Tokai (9729) AI Stock Analysis

• Market Cap: $75.04B
• Dividend Yield: 2.73%
• Average Volume (3M): 34.74K
• Price to Earnings (P/E): 15.2
• Beta (1Y): 0.73
• Revenue Growth: 8.19%
• EPS Growth: -15.97%
• Country: JP
• Employees: 4,254
• Sector: Healthcare
• Sector Strength: 39
• Industry: Rental & Leasing Services
• EPS (TTM): 9.81
• Shares Outstanding: 36,041,344
• 10 Day Avg. Volume: 34,690
• 30 Day Avg. Volume: 34,743
• 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: $2,217.49
• Price Target Upside: 4.99% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: ¥2,398.00 ▲(13.54%Upside)

Tokai's stock is supported by strong financial fundamentals, including consistent revenue growth and a robust balance sheet. Valuation metrics are reasonable, with a good dividend yield. Technical indicators show neutral momentum, not indicating strong trends. Overall, the stock is stable, with opportunities for efficiency improvements.

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
EBITDA	13.73B	12.47B	13.13B	11.86B	12.21B	10.94B
Net Income	6.29B	4.73B	5.81B	6.11B	5.81B	5.48B
Balance Sheet
Total Assets	111.70B	113.95B	114.93B	110.78B	105.90B	102.18B
Cash, Cash Equivalents and Short-Term Investments	29.29B	26.86B	31.68B	37.00B	36.16B	35.24B
Total Debt	1.62B	2.12B	1.82B	2.30B	2.72B	3.12B
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: Negative
• Last Price: 2112.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 2112 is below the 20-day moving average (MA) of 2141.20, below the 50-day MA of 2147.56, and below the 200-day MA of 2133.41, indicating a bearish trend. The MACD of -1.32 indicates Positive momentum. The RSI at 47.16 is Neutral, neither overbought nor oversold. The STOCH value of 39.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥41.18B	9.13		4.59%	-12.98%	3.24%
9699	76 Outperform	¥113.79B	9.10		2.76%	8.56%	16.30%
9619	75 Outperform	¥38.34B	5.85		0.49%	12.06%	-45.04%
7081	73 Outperform	¥11.93B	8.03		1.85%	2.12%	-6.76%
9729	72 Outperform	$75.04B	15.19		2.73%	8.19%	-15.97%
9763	71 Outperform	¥10.12B	7.91		4.28%	6.95%	4.92%
Sector *	52 Neutral	$7.53B	0.20	-61.87%	2.28%	16.72%	1.10%

Tokai Corporate Events

Tokai Corp. Announces New Board Structure

Tokai Corp. has announced a new structure for its Board of Directors, effective June 26, 2025. The changes include the appointment of Koji Onogi as Chairperson and Toshiaki Asai as President, with several other directors named, including outside directors. This restructuring aims to enhance corporate governance and strategic oversight, potentially impacting the company’s operational efficiency and market positioning.

Tokai Corp. Announces Disposal of Treasury Shares for Stock Compensation

Tokai Corp. announced the disposal of 14,100 treasury shares as part of its restricted stock compensation plan, aimed at incentivizing directors and corporate officers to enhance corporate value and align with shareholder interests. The disposal involves a total value of 29,990,700 yen and is intended to motivate eligible directors by promoting long-term value sharing, with a transfer restriction period set at 30 years.

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.