TOYO Co. Ltd Ordinary Shares (TOYO)

FairStock Score: 62/100 — STEADY

Key Financials

Strengths

• Generates $64 million in annual free cash flow (13.4% yield on market cap)
• High return on equity of 43.5% demonstrating efficient capital deployment

Concerns

• Weak Piotroski F-Score of 2/9 suggests deteriorating financial quality across multiple dimensions
• Altman Z-Score of 0.8 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

TOYO Co. Ltd Ordinary Shares is a micro-cap technology company valued at $472 million. Revenue stands at $427 million. From a quality standpoint, TOYO shows weak Piotroski F-Score of 2/9 signaling deteriorating fundamentals and distressed Altman Z-Score of 0.8 warrants caution. On valuation, the stock is attractively valued at 11.0x earnings, with trades above its Graham Number with a negative 47% margin. Our composite FairStock Score of 62/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

The market underappreciates TOYO's consistent 44% ROE at just 11x earnings—a re-rating toward sector peers could unlock 30-50% upside. With $64 million in annual free cash flow (13.4% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the technology space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer