Toyo Engineering Corporation (6AE) fair value: what the stock is really worth
As of Oct 26, 2026: fair value (intrinsic value) of Toyo Engineering Corporation stock €17.42, price €12.61, upside +38.1%, quality 42 out of 100. Rating: undervalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
Fair value above price?Yes
Good quality?No
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Oct 27, 2026.
How to read this chart
60‑month range €3.51 – €44.41 · fair‑value band €14.81 – €20.62 · the €12.61 price screens below the €17.42 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Oct 27, 2026.
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Toyo Engineering Corporation engages in the engineering and construction of industrial facilities in Japan, India, China, and internationally.
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It also provides various services, such as research and development support, planning, technical research, design, engineering, procurement, construction, commissioning, and technical assistance for industrial facilities, including oil and gas, petrochemicals and chemicals, water treatment, power generation, advanced production systems, pharmaceuticals and fine chemicals, biotechnology, environmental solutions, resource development, artificial intelligence.
Toyo Engineering Corporation was incorporated in 1944 and is headquartered in Chiba, Japan.
Stock analysis
Toyo Engineering Corporation (6AE) currently trades at €12.61, while our model-based Fair Value estimate is €17.42, implying the stock looks roughly 27.6% undervalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of €17.69 per share, and 6 of the 7 models we run sit above the €12.61 price.
Bear case: the Asset-Based group reads lowest at €2.49, and 1 of the 7 models stay below the price. Data coverage for this calculation is low.
Scenario range: €14.81 (bear) to €20.62 (bull), the price of €12.61 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 42/100 (below-average quality), in the Industrials sector.
Weak Growth: Revenue is shrinking: the last year, the last three and the last five years are all negative.
Toyo Engineering Corporation reported revenue of ¥183B in FY2026 versus ¥203B in FY2022, a compound −2.6%/yr. Reported net income was −¥14.9B in FY2026.
Key figures
Market cap €844M Small · EPS (TTM) €−1.42 · Dividend yield 1.0% · Net margin −8.2% · Return on equity −24.2% · Return on assets (EBIT) −0.2% · Operating margin 4.0% · Revenue (TTM) ¥182B.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 22 out of 100 (medium confidence).
What moves the price
The share trades about 69% below its 52-week high and 39% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −29% fair-value upside, at 38%, 6AE screens cheaper than that median.
Fair Value models
Bear€14.81Fair Value €17.42Bull€20.62
Price €12.61 · Upside +38.1%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.18/100
Revenue is shrinking: the last year, the last three and the last five years are all negative.
Revenue growth 1 year
−34.2%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−1.8%
’22
’23
’24
’25
’26
Profit margin (trend) ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.
1.5% (2022) → −10.4% (2026)
What shareholders gained per year ⓘWe only publish this rate when it is defensible. Reason: fiscal 2026 is a loss year, no rate is defined from a loss
not computed
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+1.6%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (figures in JPY, Japan: IMF forecast 2.1% a year to 2030, 1.3% from 2016 to 2025) that is about −0.5% a year for the price.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Engineering & Construction · 802 stocks
Beats the industry median on 2/11 measures
Overall it trails its industry peers.
Valuation
Quality Score42 · Below median
Fair Value upside+38.1% · Above median
Profitability
Return on assets−5.7% · Bottom 25%
Net margin (12 months)−7.0% · Bottom 25%
Operating margin (12 months)4.0% · Below median
Growth and dividend
Revenue growth (quarter YoY)−2.5% · Below median
Dividend yield (12 months)1.0% · Below median
Balance sheet
Debt / equity0.55× · Highest 25%
Valuation Multiplesvs Engineering & Construction median · lower = cheaper
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Is Toyo Engineering Corporation (6AE) overvalued or undervalued?
As of Oct 27, 2026, our model estimates a fair value of €17.42 versus a price of €12.61, about +38% upside (undervalued).
What is the fair value of 6AE?
Our model-based fair value for Toyo Engineering Corporation is €17.42 (as of Oct 27, 2026), built from audited fundamentals. The current price: €12.61.
What is the quality score of 6AE?
Toyo Engineering Corporation has a Quality Score of 42/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Toyo Engineering Corporation (6AE)?
Our model-based price target is the fair value of €17.42 (as of Oct 27, 2026) from 7 valuation models. Cautious scenario €14.81, optimistic scenario €20.62. It is a calculation from audited fundamentals, not an analyst target.
What is the Toyo Engineering Corporation stock forecast for 2026?
Our models put fair value at €17.42, about +38% upside versus a price of €12.61 (undervalued). Cautious scenario €14.81, optimistic scenario €20.62. The calculation is refreshed regularly with new filings.
What is the revenue of Toyo Engineering Corporation (6AE)?
Toyo Engineering Corporation reported trailing-twelve-month revenue of about ¥182B (latest available figure, as of Oct 27, 2026).
Does Toyo Engineering Corporation pay a dividend?
Toyo Engineering Corporation currently shows a dividend yield of 0.99% relative to its recent price (as of Oct 27, 2026).
What growth is priced into Toyo Engineering Corporation (6AE)?
