Household Appliances and Tools

TOTO Ltd

TOTO LTD Records Extraordinary Losses in Mainland China Business Due to Structural Reform

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TOTO (TSE:5332) has seen a recent share price rebound, gaining 12% in the past month. Despite a negative five-year shareholder return, the stock trades at a price-to-sales ratio of 1x, higher than industry averages. Analysts suggest a fair value closer to 1.6x, indicating potential for growth if profit forecasts are met. However, a DCF model suggests TOTO is overvalued at its current price of ¥4,323. Investors are advised to consider risks and explore other stock opportunities.

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TOTO (TSE:5332): Assessing Valuation After a Solid Recent Share Price Rebound

TOTO (TSE:5332) has seen a 9.4% year-to-date share price return, indicating investor optimism. Its price-to-sales ratio of 0.9x is higher than the industry average, suggesting a premium valuation. However, the SWS DCF model estimates TOTO's fair value at ¥3,509, below the current trading price of ¥4,084, hinting at potential overvaluation. Investors are encouraged to explore further analysis and consider broader investment opportunities beyond TOTO.

TOTO (TSE:5332): Evaluating Valuation Following Recent Share Price Momentum

TOTO (TSE:5332) reported strong interim results but revised its full-year earnings forecast downward, leading to modest share price fluctuations. Currently priced at ¥3,859, TOTO's price-to-sales (P/S) ratio is 0.9x, indicating potential undervaluation compared to its peers but considered high relative to the broader industry average of 0.5x. A discounted cash flow (DCF) analysis suggests TOTO's fair value is ¥3,338, indicating possible overvaluation. Investors are left weighing the company's growth outlook against its current valuation metrics.

TOTO (TSE:5332): Valuation in Focus After Strong Interim Results and Full-Year Forecast Revision

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Japan’s Nikkei share average rose for a second consecutive day, driven by tech stocks amid optimism for a potential U.S. rate cut. The Nikkei 225 Index increased by 0.4% to close at 42,807.82, with SoftBank and Advantest contributing significantly. Fed Chair Jerome Powell hinted at a possible rate cut, while Bank of Japan Governor Kazuo Ueda noted wage growth could lead to interest rate hikes. TOTO saw a 7.9% rise after announcing a new plant in Georgia, while Terumo fell 4% due to a $1.5 billion acquisition.

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Japan's Nikkei climbs a 2nd day, led by tech on Fed rate cut hopes

Toilet company Toto plans to repurchase up to 2 million shares at 3,697 yen each through the Tokyo Stock Exchange's ToSTNeT-3 system on May 30, according to a Thursday Tokyo bourse filing. The buyback is part of a broader program announced April 28, allowing for up to 8 million shares or 20 billion yen in repurchases through Dec. 30.

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Toto to Buy Back Up to 2 Million Shares

Toto repurchased 1,506,700 shares for 5.57 billion yen on May 30 through the Tokyo Stock Exchange's ToSTNeT-3 system, according to a same-day filing on the Tokyo Stock Exchange. The buyback is part of a program announced in April to repurchase up to 8 million shares or 20 billion yen between May 1 and Dec. 30. As of May 30, TOTO has repurchased a total of 1,506,700 shares for 5.57 billion yen under this program.

Toto Buys Back Over 1.5 Million Shares

BRIEF-Toto Ltd - Recording Of Extraordinary Losses Due To Structural Reform For Mainland China BusinessMay 26 (Reuters) - TOTO Ltd 5332.T:NOTICE CONCERNING RECORDING OF EXTRAORDINARY LOSSES DUE TO STRUCTURAL REFORM FOR MAINLAND CHINA BUSINESSTO RECORD ABOUT 15 BILLION YEN IN EXTRAORDINARY LOSSES FOR FY2025/26EXTRAORDINARY LOSSES ALREADY FACTORED IN TO EARNINGS FORECASTS FOR FY2025/26

