Tokai Carbon Co., Ltd. (TKCBF)
NEUTRALFundamental
65
Price
$1646.50
Market Cap
$352.50B
Part 1 · What the company is worth
Overview
Tokai Carbon makes carbon-based industrial materials that other manufacturers need but consumers never see: carbon black used to strengthen rubber in tires, graphite electrodes that conduct the electricity in steel-recycling furnaces, and specialty fine-carbon products used in semiconductor and industrial equipment. It also builds and lines the furnaces some of its own customers use. The company sells worldwide to tire makers, steelmakers and electronics manufacturers rather than to end consumers.
How it makes money
Revenue comes from selling tonnes of industrial material under multi-year supply agreements with large manufacturers, so volume and price both move with how much steel, tires and electronics its customers are producing. Carbon black is the largest business by far, tied closely to global tire output. Because production requires large, capital-intensive plants, profitability depends on keeping those plants running near capacity and on passing through swings in raw material and energy costs.
Revenue by segment
A reinforcing filler for rubber products, mainly tires, plus black pigments and conductive materials — the group's largest business by far.
Construction and lining of industrial furnaces, mainly for steelmaking and non-ferrous metal smelting customers.
Specialty carbon products, including silicon carbide materials and coatings, used in semiconductor and industrial equipment.
Graphite electrodes that conduct electricity in electric arc furnaces, used mainly to recycle scrap steel.
Equipment and related products for industrial furnace customers, a smaller line adjacent to the smelting and lining business.
Smaller product lines that do not belong to the five main segments.
What drives demand
CyclicalCarbon black volumes track global tire and automobile production, and graphite electrode volumes track how much scrap steel is recycled through electric furnaces — both of which slow sharply in industrial downturns. The company's 2025 results, in which net sales fell but operating income rose after cost cuts and structural reforms, illustrate how far profitability can swing even without a change in the top line.
The case for
Buyers argue that Tokai Carbon's structural reforms and cost cuts have already turned around profitability in its weaker segments, that carbon black demand is tied to a tire market that keeps replacing itself regardless of new vehicle sales, and that its diversification across six product lines cushions any single end market's downturn.
The case against
Sellers fear that a business this tied to global steel and tire production will keep swinging with the industrial cycle, that capital-intensive plants leave little room to cut costs further once volumes fall, and that the graphite electrode and smelting segments have already shown how quickly profitability can turn negative.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
No editorial profile for this company yet
No competitor list for this company yet.
Balance Sheet & Liquidity
Revenue
$324.33B
Trailing 12 months to the last reported quarter — estimated from per-share metrics
Net Income
$18.61B
Trailing 12 months to the last reported quarter — estimated from per-share metrics
Free Cash Flow
$2.94B
Total Equity
$339.22B
Total Liabilities
$217.20B
Current Ratio
2.25
Interest Coverage
-
Debt/EBITDA
3.45
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$1681.48
Current Price
$1646.50
Margin of Safety
+2.1%
Fair Value Range
$1092.96 - $2270.00
Estimation Methods
Valuation Metrics
P/E Ratio
18.94
ROE
6.8%
P/B Ratio
1.11
P/FCF
119.87
Gross Margin
24.7%
ROIC
4.6%
Profitability Radar
Value Creation (Economic Moat)
ROIC
4.6%
WACC
7.3%
ROIC − WACC
-2.7 pp
ROIC is below the cost of capital — the company is destroying value for every dollar invested.
Fundamental Analysis Criteria
Passed (14)
- Price CAGR 15.06%
- P/B Ratio 1.11
- Debt/Equity ratio
- Operating Margin 7.9%
- Positive Free Cash Flow
- Current Ratio
- Debt/EBITDA
- Price below Graham Number
- Revenue Growth 5Y 9.9%
- Analyst Consensus 75% Buy
- Earnings Surprise avg 64.7%
- PEG Ratio 0.26
- Earnings Quality (OCF/NI) 2.74
- Net Margin Trend 6.2% vs -39.2%
Failed (7)
- ROIC 4.6%
- Gross Margin 24.7%
- P/FCF 119.87
- CapEx intensity
- DCF valuation (Overvalued)
- ROE 6.2%
- Piotroski F-Score 2/9
Unavailable (6)
- EPS data insufficient
- Dividend Payout NaN%
- Interest Coverage
- Return on Tangible Assets
- Low reliance on intangibles
- Share Dilution (missing shares data)
Piotroski F-Score
Serious financial concerns
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Hajime Nagasaka | President, CEO & Chairman | 75 |
| Hirai Naoki | Executive Officer, Finance and Accounting Dept Manager and Head of Finance & Accounting Dept | - |
| Mr. Toshiaki Fukuda | Advisor | - |
| Mr. Masafumi Tsuji | Managing Executive Officer, GM of Graphite Electrode Division & Director | 62 |
| Kazuhiko Matsubara | Advisor | - |
| Mr. Katsuyuki Yamaguchi | Executive Officer, GM of R&D Strategy Department & Director | 61 |
| Kazuhito Kataoka | Executive Officer & GM of Business Incubation Department | - |
| Kouji Miura | Executive Officer & GM of Chita Laboratory | - |
| Mr. Akihiko Sato | Executive Officer & Director | 60 |
| Kazuyoshi Haino | Executive Officer & Special Technical Advisor of Tokai COBEX | - |
Audit Risk
1
Board Risk
8
Compensation Risk
1
Shareholder Rights Risk
1
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Latest News
Recent headlines for TKCBF, sourced from Markets Gazette.