Toppan Printing Co (7911) AI Stock Analysis

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JP:7911 Dividends

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Toppan Printing Co

(OTC:7911)

67Neutral

Toppan Printing Co scores well due to its strong financial performance with consistent revenue and profit growth and low leverage. However, the lack of recent cash flow data and the stock's bearish technical indicators pull the score down. The valuation appears reasonable with a moderate P/E ratio and modest dividend yield, but the overall outlook is tempered by the technical analysis showing negative market momentum.

Toppan Printing Co (7911) vs. S&P 500 (SPY)

Market Cap

$1.14T

Dividend Yield1.16%

Average Volume (3M)774.50K

Price to Earnings (P/E)13.0

Beta (1Y)0.83

Revenue Growth4.88%

EPS Growth77.54%

CountryJP

Employees53,712

SectorIndustrials

Sector Strength65

IndustrySpecialty Business Services

Share Statistics

EPS (TTM)295.72

Shares Outstanding318,706,240

10 Day Avg. Volume604,900

30 Day Avg. Volume774,500

Financial Highlights & Ratios

PEG Ratio0.17

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

Price to Cash Flow (P/CF)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$5,180.09

Price Target Upside32.21% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Toppan Printing Co Business Overview & Revenue Model

Company DescriptionToppan Printing Co., Ltd. is a leading Japanese multinational corporation specializing in a wide range of printing and information-related services. Founded in 1900, the company operates in several sectors including Information & Communication, Living & Industry, and Electronics. Toppan offers diverse products and services such as security and commercial printing, packaging, décor materials, display components, and digital transformation solutions.

How the Company Makes MoneyToppan Printing Co., Ltd. generates revenue through a diversified portfolio of products and services. The Information & Communication segment offers commercial printing, publishing, and security solutions, which include banknotes and passports, contributing significantly to its earnings. The Living & Industry segment provides packaging solutions, décor materials, and sustainable products that cater to various industries such as food and beverages, consumer goods, and construction. The Electronics segment focuses on manufacturing display components and semiconductor-related products, serving major electronic device manufacturers. Toppan also invests in digital innovation, offering IT solutions and services that support digital transformation across industries. The company's revenue is bolstered by strategic partnerships and a global presence, ensuring a steady demand for its products and services worldwide.

Toppan Printing Co Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
Income Statement		Total Revenue
1.72T	1.68T	1.64T	1.55T	1.47T	1.49T
	Gross Profit
413.16B	393.46B	362.16B	334.76B	301.40B	300.14B
	EBIT
87.93B	74.29B	76.64B	73.50B	58.79B	66.41B
	EBITDA
166.46B	218.12B	152.10B	140.09B	198.96B	196.34B
	Net Income Common Stockholders
89.41B	74.39B	60.87B	123.18B	82.00B	87.05B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
420.39B	558.03B	504.92B	464.65B	543.39B	366.01B
	Total Assets
2.35T	2.43T	2.24T	2.29T	2.36T	2.14T
	Total Debt
170.95B	208.46B	223.78B	254.08B	324.24B	250.94B
	Net Debt
-244.14B	-281.48B	-207.94B	-183.88B	-189.73B	-36.27B
	Total Liabilities
791.99B	865.58B	786.65B	850.98B	910.34B	833.22B
	Stockholders Equity
1.41T	1.42T	1.33T	1.37T	1.32T	1.18T
Cash Flow		Free Cash Flow
0.00	55.60B	21.98B	9.48B	8.06B	10.73B
	Operating Cash Flow
0.00	157.50B	106.08B	64.75B	76.86B	92.13B
	Investing Cash Flow
0.00	-8.65B	-31.41B	32.80B	81.25B	-35.14B
	Financing Cash Flow
0.00	-85.67B	-50.13B	-186.96B	42.22B	-32.74B

Toppan Printing Co Technical Analysis

Technical Analysis Sentiment

Negative

Last Price3918.00

Price Trends

50DMA

4200.86

Negative

100DMA

4173.48

Negative

200DMA

4224.94

Negative

Market Momentum

MACD

-88.39

Negative

RSI

46.66

Neutral

STOCH

58.62

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7911, the sentiment is Negative. The current price of 3918 is above the 20-day moving average (MA) of 3911.65, below the 50-day MA of 4200.86, and below the 200-day MA of 4224.94, indicating a neutral trend. The MACD of -88.39 indicates Negative momentum. The RSI at 46.66 is Neutral, neither overbought nor oversold. The STOCH value of 58.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7911.

