Revenue Growth & Margin ExpansionConsistent revenue growth combined with improving gross and net margins indicates durable operational improvements and pricing or cost control advantages. Over 2–6 months this supports higher cash generation per lease and better resilience to normal demand fluctuations, underpinning sustainable profitability.

Stable Balance Sheet And Improving ReturnsA near-0.8 debt/equity and a ~46% equity ratio reflect a balanced capital structure that supports investment in leasing assets while limiting overleverage. Rising ROE shows improving capital efficiency, which enhances long-term financial flexibility and capacity to fund growth or weather cyclical downturns.

Positive Operating Cash GenerationOperating cash conversion near parity with net income demonstrates that reported profits largely translate into cash from the leasing business. This durable cash generation supports servicing debt, routine capex and working capital, and underpins operational sustainability even when investment timing varies.

Bears Say

Negative Free Cash Flow From High CapexPersistent negative free cash flow driven by heavy investment in rental assets can constrain internal funding for dividends, debt reduction or opportunistic investments. Given the capital-intensive leasing model, sustained high capex raises refinancing or funding needs over several quarters and limits financial optionality.

Reliance On Debt FinancingDependence on external debt to fund asset growth increases interest and refinancing exposure. In a capital-intensive leasing business, elevated leverage combined with negative free cash flow can limit buffer against rate rises or funding market stress, posing a medium-term balance-sheet risk.

End-market Cyclicality (construction & Events)Core customers (construction, infrastructure, events) are cyclical and timing-driven, making utilization and rental volumes variable. Structural exposure to these industries can produce multi-month revenue swings and capacity idling, pressuring margins and cash flow during softer phases of the cycle.

9761 FAQ

What was Tokai Lease Co., Ltd.’s price range in the past 12 months?

Tokai Lease Co., Ltd. lowest stock price was ¥1730.00 and its highest was ¥2739.00 in the past 12 months.

What is Tokai Lease Co., Ltd.’s market cap?

Tokai Lease Co., Ltd.’s market cap is ¥9.13B.

When is Tokai Lease Co., Ltd.’s upcoming earnings report date?

Tokai Lease Co., Ltd.’s upcoming earnings report date is Apr 24, 2026 which is in 66 days.

How were Tokai Lease Co., Ltd.’s earnings last quarter?

Tokai Lease Co., Ltd. released its earnings results on Feb 12, 2026. The company reported ¥20.19 earnings per share for the quarter, beating the consensus estimate of N/A by ¥20.19.

Is Tokai Lease Co., Ltd. overvalued?

According to Wall Street analysts Tokai Lease Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Tokai Lease Co., Ltd. pay dividends?

Tokai Lease Co., Ltd. pays a Semiannually dividend of ¥60 which represents an annual dividend yield of 5.03%. See more information on Tokai Lease Co., Ltd. dividends here

What is Tokai Lease Co., Ltd.’s EPS estimate?

Tokai Lease Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Tokai Lease Co., Ltd. have?

Tokai Lease Co., Ltd. has 3,494,322 shares outstanding.

What happened to Tokai Lease Co., Ltd.’s price movement after its last earnings report?

Tokai Lease Co., Ltd. reported an EPS of ¥20.19 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 2.823%.

Which hedge fund is a major shareholder of Tokai Lease Co., Ltd.?

Currently, no hedge funds are holding shares in JP:9761

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Tokai Lease Co., Ltd.

Tokai Lease Co., Ltd. manufactures, sells, and leases temporary buildings, and fixtures and fittings in Japan. The company's solutions cover flat houses, such as convenience stores, schools, support centers, factories, post offices, fire and disaster management agencies, emergency temporary housing, government buildings, police boxes, dining rooms, offices, and toilet buildings; and unit houses comprising schools, vote counting facilities, and offices. Its solutions also cover TU suspended ceiling and partition, steel lumber, kitchen capsule, Tokai system basics, steel eaves and waist, steel steps, and air conditioner panels; and office equipment and fixtures, such as desk chairs, storage furniture, air conditioners, home appliances, outdoor and educational equipment, and others. Tokai Lease Co., Ltd. was founded in 1963 and is headquartered in Osaka, Japan.