Toda Corporation (1860) AI Stock Analysis

• Market Cap: ¥325.56B
• Dividend Yield: 2.75%
• Average Volume (3M): 616.86K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.61
• Revenue Growth: 16.62%
• EPS Growth: 42.69%
• Country: JP
• Employees: 6,621
• Sector: Industrials
• Sector Strength: 74
• Industry: Engineering & Construction
• EPS (TTM): 11.80
• Shares Outstanding: 322,656,800
• 10 Day Avg. Volume: 476,850
• 30 Day Avg. Volume: 616,860
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,030.00
• Price Target Upside: -2.97% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥1,030.00 ▼(-2.97% Downside)

Toda Corporation shows strong valuation and technical analysis, with the stock price indicating upward momentum and a low P/E ratio suggesting undervaluation. Despite strong revenue growth, financial performance is moderated by operational and cash flow challenges. Continued focus on improving cash flow and operational efficiency is crucial for sustained growth.

Toda Corporation Business Overview & Revenue Model

Company Description

Toda Corporation, established in 1860, is a Japan-based company primarily engaged in the construction sector. The company offers a range of services including civil engineering, architectural design, and building construction. Toda Corporation is involved in various projects such as commercial buildings, residential complexes, public infrastructure, and industrial facilities. The company is also expanding its operations to include renewable energy and environmental solutions, aligning with global sustainability trends.

How the Company Makes Money

Toda Corporation generates revenue primarily through its construction and engineering services. The company undertakes large-scale projects in both the public and private sectors, including commercial properties, residential buildings, and infrastructure development. Revenue flows from contracts with clients for these projects, which include design, construction, and post-construction maintenance services. Additionally, Toda Corporation may enter into joint ventures and partnerships to leverage expertise and resources, further enhancing its revenue potential. The company's foray into renewable energy projects also contributes to its earnings, as it seeks to capitalize on the growing demand for sustainable and eco-friendly construction solutions.

Toda Corporation Financial Statement Overview

Summary

Toda Corporation demonstrates strong revenue growth and profitability improvements, with a solid gross profit margin of 13.1% and a net profit margin of 4.3%. However, the company faces challenges in operational efficiency, indicated by the EBIT margin of 4.5%, and cash flow management, with a negative free cash flow growth rate. The balance sheet is stable but has moderate leverage that requires careful monitoring.

Income Statement

Toda Corporation's income statement shows a solid gross profit margin of 13.1% for the latest fiscal year, which is consistent with industry norms. The net profit margin improved to 4.3%, indicating effective cost management and profitability improvements. The revenue growth rate of 12.3% from the previous year is a strong indicator of business expansion. Despite these strengths, the EBIT margin of 4.5% and EBITDA margin of 8.2% suggest that there is room for operational efficiency improvements.

Balance Sheet

The balance sheet reflects a healthy equity ratio of 37.0%, demonstrating a robust capital structure. However, a debt-to-equity ratio of 0.75 indicates moderate leverage, which could pose a risk if not managed carefully. The return on equity is 7.4%, showing decent profitability in relation to shareholder investments, although there is potential for improvement.

Cash Flow

Cash flow analysis reveals a challenging scenario with a negative free cash flow growth rate, as free cash flow turned negative in the latest year. The operating cash flow to net income ratio stands at 1.05, indicating that operating cash generation aligns closely with net income. However, the free cash flow to net income ratio is negative, highlighting liquidity concerns and the need for better cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	586.66B	586.66B	522.43B	547.15B	501.51B	507.13B
Gross Profit	76.80B	76.80B	65.58B	57.32B	62.68B	64.89B
EBITDA	48.37B	48.37B	37.09B	25.57B	33.96B	34.26B
Net Income	25.18B	25.19B	16.10B	10.99B	18.56B	19.73B
Balance Sheet
Total Assets	923.57B	923.57B	872.06B	815.56B	761.20B	735.79B
Cash, Cash Equivalents and Short-Term Investments	89.17B	89.17B	114.41B	97.54B	130.84B	105.14B
Total Debt	255.47B	255.47B	226.57B	211.54B	179.40B	151.04B
Total Liabilities	570.37B	570.37B	516.54B	492.30B	442.16B	423.26B
Stockholders Equity	342.23B	342.23B	348.52B	317.25B	316.57B	310.02B
Cash Flow
Free Cash Flow	0.00	-36.38B	5.64B	-68.45B	1.48B	-50.46B
Operating Cash Flow	0.00	26.41B	62.15B	-30.84B	27.27B	-21.14B
Investing Cash Flow	0.00	-61.19B	-48.85B	-26.10B	-20.43B	-30.85B
Financing Cash Flow	0.00	7.36B	1.03B	22.53B	18.31B	31.28B

