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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:
¥1,232.00
▼(-1.83% 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
Improved Profitability & Growth
Revenue grew 10.1% in FY2026 and net income roughly doubled, showing durable operating improvement. Sustained revenue and profit momentum implies better bidding execution, pricing power, and room to reinvest in backlog, strengthening medium-term earnings resilience.
Negative Factors
Volatile Cash Generation
Operating and free cash flow swung sharply year-to-year, showing weak and uneven conversion of reported earnings into cash. This volatility raises working-capital and execution risk, potentially constraining capex, tender capacity, and dividend sustainability over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Profitability & Growth
Revenue grew 10.1% in FY2026 and net income roughly doubled, showing durable operating improvement. Sustained revenue and profit momentum implies better bidding execution, pricing power, and room to reinvest in backlog, strengthening medium-term earnings resilience.
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 primarily makes money by contracting to deliver construction projects and recognizing revenue as it performs work under those contracts. Its core revenue streams typically come from (1) building construction contracts (e.g., res...

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
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue309.84B341.18B293.14B285.68B288.87B258.08B
Gross Profit32.03B37.64B28.72B26.08B21.88B9.72B
EBITDA15.26B17.92B11.49B11.42B9.10B-3.32B
Net Income8.15B13.39B6.63B7.27B5.25B-7.46B
Balance Sheet
Total Assets249.80B310.85B277.80B264.52B252.43B237.81B
Cash, Cash Equivalents and Short-Term Investments37.49B49.59B39.67B32.12B58.71B38.65B
Total Debt22.67B37.13B27.20B55.02B22.21B22.66B
Total Liabilities148.27B198.17B175.13B163.73B156.41B144.74B
Stockholders Equity100.49B111.45B101.64B99.97B95.25B92.49B
Cash Flow
Free Cash Flow0.002.94B38.53B-55.69B19.73B10.24B
Operating Cash Flow0.006.91B41.20B-54.02B20.39B12.20B
Investing Cash Flow0.00-2.45B-1.59B-1.40B2.40B-476.00M
Financing Cash Flow0.005.39B-31.88B28.52B-2.76B-7.53B

Tokyu Construction Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1255.00
Price Trends
50DMA
1378.77
Negative
100DMA
1396.56
Negative
200DMA
1260.80
Negative
Market Momentum
MACD
-66.20
Positive
RSI
35.38
Neutral
STOCH
23.71
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 below the 20-day moving average (MA) of 1286.75, below the 50-day MA of 1378.77, and below the 200-day MA of 1260.80, indicating a bearish trend. The MACD of -66.20 indicates Positive momentum. The RSI at 35.38 is Neutral, neither overbought nor oversold. The STOCH value of 23.71 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
¥146.84B13.903.22%14.62%33.65%
65
Neutral
¥109.34B10.972.13%3.17%77.09%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
63
Neutral
¥122.69B9.392.89%16.39%101.50%
62
Neutral
¥148.55B11.443.44%1.86%11.05%
60
Neutral
¥110.27B12.803.81%-9.72%-31.50%
59
Neutral
¥100.84B11.003.13%10.13%13.31%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:1720
Tokyu Construction Co., Ltd.
1,184.00
299.25
33.82%
JP:1762
Takamatsu Construction Group Co., Ltd.
3,600.00
858.79
31.33%
JP:1835
Totetsu Kogyo Co., Ltd.
4,265.00
885.02
26.18%
JP:1871
P.S. Mitsubishi Construction Co., Ltd.
2,189.00
503.71
29.89%
JP:1926
Raito Kogyo Co., Ltd.
4,065.00
1,270.84
45.48%
JP:5911
Yokogawa Bridge Holdings Corp.
2,813.00
363.65
14.85%

Tokyu Construction Co., Ltd. Corporate Events

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...
Tokyu Construction Doubles Profit and Raises Dividend Despite Softer Outlook
May 8, 2026
Tokyu Construction reported strong results for the fiscal year ended March 31, 2026, with net sales up 16.4% to ¥341.2 billion and profit attributable to owners of parent doubling to ¥13.39 billion, as margins improved across operating a...
Tokyu Construction Updates Long-Term Plan as Earnings Restructuring Gains Traction
May 8, 2026
Tokyu Construction has updated its long-term management plan “To zero, from zero” under its VISION2030 framework, reaffirming a 10-year strategy combined with annually revised short-term plans and three-year milestones. The group had a...
Tokyu Construction Lifts FY2026 Earnings Outlook and Raises Dividend Payout
Apr 24, 2026
Tokyu Construction has raised its full-year earnings outlook for the fiscal year ended March 31, 2026, projecting higher net sales and a sharp increase in profits on both a consolidated and non-consolidated basis. The revisions reflect stronger gr...
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...
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