TOHO GAS Co (9533) AI Stock Analysis

• Market Cap: ¥388.54B
• Dividend Yield: 2.02%
• Average Volume (3M): 195.38K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.43
• Revenue Growth: 3.64%
• EPS Growth: -3.56%
• Country: JP
• Employees: 6,042
• Sector: Utilities
• Sector Strength: 84
• Industry: Regulated Gas
• EPS (TTM): 250.48
• Shares Outstanding: 98,220,085
• 10 Day Avg. Volume: 230,130
• 30 Day Avg. Volume: 195,383
• PEG Ratio: 0.06
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.52
• 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

• Rating: 62 Neutral
• Price Target: ¥4,227.00 ▲(6.85%Upside)

TOHO GAS Co's overall stock score reflects a stable financial position with strong cash flow generation and a solid equity base, despite some pressure on profitability metrics. Technical analysis indicates bearish momentum, which weighs on the score. The valuation is reasonable, but not compelling enough to offset the negative technical signals. The lack of additional insights from earnings calls or corporate events leaves the primary assessment reliant on financial and technical data.

TOHO GAS Co Business Overview & Revenue Model

Company Description

TOHO GAS Co., Ltd. (9533) is a leading energy company based in Japan, specializing in the supply and distribution of natural gas. The company primarily operates in the energy sector, providing natural gas, liquefied petroleum gas (LPG), and other energy-related products and services. TOHO GAS serves a diverse customer base, including residential, commercial, and industrial sectors, and is committed to delivering safe and reliable energy solutions while focusing on sustainability and innovation.

How the Company Makes Money

TOHO GAS Co. generates revenue principally through the sale and distribution of natural gas to residential, commercial, and industrial customers. The company operates a regulated utility model, where it earns income based on the volume of gas distributed and the rates set by regulatory authorities. Additionally, TOHO GAS leverages its infrastructure to provide energy-related services, including the sale of energy appliances and equipment, as well as maintenance and installation services. The company may also engage in partnerships and joint ventures to expand its service offerings and geographic reach, further contributing to its revenue streams. External factors such as government regulations, market demand, and gas prices significantly influence the company's earnings.

TOHO GAS Co Financial Statement Overview

Summary

TOHO GAS Co presents a stable financial position with consistent revenue growth and strong equity ratios. The company shows robust cash flow generation, which supports its operational needs and strategic investments. While profitability metrics show some pressure on net income, the overall financial health remains solid, supported by efficient cost management and a strong equity position. The company should continue focusing on enhancing profitability and maintaining leverage at manageable levels to sustain long-term growth.

Income Statement

TOHO GAS Co has demonstrated a steady revenue growth trend with a notable increase in Total Revenue from ¥632.99 billion to ¥656.01 billion, representing a growth rate of 3.64%. Gross Profit Margin is strong at 26.29%, reflecting efficient cost management. However, the Net Profit Margin decreased to 3.88%, indicating pressure on net earnings. EBIT Margin at 4.65% and EBITDA Margin at 11.69% show moderate operational efficiency, though there's room for improvement in profitability.

Balance Sheet

The company's Debt-to-Equity Ratio stands at 0.35, indicating a balanced leverage position. Return on Equity (ROE) is 5.68%, which is modest but stable. The Equity Ratio is strong at 59.10%, suggesting a solid equity base. However, the high total debt level of ¥155.49 billion presents a potential risk if not managed carefully.

