Tokyu Construction Co., Ltd. (JP:1720)
:1720
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Tokyu Construction Co., Ltd.
(1720)
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Rating:68Neutral
Price Target:
¥1,525.00
▲(16.50% Upside)
Action:ReiteratedDate:02/11/26
The score is driven primarily by improving financial performance and strong cash flow generation alongside a stable balance sheet. Valuation is reasonable with a moderate P/E and a solid dividend yield. Technicals are bullish but appear overextended (high RSI/Stoch), which tempers the overall score.
Positive Factors
Cash generation
Tokyu Construction's operating cash flow vastly exceeds reported net income and free cash flow has swung positive, indicating durable internal funding. Strong cash conversion supports working capital for projects, funds capex/dividends, and reduces refinancing and liquidity risk over the medium term.
Negative Factors
Thin net margin
Net margins are slim, leaving limited buffer against input cost inflation, subcontractor shortages, or contract disputes. In construction, small margin erosion can materially hit earnings and cash flow, making profitability vulnerable to cyclical cost pressures over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Tokyu Construction's operating cash flow vastly exceeds reported net income and free cash flow has swung positive, indicating durable internal funding. Strong cash conversion supports working capital for projects, funds capex/dividends, and reduces refinancing and liquidity risk over the medium term.
Read all positive factors
Tokyu Construction Co., Ltd. (1720) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥146.46B
Dividend Yield2.89%
Average Volume (3M)240.02K
Price to Earnings (P/E)9.0
Beta (1Y)0.70
Revenue Growth20.38%
EPS Growth128.85%
CountryJP
Employees2,877
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)36.38
Shares Outstanding106,761,210
10 Day Avg. Volume210,860
30 Day Avg. Volume240,016
Financial Highlights & Ratios
PEG Ratio-1.40
Price to Book (P/B)0.83
Price to Sales (P/S)0.29
P/FCF Ratio2.19
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)94.2
Revenue Forecast (FY)¥335.00B
Tokyu Construction Co., Ltd. Business Overview & Revenue Model
Company Description
Tokyu Construction Co., Ltd. engages in the civil engineering and building construction businesses in Japan. It constructs railways, roads, tunnels, bridges, and other construction, reconstruction work after earthquakes, etc.; and commercial facil...
How the Company Makes Money
Tokyu Construction makes money mainly by contracting and executing construction projects and recognizing revenue based on those contracts. Its core revenue streams typically come from (1) civil engineering works (e.g., infrastructure and other pub...
Tokyu Construction Co., Ltd. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
68
Positive
Cash Flow
75
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 309.84B | 293.14B | 285.68B | 288.87B | 258.08B | 231.48B |
| Gross Profit | 32.03B | 28.72B | 26.08B | 21.88B | 9.72B | 18.17B |
| EBITDA | 15.26B | 11.49B | 11.42B | 9.10B | -3.32B | 6.17B |
| Net Income | 8.15B | 6.63B | 7.27B | 5.25B | -7.46B | 2.65B |
Balance Sheet | ||||||
| Total Assets | 249.80B | 277.80B | 264.52B | 252.43B | 237.81B | 226.57B |
| Cash, Cash Equivalents and Short-Term Investments | 37.49B | 39.67B | 32.12B | 58.71B | 38.65B | 34.17B |
| Total Debt | 22.67B | 27.20B | 55.02B | 22.21B | 22.66B | 26.92B |
| Total Liabilities | 148.27B | 175.13B | 163.73B | 156.41B | 144.74B | 123.06B |
| Stockholders Equity | 100.49B | 101.64B | 99.97B | 95.25B | 92.49B | 102.96B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 38.53B | -55.69B | 19.73B | 10.24B | 8.28B |
| Operating Cash Flow | 0.00 | 41.20B | -54.02B | 20.39B | 12.20B | 11.63B |
| Investing Cash Flow | 0.00 | -1.59B | -1.40B | 2.40B | -476.00M | -3.75B |
| Financing Cash Flow | 0.00 | -31.88B | 28.52B | -2.76B | -7.53B | -3.31B |
Tokyu Construction Co., Ltd. Technical Analysis
Neutral
1309.00
Price Trends
1461.02
Negative
1348.71
Positive
1204.75
Positive
Market Momentum
-11.58
Positive
38.52
Neutral
24.63
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 1309 is below the 20-day moving average (MA) of 1522.35, below the 50-day MA of 1461.02, and above the 200-day MA of 1204.75, indicating a neutral trend. The MACD of -11.58 indicates Positive momentum. The RSI at 38.52 is Neutral, neither overbought nor oversold. The STOCH value of 24.63 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | ¥142.83B | 9.06 | ― | 3.22% | 12.23% | 43.29% | |
79 Outperform | ¥114.04B | 10.36 | ― | 3.81% | 0.82% | 30.84% | |
76 Outperform | ¥178.67B | 10.32 | ― | 3.44% | 11.25% | 36.92% | |
75 Outperform | ¥125.75B | 8.40 | ― | 3.13% | 5.39% | 33.02% | |
68 Neutral | ¥146.46B | 9.00 | ― | 2.89% | 20.38% | 128.85% | |
64 Neutral | ¥106.11B | 13.33 | ― | 2.13% | 7.22% | 21.92% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
JP:1720
Tokyu Construction Co., Ltd.
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16.73%
Tokyu Construction Co., Ltd. Corporate Events
Tokyu Construction Revamps Board and Executive Lineup Ahead of June Shareholder Meeting
Mar 24, 2026
Tokyu Construction has announced a slate of director candidates and officer changes approved by its board ahead of the 23rd Annual General Meeting of Shareholders scheduled for late June 2026. The proposal includes reappointment of director Kazuyo...
Tokyu Construction Posts Sharp Profit Surge and Raises Full-Year Outlook
Feb 6, 2026
Tokyu Construction Co., Ltd. reported strong consolidated results for the nine months ended December 31, 2025, with net sales rising 21.7% year on year to ¥239.6 billion and operating profit surging 225% to ¥10.3 billion. Ordinary profit...
Tokyu Construction to Shift to Audit and Supervisory Committee Structure to Strengthen Governance
Feb 6, 2026
Tokyu Construction Co., Ltd. has resolved to shift its governance structure from a company with an Audit Supervisory Board to a company with an Audit and Supervisory Committee, pending shareholder approval at its 23rd Annual General Meeting sched...
Tokyu Construction Overhauls Top Management Ahead of Governance Shift
Feb 6, 2026
Tokyu Construction Co., Ltd. has announced a broad reshuffle of its top management, including the appointment of Koji Hisada, currently Managing Executive Officer and General Manager of the Corporate Strategy Division, as Representative Director a...
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.