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

• Market Cap: ¥33.48B
• Dividend Yield: 0.93%
• Average Volume (3M): 75.37K
• Price to Earnings (P/E): 7.1
• Beta (1Y): 0.90
• 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: ¥1,011.00 ▲(27.97% 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

Operating cash generation

High operating cash flow relative to reported net income indicates durable cash conversion and underlying business cash resilience. This strengthens the company's ability to fund operations, service obligations, and reinvest without relying heavily on external financing over the next several quarters.

Solid capital structure

A balanced leverage profile and ~50% equity ratio provide financial flexibility and lower insolvency risk during downturns. The shift to positive ROE signals improving return on invested capital, enabling more strategic choices for capital allocation and gradual deleveraging over the medium term.

Profitability recovery and revenue growth

Transition from loss to positive net margins and mid-teens revenue growth reflects structural improvements in pricing, cost control or demand. Sustained margin recovery supports internal funding for growth initiatives and reduces reliance on external capital over the coming quarters.

Negative Factors

Declining free cash flow growth

A drop in free cash flow growth despite strong operating cash conversion signals potential timing or structural pressures on discretionary cash (capex, working capital or one-offs). If persistent, this constrains reinvestment, dividends and debt reduction options over multiple quarters.

Outstanding debt levels remain a concern

Even with moderate leverage metrics, explicit concern about remaining debt implies interest and principal servicing risk if revenue or cash flow weakens. Ongoing debt servicing can limit strategic flexibility and increase sensitivity to slower demand or rising rates over the medium term.

Revenue volatility

A large negative revenue growth datapoint indicates volatile top-line performance across reporting periods. Such variability undermines predictability for margins, cash flows and planning, making sustained improvement and capital allocation decisions more uncertain over the next several quarters.

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.

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	5.75B	4.74B	6.21B	2.84B
EBITDA	9.24B	8.43B	7.01B	5.93B	7.01B	3.54B
Net Income	1.74B	1.23B	-2.23B	857.70M	2.42B	217.82M
Balance Sheet
Total Assets	71.82B	72.78B	74.84B	84.05B	78.71B	77.92B
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	30.51B	34.52B	42.38B	38.51B	40.47B
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	-2.44B	-3.93B
Financing Cash Flow	0.00	-4.27B	-7.93B	4.91B	-5.21B	4.91B

Tosho Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• 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 Neutral. The current price of 790 is below the 20-day moving average (MA) of 906.35, below the 50-day MA of 863.62, and above the 200-day MA of 755.25, indicating a neutral trend. The MACD of 0.46 indicates Positive momentum. The RSI at 46.32 is Neutral, neither overbought nor oversold. The STOCH value of 51.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8920.

Tosho Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8920	72 Outperform	¥33.48B	7.15	―	0.93%	10.22%	―
4680	67 Neutral	¥247.55B	29.55	―	1.51%	11.92%	33.70%
6238	64 Neutral	¥33.74B	9.47	―	3.63%	2.20%	2.39%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9166	53 Neutral	¥113.40B	32.53	―	―	62.69%	-37.72%
4343	52 Neutral	¥47.52B	49.41	―	―	6.00%	-184.09%
6425	42 Neutral	¥57.96B	-0.27	-78.01%	―	-14.08%	54.85%