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Totetsu Kogyo Co., Ltd. (JP:1835)
:1835
Japanese Market
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Totetsu Kogyo Co., Ltd. (1835) AI Stock Analysis

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JP:1835

Totetsu Kogyo Co., Ltd.

(1835)

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Outperform 72 (OpenAI - 4o)
Rating:72Outperform
Price Target:
¥4,673.00
▲(9.82% Upside)
Totetsu Kogyo Co., Ltd. scores well due to strong financial performance, characterized by robust revenue and profit growth, efficient operations, and a solid balance sheet. The valuation is attractive with a reasonable P/E ratio and a good dividend yield. However, technical analysis indicates potential short-term bearish momentum, which slightly offsets the positive financial and valuation aspects.

Totetsu Kogyo Co., Ltd. (1835) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionTotetsu Kogyo Co., Ltd., established in 1835, is a Japanese company specializing in the production and distribution of specialized metal products and materials. The company operates primarily in the steel manufacturing sector, providing high-quality steel products for various industries, including construction, automotive, and machinery. With a strong emphasis on innovation and sustainability, Totetsu Kogyo has positioned itself as a leader in advanced materials technology, catering to both domestic and international markets.
How the Company Makes MoneyTotetsu 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
The company demonstrates strong revenue and profit growth with efficient operations and a solid balance sheet. Leverage is low, though slightly increased, and cash flow management is improving despite historical volatility. Overall financial health is robust with positive growth prospects.
Income Statement
85
Very Positive
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
75
Positive
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
70
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue163.07B160.05B141.85B124.66B114.72B132.92B
Gross Profit25.80B24.67B20.16B17.39B14.78B21.73B
EBITDA18.94B19.40B14.97B13.83B9.77B15.75B
Net Income11.87B11.56B8.30B7.91B5.33B9.69B
Balance Sheet
Total Assets155.41B181.12B168.12B149.70B136.67B141.70B
Cash, Cash Equivalents and Short-Term Investments32.56B15.71B16.38B13.61B25.79B31.69B
Total Debt3.43B10.54B10.66B5.76B866.34M976.27M
Total Liabilities35.11B60.34B56.63B46.21B38.14B44.95B
Stockholders Equity119.10B119.62B110.43B102.38B97.13B95.42B
Cash Flow
Free Cash Flow0.002.48B921.59M-14.50B-3.28B16.37B
Operating Cash Flow0.004.16B4.84B-8.96B3.09B21.12B
Investing Cash Flow0.00-1.25B-3.68B-4.96B-5.83B-3.66B
Financing Cash Flow0.00-3.58B1.61B1.75B-3.17B-3.24B

Totetsu Kogyo Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price4255.00
Price Trends
50DMA
4323.39
Negative
100DMA
4045.56
Positive
200DMA
3541.63
Positive
Market Momentum
MACD
-16.11
Positive
RSI
46.47
Neutral
STOCH
41.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1835, the sentiment is Neutral. The current price of 4255 is below the 20-day moving average (MA) of 4287.65, below the 50-day MA of 4323.39, and above the 200-day MA of 3541.63, indicating a neutral trend. The MACD of -16.11 indicates Positive momentum. The RSI at 46.47 is Neutral, neither overbought nor oversold. The STOCH value of 41.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1835.

Totetsu Kogyo 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
4.84%62.58%
75
Outperform
¥163.72B18.335.05%0.57%26.93%
72
Outperform
¥146.48B12.353.64%13.51%28.97%
70
Outperform
¥204.85B12.844.24%-8.97%9.14%
69
Neutral
¥103.96B16.602.54%6.90%-25.24%
64
Neutral
¥112.22B13.933.54%11.42%26.72%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:1835
Totetsu Kogyo Co., Ltd.
4,265.00
1,118.96
35.57%
JP:1720
Tokyu Construction Co., Ltd.
1,075.00
402.60
59.88%
JP:1762
Takamatsu Construction Group Co., Ltd.
3,415.00
563.25
19.75%
JP:1820
Nishimatsu Construction Co., Ltd.
5,185.00
404.30
8.46%
JP:1884
NIPPON ROAD CO., LTD.
2,512.00
944.92
60.30%
JP:1890
Toyo Construction Co., Ltd.
1,744.00
473.47
37.27%

Totetsu Kogyo Co., Ltd. Corporate Events

Totetsu Kogyo Maintains Independence Amid Major Shareholder Relationship
Jun 26, 2025

Totetsu Kogyo Co., Ltd. announced its relationship with East Japan Railway Company, highlighting that while East Japan Railway is a major shareholder, Totetsu Kogyo maintains operational independence. The company engages in regular business transactions with East Japan Railway, which significantly contributes to its net sales, yet it retains the ability to negotiate terms independently, ensuring a balanced partnership.

Totetsu Kogyo Announces Executive Restructuring
Jun 11, 2025

Totetsu Kogyo Co., Ltd. has announced changes in its executive officers, which will be finalized at the upcoming Ordinary General Meeting of Shareholders and subsequent Board of Directors meeting. These changes include the appointment of Fuminari Aizawa as Senior Managing Director & Executive Officer, who brings extensive experience from East Japan Railway Company and J-BIS Maintenance, Inc. This restructuring is expected to enhance the company’s operational efficiency and strategic direction, potentially impacting its market positioning and stakeholder relations positively.

Totetsu Kogyo Announces Leadership Changes to Drive Future Growth
May 16, 2025

Totetsu Kogyo Co., Ltd. announced changes in its leadership, with Katsumi Ise set to become the new President and Representative Director, succeeding Tadao Maekawa, who will assume the role of Chairman. These changes aim to foster further development under a new management structure, potentially impacting the company’s strategic direction and market positioning.

Totetsu Kogyo Updates Management Policies for Sustainable Growth
May 15, 2025

Totetsu Kogyo Co., Ltd. has announced an update to its management policies focused on cost of capital and stock price, following a board meeting on May 15, 2025. This strategic move aims to enhance corporate value and ensure sustainable growth over the medium to long term by aligning management practices with financial performance metrics.

Totetsu Kogyo Sets New Targets for Action Plan 2029
May 15, 2025

Totetsu Kogyo Co., Ltd. has announced new targets for its Medium-term Management Plan, Action Plan 2029, reflecting adjustments to its financial goals in response to changing economic conditions. The company aims to achieve consolidated net sales of 190 billion yen and a return on equity (ROE) of 10% by the fiscal year ending March 31, 2029, while maintaining its progressive dividend policy and investment plans.

Totetsu Kogyo Announces Dividend Increase Reflecting Strong Performance
May 15, 2025

Totetsu Kogyo Co., Ltd. announced a significant increase in its fiscal year-end dividend, raising it from 50 yen to 85 yen per share, reflecting a total annual dividend of 135 yen per share. This decision aligns with the company’s policy of offering stable dividends and acknowledges the support of its shareholders, indicating strong financial performance and positive future business prospects.

Totetsu Kogyo Reports Strong Financial Growth and Increased Dividends
May 15, 2025

Totetsu Kogyo Co., Ltd. reported significant financial growth for the fiscal year ended March 31, 2025, with a 12.8% increase in net sales and a 39.4% rise in profit attributable to owners of the parent. The company also announced an increase in annual dividends per share, reflecting its strong financial position and commitment to shareholder returns.

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: Oct 15, 2025