Cash Flow

TOHO GAS Co exhibits a robust cash flow position with a significant increase in Free Cash Flow from ¥9.84 billion to ¥38.85 billion, translating to a remarkable growth rate of 294.96%. The Operating Cash Flow to Net Income Ratio is strong at 3.26, highlighting efficient cash conversion from operations. Free Cash Flow to Net Income Ratio is at 1.53, indicating effective use of free cash flow to support net income.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
644.00B	656.01B	632.99B	706.07B	515.31B	434.78B
	Gross Profit
165.97B	172.46B	171.54B	180.19B	153.70B	149.26B
	EBIT
26.98B	30.50B	33.60B	43.74B	17.86B	13.52B
	EBITDA
46.77B	76.67B	79.52B	85.40B	58.58B	51.92B
	Net Income Common Stockholders
23.87B	25.45B	27.30B	33.72B	15.46B	8.59B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
25.59B	46.75B	29.77B	34.01B	32.30B	50.73B
	Total Assets
741.07B	758.76B	734.52B	693.51B	655.59B	601.83B
	Total Debt
155.21B	155.49B	129.87B	118.14B	101.65B	123.82B
	Net Debt
129.61B	108.74B	100.10B	84.13B	69.35B	83.09B
	Total Liabilities
296.19B	310.37B	277.67B	291.01B	272.84B	242.34B
	Stockholders Equity
444.88B	448.39B	456.85B	402.50B	382.75B	359.49B
Cash Flow		Free Cash Flow
0.00	38.85B	9.84B	16.68B	-3.60B	30.09B
	Operating Cash Flow
0.00	83.10B	47.38B	56.41B	35.44B	64.40B
	Investing Cash Flow
0.00	-45.16B	-42.08B	-52.44B	-54.88B	-40.97B
	Financing Cash Flow
0.00	-18.77B	-14.24B	-2.94B	635.00M	-6.76B

TOHO GAS Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3956.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9533, the sentiment is Negative. The current price of 3956 is below the 20-day moving average (MA) of 4047.10, below the 50-day MA of 4092.44, and below the 200-day MA of 3998.76, indicating a bearish trend. The MACD of -39.06 indicates Positive momentum. The RSI at 39.69 is Neutral, neither overbought nor oversold. The STOCH value of 14.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9533.

TOHO GAS Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9536	78 Outperform	¥65.57B	10.37	6.29%	3.95%	-0.74%	3.35%
8174	78 Outperform	¥281.42B	24.66	16.52%	3.61%	2.93%	8.93%
9532	70 Outperform	¥1.43T	10.90	8.11%	2.64%	-0.67%	4.48%
9543	69 Neutral	¥79.07B	8.73	7.82%	3.87%	4.77%	44.40%
Sector *	64 Neutral	$8.62B	10.39	4.24%	4.63%	4.07%	-13.04%
9531	63 Neutral	$1.72T	24.19	4.25%	1.87%	-1.04%	-52.93%
9533	62 Neutral	¥388.54B	15.71	5.51%	2.02%	3.64%	-3.56%

TOHO GAS Co Corporate Events

Toho Gas Announces Share Buy-back Strategy

Toho Gas Co., Ltd. announced the repurchase of 573,600 shares of its common stock, valued at approximately ¥2.37 billion, between May 1 and May 31, 2025, as part of a broader buy-back strategy authorized by its Board of Directors. This move is part of a larger plan to repurchase up to 5 million shares, potentially impacting the company’s market positioning and shareholder value.

Toho Gas Maintains Dividend Payout, Plans Future Increases

Toho Gas Co., Ltd. announced a resolution to allocate surplus funds as dividends, maintaining a dividend of 40 yen per share for the fiscal year ending March 2025, consistent with the previous year. The company plans to progressively increase dividends in alignment with profit growth during its new Medium-Term Management Plan from FY2025 to FY2027, signaling a stable financial outlook and commitment to shareholder returns.

Toho Gas Initiates Share Buy-back to Enhance Shareholder Value

Toho Gas Co., Ltd. has announced a share buy-back, repurchasing 617,400 shares valued at approximately ¥2.51 billion between April 1 and April 30, 2025. This move is part of a broader strategy approved by the Board of Directors to repurchase up to 5 million shares, representing 5.1% of outstanding shares, with a total value of up to ¥15 billion by September 30, 2025. The share buy-back is expected to enhance shareholder value and optimize the company’s capital structure.

Toho Gas Co. Expands Focus to Renewable Energy and Hydrogen

Toho Gas Co., Ltd. announced its intention to amend its Articles of Incorporation to include renewable energy and hydrogen businesses, aligning with its future business development goals. This strategic move indicates the company’s shift towards sustainable energy solutions, potentially enhancing its market positioning and offering new opportunities for stakeholders.

Toho Gas Reports FY2024 Financial Results with Increased Sales and Dividends

Toho Gas Co., Ltd. reported its consolidated financial results for FY2024, showing a 3.6% increase in net sales but a decline in operating and ordinary income by 8.1% and 20.6%, respectively. The company also announced an increase in annual dividends, reflecting a commitment to shareholder returns despite the challenges in profitability.