Risk factor
High price volatility
Profitability factor
Greatly overvalued vs peers
About
Toho Titanium Co., Ltd. is a Japanese enterprise specializing in the production and sale of titanium metals, catalysts for propylene polymerization, and advanced electronic materials. The company's core titanium offerings encompass various forms, including titanium sponge, ingots, powder, and other finished titanium products. Beyond metals, Toho Titanium develops catalysts vital for propylene polymerization, a key process in manufacturing polypropylene. Its electronic materials portfolio is extensive, featuring titanium dioxide, which is integral to multi-layered ceramic capacitors (MLCCs), positive temperature coefficient (PTC) thermistors, dielectric filters, and piezo injectors. This titanium dioxide also serves as an additive in optical lenses, pharmaceuticals, and food products. Complementing this, they produce ultra-fine nickel powder, essential for the internal electrodes of MLCCs. The company's chemical division manufactures titanium tetrachloride, a critical raw material for creating titanium sponge, high-purity titanium dioxide, barium titanate, and polymerization catalysts, as well as its aqueous solutions. These titanium tetrachloride aqueous solutions find utility in cosmetics, pigments, and barium titanate applications. Toho Titanium also provides potassium titanates. Innovation extends to next-generation products like lanthanum lithium titanate ceramics, developed for advanced battery applications, and WEBTi, a porous titanium sheet with diverse uses in filters, electrodes, noise absorbers, and photocatalysts. Established in 1948, Toho Titanium Co., Ltd. is headquartered in Chigasaki, Japan.
Company Valuation
Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. In particular, the stock is overpriced on P/E, 'expensive' on EV/EB
Target Price
The average target price of 5727.T is 1636 and suggests 41.8% downside potential. Usually, this means a SELL recommendation among investment firms, or a recommendation to