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

• Market Cap: ¥15.61B
• Dividend Yield: 2.7%
• Average Volume (3M): 5.23K
• Price to Earnings (P/E): 22.1
• Beta (1Y): 0.35
• Revenue Growth: 11.76%
• EPS Growth: 9.90%
• Country: JP
• Employees: 1,953
• Sector: Industrials
• Sector Strength: 87
• Industry: Security & Protection Services
• EPS (TTM): 25.25
• Shares Outstanding: 11,440,000
• 10 Day Avg. Volume: 5,100
• 30 Day Avg. Volume: 5,230
• PEG Ratio: 13.64
• 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: ¥1,497.00
• Price Target Upside: 1.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: ¥1,681.00 ▲(14.43%Upside)

Toyo Tec Co., Ltd demonstrates strong financial performance with robust revenue growth and cash flow generation, underpinning its secure financial foundation. Technical indicators show an upward trend but caution is advised due to potential overbought conditions. The valuation is fair, with a reasonable dividend yield, though the high P/E ratio implies limited short-term upside without stronger earnings growth.

Toyo Tec Co., Ltd Business Overview & Revenue Model

Company Description

Toyo Tec Co., Ltd. is a Japanese company primarily engaged in providing comprehensive security services. It operates across various sectors, offering a range of products and services including electronic security systems, security personnel services, and related support solutions. The company is known for leveraging advanced technology to ensure safety and security for its clients in both private and commercial sectors.

How the Company Makes Money

Toyo Tec Co., Ltd. generates revenue through multiple streams primarily centered around its security services. The company earns income by offering electronic security systems which include the sale, installation, and maintenance of security equipment. Additionally, it provides security personnel services, where revenue is derived from contracting security staff to clients. These services are complemented by ongoing support and consultation services. Partnerships with technology providers and clients in various industries also contribute to its financial performance, allowing Toyo Tec Co., Ltd. to expand its market reach and enhance its service offerings.

Toyo Tec Co., Ltd Financial Statement Overview

Summary

Toyo Tec Co., Ltd's financial statements reflect a well-rounded performance with impressive revenue growth and solid cash flow health. While profitability margins are strong, there is potential for further enhancement, particularly in net profit margins. The balance sheet remains a strong point, characterized by low leverage and high equity ratios, ensuring financial stability. Overall, the company is well-positioned for future growth with a secure financial foundation.

Income Statement

Toyo Tec Co., Ltd has shown strong revenue growth with a 11.8% increase from the previous year, indicating robust business expansion. The company maintains healthy profitability with a gross profit margin of 19.8% and a net profit margin of 2.0%. EBIT and EBITDA margins are steady at 3.0% and 8.3%, respectively, showcasing efficient operations. However, the net profit margin is relatively low, which suggests room for improvement in cost management or pricing strategies.

Balance Sheet

The company exhibits a solid balance sheet with a debt-to-equity ratio of 0.44, indicating conservative leverage and financial stability. A high equity ratio of 56.0% underscores strong financial health. Return on equity is moderate at 3.2%, which could be improved to enhance shareholder returns. Overall, the balance sheet reflects a stable financial position with manageable debt levels.

Cash Flow

Cash flow performance is robust, highlighted by a significant turnaround in free cash flow, from negative values in prior periods to a positive 1720.2 million. The operating cash flow to net income ratio of 4.3 demonstrates effective cash generation relative to earnings. This indicates strong liquidity and the ability to support future investments or debt repayments.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	33.04B	34.93B	31.25B	30.14B	27.47B	26.00B
Gross Profit	6.46B	6.91B	6.00B	5.84B	5.40B	5.33B
EBITDA	1.62B	2.88B	2.33B	2.26B	1.90B	1.97B
Net Income	680.42M	692.70M	626.23M	741.88M	459.51M	560.98M
Balance Sheet
Total Assets	39.20B	38.80B	35.77B	31.59B	29.88B	32.13B
Cash, Cash Equivalents and Short-Term Investments	11.19B	10.62B	10.89B	10.18B	10.73B	11.26B
Total Debt	9.77B	9.46B	6.55B	5.07B	4.04B	4.62B
Total Liabilities	17.77B	17.06B	14.46B	10.96B	9.43B	10.38B
Stockholders Equity	21.43B	21.74B	21.31B	20.62B	20.45B	21.75B
Cash Flow
Free Cash Flow	0.00	1.72B	-2.09B	404.53M	-1.33B	-221.59M
Operating Cash Flow	0.00	2.94B	1.90B	1.50B	783.89M	1.27B
Investing Cash Flow	0.00	-4.45B	-3.05B	-1.33B	203.25M	-1.40B
Financing Cash Flow	0.00	2.42B	1.14B	-135.85M	-881.43M	576.18M

Toyo Tec Co., Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1469.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9686, the sentiment is Positive. The current price of 1469 is above the 20-day moving average (MA) of 1379.40, above the 50-day MA of 1346.78, and above the 200-day MA of 1307.49, indicating a bullish trend. The MACD of 32.00 indicates Negative momentum. The RSI at 78.59 is Negative, neither overbought nor oversold. The STOCH value of 93.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
4754	82 Outperform	¥7.05B	7.55		2.21%	7.72%	72.38%
9686	78 Outperform	¥15.61B	22.07		2.70%	11.76%	9.90%
7058	72 Outperform	¥3.79B	13.11		3.44%	13.49%	17.08%
9740	69 Neutral	¥32.99B	9.21		2.59%	9.40%	-32.82%
Sector *	67 Neutral	€8.10B	20.89	6.46%	2.98%	1.85%	-38.27%
7464	67 Neutral	¥3.23B	12.60		5.21%	1.87%	-33.27%
4264	61 Neutral	¥8.86B	56.69		―	13.52%	-45.02%