Tokai (9729) AI Stock Analysis

• Market Cap: ¥80.09B
• Dividend Yield: 2.54%
• Average Volume (3M): 80.93K
• Price to Earnings (P/E): 17.7
• Beta (1Y): 0.73
• Revenue Growth: 8.92%
• EPS Growth: -21.75%
• Country: JP
• Employees: 4,254
• Sector: Technology
• Sector Strength: 88
• Industry: Rental & Leasing Services
• EPS (TTM): 50.34
• Shares Outstanding: 33,092,148
• 10 Day Avg. Volume: 57,040
• 30 Day Avg. Volume: 80,930
• PEG Ratio: -0.96
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.48
• P/FCF Ratio: 11.89
• 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): 26,125.56
• Revenue Forecast (FY): ¥24.33T

• Rating: 71 Outperform
• Price Target: ¥2,564.00 ▲(6.13% Upside)

Tokai's strong financial performance, characterized by consistent revenue growth and a robust balance sheet, is the primary driver of its stock score. The technical analysis indicates a positive trend, though caution is advised due to potential bearish signals. The valuation is reasonable, with an attractive dividend yield. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Balance Sheet Health

A strong equity base and low leverage enhance financial stability, reducing risk and increasing resilience to economic fluctuations.

Cash Flow Generation

Improved cash flow generation supports operational needs and investment opportunities, ensuring sustainable business operations.

Negative Factors

Declining Net Profit Margin

A declining net profit margin suggests increased cost pressures, which could impact profitability if not addressed.

Return on Equity Decline

A decrease in ROE indicates less efficient use of equity to generate profits, which may affect investor confidence.

Earnings Per Share Decline

A decline in EPS growth reflects reduced profitability per share, potentially impacting shareholder returns and future investment.

Tokai Business Overview & Revenue Model

Company Description

TOKAI Corp. provides various healthy life services in Japan. It rents hospital bedding and lab coats; nursing assistance; in-hospital logistics management; supplies linens to hospitals; rents and sells long term care equipment; bedding/linens for hotels and various accommodations; manufactures and sells cleaning equipment; offers regular foods, therapeutic foods, and soft foods; and manages dispensing pharmacy. The company also provides water delivery services to homes and offices under the Aqua Clara brand; building maintenance services for medical institutions and welfare facilities; and information distribution services. In addition, it rents and sells environmental beautification products under the Leeskin brand; and develops and sells solar power plant facilities. TOKAI Corp. was incorporated in 1955 and is headquartered in Gifu, Japan.

How the Company Makes Money

Tokai generates revenue through multiple key streams, primarily from the sale of its ceramic and glass products to retailers, wholesalers, and directly to consumers. The company benefits from a diversified product portfolio, which allows it to tap into various markets and reduce dependence on any single revenue source. Additionally, Tokai has established significant partnerships with construction firms and interior design companies, enhancing its market reach and boosting sales. The company's commitment to innovation and sustainability also attracts premium pricing for its eco-friendly products, contributing to higher profit margins.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	153.51B	149.54B	138.22B	130.18B	123.48B	118.01B
Gross Profit	36.31B	35.44B	33.64B	31.92B	30.98B	29.38B
EBITDA	12.58B	12.47B	13.13B	13.26B	12.63B	10.94B
Net Income	4.36B	4.73B	5.81B	6.11B	5.81B	5.48B
Balance Sheet
Total Assets	114.05B	113.95B	114.93B	110.78B	105.90B	102.18B
Cash, Cash Equivalents and Short-Term Investments	25.22B	26.86B	31.68B	37.00B	36.16B	35.24B
Total Debt	2.05B	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	85.79B	85.19B	86.18B	81.65B	77.00B	73.39B
Cash Flow
Free Cash Flow	0.00	5.99B	-664.00M	2.37B	5.99B	5.95B
Operating Cash Flow	0.00	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: 2416.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 2416 is above the 20-day moving average (MA) of 2367.95, above the 50-day MA of 2256.07, and above the 200-day MA of 2140.42, indicating a bullish trend. The MACD of 76.06 indicates Negative momentum. The RSI at 65.90 is Neutral, neither overbought nor oversold. The STOCH value of 83.62 is Negative, 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
9763	81 Outperform	¥12.40B	8.03	―	3.68%	6.66%	13.62%
9699	80 Outperform	¥123.08B	10.17	―	2.95%	8.02%	4.39%
9619	78 Outperform	¥49.24B	6.93	―	3.69%	3.70%	-43.85%
9991	77 Outperform	¥46.72B	8.40	―	4.23%	-6.09%	31.18%
7081	72 Outperform	¥12.74B	7.12	―	3.24%	5.72%	60.38%
9729	71 Outperform	¥80.09B	17.67	―	2.54%	8.92%	-21.75%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Tokai Corporate Events

Tokai Corp. Finalizes Share Acquisition and Retirement Plan

Tokai Corp. has completed the acquisition of 2,949,200 of its own shares, accounting for 8.7% of its total issued shares, through the Tokyo Stock Exchange. This strategic move, finalized on November 12, 2025, is part of a broader plan to retire these shares by November 28, 2025, potentially enhancing shareholder value and optimizing the company’s capital structure.