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Tokyu Construction Co., Ltd. (JP:1720)
:1720
Japanese Market

Tokyu Construction Co., Ltd. (1720) AI Stock Analysis

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JP

Tokyu Construction Co., Ltd.

(1720)

Rating:69Neutral
Price Target:
¥1,086.00
▲(6.89%Upside)
Tokyu Construction Co., Ltd. benefits from a strong financial foundation, featuring improving profitability and efficient cash flow management. The technical analysis indicates strong recent market momentum, although caution is advised due to potential overbought conditions. The valuation metrics are appealing, offering an attractive dividend yield and reasonable P/E ratio, making it a potentially good investment.

Tokyu Construction Co., Ltd. (1720) vs. iShares MSCI Japan ETF (EWJ)

Tokyu Construction Co., Ltd. Business Overview & Revenue Model

Company DescriptionTokyu Construction Co., Ltd. (1720) is a Japan-based company engaged in the construction and engineering industries. It offers a wide range of services, including civil engineering, building construction, and real estate development. The company is known for its involvement in infrastructure projects such as railways, roads, and public facilities, as well as residential and commercial building projects. Additionally, Tokyu Construction is part of the larger Tokyu Group, which provides it with strategic advantages in project development and execution.
How the Company Makes MoneyTokyu Construction Co., Ltd. generates revenue primarily through contract-based construction projects. Its key revenue streams include civil engineering projects, such as the development of transportation infrastructure, and building construction, which encompasses both residential and commercial properties. The company benefits from long-term contracts with government and private sector clients. Real estate development also contributes to its earnings, leveraging its expertise in construction to develop and sell properties. Key factors contributing to its revenue include strategic partnerships within the Tokyu Group and its reputation for quality and reliability in the construction industry.

Tokyu Construction Co., Ltd. Financial Statement Overview

Summary
Tokyu Construction Co., Ltd. has shown a solid financial performance with improved profitability metrics, strong cash flow generation, and a stable balance sheet. The company has effectively managed costs, resulting in positive EBIT margins and robust free cash flow.
Income Statement
72
Positive
Tokyu Construction Co., Ltd. shows a positive trajectory in profitability with an improving gross profit margin and net profit margin over the past few years. The company achieved a gross profit margin of 9.80% and a net profit margin of 2.26% in the latest period. Despite a modest revenue growth, the stability in EBIT and EBITDA margins indicates efficient cost management. The company has recovered from a negative EBIT margin in 2022 to a positive one in 2025.
Balance Sheet
68
Positive
The balance sheet reflects a strong equity position with a favorable equity ratio of 37.06%. The debt-to-equity ratio is 0.27, indicating prudent leverage management. Return on equity stands at 6.52%, showing moderate profitability relative to shareholder equity. Overall, the balance sheet portrays a stable financial position with manageable debt levels.
Cash Flow
75
Positive
Tokyu Construction Co., Ltd. demonstrates robust cash flow management, with a significant improvement in free cash flow, which increased substantially from previous negative levels. The operating cash flow to net income ratio is 6.14, indicating strong cash generation relative to net income. The improvement in free cash flow and operating cash flow highlights effective operational efficiency and financial health.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue277.26B293.14B285.68B288.87B258.08B231.48B
Gross Profit27.75B28.72B26.08B21.88B9.72B18.17B
EBITDA11.65B11.49B11.42B9.10B-3.27B6.25B
Net Income7.08B6.63B7.27B5.25B-7.46B2.65B
Balance Sheet
Total Assets277.25B274.31B264.52B249.16B237.81B226.57B
Cash, Cash Equivalents and Short-Term Investments35.11B39.67B32.12B58.72B38.65B34.17B
Total Debt64.86B27.20B55.02B22.21B22.66B26.92B
Total Liabilities178.73B171.64B163.74B153.15B144.75B123.06B
Stockholders Equity97.58B101.64B99.97B95.25B92.49B102.96B
Cash Flow
Free Cash Flow0.0038.04B-55.69B19.73B10.24B8.28B
Operating Cash Flow0.0040.72B-54.02B20.39B12.20B11.63B
Investing Cash Flow0.00-1.59B-1.40B2.40B-476.00M-3.75B
Financing Cash Flow0.00-31.88B28.52B-2.76B-7.53B-3.31B

Tokyu Construction Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1016.00
Price Trends
50DMA
931.74
Positive
100DMA
851.36
Positive
200DMA
770.31
Positive
Market Momentum
MACD
31.86
Positive
RSI
56.57
Neutral
STOCH
26.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1720, the sentiment is Neutral. The current price of 1016 is below the 20-day moving average (MA) of 1023.15, above the 50-day MA of 931.74, and above the 200-day MA of 770.31, indicating a neutral trend. The MACD of 31.86 indicates Positive momentum. The RSI at 56.57 is Neutral, neither overbought nor oversold. The STOCH value of 26.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1720.

