Totetsu Kogyo Co., Ltd. (1835) AI Stock Analysis

• Market Cap: ¥146.65B
• Dividend Yield: 3.56%
• Average Volume (3M): 51.17K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.48
• Revenue Growth: 13.51%
• EPS Growth: 28.97%
• Country: JP
• Employees: 1,853
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 50.05
• Shares Outstanding: 36,100,000
• 10 Day Avg. Volume: 50,500
• 30 Day Avg. Volume: 51,166
• PEG Ratio: 0.23
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 0.66
• P/FCF Ratio: 42.38
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥4,733.00 ▲(8.43% Upside)

The overall stock score is driven primarily by strong financial performance, with robust revenue and profit growth and a solid balance sheet. Valuation is also favorable, with a reasonable P/E ratio and attractive dividend yield. Technical analysis indicates mixed signals, with short-term bearish momentum but longer-term strength.

Totetsu Kogyo Co., Ltd. Business Overview & Revenue Model

Company Description

Totetsu Kogyo Co., Ltd. engages in the railway track maintenance, civil engineering, architectural, and environmental businesses in Japan. The company is involved in the repair and reconstruction of railway tracks, as well as building new railway tracks for the Tohoku Shinkansen, and other public and private sectors. It also engages in the construction, renovation, and reinforcement of elevated and standard bridges, tunnels, motorways, and multilevel crossings, as well as setting up railway platform edge doors for passenger protection. In addition, the company is involved in the construction and maintenance of station buildings for railway lines, apartment houses, office buildings, hotels, shops, schools, etc. Further, it provides environmental technology and services, such as constructing solar power generation systems, greening of buildings, draining disposal systems, removing asbestos, implementing energy conservation systems for air conditioning, etc. The company was founded in 1943 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Totetsu Kogyo generates revenue through several key streams, primarily by manufacturing and selling steel products, including rolled steel, bars, and specialty alloys. The company benefits from long-term contracts with major industrial clients, which provide a steady income base. Additionally, Totetsu Kogyo engages in partnerships with various construction and automotive firms, allowing for collaborative projects that enhance product visibility and market reach. The firm also focuses on research and development to innovate new materials, which can command higher prices and open new market opportunities, further contributing to its earnings.

Totetsu Kogyo Co., Ltd. Financial Statement Overview

Summary

Totetsu Kogyo Co., Ltd. demonstrates strong revenue and profit growth with improved gross and net profit margins. The balance sheet shows solid capitalization, though leverage has slightly increased. Cash flow management has improved, but historical volatility remains a concern.

Income Statement

The income statement reflects strong profitability with a consistent increase in total revenue from 2022 to 2025. Gross profit margins improved from 12.9% in 2022 to 15.4% in 2025, while net profit margins rose from 4.6% to 7.2%. The firm demonstrated robust revenue growth, particularly from 2024 to 2025, showing a 12.8% increase. EBIT and EBITDA margins also showed positive trends over the years, indicating effective cost management and operational efficiency.

Balance Sheet

The balance sheet shows a solid financial position with increasing stockholders' equity over the period. The equity ratio improved, reaching 66.0% in 2025, reflecting strong capitalization. However, the debt-to-equity ratio slightly increased to 0.088, indicating a rise in leverage, though it remains manageable. Return on equity improved significantly from 2022 to 2025, indicating better profitability relative to equity.

Cash Flow

The cash flow statement reveals fluctuations, with operating cash flow showing a significant drop in 2023 but recovering in 2024 and 2025. Free cash flow improved to 2482.048 million in 2025, suggesting better cash generation. The free cash flow to net income ratio improved, indicating enhanced conversion of net income into free cash flow. However, the operating cash flow to net income ratio was weaker, showing volatility in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	163.07B	160.05B	141.85B	124.66B	114.72B	132.92B
Gross Profit	25.80B	24.67B	20.16B	17.39B	14.78B	21.73B
EBITDA	18.94B	19.40B	14.97B	13.83B	9.77B	15.75B
Net Income	11.87B	11.56B	8.30B	7.91B	5.33B	9.69B
Balance Sheet
Total Assets	155.41B	181.12B	168.12B	149.70B	136.67B	141.70B
Cash, Cash Equivalents and Short-Term Investments	32.56B	15.71B	16.38B	13.61B	25.79B	31.69B
Total Debt	3.43B	10.54B	10.66B	5.76B	866.34M	976.27M
Total Liabilities	35.11B	60.34B	56.63B	46.21B	38.14B	44.95B
Stockholders Equity	119.10B	119.62B	110.43B	102.38B	97.13B	95.42B
Cash Flow
Free Cash Flow	0.00	2.48B	921.59M	-14.50B	-3.28B	16.37B
Operating Cash Flow	0.00	4.16B	4.84B	-8.96B	3.09B	21.12B
Investing Cash Flow	0.00	-1.25B	-3.68B	-4.96B	-5.83B	-3.66B
Financing Cash Flow	0.00	-3.58B	1.61B	1.75B	-3.17B	-3.24B

Totetsu Kogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4365.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1835, the sentiment is Positive. The current price of 4365 is above the 20-day moving average (MA) of 4287.50, above the 50-day MA of 4315.51, and above the 200-day MA of 3632.00, indicating a bullish trend. The MACD of 4.30 indicates Negative momentum. The RSI at 55.93 is Neutral, neither overbought nor oversold. The STOCH value of 60.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1835.

Totetsu Kogyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1884	79 Outperform	―	―	―	―	4.84%	62.58%
1890	75 Outperform	¥163.43B	18.30	―	5.06%	0.57%	26.93%
1835	73 Outperform	¥146.65B	12.36	―	3.56%	13.51%	28.97%
1762	70 Outperform	¥103.65B	16.55	―	2.52%	6.90%	-25.24%
1820	70 Outperform	¥210.85B	13.21	―	4.15%	-8.97%	9.14%
1720	63 Neutral	¥111.60B	13.85	―	3.48%	11.42%	26.72%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Totetsu Kogyo Co., Ltd. Corporate Events

Totetsu Kogyo Reports Strong Q1 2025 Financial Results

Totetsu Kogyo Co., Ltd. reported strong financial results for the three months ending June 30, 2025, with a notable increase in net sales and profits compared to the previous year. The company achieved a 11.5% rise in net sales and a significant boost in operating profit by 76.2%, indicating robust operational performance. The equity-to-asset ratio improved to 76.6% from 66.0% in the previous quarter, reflecting a stronger financial position. The forecast for the fiscal year ending March 31, 2026, anticipates continued growth in net sales and profits, suggesting positive future prospects for the company and its stakeholders.