Tokyo Sangyo Co., Ltd. (8070) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Universal Engeisha Co., Ltd.

Yashima Denki Co., Ltd.

Meiwa Corp.

Seika Corp.

Kyokuto Boeki Kaisha Ltd.

Tokyo Sangyo Co., Ltd.

Sugimoto & Co., Ltd.

H-One Co., Ltd.

GL Sciences Inc.

Sumiseki Holdings, Inc.

Watahan & Co., Ltd.

Why is Tokyo Sangyo Co., Ltd. ?

Weak Long Term Fundamental Strength with a -3.41% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Net Sales has grown by an annual rate of -6.43% and Operating profit at -3.41% over the last 5 years

Flat results in Jun 25

INTEREST(9M) At JPY 203 MM has Grown at 16.67%
NET SALES(Q) At JPY 15,286 MM has Fallen at -13.54%
DEBTORS TURNOVER RATIO(HY) Lowest at 2.56%

With ROCE of 12.46%, it has a very attractive valuation with a 1.06 Enterprise value to Capital Employed

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 43.89%, its profits have risen by 172.4% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0.1

Market Beating Performance

The stock has generated a return of 43.89% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 29.35%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Tokyo Sangyo Co., Ltd. should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Trading & Distributors)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Tokyo Sangyo Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Tokyo Sangyo Co., Ltd.

39.15%

1.98

27.59%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-6.43%

EBIT Growth (5y)

-3.41%

EBIT to Interest (avg)

3.63

Debt to EBITDA (avg)

2.62

Net Debt to Equity (avg)

-0.13

Sales to Capital Employed (avg)

1.84

Tax Ratio

33.43%

Dividend Payout Ratio

43.35%

Pledged Shares

Institutional Holding

ROCE (avg)

5.42%

ROE (avg)

5.48%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.05

EV to EBIT

8.50

EV to EBITDA

6.65

EV to Capital Employed

1.06

EV to Sales

0.27

PEG Ratio

0.06

Dividend Yield

0.07%

ROCE (Latest)

12.46%

ROE (Latest)

9.92%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -93.65% (YoY

NET PROFIT(9M)

Higher at JPY 2,148.95 MM

CASH AND EQV(HY)

Highest at JPY 31,436 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 19.63%

-15What is not working for the Company

INTEREST(9M)

At JPY 203 MM has Grown at 16.67%

NET SALES(Q)

At JPY 15,286 MM has Fallen at -13.54%

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.56%

Here's what is working for Tokyo Sangyo Co., Ltd.

Net Profit

At JPY 2,148.95 MM has Grown at 222.41%

Year on Year (YoY)

MOJO Watch

Net Profit trend is very positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 31,436 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 19.63%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Profit

Higher at JPY 2,148.95 MM

than preceding 12 month period ended Jun 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (JPY MM)

Raw Material Cost

Fallen by -93.65% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Tokyo Sangyo Co., Ltd.

Net Sales

At JPY 15,286 MM has Fallen at -13.54%

over average net sales of the previous four periods of JPY 17,679 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Interest

At JPY 203 MM has Grown at 16.67%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio

Lowest at 2.56%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio