Breaking Down TOMY Company, Ltd. Financial Health: Key Insights for Investors

TOMY Company, Ltd. (7867.T) is showing notable momentum: fiscal year ending March 31, 2025 net sales rose to ¥250.24 billion-a 20.1% increase-while first-half FY2026 net sales hit ¥127.88 billion (+5.9% YoY) driven by product sales and the DUEL MASTERS PLAY'S app even as exports declined; profitability improved with operating profit at ¥24.87 billion (FY2025) and net income at ¥16.35 billion (FY2025), delivering a profit margin of 6.53%, ROA of 9.36% (TTM) and ROE of 15.84% (TTM); balance-sheet strength is evidenced by an equity ratio up to 65.1% (Sep 30, 2025), net cash of ¥41.9 billion, total assets of ¥167.58 billion and operating cash flow of ¥16.99 billion (TTM), while valuation sits at a market cap of ¥287.68 billion with a trailing P/E of 17.71 and forward P/E of 14.98-yet risks from export declines, tariffs, rising SG&A (+¥3.5 billion) and a ¥448 million voluntary recall persist even as analysts forecast ¥281.1 billion revenue in 2026 (+16%); read on for a detailed, line-by-line investor breakdown.

TOMY Company, Ltd. (7867.T) - Revenue Analysis

TOMY Company, Ltd. (7867.T) reported robust top-line expansion driven by product sales strength and digital initiatives, while facing headwinds in export volumes.

• Fiscal year ending March 31, 2025: Net sales ¥250.24 billion (↑20.1% YoY).
• First half of fiscal year ending March 31, 2026: Net sales ¥127.88 billion (↑5.9% YoY vs. H1 prior year).
• Primary growth drivers: product sales and the DUEL MASTERS PLAY'S smartphone app success.
• Offsetting factor: exports declined during the same periods.
• Analyst revenue forecast for FY2026: ¥281.1 billion (projected ~16% increase over the past 12 months).

Key revenue composition and considerations:

• Product sales: Primary revenue engine-new SKU launches and licensed items lifted unit sales and ASPs in FY2025.
• Digital/gaming: DUEL MASTERS PLAY'S boosted recurring revenue and user engagement metrics, supporting higher gross merchandise throughput.
• Export channels: Decline observed-currency, logistics, or regional demand softness likely contributors requiring monitoring.
• Market positioning: Strong brand equity in toys and family entertainment, enabling pricing power and global distribution leverage.

Selected operational indicators and short-term implications:

• Revenue growth trajectory: From ¥250.24bn in FY2025 to a ¥281.1bn consensus for FY2026 implies continued expansion but at a moderated pace relative to FY2025's spike.
• Quarterly cadence: H1 FY2026 growth of 5.9% suggests seasonal and product-cycle effects; full-year outcome depends on second-half releases and export recovery.
• Risk factors: Export weakness, FX volatility, and competitive promotional pressure on margins.

For context on TOMY's strategic direction and corporate priorities, see: Mission Statement, Vision, & Core Values (2026) of TOMY Company, Ltd.

TOMY Company, Ltd. (7867.T) - Profitability Metrics

TOMY Company, Ltd. (7867.T) delivered marked improvement in core profitability in FY2025, driven by higher operating leverage, tighter cost control and stronger contribution from key product segments. Key headline figures and ratios below illustrate the pace and quality of that recovery.

• Operating profit rose to ¥24.87 billion in FY2025, a 32% increase from ¥18.82 billion in FY2024.
• Net income increased to ¥16.35 billion in FY2025, up 56% from ¥10.44 billion in FY2024.
• Profit margin for FY2025 was 6.53%, reflecting improved cost management and higher operating efficiency.
• Return on assets (TTM) was 9.36%, indicating effective use of the asset base to generate earnings.
• Return on equity (TTM) stood at 15.84%, signaling robust shareholder value creation.
• Basic earnings per share for the six months ended September 30, 2025, was ¥91.25, slightly down from ¥94.12 in the same period the prior year.

For additional context on TOMY's strategic positioning and business model that underpin these profitability trends, see TOMY Company, Ltd.: History, Ownership, Mission, How It Works & Makes Money.

TOMY Company, Ltd. (7867.T) - Debt vs. Equity Structure

TOMY Company, Ltd. shows a capital structure characterized by modest leverage, improving equity ratios, and solid cash generation. Key balance-sheet and cash-flow metrics for recent periods highlight the company's funding profile, shareholder capital strength, and return of cash to investors.

• Total Debt (Jun 30, 2024): ¥56.16 billion.
• Debt-to-Equity Ratio (most recent quarter): 10.15.
• Equity Ratio: 65.1% (Sep 30, 2025), up from 64.2% (Mar 31, 2025).
• Net Assets per Share: ¥1,228.01 (Sep 30, 2025) vs. ¥1,186.44 (Mar 31, 2025).
• Operating Cash Flow (TTM): ¥16.99 billion.
• Year-end Dividend (FY ended Mar 31, 2025): ¥36.00 per share (prior year: ¥24.50).

The low debt-to-equity ratio of 10.15 (expressed as a percentage-equivalent metric indicating debt is about one tenth of equity) combined with an equity ratio exceeding 65% implies a conservative leverage stance and a strong equity base. Operating cash flow of ¥16.99 billion across the trailing twelve months supports both reinvestment and shareholder distributions.

• Implication: Strong equity ratio and rising net assets per share indicate growing shareholder cushioning against leverage.
• Cash coverage: ¥16.99 billion in operating cash flow provides flexibility to service debt, fund operations, and increase dividends.
• Dividend trend: Increase from ¥24.50 to ¥36.00 signals management confidence in cash flows and balance-sheet capacity to return capital.

Further company context and background can be found here: TOMY Company, Ltd.: History, Ownership, Mission, How It Works & Makes Money

TOMY Company, Ltd. (7867.T) - Liquidity and Solvency

TOMY Company, Ltd. shows solid short-term liquidity and improving solvency metrics through fiscal 2025, supported by strong cash generation and an increased equity base.

• Current Ratio: 2.25 in the most recent quarter - indicates comfortable coverage of short-term liabilities by current assets.
• Net Cash Position: Increased by ¥6.1 billion to ¥41.9 billion as of September 30, 2025 - a direct improvement in available liquidity.
• Total Assets: ¥167.58 billion as of September 30, 2025, up from ¥165.77 billion on March 31, 2025.
• Equity Ratio: Improved to 65.1% as of September 30, 2025, from 64.2% on March 31, 2025 - stronger solvency and lower leverage risk.
• Operating Cash Flow (TTM): ¥16.99 billion - reflects robust cash generation from operations over the trailing twelve months.
• Dividend Policy: Year-end dividend of ¥36.00 per share for FY ended March 31, 2025, up from ¥24.50 per share the prior year - evidence of cash availability and shareholder returns focus.

Key implications for investors:

• Liquidity buffer is strong: a 2.25 current ratio combined with a ¥41.9 billion net cash balance reduces short-term default risk.
• Improving solvency: the equity ratio rise to 65.1% signals a prudent capital structure and reduced financial leverage.
• Cash generation and shareholder returns: ¥16.99 billion operating cash flow (TTM) and a raised dividend (¥36.00) demonstrate capacity to fund operations and return capital.
• Asset base expansion is modest but positive: total assets increased to ¥167.58 billion, supporting ongoing operations and potential reinvestment.

