Totech Corporation (9960) AI Stock Analysis

• Market Cap: ¥166.35B
• Dividend Yield: 3.41%
• Average Volume (3M): 33.60K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.99
• Revenue Growth: 14.28%
• EPS Growth: 33.81%
• Country: JP
• Employees: 2,614
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 73.42
• Shares Outstanding: 41,964,000
• 10 Day Avg. Volume: 35,520
• 30 Day Avg. Volume: 33,603
• PEG Ratio: 0.15
• Price to Book (P/B): 1.64
• Price to Sales (P/S): 0.64
• P/FCF Ratio: 7.96
• 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: 79 Outperform
• Price Target: ¥4,780.00 ▲(30.42% Upside)

Totech Corporation's strong financial performance and attractive valuation are the primary drivers of its high stock score. The technical analysis indicates positive momentum, though caution is advised due to overbought signals. The absence of recent earnings call data and corporate events does not detract from the overall positive outlook.

Positive Factors

Robust free cash flow growth

A 50% year-over-year jump in free cash flow and FCF/net income >1 indicate strong cash generation. Sustainable cash inflows enhance ability to fund capex, dividends, buybacks, debt reduction and strategic investments, increasing resilience across cycles.

Very low leverage and solid equity base

High equity ratio and minimal debt provide financial flexibility and low solvency risk. This balance sheet strength supports discretionary investment, withstands downturns without heavy refinancing, and enables opportunistic M&A or capex when needed.

Consistent revenue and margin improvement

Mid-teens revenue growth with expanding gross and operating margins reflects improving product mix, pricing power and cost control. Sustained margin expansion enhances long-term profitability and provides durable earnings leverage as revenue scales.

Negative Factors

Cyclical industry exposure

Operating in hardware and equipment ties revenue to capital expenditure cycles across end markets. Demand cyclicality can cause pronounced revenue and margin volatility, reducing predictability of cash flows and stressing capacity utilization during downturns.

Limited forward guidance / disclosure

Absence of formal guidance and empty earnings highlights limits forward visibility for investors and analysts. This reduces transparency for forecasting and strategic decision-making, making it harder to assess near-term risks and resource allocation choices.

Modest absolute net margin

Although margins improved, a 7.2% net margin provides a relatively thin profit buffer versus cost inflation or revenue declines. In cyclical hardware markets, modest absolute margins can translate to larger swings in free cash flow under adverse demand or pricing pressure.

Totech Corporation Business Overview & Revenue Model

Company Description

Totech Corporation engages in the sale of air conditioning equipment and control system equipment in Japan. The company offers services for managing facility environment to various customers, including building owners, users, and managers; and equipment facilities and instruments for institutions, as well as creates, accumulates, and serves energy. It also undertakes construction control of various electric equipment and repair works of public institutions, commercial institutions, and factories. The company offers environment systems in the field of public institutions, business offices, factories, shops, and houses; and sells and maintains instrumentation devices. Totech Corporation was incorporated in 1955 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Totech Corporation generates revenue through the sale of its specialized products and services within the semiconductor and electronics industries. The company's primary revenue streams include direct sales of moisture control systems, storage solutions, and environmental management products to manufacturers. Additionally, Totech benefits from ongoing service contracts and maintenance agreements for their equipment, providing a steady stream of recurring revenue. The company also engages in strategic partnerships and collaborations with key players in the semiconductor and electronics sectors, enhancing its market reach and facilitating joint ventures which can contribute to revenue growth.

Totech Corporation Financial Statement Overview

Summary

Totech Corporation exhibits strong financial health with robust revenue growth, improved profitability margins, a stable financial structure with low leverage, and strong cash generation capabilities. The company is well-positioned for future growth with a solid financial foundation.

Income Statement

Totech Corporation has demonstrated strong revenue growth with a 10.8% increase from 2024 to 2025. The gross profit margin improved to 26.9%, and the net profit margin increased to 7.2%, indicating enhanced profitability. The EBIT and EBITDA margins also showed positive trends, reaching 9.4% and 11.4% respectively, reflecting efficient cost management and operational performance.

Balance Sheet

The company maintains a solid equity base with an equity ratio of 58.2%, indicating financial stability. The debt-to-equity ratio decreased to 0.06, highlighting a low leverage risk. Return on equity improved to 18.3%, showcasing effective utilization of equity to generate profits. Overall, the balance sheet reflects a strong financial position with manageable debt levels.

