Toho Chemical Industry Co Ltd

Toho Chemical Industry Co Ltd has a market price of ¥720 per share and a market capitalization of ¥15.14 billion, with a price-to-book ratio of 0.79 and a price-to-tangible-book ratio of 0.79. The company's liquidity position is characterized by ¥6.75 billion in cash and equivalents, but its long-term debt of ¥30.26 billion results in a debt-to-equity ratio of 1.59, indicating a leveraged capital structure. The current ratio of 1.51 suggests moderate short-term liquidity.

The company's profitability metrics are weak compared to industry norms, with a return on equity of 1.18% and a return on assets of 0.32%. Operating income of ¥246 million and net income of ¥225 million on ¥12.85 billion in revenue indicate thin margins, with a gross profit of ¥1.78 billion. The price-to-earnings ratio of 67.29 and an EV/EBITDA ratio of 157.11 suggest the stock is trading at a premium to earnings and cash flow.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification in the provided data. This lack of segment and geographic diversification increases exposure to sector-specific and regional risks.

Looking ahead, the company's growth trajectory is uncertain, with no specific revenue growth projections provided in the input data. Capital expenditures of ¥2.01 billion in the latest period suggest ongoing investment in operations. However, the company's operating cash flow of ¥3.4 billion may not be sufficient to sustain long-term growth without additional financing.

The risk assessment indicates medium liquidity risk and low dilution risk, but the company's net cash position is negative after subtracting total debt, signaling potential refinancing challenges. No specific dilution sources are disclosed in the input data, and the risk assessment does not indicate near-term pressure for equity issuance.

Recent financial filings show a last actual EPS of ¥73.38 and a last actual revenue of ¥53.61 billion, according to analyst estimates. No recent earnings call transcripts or material events are disclosed in the input data.

Net income surged 182.3% year-over-year to JPY 1.54 billion in FY2025, demonstrating strong bottom-line recovery.

Operating income jumped 150.8% to JPY 1.76 billion in FY2025, signaling significant improvement in core operational profitability.

Free cash flow turned positive at JPY 1.18 billion in FY2024, reversing previous years of negative cash generation.

Cash conversion ratio of 15.12 ranks as best-in-class within the Specialty Chemicals cohort of 245 peers.

Revenue grew at a 7.2% CAGR over four years, reaching JPY 53.6 billion in FY2025.

Operating margin of 1.9% and net margin of 1.8% remain significantly below the cohort medians of 6.0% and 4.5%.

Debt-to-equity ratio of 1.59 places the company in the bottom quartile compared to the cohort median of 0.23.

Return on equity of 1.2% lags the cohort median of 3.9%, indicating inefficient use of shareholder capital.

The company faces high credit risk and medium liquidity risk according to internal risk flag assessments.

Revenue ¥13.53B, +1,9% YoY; Operating income +1,6% YoY.

• ▍Revenue ¥13.53B, +1,9% YoY
• ▍Operating income +1,6% YoY
• ▍Net income −3,0% YoY
• ▍Net margin 3.1%

Revenue ¥12.90B, −3,8% YoY; Operating income −36,8% YoY.

• ▍Revenue ¥12.90B, −3,8% YoY
• ▍Operating income −36,8% YoY
• ▍Net income −49,1% YoY
• ▍Net margin 1.3%

Revenue ¥13.10B, −1,0% YoY; Operating income +35,9% YoY.

• ▍Revenue ¥13.10B, −1,0% YoY
• ▍Operating income +35,9% YoY
• ▍Net income −32,5% YoY
• ▍Net margin 2.7%

Revenue ¥13.69B, +6,5% YoY; Operating income +39,0% YoY.

• ▍Revenue ¥13.69B, +6,5% YoY
• ▍Operating income +39,0% YoY
• ▍Net income +11,1% YoY
• ▍Net margin 1.8%

Revenue ¥13.29B; Operating income ¥550.0M.

• ▍Revenue ¥13.29B
• ▍Operating income ¥550.0M
• ▍Net margin 3.3%

Revenue ¥13.41B; Operating income ¥470.0M.

• ▍Revenue ¥13.41B
• ▍Operating income ¥470.0M
• ▍Net margin 2.6%

Revenue ¥13.23B; Operating income ¥401.0M.

• ▍Revenue ¥13.23B
• ▍Operating income ¥401.0M
• ▍Net margin 3.9%

Revenue ¥12.85B; Operating income ¥246.0M.

• ▍Revenue ¥12.85B
• ▍Operating income ¥246.0M
• ▍Net margin 1.8%

Revenue ¥53.61B, +6,0% YoY; Operating income +150,8% YoY.

• ▍Revenue ¥53.61B, +6,0% YoY
• ▍Operating income +150,8% YoY
• ▍Net income +182,3% YoY
• ▍Free cash flow −4,4% YoY
• ▍Net margin 2.9%

Revenue ¥50.60B, −8,6% YoY; Operating income −45,1% YoY.

• ▍Revenue ¥50.60B, −8,6% YoY
• ▍Operating income −45,1% YoY
• ▍Net income −44,0% YoY
• ▍Free cash flow +198,5% YoY
• ▍Net margin 1.1%

Revenue ¥55.36B, +11,0% YoY; Operating income +8,7% YoY.

• ▍Revenue ¥55.36B, +11,0% YoY
• ▍Operating income +8,7% YoY
• ▍Net income −30,0% YoY
• ▍Free cash flow −41,5% YoY
• ▍Net margin 1.8%

Revenue ¥49.89B, +22,7% YoY; Operating income −9,0% YoY.

• ▍Revenue ¥49.89B, +22,7% YoY
• ▍Operating income −9,0% YoY
• ▍Net income +38,9% YoY
• ▍Free cash flow −80,6% YoY
• ▍Net margin 2.8%