For today's price to be fair in a discounted-cash-flow model, Toyo Engineering Corporation would have to grow free cash flow by +1.6 % per year for five years (discount rate 11.1 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 4 years revenue grew -2.6 % per year. As of Oct 27, 2026.
What discount rate (WACC) does the fair value of 6AE use?
Our models discount Toyo Engineering Corporation at 11.1 %: a base by market capitalisation (small), damped by beta 1.04, country premium for Germany. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Toyo Engineering Corporation that is +1.6 % per year a year over ten years, using the same discount rate (11.1 %) and the same formula as our fair value.
How much growth has Toyo Engineering Corporation (6AE) delivered so far?
Over the past 4 years revenue at Toyo Engineering Corporation grew -2.6 % a year. The price currently implies +1.6 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Toyo Engineering Corporation (6AE) growing?
The median revenue growth in the sector is +7.6 % a year. That is the yardstick for the growth priced into Toyo Engineering Corporation (+1.6 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Toyo Engineering Corporation (6AE)?
The free-cash-flow yield on the price is 5.99 %: that much free cash flow Toyo Engineering Corporation produces per unit of market value. When it exceeds the discount rate of our models (11.1 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Toyo Engineering Corporation (6AE)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Toyo Engineering Corporation it is €17.42 per share (as of Oct 27, 2026), against a price of €12.61. It is the blended result of 7 valuation models (cash flow, earnings, asset, dividend).
Is Toyo Engineering Corporation stock overvalued or undervalued in 2026?
As of Oct 27, 2026, 6AE trades below its calculated fair value: price €12.61, fair value €17.42, a gap of about +38% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of 6AE?
No. The price is what the market pays today (€12.61); the fair value is what the company's own numbers justify (€17.42). For Toyo Engineering Corporation the two are €4.81 per share apart. That gap is exactly why we show both numbers side by side.
How much is Toyo Engineering Corporation worth?
The market values Toyo Engineering Corporation at about €844M (market capitalisation, as of Oct 27, 2026). Per share that is €12.61; our models calculate a fair value of €17.42 per share.
What do the bullish and bearish scenarios say about 6AE?
Our models span a range for Toyo Engineering Corporation: cautious scenario €14.81, base €17.42, optimistic €20.62 per share (as of Oct 27, 2026, price €12.61). The range comes from different growth and margin assumptions, not from analyst opinions.
How solid is the balance sheet of Toyo Engineering Corporation (6AE)?
Balance-sheet figures for Toyo Engineering Corporation (as of Oct 27, 2026): return on equity −24.2%, debt of 0.55 per unit of equity. They feed the Quality Score of 42/100, which measures business quality independently of the share price.
How far is 6AE from its 52-week high?
Toyo Engineering Corporation trades at €12.61, about 69% below its 52-week high of €41.20 and 39% above the low of €9.10 (as of Oct 23, 2026). Distance from the high says nothing about value: that is what the fair value of €17.42 is for.
Which stocks are comparable to Toyo Engineering Corporation?
From the same area (Industrials) we also value Quanta Services, Inc, Vinci SA, Larsen & Toubro Limited, Comfort Systems USA, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Toyo Engineering Corporation stock attractive at the current price?
The data as of Oct 27, 2026: price €12.61, calculated fair value €17.42 (+38%), Quality Score 42/100, from 7 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of 6AE calculated?
We run Toyo Engineering Corporation through 7 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of €17.42, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 12.7 % above its aggregate fair value. Toyo Engineering Corporation currently trades 28 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Toyo Engineering Corporation (6AE)?
The closing price on Oct 26, 2026 was €12.61. Our model-based fair value is €17.42, about +38% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Toyo Engineering Corporation right now?
The large discount to fair value meets weak quality (42/100). That raises the risk this is a value trap rather than a bargain. The price is below even our cautious bear case (€14.81). The market is more pessimistic than our downside scenario. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
Key figures of Toyo Engineering Corporation
How large is the market capitalisation of Toyo Engineering Corporation (6AE)?
The market capitalisation of Toyo Engineering Corporation is €844M. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What are the earnings per share of Toyo Engineering Corporation (6AE)?
Earnings per share at Toyo Engineering Corporation are €−1.42. Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Toyo Engineering Corporation (6AE)?
The dividend yield of Toyo Engineering Corporation is 1.0%. Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Toyo Engineering Corporation (6AE)?
The net margin of Toyo Engineering Corporation is −8.2% (fiscal year 2026). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Toyo Engineering Corporation (6AE)?
The return on equity (ROE) of Toyo Engineering Corporation is −24.2% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Toyo Engineering Corporation (6AE)?
On an EBIT basis the return on assets of Toyo Engineering Corporation is −0.2% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Toyo Engineering Corporation (6AE)?
The operating margin of Toyo Engineering Corporation is 4.0% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Toyo Engineering Corporation (6AE)?
Revenue at Toyo Engineering Corporation is growing −2.5% versus a year earlier (3y avg −1.8%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Toyo Engineering Corporation (6AE)?
Earnings per share at Toyo Engineering Corporation are growing +428% versus a year earlier. How much earnings per share grew versus a year earlier.
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Thin data
Oct 27, 2026