Tokai (9729) AI Stock Analysis

• Market Cap: ¥76.77B
• Dividend Yield: 2.67%
• Average Volume (3M): 31.13K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.71
• Revenue Growth: 8.19%
• EPS Growth: -15.84%
• Country: JP
• Employees: 4,254
• Sector: Healthcare
• Sector Strength: 44
• Industry: Rental & Leasing Services
• EPS (TTM): 9.81
• Shares Outstanding: 36,041,344
• 10 Day Avg. Volume: 38,750
• 30 Day Avg. Volume: 31,133
• PEG Ratio: 2.10
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 29.45
• 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: ¥2,456.00 ▲(12.56%Upside)

Tokai's stock is supported by strong financial health, characterized by consistent revenue growth and stable profitability. Additionally, positive market momentum reinforces the stock's technical position. While valuation metrics indicate a fair valuation, the absence of earnings call data and corporate events means these components did not impact the score.

Tokai Business Overview & Revenue Model

Company Description

Tokai Corporation, listed on the Tokyo Stock Exchange under the ticker 9729, is a diversified Japanese company with a primary focus on providing comprehensive energy and lifestyle services. The company operates in several sectors including liquefied petroleum gas (LPG) supply, information and communications technology (ICT), and building and real estate management. Tokai Corporation aims to enhance the quality of life for its customers by offering a wide range of products and services that contribute to comfortable and convenient living environments.

How the Company Makes Money

Tokai Corporation generates revenue through multiple streams, primarily driven by its energy and lifestyle services. A significant portion of the company's income comes from the sale and distribution of liquefied petroleum gas (LPG) to residential, commercial, and industrial customers. Additionally, Tokai leverages its expertise in the ICT sector to offer communication-related services, including internet and cable TV, which contribute to its revenue. The company also earns from real estate through property management and development, as well as from various lifestyle services tailored to enhance customer convenience. Strategic partnerships and a diversified portfolio of services enable Tokai to maintain a steady flow of income across different market segments.

Tokai Financial Statement Overview

Summary

Tokai demonstrates strong financial health with consistent revenue growth and stable profitability. The balance sheet is robust, with low leverage and high equity, ensuring financial security. Cash flow position has improved, supporting operational and investment activities. However, slight declines in net profit margins and ROE suggest areas for efficiency improvements.

Income Statement

Tokai shows a consistent revenue growth trend with a 8.18% increase from 2024 to 2025. The gross profit margin remains steady at around 23.7%, indicating stable profitability. However, net profit margin declined slightly from 4.2% to 3.2%, suggesting pressure on net income despite revenue growth. The EBIT margin remains stable, reflecting efficient operational management.

Balance Sheet

The company maintains a strong equity base with a high equity ratio of approximately 74.8%, indicating financial stability. The debt-to-equity ratio is low at 0.02, highlighting minimal leverage and low financial risk. Return on equity decreased slightly to 5.6%, suggesting a need for improved efficiency in generating profits from equity.

Cash Flow

Operating cash flow improved significantly, resulting in positive free cash flow growth. The operating cash flow to net income ratio is strong at 2.13, indicating effective cash generation relative to net income. Free cash flow to net income also shows a positive trend, reflecting improved capital expenditure management.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
139.95B	149.54B	138.22B	130.18B	123.48B	118.01B
	Gross Profit
33.91B	35.44B	33.64B	31.92B	30.98B	29.38B
	EBIT
8.07B	8.21B	8.08B	7.86B	8.25B	7.29B
	EBITDA
13.73B	12.47B	13.13B	11.86B	12.21B	10.94B
	Net Income Common Stockholders
6.29B	4.73B	5.81B	6.11B	5.81B	5.48B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
29.29B	26.86B	31.68B	37.00B	36.16B	35.24B
	Total Assets
111.70B	113.95B	114.93B	110.78B	105.90B	102.18B
	Total Debt
1.62B	2.12B	1.82B	2.30B	2.72B	3.12B
	Net Debt
-27.28B	-23.34B	-29.17B	-33.77B	-33.08B	-32.03B
	Total Liabilities
27.58B	28.10B	28.14B	28.56B	28.38B	28.30B
	Stockholders Equity
83.50B	85.19B	86.18B	81.65B	77.00B	73.39B
Cash Flow		Free Cash Flow
4.65B	5.99B	-664.00M	2.37B	5.99B	5.95B
	Operating Cash Flow
4.65B	10.10B	8.04B	8.59B	10.13B	9.23B
	Investing Cash Flow
0.00	-11.41B	-10.21B	-6.24B	-6.74B	-4.20B
	Financing Cash Flow
0.00	-5.20B	-3.20B	-2.43B	-2.90B	-1.97B

Tokai Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2182.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9729, the sentiment is Positive. The current price of 2182 is above the 20-day moving average (MA) of 2150.45, above the 50-day MA of 2110.82, and above the 200-day MA of 2135.62, indicating a bullish trend. The MACD of 14.33 indicates Negative momentum. The RSI at 54.89 is Neutral, neither overbought nor oversold. The STOCH value of 52.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9729.

Tokai Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9991	84 Outperform	¥41.79B	9.18		4.52%	-12.98%	3.23%
7081	78 Outperform	¥12.16B	8.19		2.73%	2.12%	-6.76%
9619	78 Outperform	¥38.51B	5.74		0.50%	12.06%	-44.99%
9699	76 Outperform	¥109.21B	8.74		2.87%	8.56%	16.30%
9763	76 Outperform	¥10.33B	8.08		4.19%	6.95%	4.92%
9729	75 Outperform	¥76.77B	15.64		2.67%	8.19%	-15.84%
Sector *	54 Neutral	$5.38B	3.40	-45.06%	3.28%	16.75%	-0.02%

Tokai Corporate Events

TOKAI Corp. Unveils Medium-term Management Plan to Drive Growth

TOKAI Corp. has announced its Medium-term Management Plan for FY2026 to FY2028, focusing on increasing profitability and creating new value to achieve its Vision 2035. The plan includes reforming business structures, developing new businesses, maximizing group synergies, and investing in human capital to drive growth and shareholder returns.

Tokai Corp. Updates Shareholder Meeting and Dividend Payment Dates

Tokai Corp. has issued corrections to its previously announced consolidated financial results for the fiscal year ending March 31, 2025. The corrections pertain to the scheduled dates for the annual general meeting of shareholders and the commencement of dividend payments, which have been adjusted to June 26, 2025, and June 27, 2025, respectively. These changes reflect Tokai’s commitment to accurate and timely communication with its stakeholders.

Tokai Corp. Announces Board of Directors Changes

Tokai Corp. announced changes to its board of directors, with new appointments and retirements set to be confirmed at the upcoming Annual General Meeting. These changes are expected to impact the company’s governance structure, potentially influencing its strategic direction and stakeholder relations.

TOKAI Corp. Revises Earnings Forecast Amid Extraordinary Losses

TOKAI Corp. announced an expected extraordinary loss of 1.87 billion yen due to impairment losses on fixed assets related to its dispensing pharmacy and elderly care equipment businesses. Despite this, the company revised its earnings forecast upward for net sales, operating profit, and ordinary profit due to strong performance in its core rental business and recent acquisitions. However, the profit attributable to owners of the parent is expected to decrease due to the impairment losses. The year-end dividend remains unchanged, resulting in an annual dividend of 58 yen per share.