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

• Market Cap: ¥137.53B
• Dividend Yield: 2.5%
• Average Volume (3M): 79.86K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.50
• Revenue Growth: 12.83%
• EPS Growth: 39.37%
• Country: JP
• Employees: 1,853
• Sector: Industrials
• Sector Strength: 89
• Industry: Engineering & Construction
• EPS (TTM): 135.28
• Shares Outstanding: 36,100,000
• 10 Day Avg. Volume: 93,680
• 30 Day Avg. Volume: 79,860
• PEG Ratio: 0.24
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.43
• 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: ¥4,024.00
• Price Target Upside: 1.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ¥4,252.00 ▲(7.51%Upside)

The stock is supported by strong financial performance and a robust balance sheet. Technical indicators show a bullish trend, though with overbought signals that warrant caution. Valuation metrics suggest the stock is fairly priced with a decent dividend yield.

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

Company Description

Totetsu Kogyo Co., Ltd. is a Japan-based company primarily engaged in the construction and civil engineering sectors. The company offers a range of services including railway construction, road construction, and other civil engineering projects. It is also involved in the development and sales of construction materials, providing comprehensive solutions tailored for infrastructure development.

How the Company Makes Money

Totetsu Kogyo Co., Ltd. generates revenue primarily through its construction and civil engineering projects. Its key revenue streams include contracts for railway construction, roads, bridges, and other infrastructure projects. The company works closely with government agencies and private sector clients to secure large-scale projects, which are often long-term and capital-intensive, providing a steady flow of income. Additionally, the development and sale of construction materials contribute to its earnings, along with any strategic partnerships that enhance its project portfolio and market reach.

Totetsu Kogyo Co., Ltd. Financial Statement Overview

Summary

Totetsu Kogyo Co., Ltd. demonstrates strong revenue and profit growth with improving gross and net margins. The balance sheet is solid, with strong equity growth despite a slight increase in leverage. Cash flow management has improved but remains volatile.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	152.84B	160.05B	141.85B	124.66B	114.72B	132.92B
Gross Profit	22.98B	24.67B	20.16B	17.39B	14.78B	21.73B
EBITDA	16.95B	19.40B	14.97B	13.83B	9.77B	15.75B
Net Income	10.33B	11.56B	8.30B	7.91B	5.33B	9.69B
Balance Sheet
Total Assets	161.37B	181.12B	168.12B	149.70B	136.67B	141.70B
Cash, Cash Equivalents and Short-Term Investments	11.41B	15.71B	16.38B	13.61B	25.79B	31.69B
Total Debt	5.00B	10.54B	10.66B	5.76B	866.34M	976.27M
Total Liabilities	46.45B	60.34B	56.63B	46.21B	38.14B	44.95B
Stockholders Equity	113.78B	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: 3955.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 3955 is above the 20-day moving average (MA) of 3817.75, above the 50-day MA of 3569.80, and above the 200-day MA of 3247.87, indicating a bullish trend. The MACD of 117.91 indicates Negative momentum. The RSI at 76.40 is Negative, neither overbought nor oversold. The STOCH value of 90.32 is Negative, 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	¥107.78B	17.43		2.39%	2.35%	25.15%
1890	74 Outperform	¥145.11B	17.56		7.51%	-7.59%	18.77%
1835	74 Outperform	¥137.53B	11.98		2.50%	12.83%	39.37%
1820	70 Outperform	¥191.63B	10.92		4.94%	-8.67%	40.83%
1720	69 Neutral	¥107.30B	16.34		3.65%	2.61%	-9.19%
1762	69 Neutral	¥94.12B	16.49		2.68%	10.88%	-29.60%
Sector *	65 Neutral	$10.82B	15.59	5.20%	1.89%	3.09%	-26.84%

Totetsu Kogyo Co., Ltd. Corporate Events

Totetsu Kogyo Maintains Independence Amid Major Shareholder Relationship

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

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

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

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

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

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

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.