Revenue GrowthSustained top-line expansion, evidenced by strong revenue growth rates, indicates durable demand and market traction. Over a 2-6 month horizon this supports reinvestment, scale economics and the ability to fund product development or geographic expansion without relying solely on external financing.

Strong Cash GenerationA significant turnaround to positive free cash flow and a high operating cash flow to net income ratio show the company converts earnings into liquidity reliably. This durable cash generation underpins dividend capacity, capex funding, and debt reduction, improving long-term financial resilience.

Conservative LeverageModerate debt levels and a high equity ratio provide financial flexibility to withstand economic cycles and support strategic investments. This structural balance sheet strength lowers refinancing risk and preserves optionality for M&A or operational scaling over multiple quarters.

Bears Say

Low Net Profit MarginA net margin near 2% signals that much of revenue is absorbed by costs, leaving little cushion for shocks or reinvestment. Persistently low bottom-line profitability can limit retained earnings, constrain dividend growth and reduce capital available for strategic initiatives.

Modest Return On EquityROE around 3% suggests the company currently generates limited returns on shareholder capital. Over several quarters this can hinder long-term value creation versus peers, making it harder to attract capital and justify higher reinvestment without improving operational efficiency.

Profitability Compression Vs Gross MarginA wide gap between healthy gross margin and a very thin net margin indicates significant operating, SG&A or other expenses erode profitability. Structural cost pressures like overhead or pricing constraints must be addressed to sustainably improve earnings conversion and long-term margins.

9686 FAQ

What was Toyo Tec Co., Ltd’s price range in the past 12 months?

Toyo Tec Co., Ltd lowest stock price was ¥1100.00 and its highest was ¥1900.00 in the past 12 months.

What is Toyo Tec Co., Ltd’s market cap?

Toyo Tec Co., Ltd’s market cap is ¥18.24B.

When is Toyo Tec Co., Ltd’s upcoming earnings report date?

Toyo Tec Co., Ltd’s upcoming earnings report date is May 13, 2026 which is in 64 days.

How were Toyo Tec Co., Ltd’s earnings last quarter?

Toyo Tec Co., Ltd released its earnings results on Feb 02, 2026. The company reported ¥62.693 earnings per share for the quarter, beating the consensus estimate of N/A by ¥62.693.

Is Toyo Tec Co., Ltd overvalued?

According to Wall Street analysts Toyo Tec Co., Ltd’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Toyo Tec Co., Ltd pay dividends?

Toyo Tec Co., Ltd pays a Semiannually dividend of ¥33 which represents an annual dividend yield of 3.28%. See more information on Toyo Tec Co., Ltd dividends here

What is Toyo Tec Co., Ltd’s EPS estimate?

Toyo Tec Co., Ltd’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Toyo Tec Co., Ltd have?

Toyo Tec Co., Ltd has 11,440,000 shares outstanding.

What happened to Toyo Tec Co., Ltd’s price movement after its last earnings report?

Toyo Tec Co., Ltd reported an EPS of ¥62.693 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 1.268%.

Which hedge fund is a major shareholder of Toyo Tec Co., Ltd?

Currently, no hedge funds are holding shares in JP:9686

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Toyo Tec Co., Ltd

Toyo Tec Co.,Ltd. provides security services in Japan. The company offers mechanical, home, transportation, and facility security services. It is also involved in ATM management, building management, insurance, agency, construction/equipment sales, and real estate related services. In addition, the company offers mechanical security systems, surveillance cameras, resident, transport, crowd guards, entrance/exit management/employee ID cards, and fireproof and anti-theft safes; disaster prevention and energy saving measures; access control and AI thermal cameras; and space sterilization deodorizers. Further, it engages in the call center business. Additionally, the company offers provision of sterilization and disinfection services for corporate companies, as well as air catalyst coating services. Toyo Tec Co.,Ltd. was founded in 1966 and is headquartered in Osaka, Japan.