Tokyu Construction Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥288.57B11.26
3.08%12.29%59.92%
74
Outperform
¥139.56B16.78
7.81%-7.59%18.77%
74
Outperform
¥136.15B11.77
2.53%12.83%39.37%
70
Outperform
¥189.70B10.81
4.99%-8.67%40.83%
69
Neutral
¥106.36B16.20
3.74%2.61%-9.19%
67
Neutral
¥94.76B7.40
0.37%10.43%-0.74%
58
Neutral
$1.34B4.24-2.93%7.38%3.67%-51.13%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:1720
Tokyu Construction Co., Ltd.
1,016.00
274.09
36.94%
JP:1820
Nishimatsu Construction Co., Ltd.
4,803.00
349.73
7.85%
JP:1835
Totetsu Kogyo Co., Ltd.
3,955.00
904.22
29.64%
JP:1860
Toda Corporation
940.90
-67.63
-6.71%
JP:1879
Shinnihon Corporation
1,633.00
84.77
5.48%
JP:1890
Toyo Construction Co., Ltd.
1,485.00
88.49
6.34%

Tokyu Construction Co., Ltd. Corporate Events

Tokyu Construction Highlights Independence and Synergy within Tokyu Group
Jun 26, 2025

Tokyu Construction Co., Ltd. has announced its position within the Tokyu Group, highlighting its independence despite being an equity-method affiliate of Tokyu Corporation, which holds a 15.1% voting rights stake. The company benefits from cooperative relationships within the group, experiencing no business restrictions and leveraging the group’s brand power and resources for synergistic effects, thus ensuring a degree of independence in its management decisions.

Tokyu Construction Announces Treasury Share Disposal for Director Incentives
Jun 25, 2025

Tokyu Construction Co., Ltd. announced the disposal of 30,180 treasury shares as part of a restricted share remuneration plan for its directors. This initiative aims to align the interests of directors with shareholders by incentivizing sustainable corporate value enhancement over a long-term period, with a 30-year transfer restriction on the shares.

Tokyu Construction Revises Financial Results for Fiscal Year 2025
May 23, 2025

Tokyu Construction Co., Ltd. announced corrections to its previously released consolidated financial results for the fiscal year ended March 31, 2025. The corrections address calculation errors in the cash flow statements, specifically adjusting the cash flows from operating activities. These changes may impact stakeholders’ understanding of the company’s financial health and operational efficiency.

Tokyu Construction Surpasses Profit Forecasts and Advances Key Redevelopment Project
May 20, 2025

Tokyu Construction Co., Ltd. announced that its financial results for FY03/2025 surpassed initial profit forecasts, driven by improved profitability in its domestic construction business. The company is committed to enhancing safety, quality, and productivity to achieve higher profitability. Additionally, Tokyu Construction is investing in human capital to ensure medium- to long-term growth. The company is also advancing the second phase of the Shibuya Station redevelopment project, aiming to enhance the area’s value and boost its corporate value, which is a key focus for the Tokyu Group.

Tokyu Construction Revises Long-term Management Plan Amid Positive Market Outlook
May 13, 2025

Tokyu Construction Co., Ltd. announced a revision to its ‘Long-term Management Plan ‘To zero, from zero.’ for FY2025, highlighting increased gross profit from construction and real estate activities. The company anticipates a favorable business environment with robust domestic construction investment and plans to focus on human capital investment and productivity improvements to sustain growth through FY2030. The revised plan also addresses changes in materiality, risks, and opportunities, including a shift in domestic construction investment forecasts and an emphasis on equity in human investment.

Tokyu Construction Revises Earnings Forecast Amid Improved Profitability
Apr 22, 2025

Tokyu Construction Co., Ltd. has revised its earnings forecast for the fiscal year ending March 31, 2025, reflecting a decrease in net sales but an increase in profits. The company attributes these changes to improved profitability in overseas projects and reduced foreign exchange losses, despite delays in domestic construction orders. The revised forecast shows an increase in operating and ordinary profits, with a notable rise in profit attributable to owners of the parent. The dividend forecast remains unchanged, maintaining a focus on a dividend on equity ratio of 4.0% or more.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 12, 2025