Toyo Tec Co., Ltd (9686) AI Stock Analysis

• Market Cap: ¥13.92B
• Dividend Yield: 3.03%
• Average Volume (3M): 5.54K
• Price to Earnings (P/E): 19.7
• Beta (1Y): 0.34
• Revenue Growth: 11.76%
• EPS Growth: 9.97%
• Country: JP
• Employees: 1,953
• Sector: Industrials
• Sector Strength: 94
• Industry: Security & Protection Services
• EPS (TTM): 25.25
• Shares Outstanding: 11,440,000
• 10 Day Avg. Volume: 3,560
• 30 Day Avg. Volume: 5,540
• PEG Ratio: 0.55
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 75 Outperform
• Price Target: ¥1,488.00 ▲(12.47%Upside)

Toyo Tec Co., Ltd's overall stock score is driven by its strong financial performance and stable valuation. The company's financial health, characterized by robust revenue growth and liquidity, is a significant strength. Technical analysis suggests a neutral market sentiment, with no clear trend direction. The absence of earnings call data and corporate events does not impact the score.

Toyo Tec Co., Ltd Business Overview & Revenue Model

Company Description

Toyo Tec Co., Ltd (9686) is a diversified Japanese company primarily engaged in providing security services, real estate services, and related solutions. The company operates through various segments, including the Security Business, Real Estate Business, and others. Its core offerings encompass security services, building management, real estate leasing, sales, as well as cleaning and maintenance services, catering to both corporate and individual clients.

How the Company Makes Money

Toyo Tec Co., Ltd generates revenue through multiple streams, primarily from its security services, which include manned guarding, electronic security systems, and surveillance services. Another significant source of income is its real estate business, which involves leasing and selling properties, as well as providing property management and maintenance services. Additionally, the company benefits from long-term contracts and partnerships with various businesses and institutions, contributing to stable and recurring income. Factors such as strategic location of properties and a strong reputation in the security sector also play a critical role in enhancing its earnings.

Toyo Tec Co., Ltd Financial Statement Overview

Summary

Toyo Tec Co., Ltd exhibits strong revenue growth with a robust gross profit margin, indicating effective cost management. The balance sheet reflects a strong capital structure with a solid equity ratio and manageable leverage. However, cash flow challenges persist with stagnant free cash flow, highlighting the need for improved cash conversion efficiency. Overall, the financial health of the company is sound, with opportunities for enhanced cash generation.

Income Statement

Toyo Tec Co., Ltd has demonstrated consistent revenue growth with a TTM (Trailing-Twelve-Months) revenue of ¥33.04 billion, up from ¥31.25 billion in the previous fiscal year, representing a growth rate of approximately 5.7%. The gross profit margin is robust at 19.8%, indicating effective cost management. The net profit margin is healthy at 2.1%, suggesting profitability despite competitive pressures. EBIT and EBITDA margins stand at 2.7% and 4.9% respectively, showcasing stable operational efficiency.

Balance Sheet

The balance sheet shows a solid equity ratio of 54.7%, reflecting a strong capital structure. The debt-to-equity ratio is manageable at 0.46, indicating moderate leverage. However, return on equity (ROE) is relatively low at 3.2%, suggesting that the company could improve its efficiency in generating returns for shareholders.

Cash Flow

The cash flow statement reveals challenges with free cash flow, which is currently at zero in the TTM period, compared to negative free cash flow in the previous year. The operating cash flow to net income ratio can't be evaluated due to zero operating cash flow, signaling potential issues in converting earnings into cash. However, past trends showed positive operating cash flow, indicating potential for recovery.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
33.04B	31.25B	30.14B	27.47B	26.00B	24.84B
	Gross Profit
6.55B	6.00B	5.84B	5.40B	5.33B	5.60B
	EBIT
879.65M	966.40M	844.65M	848.97M	697.21M	1.08B
	EBITDA
1.62B	2.33B	2.26B	1.90B	1.97B	2.01B
	Net Income Common Stockholders
680.42M	626.23M	741.88M	459.51M	560.98M	861.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.19B	10.89B	10.18B	10.73B	11.26B	10.61B
	Total Assets
39.20B	35.77B	31.59B	29.88B	32.13B	29.88B
	Total Debt
9.77B	6.55B	5.07B	4.04B	4.62B	3.72B
	Net Debt
3.34B	-4.35B	-5.12B	-6.69B	-6.64B	-6.32B
	Total Liabilities
17.77B	14.46B	10.96B	9.43B	10.38B	9.04B
	Stockholders Equity
21.43B	21.31B	20.62B	20.45B	21.75B	20.85B
Cash Flow		Free Cash Flow
0.00	-2.09B	404.53M	-1.33B	-221.59M	668.00M
	Operating Cash Flow
0.00	1.90B	1.50B	783.89M	1.27B	2.04B
	Investing Cash Flow
0.00	-3.05B	-1.33B	203.25M	-1.40B	-1.44B
	Financing Cash Flow
0.00	1.14B	-135.85M	-881.43M	576.18M	-527.00M

Toyo Tec Co., Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1323.00
• 50DMA: Negative
• 100DMA: Negative
• 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:9686, the sentiment is Negative. The current price of 1323 is below the 20-day moving average (MA) of 1333.45, below the 50-day MA of 1325.27, and above the 200-day MA of 1269.30, indicating a neutral trend. The MACD of -1.85 indicates Positive momentum. The RSI at 47.90 is Neutral, neither overbought nor oversold. The STOCH value of 69.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9686.

Toyo Tec Co., Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9686	75 Outperform	¥13.92B	19.67		3.03%	11.76%	9.97%
4754	75 Outperform	¥6.53B	6.99		2.39%	7.72%	72.38%
7058	72 Outperform	¥3.48B	13.11		3.75%	13.49%	17.08%
7464	67 Neutral	¥3.17B	12.37		5.31%	1.87%	-33.27%
4264	66 Neutral	¥9.51B	61.06		―	13.52%	-45.02%
9740	66 Neutral	¥35.83B	11.06		2.49%	5.01%	-39.78%
Sector *	66 Neutral	$4.48B	12.24	5.32%	248.54%	4.09%	-12.10%