capital Structure

A moderate D/E and roughly 50% equity ratio indicate conservative leverage that preserves financial flexibility. The ROE improvement signals more effective capital use; together these factors support sustainable investment capacity and lower refinancing risk over the medium term.

Negative Factors

Weak Free Cash Flow Growth

Declining free cash flow growth despite strong operating cash conversion suggests increased capex, higher working capital needs or one-off outflows. Persistent FCF contraction would limit reinvestment, deleverage or shareholder returns and weaken resilience to industry downturns.

Material Debt Exposure

While leverage is moderate, the presence of significant debt raises interest and covenant risk in a cyclical leisure sector. Revenue volatility could quickly pressure coverage metrics, constraining capital allocation and increasing financing costs if macro rates or operating stress rise.

Margin Improvement Needed

Mid-teens operating margins indicate limited operating leverage and potential cost or mix constraints. To sustain higher returns and fund growth internally, Tosho must improve operational efficiency or pricing power; otherwise margins could limit long-term ROE and cash build-up.

Tosho Co., Ltd. Business Overview & Revenue Model

Company Description

Tosho Co., Ltd. engages in sports club, hotel, and real estate businesses in Japan. The company was founded in 1979 and is headquartered in Anjo, Japan.

How the Company Makes Money

Tosho Co., Ltd. generates revenue through multiple streams, primarily from rental income derived from its extensive portfolio of managed properties. The company earns money by leasing residential and commercial spaces, collecting monthly rents from tenants. Additionally, Tosho engages in property development, where it invests in new real estate projects that can be sold or leased upon completion, further enhancing its income potential. The company may also derive revenue from property management services, providing operational support to property owners. Significant partnerships with local governments and other real estate firms can enhance its market reach and project opportunities, contributing positively to its earnings.

Tosho Co., Ltd. Financial Statement Overview

Summary

Tosho Co., Ltd. demonstrates a moderate financial position with signs of recovery and growth. The company has experienced robust revenue growth and improved profitability metrics, which have positively impacted the income statement. The balance sheet reflects a stable financial structure, although debt levels remain a concern. Cash flow generation is strong, contributing to operational stability, but sustaining free cash flow growth remains a challenge.

Income Statement

Tosho Co., Ltd. has shown a mixed performance in its income statement. The gross profit margin for 2025 was 21.83%, indicating decent profitability. The net profit margin improved significantly from -7.21% in 2024 to 3.45% in 2025, showing a recovery from previous losses. Revenue growth rate from 2024 to 2025 was 15.18%, which is a positive trend. However, EBIT margin at 16.52% and EBITDA margin at 19.15% suggest room for improvement in operational efficiency.

Balance Sheet

The balance sheet of Tosho Co., Ltd. is relatively strong. The debt-to-equity ratio for 2025 was 0.59, indicating a balanced approach to leveraging. Return on equity (ROE) improved to 3.39% in 2025, up from -6.34% in 2024, reflecting better profitability. The equity ratio was 50.23%, showing a solid capital structure with a good proportion of equity financing. However, there is still a significant amount of debt, which poses a risk if not managed properly.

Cash Flow

Cash flow analysis for Tosho Co., Ltd. shows strong operations with an operating cash flow to net income ratio of 12.56 in 2025, indicating efficient cash generation relative to profits. The free cash flow to net income ratio was 5.27, highlighting good free cash flow relative to net income. However, free cash flow growth from 2024 to 2025 was negative at -11.85%, suggesting challenges in maintaining free cash flow levels.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	36.72B	35.62B	30.93B	22.51B	27.32B	17.63B
Gross Profit	8.65B	7.77B	5.78B	4.77B	6.25B	2.88B
EBITDA	8.24B	6.82B	4.30B	5.78B	7.19B	3.08B
Net Income	1.74B	1.23B	-2.23B	857.70M	2.42B	217.82M
Balance Sheet
Total Assets	71.82B	72.18B	74.22B	83.29B	77.98B	77.10B
Cash, Cash Equivalents and Short-Term Investments	21.54B	21.21B	16.58B	16.98B	26.87B	21.90B
Total Debt	20.87B	21.36B	25.37B	33.22B	28.05B	33.20B
Total Liabilities	28.75B	29.91B	33.90B	41.61B	37.78B	39.65B
Stockholders Equity	36.84B	36.24B	35.18B	37.55B	36.91B	34.62B
Cash Flow
Free Cash Flow	0.00	6.47B	7.34B	-14.25B	11.38B	-5.33B
Operating Cash Flow	0.00	15.43B	10.90B	-12.45B	13.16B	-1.45B
Investing Cash Flow	0.00	-6.72B	-3.38B	-2.54B	-2.64B	-3.93B
Financing Cash Flow	0.00	-4.27B	-7.93B	4.91B	-5.01B	4.91B

Tosho Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 790.00
• 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:8920, the sentiment is Positive. The current price of 790 is below the 20-day moving average (MA) of 916.80, below the 50-day MA of 829.22, and above the 200-day MA of 734.12, indicating a bullish trend. The MACD of 35.87 indicates Positive momentum. The RSI at 68.27 is Neutral, neither overbought nor oversold. The STOCH value of 34.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8920.

Tosho Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7085	76 Outperform	¥75.30B	17.55	―	2.22%	5.92%	20.63%
7092	74 Outperform	¥43.19B	17.21	―	1.95%	16.36%	38.48%
8920	72 Outperform	¥36.47B	21.54	―	0.93%	10.22%	―
7952	64 Neutral	¥25.56B	24.81	―	3.56%	-5.25%	-4.95%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2340	62 Neutral	¥15.51B	22.11	―	―	14.37%	-44.67%
4801	61 Neutral	¥27.64B	24.31	―	1.85%	4.17%	-20.08%