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

• Market Cap: ¥106.36B
• Dividend Yield: 3.74%
• Average Volume (3M): 479.05K
• Price to Earnings (P/E): 16.2
• Beta (1Y): 0.58
• Revenue Growth: 2.61%
• EPS Growth: -9.19%
• Country: JP
• Employees: 2,877
• Sector: Industrials
• Sector Strength: 86
• Industry: Engineering & Construction
• EPS (TTM): 36.09
• Shares Outstanding: 106,761,210
• 10 Day Avg. Volume: 436,360
• 30 Day Avg. Volume: 479,050
• PEG Ratio: -0.08
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.59
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• 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. Business Overview & Revenue Model

Company Description

Tokyu 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 Money

Tokyu 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

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

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

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.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	277.26B	293.14B	285.68B	288.87B	258.08B	231.48B
Gross Profit	27.75B	28.72B	26.08B	21.88B	9.72B	18.17B
EBITDA	11.65B	11.49B	11.42B	9.10B	-3.27B	6.25B
Net Income	7.08B	6.63B	7.27B	5.25B	-7.46B	2.65B
Balance Sheet
Total Assets	277.25B	274.31B	264.52B	249.16B	237.81B	226.57B
Cash, Cash Equivalents and Short-Term Investments	35.11B	39.67B	32.12B	58.72B	38.65B	34.17B
Total Debt	64.86B	27.20B	55.02B	22.21B	22.66B	26.92B
Total Liabilities	178.73B	171.64B	163.74B	153.15B	144.75B	123.06B
Stockholders Equity	97.58B	101.64B	99.97B	95.25B	92.49B	102.96B
Cash Flow
Free Cash Flow	0.00	38.04B	-55.69B	19.73B	10.24B	8.28B
Operating Cash Flow	0.00	40.72B	-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

• Technical Analysis Sentiment: Neutral
• Last Price: 1016.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1860	75 Outperform	¥288.57B	11.26		3.08%	12.29%	59.92%
1890	74 Outperform	¥139.56B	16.78		7.81%	-7.59%	18.77%
1835	74 Outperform	¥136.15B	11.77		2.53%	12.83%	39.37%
1820	70 Outperform	¥189.70B	10.81		4.99%	-8.67%	40.83%
1720	69 Neutral	¥106.36B	16.20		3.74%	2.61%	-9.19%
1879	67 Neutral	¥94.76B	7.40		0.37%	10.43%	-0.74%
Sector *	58 Neutral	$1.34B	4.24	-2.93%	7.38%	3.67%	-51.13%

Tokyu Construction Co., Ltd. Corporate Events

Tokyu Construction Highlights Independence and Synergy within Tokyu Group

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

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

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

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

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

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.