BRIEF-Toto Ltd - Recording Of Extraordinary Losses Due To Structural Reform For Mainland China Business

TOTO LTD - NOTICE CONCERNING RECORDING OF EXTRAORDINARY LOSSES DUE TO STRUCTURAL REFORM FOR MAINLAND CHINA BUSINESS

The global Smart Toilet market is projected to grow from USD 9.68 billion in 2024 to USD 31.50 billion by 2034, with a CAGR of 12.75%. Key players like Toto Ltd., Kohler Co., and Roca Sanitario S.A. are leading innovations in hygiene and automation. Growth drivers include urbanization, smart homes, and an aging population, with trends towards hands-free, multi-functional, and self-cleaning features. The integration of AI and IoT enhances personalized comfort and health monitoring.

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Global Smart Toilet market valued at around USD 9.68 Billion in 2024, expected to reach USD 31.50 Billion by 2034 with a CAGR of 12.75%. Companies like Toto Ltd., Kohler Co., and Roca Sanitario S.A. leading innovations in hygiene and automation for residential, commercial, and healthcare sectors. Urbanization, smart homes, and aging population driving market growth. Leading trend towards hands-free, multi-functional, and self-cleaning features. Built-in AI and IoT capabilities offering personalized comfort and health monitoring.

TOTO LTD. (TSE:5332) reported a weak earnings report, yet its stock remained strong, indicating potential investor optimism. The company's profits were impacted by JP¥27b in unusual expenses, which may not recur, suggesting better underlying earnings potential. Despite a decline in earnings per share over the past year, analysts believe TOTO's future profitability could improve. Investors should be aware of three warning signs related to TOTO's business risks. For trading, Interactive Brokers offers a low-cost platform for various financial instruments.

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There May Be Some Bright Spots In TOTO's (TSE:5332) Earnings

Toto will close two manufacturing subsidiaries in China as part of a restructuring plan due to declining profits from a weak real estate market and price competition. The Beijing and East China units will be liquidated, with production consolidated into two remaining sites. The company aims to focus on Japan-style remodeling services and affordable products for China's middle and upper-middle markets, anticipating extraordinary losses from the restructuring in the fiscal year ending March 2026.

Toto to Shut Two China Plants as Part of Restructuring Plan

Toto reported a significant decline in attributable profit for the fiscal year 2025, totaling 12.2 billion yen, a 67.3% drop from the previous year. EPS fell to 71.68 yen, while net sales rose by 3.2% to 724.45 billion yen. For fiscal 2026, Toto forecasts net sales of 753.5 billion yen and an attributable profit of 31 billion yen, with an EPS of 191.76 yen. The company declared a total dividend of 100 yen per share for fiscal 2025, with a payout ratio of 139.4%.

Toto Reports Decline in Profit Attributable for Fiscal Year 2025

TOTO (TSE:5332) has shown a consistent Return on Capital Employed (ROCE) of 8.7% over the past five years, which is slightly above the industry average of 7.5%. However, the company's capital employed has increased by 50% without a corresponding rise in ROCE, indicating a lack of high-return investments. Consequently, TOTO's stock has only gained 12% in five years, suggesting that investors may seek better opportunities elsewhere. Analysts recommend reviewing TOTO's future forecasts for a clearer picture of its potential.

TOTO (TSE:5332) Has More To Do To Multiply In Value Going Forward

A leading plumbing manufacturer, TOTO, displayed cutting-edge product design, smart technology, and sustainable solutions for improved comfort, wellness, and eco-friendly living. The company presented these innovations in MORROW, Georgia on February 24, 2025. TOTO, with annual sales exceeding $5.34 billion, is known for its commitment to pioneering solutions that prioritize both consumer well-being and environmental sustainability.

TOTO showcases eco-friendly bathroom innovations at KBIS 2025, with $5.34 billion in annual sales.

Toto has an average rating of hold and price targets ranging from 3,800 yen to 5,300 yen, according to analysts polled by Capital IQ.