For more context on company strategy and background, see: TOMY Company, Ltd.: History, Ownership, Mission, How It Works & Makes Money

TOMY Company, Ltd. (7867.T) - Valuation Analysis

• Market capitalization: ¥287.68 billion (as of July 1, 2025)
• Trailing P/E: 17.71 - reflects recent earnings performance
• Forward P/E: 14.98 - implies expected earnings growth or margin improvement
• Price-to-Sales (TTM): 1.15 - indicates efficient revenue valuation
• Price-to-Book: 2.72 - market values company at a premium to book equity
• EV/Revenue: 0.99 - near-parity of enterprise value with annual revenue
• EV/EBITDA: 7.43 - moderate valuation on cash-operating earnings

TOMY Company, Ltd. (7867.T) - Risk Factors

TOMY Company, Ltd. faces several identifiable risks that investors should weigh alongside growth prospects. The company's interim disclosures for the fiscal year ending March 31, 2026, highlight specific items that have already affected profitability and could influence future cash flows and margins.

• Export performance: The company reported a decline in exports during the first half of the fiscal year ending March 31, 2026, which poses downside risk to revenue growth in export-dependent segments and FX-exposed markets.
• Tariff and trade-policy exposure: Management noted that operating profit was negatively impacted by tariffs, indicating vulnerability to changes in international trade policy and import duties.
• Higher investment spending: Accelerated investments to expand business operations have increased outlays and may pressure short-term profitability until new initiatives scale.
• Rising SG&A: Selling, general, and administrative expenses increased by ¥3.5 billion, pushing the SG&A ratio up 1.0 percentage point to 30.9%, which compresses operating margins.
• Product recall costs: The company recorded extraordinary losses of ¥448 million due to a voluntary product recall, directly reducing net income and highlighting operational/quality-control risks.
• Competitive intensity: The global toy market remains highly competitive, with pricing pressure and product substitution risks that can erode market share and margin recovery efforts.

Investors should monitor quarterly updates for export trends, tariff developments, SG&A trajectory, recall remediation costs, and the returns generated by the current round of investments. For more background on investor composition and recent buying patterns, see: Exploring TOMY Company, Ltd. Investor Profile: Who's Buying and Why?

TOMY Company, Ltd. (7867.T) - Growth Opportunities

• Product Innovation - Digital & Hybrid Toys: The launch and traction of DUEL MASTERS PLAY'S (smartphone app tie-ins and digital card ecosystems) underscore the company's ability to convert legacy IP into recurring digital engagement. The global mobile gaming market generated roughly $116 billion in revenue in 2023, indicating a sizable addressable market for digital tie-ins.
• International Expansion - IP Exports: Exporting properties such as 'Punirunes' to Europe and the U.S. captures higher ARPU (average revenue per user) markets. The global toy market was approximately $120 billion in 2023; Western markets often deliver premium pricing and licensing opportunities.
• Strategic Partnerships - Retail & Distribution: Collaborations with Sega and Mitsubishi for U.S. retail initiatives can accelerate shelf presence and co-marketing. Strategic retail partnerships often increase distribution reach by 20-40% in early rollouts.
• E-commerce Growth - Direct-to-Consumer (DTC) & Marketplaces: Shifting sales mix toward online channels can raise gross margins (online margin improvements of 3-8 percentage points are common in the toys sector) and enable richer first-party data to optimize product cycles.
• Licensing Agreements - Franchise Monetization: Licensing popular franchises to third parties (apparel, collectibles, media) can add high-margin revenue streams; typical licensing royalty rates in toys/entertainment range from 6-15% of wholesale value.
• Sustainability Initiatives - Eco-friendly Product Lines: Developing recyclable and bio-based material toys aligns with consumer trends-60%+ of surveyed consumers in many markets prefer sustainable products-and can justify price premiums of 5-12% on select SKUs.

• Portfolio & R&D: Continued reinvestment in R&D (targeting modular physical-digital toys) can increase product lifecycle value. For context, mid-sized toy companies often allocate 3-6% of revenue to R&D and product development.
• Channel Mix Optimization: If TOMY shifts online share from ~15-20% to 30-35% of total sales over 2-3 years, modeled margin expansion and data capture could materially improve EBITDA margins.
• Risk/Execution Points: Conversion of IP to durable international hits requires strong localization, partner execution, and marketing spend; measured KPIs (sell-through, retention, royalty uptake) will reveal success early.