Cash Flow

Totech Corporation's free cash flow grew significantly by 50.0% from 2024 to 2025, indicating robust cash generation capabilities. The operating cash flow to net income ratio is 1.24, suggesting efficient conversion of net income into cash. The free cash flow to net income ratio is 1.13, reflecting strong cash profitability. These metrics highlight the company's healthy cash flow position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	160.39B	155.96B	140.73B	126.70B	110.12B	109.65B
Gross Profit	43.21B	41.89B	34.55B	31.61B	27.39B	26.26B
EBITDA	18.28B	17.72B	12.67B	10.10B	8.89B	7.50B
Net Income	11.39B	11.19B	7.00B	5.23B	4.72B	4.79B
Balance Sheet
Total Assets	100.18B	105.23B	100.48B	92.06B	84.61B	81.48B
Cash, Cash Equivalents and Short-Term Investments	10.18B	13.08B	8.69B	6.05B	7.84B	5.04B
Total Debt	9.28B	3.82B	9.00B	12.33B	12.29B	14.08B
Total Liabilities	39.31B	44.00B	47.04B	46.57B	42.94B	42.89B
Stockholders Equity	60.87B	61.23B	53.43B	45.49B	41.67B	38.59B
Cash Flow
Free Cash Flow	0.00	12.61B	8.40B	414.00M	8.78B	2.81B
Operating Cash Flow	0.00	13.88B	9.94B	4.76B	11.01B	5.24B
Investing Cash Flow	0.00	-1.10B	-437.00M	-5.03B	-5.13B	-2.27B
Financing Cash Flow	0.00	-8.41B	-6.02B	-2.65B	-3.30B	-3.79B

Totech Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3665.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9960, the sentiment is Positive. The current price of 3665 is below the 20-day moving average (MA) of 4042.00, below the 50-day MA of 3790.50, and above the 200-day MA of 3157.03, indicating a bullish trend. The MACD of 102.98 indicates Positive momentum. The RSI at 65.04 is Neutral, neither overbought nor oversold. The STOCH value of 19.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9960.

Totech Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9960	79 Outperform	¥166.35B	13.84	―	3.41%	14.28%	33.81%
6866	79 Outperform	¥83.38B	15.15	―	3.23%	7.28%	4.16%
6814	76 Outperform	¥223.63B	13.81	―	1.88%	6.56%	106.55%
6787	75 Outperform	¥327.57B	18.16	―	0.76%	15.02%	46.62%
6807	64 Neutral	¥165.53B	21.80	5.91%	2.39%	-3.24%	-25.21%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Totech Corporation Corporate Events

Totech Corporation Reports Robust Financial Growth and Positive Outlook

Totech Corporation reported significant financial growth for the six months ending September 30, 2025, with a 14.8% increase in net sales and a 24.4% rise in operating profit compared to the previous year. The company has revised its financial forecast for the fiscal year ending March 31, 2026, indicating continued positive performance, which suggests a strong market position and potential benefits for stakeholders.

The most recent analyst rating on (JP:9960) stock is a Buy with a Yen3647.00 price target. To see the full list of analyst forecasts on Totech Corporation stock, see the JP:9960 Stock Forecast page.

Totech Corporation Revises Earnings and Dividend Forecasts Amid Positive Sales Trends

Totech Corporation has revised its full-year consolidated earnings forecast for the fiscal year ending March 2026, reflecting a positive trend in sales and profits driven by a favorable order environment. The company has also announced an increase in its interim dividend and revised its year-end dividend forecast, aiming to return more profits to shareholders and maintain a stable dividend policy.

The most recent analyst rating on (JP:9960) stock is a Buy with a Yen3647.00 price target. To see the full list of analyst forecasts on Totech Corporation stock, see the JP:9960 Stock Forecast page.

Totech Corporation Achieves Record Sales and Profits in H1 FY3/26

Totech Corporation reported record-high sales and profits for the first half of FY3/26, driven by strong demand in urban redevelopment projects and investments in data centers, factories, and hotels. The company’s core business areas experienced double-digit sales growth, contributing to improved profit margins and robust order status.

The most recent analyst rating on (JP:9960) stock is a Buy with a Yen3647.00 price target. To see the full list of analyst forecasts on Totech Corporation stock, see the JP:9960 Stock Forecast page.

Totech Corporation Reports Strong Half-Year Financial Performance

Totech Corporation reported a strong financial performance for the six months ended September 30, 2025, with net sales increasing by 14.8% and operating profit rising by 24.4% compared to the previous year. The company also announced a revision in its dividend forecast, reflecting confidence in its continued growth and positive outlook for the fiscal year ending March 31, 2026.

The most recent analyst rating on (JP:9960) stock is a Buy with a Yen3647.00 price target. To see the full list of analyst forecasts on Totech Corporation stock, see the JP:9960 Stock Forecast page.