Company DescriptionToyo Tire Corporation manufactures and sells tires in Japan and internationally. The company provides tires for passenger vehicles, SUVs and pickup trucks, and trucks and buses under the Toyo Tires and Nitto. It also offers automotive parts including engine and motor mounts, suspension parts, and Constant velocity universal joint (CVJ) boots. The company was formerly known as Toyo Tire & Rubber Co., Ltd. and changed its name to Toyo Tire Corporation in January 2019. Toyo Tire Corporation was incorporated in 1943 and is headquartered in Itami, Japan.

How the Company Makes Money

Toyo Tire Financial Statement Overview

Summary

Toyo Tire displays strong financial performance with robust revenue and earnings growth, effective leverage management, and a solid equity base. While the cash flow position is positive, there is room for improvement in cash generation efficiency. Overall, the company's financial health is strong, supported by its stable income and balance sheet metrics.

Income Statement

Very Positive

Toyo Tire has demonstrated strong revenue growth over the years, with a notable increase of 2.27% from 2023 to 2024. The company maintains a solid gross profit margin of 40.81% and a net profit margin of 13.23% for 2024. EBIT and EBITDA margins are robust, showcasing efficient operational management. The upward trajectory in revenue and profits indicates a healthy financial position.

Balance Sheet

Positive

The debt-to-equity ratio is stable at 0.18, indicating a well-balanced leverage strategy. The return on equity (ROE) for 2024 is a strong 15.83%, reflecting effective use of shareholder funds. The equity ratio stands at 65.38%, highlighting a strong capital structure with significant equity backing. Overall, Toyo Tire's balance sheet shows stability and prudent financial management.

Cash Flow

Positive

Toyo Tire's free cash flow has decreased from 2023 to 2024, but it remains positive, indicating healthy cash generation. The operating cash flow to net income ratio is 0.90, showcasing effective cash earnings conversion. However, the decline in free cash flow growth rate suggests potential areas for improvement in cash management.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
565.36B	552.83B	497.21B	393.65B	343.76B
	Gross Profit
230.76B	216.51B	197.98B	161.04B	123.24B
	EBIT
93.98B	76.90B	44.05B	53.08B	36.33B
	EBITDA
138.18B	127.93B	70.79B	74.55B	38.63B
	Net Income Common Stockholders
74.81B	72.27B	47.96B	41.35B	11.68B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
86.64B	52.88B	41.60B	55.62B	37.65B
	Total Assets
722.67B	645.48B	598.89B	531.23B	445.58B
	Total Debt
102.05B	82.64B	129.15B	125.67B	108.21B
	Net Debt
15.42B	29.77B	87.55B	70.06B	70.56B
	Total Liabilities
250.11B	250.28B	277.97B	251.07B	222.88B
	Stockholders Equity
472.55B	395.20B	320.68B	279.95B	220.78B
Cash Flow		Free Cash Flow
48.40B	55.80B	-31.22B	-4.26B	29.88B
	Operating Cash Flow
67.06B	86.50B	15.17B	34.47B	53.80B
	Investing Cash Flow
-15.21B	-14.66B	-16.71B	-37.54B	-27.86B
	Financing Cash Flow
-23.08B	-62.89B	-16.23B	11.70B	-12.64B

Toyo Tire Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TOTTF		$3.20B	5.90	14.57%	4.76%	―	―
Sector *	62 Neutral	$6.84B	11.41	2.80%	3.87%	2.70%	-24.58%
BRDCF		$28.57B	15.74	7.60%	3.31%	―	―
SMTUF		$2.97B	52.12	-1.90%	3.30%	―	―
YORUF		$3.82B	9.38	7.48%	2.61%	―	―

* Consumer Cyclical Sector Average

Performance Comparison

TOTTF

Toyo Tire

16.38

-0.57

-3.36%

BRDCF

Bridgestone

41.22

0.82

2.03%

SMTUF

Sumitomo Rubber Industries

11.42

0.86

8.14%

YORUF

Yokohama Rubber Co

24.10

0.77

3.30%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.