Toyobo Co., Ltd. (3101) 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

Japan Material Co., Ltd.

DIC Corp.

Shin-Etsu Polymer Co., Ltd.

Kaneka Corp.

Tokuyama Corp.

Toyobo Co., Ltd.

Kureha Corp.

UBE Corp.

OSAKA SODA CO., LTD.

Toagosei Co., Ltd.

Denka Co., Ltd.

Why is Toyobo Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate -6.08% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 5.60% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate -6.08% of over the last 5 years

The company has declared positive results in Mar'2025 after 2 consecutive negative quarters

RAW MATERIAL COST(Y) Fallen by -11.98% (YoY)
PRE-TAX PROFIT(Q) At JPY 3,943 MM has Grown at 89.39%
NET PROFIT(Q) Highest at JPY 2,188.79 MM

With ROCE of 3.89%, it has a very attractive valuation with a 0.73 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 25.92%, its profits have risen by 58.1% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 0.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Toyobo Co., Ltd. should be less than 10%
Overall Portfolio exposure to Specialty Chemicals should be less than 30%

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

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

Is Toyobo Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Toyobo Co., Ltd.

25.92%

0.65

22.05%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.44%

EBIT Growth (5y)

-6.08%

EBIT to Interest (avg)

13.22

Debt to EBITDA (avg)

5.10

Net Debt to Equity (avg)

1.19

Sales to Capital Employed (avg)

0.95

Tax Ratio

27.47%

Dividend Payout Ratio

176.03%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

4.97%

ROE (avg)

5.60%

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

0.41

EV to EBIT

18.81

EV to EBITDA

7.96

EV to Capital Employed

0.73

EV to Sales

0.74

PEG Ratio

0.20

Dividend Yield

0.06%

ROCE (Latest)

3.89%

ROE (Latest)

3.48%

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 Bullish

No Trend

OBV

Mildly Bullish

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

14What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -11.98% (YoY

PRE-TAX PROFIT(Q)

At JPY 3,943 MM has Grown at 89.39%

NET PROFIT(Q)

Highest at JPY 2,188.79 MM

EPS(Q)

Highest at JPY 17.84

-11What is not working for the Company

INTEREST(HY)

At JPY 1,322 MM has Grown at 66.29%

CASH AND EQV(HY)

Lowest at JPY 59,368 MM

DEBT-EQUITY RATIO (HY)

Highest at 121.14 %

NET SALES(Q)

Lowest at JPY 102,910 MM

Here's what is working for Toyobo Co., Ltd.

Net Profit

At JPY 2,188.79 MM has Grown at 179.54%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Pre-Tax Profit

At JPY 3,943 MM has Grown at 89.39%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 2,188.79 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 17.84

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -11.98% (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

Depreciation

Highest at JPY 5,859 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

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

Interest

At JPY 1,322 MM has Grown at 66.29%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

Lowest at JPY 102,910 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Cash and Eqv

Lowest at JPY 59,368 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 121.14 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio