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

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JP:1720

Tokyu Construction Co., Ltd.

(1720)

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Neutral 63 (OpenAI - 5.2)
Rating:63Neutral
Price Target:
¥1,200.00
▼(-4.38% Downside)
Action:Reiterated
Date:05/12/26
The score is driven by improved profitability and a solid balance sheet, partially offset by highly volatile and recently weak cash flow. Technical indicators are bearish and weigh on the score, while the low P/E and solid dividend yield provide valuation support.
Positive Factors
Revenue & profit rebound
Sustained revenue growth and a doubling of net income in FY2026 indicate improving project win rates and better execution. Over 2–6 months this strengthens cash generation potential and reinvestment capacity, supporting competitive bids and margin recovery if maintained across project cycles.
Negative Factors
Volatile cash conversion
Extreme swings in operating and free cash flow point to working-capital and timing risks on project collections and payments. Over the medium term this can constrain capital expenditure, limit buffer for overruns, and force reliance on external financing during heavy project activity or delays.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & profit rebound
Sustained revenue growth and a doubling of net income in FY2026 indicate improving project win rates and better execution. Over 2–6 months this strengthens cash generation potential and reinvestment capacity, supporting competitive bids and margin recovery if maintained across project cycles.
Read all positive factors

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

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

Company Description
Tokyu Construction Co., Ltd. (1720) is a Japan-based construction company engaged in the planning, design, engineering, and execution of building and civil engineering works. The company operates across construction-related segments such as buildi...
How the Company Makes Money
Tokyu Construction primarily makes money by contracting to deliver construction and civil engineering projects for customers in Japan. Revenue is recognized from construction contracts tied to specific projects, with payments typically linked to p...

Tokyu Construction Co., Ltd. Financial Statement Overview

Summary
Strong FY2026 earnings rebound (revenue +10.1% YoY and net income roughly doubled) and a generally sound balance sheet (debt-to-equity ~0.33; ROE ~12%). The main drag is weak and volatile cash conversion (FY2026 OCF 6.9B and FCF 2.9B vs FY2025 OCF 41.2B and FCF 38.5B), which raises execution/working-capital risk.
Income Statement
72
Positive
Balance Sheet
77
Positive
Cash Flow
46
Neutral
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue341.18B293.14B285.68B288.87B258.08B
Gross Profit37.64B28.72B26.08B21.88B9.72B
EBITDA21.31B11.49B11.42B9.10B-3.32B
Net Income13.39B6.63B7.27B5.25B-7.46B
Balance Sheet
Total Assets310.85B277.80B264.52B252.43B237.81B
Cash, Cash Equivalents and Short-Term Investments49.59B39.67B32.12B58.71B38.65B
Total Debt37.13B27.20B55.02B22.21B22.66B
Total Liabilities198.17B175.13B163.73B156.41B144.74B
Stockholders Equity111.45B101.64B99.97B95.25B92.49B
Cash Flow
Free Cash Flow2.94B38.53B-55.69B19.73B10.24B
Operating Cash Flow6.91B41.20B-54.02B20.39B12.20B
Investing Cash Flow-2.45B-1.59B-1.40B2.40B-476.00M
Financing Cash Flow5.39B-31.88B28.52B-2.76B-7.53B

Tokyu Construction Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1255.00
Price Trends
50DMA
1164.68
Negative
100DMA
1268.74
Negative
200DMA
1280.93
Negative
Market Momentum
MACD
-14.40
Positive
RSI
41.76
Neutral
STOCH
37.77
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1720, the sentiment is Negative. The current price of 1255 is above the 20-day moving average (MA) of 1160.05, above the 50-day MA of 1164.68, and below the 200-day MA of 1280.93, indicating a bearish trend. The MACD of -14.40 indicates Positive momentum. The RSI at 41.76 is Neutral, neither overbought nor oversold. The STOCH value of 37.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:1720.

Tokyu Construction Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥137.56B12.473.22%9.21%31.08%
65
Neutral
¥119.18B9.712.13%5.58%96.25%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
63
Neutral
¥117.98B8.642.89%10.80%70.25%
62
Neutral
¥136.32B10.703.44%0.23%7.75%
60
Neutral
¥113.65B13.893.81%-3.34%-30.96%
59
Neutral
¥107.81B11.083.13%5.67%19.34%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:1720
Tokyu Construction Co., Ltd.
1,132.00
42.56
3.91%
JP:1762
Takamatsu Construction Group Co., Ltd.
3,880.00
642.43
19.84%
JP:1835
Totetsu Kogyo Co., Ltd.
3,975.00
-282.70
-6.64%
JP:1871
P.S. Mitsubishi Construction Co., Ltd.
2,284.00
562.43
32.67%
JP:1926
Raito Kogyo Co., Ltd.
3,735.00
616.39
19.76%
JP:5911
Yokogawa Bridge Holdings Corp.
2,929.00
318.41
12.20%

Tokyu Construction Co., Ltd. Corporate Events

Tokyu Construction Delivers Strong Q1 Profit but Keeps Full-Year Guidance Unchanged
Aug 5, 2026
Tokyu Construction reported consolidated net sales of ¥74.1 billion for the three months ended June 30, 2026, up 2.9% year on year, while operating profit rose 25.9% to ¥2.7 billion and profit attributable to owners jumped 36.9% to &#165...
Tokyu Construction Completes Restricted Share Remuneration Transaction
Jul 23, 2026
Tokyu Construction Co., Ltd. has completed the payment process for the disposal of treasury shares used as restricted share remuneration, following a June 24, 2026 resolution by its Board of Directors. The move fits within broader Japanese corpora...
Tokyu Construction Details Independent Stance Within Tokyu Group Ties
Jun 25, 2026
Tokyu Construction has clarified its position within the Tokyu Group, stating that Tokyu Corporation holds 15.1% of its voting rights and treats the builder as an equity-method affiliate, with construction orders and real estate-related dealings u...
Tokyu Construction Introduces Long-Term Restricted Stock Plan for Management
Jun 24, 2026
Tokyu Construction has approved the disposal of 42,558 treasury shares as restricted stock to four directors and four executive officers, with a total disposal value of about ¥49.5 million at ¥1,163 per share. The move is part of a newly...
Tokyu Construction Revamps Executive Structure to Strengthen Governance and Agility
Jun 24, 2026
Tokyu Construction has overhauled its executive structure following shareholder approval of its transition to a company with an Audit and Supervisory Committee, introducing a mandated executive officer (corporate officer) system and a new senior e...
Tokyu Construction to Overhaul Governance Structure With Audit and Supervisory Committee Shift
May 22, 2026
Tokyu Construction has approved a proposal to partially amend its Articles of Incorporation, aiming to strengthen corporate governance by transitioning from a company with an Audit Supervisory Board to one with an Audit and Supervisory Committee,...
Tokyu Construction Revamps Leadership and Governance Structure
May 20, 2026
Tokyu Construction Co., Ltd. has announced a leadership transition in which Managing Executive Officer Koji Hisada, currently Head of Business Administration, will become Representative Director, President and Representative Executive Officer, whi...
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: May 12, 2026