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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:1720

Tokyu Construction Co., Ltd.

(1720)

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Neutral 68 (OpenAI - 5.2)
Rating:68Neutral
Price Target:
¥1,530.00
▲(16.88% 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
Strong cash generation
Robust operating cash flow (OCF to net income 6.14) and a material improvement in free cash flow provide durable internal funding for working capital, capex and dividends. This reduces dependence on external financing and supports competitive bidding and investment over coming quarters.
Negative Factors
Low net margin
A net margin near 2.3% leaves a narrow buffer for adverse cost swings or contract issues. In a project-based construction model, small overruns or pricing pressure can materially erode earnings, limiting retained earnings accumulation and long-term capital build-up.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Robust operating cash flow (OCF to net income 6.14) and a material improvement in free cash flow provide durable internal funding for working capital, capex and dividends. This reduces dependence on external financing and supports competitive bidding and investment over coming quarters.
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. 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
Solid fundamentals supported by improving profitability (gross margin 9.80%, net margin 2.26%) and recovery from prior EBIT weakness, plus strong cash generation (operating cash flow to net income 6.14) and improved free cash flow. Balance sheet leverage is prudent (debt-to-equity 0.27) with a healthy equity ratio (37.06%), though ROE is moderate (6.52%).
Income Statement
72
Positive
Balance Sheet
68
Positive
Cash Flow
75
Positive
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue309.84B293.14B285.68B288.87B258.08B231.48B
Gross Profit32.03B28.72B26.08B21.88B9.72B18.17B
EBITDA15.26B11.49B11.42B9.10B-3.32B6.17B
Net Income8.15B6.63B7.27B5.25B-7.46B2.65B
Balance Sheet
Total Assets249.80B277.80B264.52B252.43B237.81B226.57B
Cash, Cash Equivalents and Short-Term Investments37.49B39.67B32.12B58.71B38.65B34.17B
Total Debt22.67B27.20B55.02B22.21B22.66B26.92B
Total Liabilities148.27B175.13B163.73B156.41B144.74B123.06B
Stockholders Equity100.49B101.64B99.97B95.25B92.49B102.96B
Cash Flow
Free Cash Flow0.0038.53B-55.69B19.73B10.24B8.28B
Operating Cash Flow0.0041.20B-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
Positive
Last Price1309.00
Price Trends
50DMA
1459.87
Positive
100DMA
1364.34
Positive
200DMA
1209.85
Positive
Market Momentum
MACD
0.34
Negative
RSI
50.93
Neutral
STOCH
83.83
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1720, the sentiment is Positive. The current price of 1309 is below the 20-day moving average (MA) of 1448.32, below the 50-day MA of 1459.87, and above the 200-day MA of 1209.85, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 50.93 is Neutral, neither overbought nor oversold. The STOCH value of 83.83 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
82
Outperform
¥144.29B9.063.22%12.23%43.29%
79
Outperform
¥115.71B10.363.81%0.82%30.84%
76
Outperform
¥197.60B10.323.44%11.25%36.92%
75
Outperform
¥132.67B8.403.13%5.39%33.02%
68
Neutral
¥153.47B9.002.89%20.38%128.85%
64
Neutral
¥112.88B13.332.13%7.22%21.92%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:1720
Tokyu Construction Co., Ltd.
1,466.00
715.13
95.24%
JP:1762
Takamatsu Construction Group Co., Ltd.
3,670.00
1,057.52
40.48%
JP:1835
Totetsu Kogyo Co., Ltd.
5,740.00
2,820.71
96.62%
JP:1871
P.S. Mitsubishi Construction Co., Ltd.
2,839.00
1,498.41
111.77%
JP:1926
Raito Kogyo Co., Ltd.
3,965.00
1,551.46
64.28%
JP:5911
Yokogawa Bridge Holdings Corp.
2,976.00
635.11
27.13%

Tokyu Construction Co., Ltd. Corporate Events

Tokyu Construction Corrects Executive Retirement Details in Governance Notice
Mar 25, 2026
Tokyu Construction has issued a correction to its previously disclosed notice regarding nominations of director candidates and changes in officers. The company clarified that the earlier document mistakenly identified the wrong executive officer s...
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.Date of analysis: Feb 11, 2026