| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 3059.29 | 12 |
| Intrinsic value (DCF) | 9516.93 | 249 |
| Graham-Dodd Method | 1059.18 | -61 |
| Graham Formula | 5001.76 | 84 |
TOMY Company, Ltd. (7867.T) is a leading Japanese toy and consumer goods manufacturer with a rich history dating back to 1924. Headquartered in Tokyo, the company designs, produces, and markets a diverse portfolio of toys, baby care products, card games, and licensed merchandise under iconic brands like TOMICA, PLARAIL, BEYBLADE BURST, and TRANSFORMERS. TOMY operates globally, with a strong presence in Japan, Asia, Europe, the Americas, and Oceania. The company's product range includes die-cast miniature cars, dolls, train sets, and child-rearing essentials, catering to infants, children, and adults. TOMY also engages in content development for popular franchises like BAKUGAN and PAW PATROL, enhancing its brand appeal. With approximately 60 brands and retail operations under the KIDDY LAND banner, TOMY leverages its strong IP portfolio and manufacturing expertise to maintain a competitive edge in the global toy industry. As a key player in the consumer cyclical sector, TOMY combines innovation with nostalgia, targeting both domestic and international markets.
TOMY Company presents a stable investment opportunity with its diversified toy and merchandise portfolio, strong brand recognition, and global reach. The company's low beta (0.094) suggests lower volatility compared to the broader market, appealing to risk-averse investors. With JPY 208.3 billion in revenue and JPY 9.8 billion in net income (FY 2024), TOMY demonstrates solid profitability. Its healthy cash position (JPY 64.3 billion) and manageable debt (JPY 16.9 billion) provide financial flexibility. However, the toy industry is highly competitive and subject to shifting consumer trends, which could impact growth. TOMY's dividend yield (JPY 56 per share) adds income appeal, but investors should monitor its ability to sustain innovation and expand in international markets.
TOMY Company competes in the global toy industry by leveraging its strong IP portfolio, manufacturing expertise, and established brands like TOMICA and BEYBLADE. The company's competitive advantage lies in its ability to blend traditional toy categories (e.g., die-cast cars, dolls) with modern entertainment franchises (e.g., BAKUGAN, PAW PATROL). TOMY's focus on both domestic (Japan) and international markets provides revenue diversification, though it faces stiff competition from larger global players. Its vertically integrated operations, from design to retail (via KIDDY LAND), allow for better margin control. However, TOMY's smaller scale compared to giants like Bandai Namco or Hasbro limits its marketing and R&D resources. The company's strength in miniature vehicles (TOMICA) and collectibles differentiates it, but it must continually innovate to keep pace with digital and interactive toy trends. Licensing partnerships (e.g., TRANSFORMERS, JOHN DEERE) enhance its product appeal, though reliance on third-party IP carries risks. TOMY's niche in high-quality, nostalgic toys provides stability but may constrain rapid growth in a fast-evolving industry.