Toda Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1061.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1860, the sentiment is Positive. The current price of 1061.5 is above the 20-day moving average (MA) of 1031.80, above the 50-day MA of 986.74, and above the 200-day MA of 926.69, indicating a bullish trend. The MACD of 18.36 indicates Negative momentum. The RSI at 64.39 is Neutral, neither overbought nor oversold. The STOCH value of 85.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1860.

Toda Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1860	75 Outperform	¥325.56B	12.53		2.75%	16.62%	42.69%
Sector *	64 Neutral	$10.73B	15.74	7.64%	2.01%	2.76%	-15.10%
2PW	―	€1.83B	9.15	17.85%	―	―	―
KUG1	―	€1.21B	17.26	6.29%	―	―	―
PNOCF	―	$2.07B	21.02	8.52%	1.95%	―	―
5076	75 Outperform	¥374.61B	9.80		3.96%	―	―
1820	71 Outperform	¥206.95B	12.97		4.27%	-8.97%	9.14%

Toda Corporation Corporate Events

Toda Corporation Reports Revenue Growth but Decline in Profitability

Toda Corporation reported a significant increase in net sales for the three months ended June 30, 2025, with a 17.5% rise compared to the previous year, reaching ¥131,339 million. Despite this growth, the company’s profit attributable to owners of the parent decreased by 4.7% to ¥3,541 million. The company forecasts a 9.1% increase in net sales for the fiscal year ending March 31, 2026, but expects a decline in operating and ordinary profits by 9.9%. The announcement highlights the company’s ongoing challenges in maintaining profitability despite revenue growth, which may impact its market positioning and stakeholder confidence.

The most recent analyst rating on (JP:1860) stock is a Hold with a Yen1050.00 price target. To see the full list of analyst forecasts on Toda Corporation stock, see the JP:1860 Stock Forecast page.

Toda Corporation Revises Executive Stock Compensation Plan

Toda Corporation has announced a continuation and partial revision of its performance-linked stock compensation plan for executive officers. This plan, which utilizes an Employee Stock Ownership Plan (ESOP) Trust, aims to motivate improvements in business performance and corporate value. The revised plan extends the trust period by three years, from the fiscal year ending March 31, 2026, to March 31, 2028, and involves acquiring company shares through a trust to be granted to eligible recipients. These changes are intended to align executive incentives with long-term corporate goals and shareholder interests.

The most recent analyst rating on (JP:1860) stock is a Hold with a Yen1050.00 price target. To see the full list of analyst forecasts on Toda Corporation stock, see the JP:1860 Stock Forecast page.

Toda Corporation Announces Share Disposal for Stock Compensation

Toda Corporation has announced a resolution to dispose of 1,278,000 of its own shares as part of its performance-linked stock compensation plans. This initiative aims to enhance corporate value and promote shareholder-focused management while supporting sustainable development. The disposal, involving The Master Trust Bank of Japan, Ltd., is expected to result in a slight dilution of shares and voting rights, aligning with the company’s long-term strategic goals.

The most recent analyst rating on (JP:1860) stock is a Hold with a Yen1050.00 price target. To see the full list of analyst forecasts on Toda Corporation stock, see the JP:1860 Stock Forecast page.