T.O.Holdings CO. LTD. (9812) AI Stock Analysis

• Market Cap: ¥1.70B
• Dividend Yield: 0.2%
• Average Volume (3M): 11.31K
• Price to Earnings (P/E): 404.3
• Beta (1Y): 0.97
• Revenue Growth: -9.71%
• EPS Growth: -280.94%
• Country: JP
• Employees: 480
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): N/A
• Shares Outstanding: 8,926,896
• 10 Day Avg. Volume: 16,250
• 30 Day Avg. Volume: 11,310
• PEG Ratio: 2.98
• Price to Book (P/B): 5.24
• Price to Sales (P/S): 0.10
• P/FCF Ratio: 4.17
• 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: 40 Underperform
• Price Target: ¥245.00 ▼(-5.41% Downside)
• Action: Downgraded Date: 11/07/25
• Date: Action: Downgraded 11/07/25

The overall stock score is primarily impacted by the company's weak financial performance and bearish technical indicators. The negative P/E ratio and low dividend yield further contribute to the low valuation score, making the stock unattractive at this time.

Positive Factors

Cash Generation

Improved operating cash flow and a strong operating cash flow to net income ratio indicate the company converts earnings into cash effectively. This durable cash-generating ability supports working capital, debt service and selective reinvestment over the next several months despite earnings volatility.

Gross Margin Stability

A relatively stable gross profit margin suggests the company maintains pricing power or consistent input cost management at the product level. Stable gross margins provide a foundation for margin recovery as volumes stabilize and help protect operating profitability as fixed costs are managed.

Industry Exposure

Operating in construction materials gives exposure to structurally recurring demand from infrastructure and building activity. That end-market orientation tends to produce durable baseline demand and contract opportunities, supporting revenue visibility over a multi-month horizon if construction activity remains steady.

Negative Factors

High Leverage

Significant leverage and a low equity ratio reduce financial flexibility, increase interest burdens, and raise solvency risk. Over 2–6 months high debt limits the firm's ability to invest, absorb shocks or refinance cheaply, constraining strategic options and elevating default vulnerability in downturns.

Declining Revenue

Persistent top-line decline erodes scale and operating leverage, making it harder to cover fixed costs and maintain margins. Without a clear revenue stabilization or growth catalyst, shrinking sales undermine long-term profitability and the ability to fund capex or debt reduction organically.

Negative Profitability

Negative net margins and weak operating margins reflect structural cost or pricing pressure and operational inefficiencies. Sustained unprofitability limits retained earnings, hampers reinvestment and dividend capacity, and forces reliance on external financing, which is difficult given the high leverage profile.

T.O.Holdings CO. LTD. Business Overview & Revenue Model

Company Description

T.O. Holdings Co.,Ltd., through its subsidiaries, engages in the distribution of clothing, furniture, home appliances, household appliances, mobile phone agency, and credit card business in Japan and internationally. It also offers consumer loans; sells DIY supplies and groceries; sells DVD / CD rentals, books/magazines, etc.; and sells timber, building materials, system kitchens, unit baths, and toilets. In addition, the company is involved in the civil engineering, pavement, and construction works, such as buildings and commercial facilities; leasing business of land and buildings, comprising of condominiums, detached houses, offices, warehouses, etc.; automobile sales and automobile repair business; and operation of sports clubs and swimming schools. Further, it engages in the provision of fire and automobile insurance, non-life insurance agency business, life insurance business, and leasing business, as well as sell and lease office equipment such as printers and multifunction devices, and mail order sales of office supplies and field supplies. Additionally, the company provides consultation services on new car sales, used car handling, inspection, maintenance, catalogs, quotes, and test drive searches services; and women's and men's fashion, accessories, bags, wallets, women's and men's shoes, jewelry, precious metals, cosmetics, home renovation, 100 yen shops, furniture, interiors, bedding, cafes and cakes, relaxation salons, and food. The company was formerly known as T.O. Ogasawara Co., Ltd. and changed its name to T.O. Holdings Co.,Ltd. in June 2017. T.O. Holdings Co.,Ltd. was founded in 1950 and is headquartered in Hakodate, Japan.

How the Company Makes Money

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T.O.Holdings CO. LTD. Financial Statement Overview

Summary

The company faces significant financial challenges with declining revenues, negative profitability, and high leverage. While cash flow generation shows some positive trends, the overall financial health is concerning due to high debt levels and inconsistent profitability.

Income Statement

The company has faced declining revenue over the past few years, with a negative revenue growth rate of -3.29% in the latest period. Gross profit margin remains relatively stable, but net profit margin has turned negative, indicating profitability challenges. The EBIT and EBITDA margins are low, reflecting operational inefficiencies.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, indicating significant leverage and potential financial risk. Return on equity is negative, reflecting poor profitability relative to shareholder equity. The equity ratio is low, suggesting limited equity financing and potential solvency concerns.

Cash Flow

Operating cash flow has improved, but free cash flow growth is volatile, with a recent spike due to a low base effect. The operating cash flow to net income ratio is strong, indicating good cash generation relative to reported earnings. However, the free cash flow to net income ratio is inconsistent, reflecting fluctuating cash flow performance.

Breakdown	TTM	May 2025	May 2024	May 2023	May 2022	May 2021
Income Statement
Total Revenue	23.42B	24.19B	25.61B	26.49B	27.70B	30.86B
Gross Profit	5.70B	5.34B	5.62B	6.01B	6.01B	6.54B
EBITDA	667.18M	721.87M	853.85M	816.89M	848.82M	934.41M
Net Income	-68.58M	-7.58M	111.53M	-521.64M	-28.26M	123.29M
Balance Sheet
Total Assets	16.73B	17.07B	17.92B	19.60B	20.71B	21.71B
Cash, Cash Equivalents and Short-Term Investments	696.63M	683.49M	474.76M	1.14B	766.51M	800.47M
Total Debt	10.57B	11.53B	11.84B	13.78B	13.91B	14.86B
Total Liabilities	16.17B	16.47B	17.32B	19.13B	19.63B	21.42B
Stockholders Equity	423.22M	461.52M	453.37M	329.88M	913.24M	291.21M
Cash Flow
Free Cash Flow	0.00	578.84M	421.08M	512.13M	307.58M	2.13B
Operating Cash Flow	0.00	1.06B	734.64M	873.59M	678.95M	3.03B
Investing Cash Flow	0.00	-471.08M	616.39M	-287.91M	-199.96M	437.69M
Financing Cash Flow	0.00	-382.95M	-2.02B	-189.21M	-532.95M	-3.55B

T.O.Holdings CO. LTD. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 259.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9812, the sentiment is Negative. The current price of 259 is below the 20-day moving average (MA) of 266.45, below the 50-day MA of 274.26, and below the 200-day MA of 294.46, indicating a bearish trend. The MACD of -3.43 indicates Negative momentum. The RSI at 47.36 is Neutral, neither overbought nor oversold. The STOCH value of 47.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9812.

T.O.Holdings CO. LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5288	80 Outperform	¥54.32B	7.15	―	3.25%	9.50%	77.72%
5268	69 Neutral	¥12.29B	18.59	―	1.24%	-2.82%	-44.93%
5900	64 Neutral	¥4.74B	56.66	―	2.05%	―	―
1994	63 Neutral	¥4.73B	21.80	―	3.79%	-14.22%	-92.98%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5269	49 Neutral	¥18.18B	743.26	―	3.24%	-3.73%	-143.19%
9812	40 Underperform	¥1.70B	404.25	―	0.20%	-9.71%	-280.94%