Toppan Printing Co Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7914	72 Outperform	¥32.97B	11.22		3.35%	4.35%	35.34%
3863	69 Neutral	$131.94B	4.24	7.04%	0.83%	0.11%	―
7915	68 Neutral	€56.52B	14.16	3.29%	4.36%	16.62%	―
7911	67 Neutral	$1.14T	12.98	6.28%	1.16%	4.88%	77.54%
7912	67 Neutral	¥938.85B	6.97	10.80%	1.87%	2.25%	17.40%
Sector *	62 Neutral	$4.16B	11.31	5.46%	215.65%	4.12%	-8.47%
3896	46 Neutral	¥4.27B	―		―	-4.53%	-535.04%

* Industrials Sector Average

Performance Comparison

JP:7911

Toppan Printing Co

3,918.00

281.19

7.73%

JP:3896

AWA PAPER & TECHNOLOGICAL COMPANY, Inc.

427.00

-56.00

-11.59%

JP:7914

Kyodo Printing Co., Ltd.

1,040.00

251.38

31.88%

JP:7915

Nissha Co.Ltd.

1,155.00

-418.81

-26.61%

JP:3863

Nippon Paper

1,142.00

44.52

4.06%

JP:7912

Dai Nippon Printing Co

1,962.00

-262.69

-11.81%

Toppan Printing Co Earnings Call Summary

Earnings Call Date: Feb 13, 2025 | % Change Since: -1.89% | Next Earnings Date: May 14, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mix of positive and negative aspects. While the semiconductor segment showed significant growth and there was an improvement in cash flow, the overall decline in profit and challenges in the Information & Communications segment are concerning. The strategic reduction of shareholdings and confidence in achieving full-year targets provide a positive outlook.

Highlights

Growth in Semiconductor Segment

Semiconductor profits expanded by JPY 7.4 billion, led mainly by FC-BGA and photomasks. Sales of FC-BGA substrates and photomasks increased significantly.

Cash Flow Improvement

Cash flow from operating activities was JPY 65.2 billion, a JPY 26.7 billion increase year-on-year.

Increased Electronics Business Performance

Sales increased by 4.1% year-on-year to JPY 133.8 billion, and operating profit increased by 7.4% to JPY 22.4 billion in the Electronics business segment.

Positive Outlook for Full Year

Confidence in achieving the revised full year operating profit target of JPY 78 billion, with no major changes in overall profit composition.

Strategic Shareholdings Reduction

Reduction in strategic shareholdings is proceeding as planned, with the value of divestments since April 2018 exceeding JPY 400 billion.

Lowlights

Decline in Overall Profit

Operating profit was down 11.4% to JPY 25.3 billion, and ordinary profit was down 13.4% to JPY 32.5 billion. Profit attributable to owners of the parent decreased by 66.1% to JPY 18 billion.

Challenges in Information & Communications Segment

Sales declined 2.4% year-on-year to JPY 414 billion, and operating profit fell 7.8% to JPY 11 billion.

Financial Impact from Amortization Costs

Higher amortization costs from the standardization of the useful life of photomask equipment negatively affected profits.

Impact of Natural Disasters

Heavy rains in India caused flood damage to plants, impacting profits in overseas living business by JPY 2.1 billion.

Company Guidance

During the earnings call for the first half of fiscal 2023, the company reported a slight decline in net sales by 0.2% year-on-year to JPY 800.2 billion, with operating profit decreasing by 11.4% to JPY 25.3 billion. Ordinary profit fell by 13.4% to JPY 32.5 billion, and profit attributable to owners of the parent plunged by 66.1% to JPY 18 billion. Despite these declines, the semiconductor segment saw a significant profit boost of JPY 7.4 billion, driven by increased sales of FC-BGA substrates and photomasks. The Information & Communications segment experienced a 2.4% drop in sales to JPY 414 billion, with operating profit down 7.8% to JPY 11 billion. Conversely, the Electronics business segment reported a 4.1% increase in sales to JPY 133.8 billion and a 7.4% rise in operating profit to JPY 22.4 billion. The company maintained a positive outlook for the full fiscal year, revising the profit attributable to owners of the parent upwards to JPY 68 billion, influenced by currency fluctuations and strategic business expansions. They also announced cash flow from operating activities at JPY 65.2 billion, a year-on-year increase of JPY 26.7 billion, and a free cash flow of JPY 32.7 billion.

Toppan Printing Co Corporate Events

Toppan Holdings to Transfer Shares in Giantplus to Enhance Business Focus

Jan 16, 2025

Toppan Holdings Inc. has decided to transfer its shares in Giantplus Technology Co., Ltd., a consolidated subsidiary, to optimize resource allocation and strengthen its foundation for new business creation. This decision will remove Giantplus from Toppan’s consolidation, impacting the company’s operations and potentially altering its market positioning, as the transfer will occur in two phases throughout 2025.

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.