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

• Market Cap: ¥17.57B
• Dividend Yield: 3.28%
• Average Volume (3M): 8.16K
• Price to Earnings (P/E): 6.4
• Beta (1Y): 0.48
• Revenue Growth: 34.15%
• EPS Growth: 324.87%
• Country: JP
• Employees: 1,953
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): 62.69
• Shares Outstanding: 11,432,460
• 10 Day Avg. Volume: 7,590
• 30 Day Avg. Volume: 8,160
• PEG Ratio: 1.99
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.40
• P/FCF Ratio: 8.08
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: ¥1,926.00 ▲(19.78% Upside)
• Action: Reiterated Date: 11/01/25
• Date: Action: Reiterated 11/01/25

Toyo Tec Co., Ltd demonstrates strong financial performance with robust revenue growth and cash flow, supported by a solid balance sheet. The valuation is attractive, with a low P/E ratio and a healthy dividend yield. Technical analysis presents mixed signals, with short-term bearish trends but long-term strength. The absence of earnings call and corporate events data does not impact the overall assessment.

Positive Factors

Strong cash generation

A large turnaround to positive free cash flow and an OCF/net income ratio of 4.3 indicate high-quality cash conversion. This durable cash generation supports capex, dividend funding, debt reduction and strategic investments without reliance on external financing.

Conservative balance sheet

Low leverage and a high equity ratio provide financial stability and optionality. This conservative capital structure reduces refinancing risk, preserves credit flexibility and allows disciplined investment or M&A without jeopardizing solvency in downturns.

Sustained revenue growth

Consistent revenue growth reflects expanding market traction and demand for offerings. Over the medium term this growth can enable scale economies, support product investment and improve fixed-cost absorption, helping sustainably raise operating leverage.

Negative Factors

Low net profitability

A net margin of just 2.0% means only a small share of revenue reaches shareholders. This low conversion leaves limited room for reinvestment, dividends or cushion against cost inflation, requiring structural margin improvement to convert growth into durable returns.

Weak return on equity

An ROE near 3.2% signals relatively low efficiency in turning equity into profits. Combined with a high equity ratio, this suggests capital may be underutilized or deployed conservatively, constraining long-term shareholder value unless profitability or asset turnover improves.

Thin operating margins

Operating margins are narrow, leaving limited buffer against rising costs or competitive price pressure. Sustaining investment while improving margins will be necessary; otherwise the company must rely on volume growth alone, which can dilute margins and heighten execution risk.

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

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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	39.10B	34.93B	31.25B	30.14B	27.47B	26.00B
Gross Profit	7.64B	6.91B	6.00B	5.84B	5.40B	5.33B
EBITDA	4.00B	2.88B	2.33B	2.26B	1.90B	1.97B
Net Income	1.46B	692.70M	626.23M	741.88M	459.51M	560.98M
Balance Sheet
Total Assets	40.69B	38.80B	35.77B	31.59B	29.88B	32.13B
Cash, Cash Equivalents and Short-Term Investments	9.63B	10.62B	10.89B	10.18B	10.73B	11.26B
Total Debt	10.31B	9.46B	6.55B	5.07B	4.04B	4.62B
Total Liabilities	18.39B	17.06B	14.46B	10.96B	9.43B	10.38B
Stockholders Equity	22.29B	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	2.86B	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: 1608.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1608 is below the 20-day moving average (MA) of 1730.70, below the 50-day MA of 1732.78, and above the 200-day MA of 1576.76, indicating a neutral trend. The MACD of -23.58 indicates Positive momentum. The RSI at 40.57 is Neutral, neither overbought nor oversold. The STOCH value of 16.50 is Positive, 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
9740	80 Outperform	¥44.87B	21.44	―	1.95%	9.05%	14.38%
9686	77 Outperform	¥17.57B	6.41	―	3.28%	34.15%	324.87%
6744	76 Outperform	¥264.43B	14.78	―	2.42%	9.55%	9.52%
9735	73 Outperform	¥2.65T	19.24	8.35%	1.77%	5.39%	4.89%
7734	73 Outperform	¥149.50B	14.99	―	1.39%	11.23%	16.49%
2331	64 Neutral	¥625.54B	16.50	―	2.14%	7.73%	30.92%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%