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

• Market Cap: ¥16.55B
• Dividend Yield: 2.48%
• Average Volume (3M): 6.44K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.32
• Revenue Growth: 24.48%
• EPS Growth: 204.62%
• Country: JP
• Employees: 1,953
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): 66.97
• Shares Outstanding: 11,440,000
• 10 Day Avg. Volume: 6,640
• 30 Day Avg. Volume: 6,443
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,910.00
• Price Target Upside: 21.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: ¥1,910.00 ▲(21.66% Upside)

The overall score is driven primarily by strong financial performance, characterized by robust revenue growth and cash flow. The technical analysis suggests caution due to overbought conditions, which slightly moderates the score. Valuation reflects a fair price with a reasonable P/E ratio and an attractive dividend yield. The absence of significant earnings call data or corporate events means these factors do not impact the score.

Toyo Tec Co., Ltd Business Overview & Revenue Model

Company Description

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.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	34.92B	34.93B	31.25B	30.14B	27.47B	26.00B
Gross Profit	6.91B	6.91B	6.00B	5.84B	5.40B	5.33B
EBITDA	2.88B	2.88B	2.33B	2.26B	1.90B	1.97B
Net Income	693.05M	692.70M	626.23M	741.88M	459.51M	560.98M
Balance Sheet
Total Assets	38.80B	38.80B	35.77B	31.59B	29.88B	32.13B
Cash, Cash Equivalents and Short-Term Investments	10.62B	10.62B	10.89B	10.18B	10.73B	11.26B
Total Debt	9.46B	9.46B	6.55B	5.07B	4.04B	4.62B
Total Liabilities	17.06B	17.06B	14.46B	10.96B	9.43B	10.38B
Stockholders Equity	21.74B	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: Neutral
• Last Price: 1570.00
• 50DMA: Negative
• 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:9686, the sentiment is Neutral. The current price of 1570 is below the 20-day moving average (MA) of 1589.67, below the 50-day MA of 1588.26, and above the 200-day MA of 1379.50, indicating a neutral trend. The MACD of -4.33 indicates Positive momentum. The RSI at 46.84 is Neutral, neither overbought nor oversold. The STOCH value of 30.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
7464	76 Outperform	¥3.30B	13.90	3.18%	5.10%	0.09%	-42.75%
9686	76 Outperform	¥16.55B	11.14	―	2.48%	24.48%	204.62%
9740	75 Outperform	¥37.77B	10.55	8.20%	2.32%	9.40%	-32.82%
4754	74 Outperform	¥7.05B	7.27	11.25%	2.21%	5.24%	91.21%
7058	72 Outperform	¥4.11B	46.28	―	3.18%	6.83%	-59.50%
4264	67 Neutral	¥9.58B	76.84	18.76%	―	12.33%	-44.28%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%