Toda Corporation (1860) AI Stock Analysis

• Market Cap: ¥319.58B
• Dividend Yield: 2.93%
• Average Volume (3M): 634.57K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.64
• Revenue Growth: 16.62%
• EPS Growth: 42.69%
• Country: JP
• Employees: 6,621
• Sector: Industrials
• Sector Strength: 85
• Industry: Engineering & Construction
• EPS (TTM): 11.80
• Shares Outstanding: 322,656,800
• 10 Day Avg. Volume: 788,050
• 30 Day Avg. Volume: 634,566
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,015.00
• Price Target Upside: -2.59% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 75 Outperform
• Price Target: ¥1,030.00 ▼(-1.15% 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 primarily engages in the building construction and civil engineering businesses in Japan and internationally. The company is involved in the research, planning, design, management, and execution of architectural and civil engineering works, as well as provides engineering and consulting related services. It also engages in the research, planning, design, management, and execution works related to local and urban development activities, as well as provides related engineering and consulting services. Additionally, the company sells, purchases, rents, intermediates, manages, and appraises real estate properties. Further, it generates and sells renewable energy, as well as engages in the agricultural activities. The company was formerly known as Toda-Gumi Co., Ltd. and changed its name to Toda Corporation in 1963. Toda Corporation was founded in 1881 and is headquartered in Tokyo, Japan.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	586.66B	522.43B	547.15B	501.51B	507.13B
Gross Profit	76.80B	65.58B	57.32B	62.68B	64.89B
EBITDA	48.37B	25.38B	20.77B	29.25B	31.62B
Net Income	25.19B	16.10B	10.99B	18.56B	19.73B
Balance Sheet
Total Assets	923.57B	872.06B	815.56B	761.20B	735.79B
Cash, Cash Equivalents and Short-Term Investments	89.17B	114.41B	97.54B	130.84B	105.14B
Total Debt	255.47B	226.57B	211.54B	179.40B	151.04B
Total Liabilities	570.37B	516.54B	492.30B	442.16B	423.26B
Stockholders Equity	342.23B	348.52B	317.25B	316.57B	310.02B
Cash Flow
Free Cash Flow	-36.38B	5.64B	-68.45B	1.48B	-50.46B
Operating Cash Flow	26.41B	62.15B	-30.84B	27.27B	-21.14B
Investing Cash Flow	-61.19B	-48.85B	-26.10B	-20.43B	-30.85B
Financing Cash Flow	7.36B	1.03B	22.53B	18.31B	31.28B

Toda Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1042.00
• 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:1860, the sentiment is Positive. The current price of 1042 is above the 20-day moving average (MA) of 973.09, above the 50-day MA of 937.03, and above the 200-day MA of 915.03, indicating a bullish trend. The MACD of 28.34 indicates Negative momentum. The RSI at 75.54 is Negative, neither overbought nor oversold. The STOCH value of 85.83 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	¥319.58B	12.50		2.93%	16.62%	42.69%
Sector *	60 Neutral	kr42.62B	14.19	1.95%	2.34%	0.36%	-1.51%
2PW	―	€1.77B	9.01	17.85%	―	―	―
KUG1	―	€1.19B	17.26	6.29%	―	―	―
PNOCF	―	$2.04B	21.10	8.52%	1.96%	―	―
5076	75 Outperform	¥335.83B	8.92		4.43%	―	―
1820	71 Outperform	¥200.99B	12.59		4.31%	-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.

Toda Corporation Increases Year-End Dividend Proposal

Toda Corporation has announced a proposal to increase its year-end dividend for the fiscal year ending March 31, 2025, to ¥15.50 per share, up from the previous forecast of ¥14.50. This decision reflects the company’s commitment to providing stable dividends while ensuring sufficient retained earnings to enhance competitiveness and financial stability.

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 Unveils Medium-Term Management Plan 2027

Toda Corporation has announced its ‘Medium-Term Management Plan 2027,’ which outlines strategies for sustainable growth and increased profitability over the next three fiscal years. The plan includes initiatives for vertical and horizontal expansion, increased investments in digital solutions, and a focus on capital efficiency. The company aims to achieve significant revenue growth and improve its return on equity, while also enhancing shareholder returns. These efforts are expected to strengthen Toda’s business foundation and competitive advantage in the construction industry.

The most recent analyst rating on (JP:1860) stock is a Sell with a Yen850.00 price target. To see the full list of analyst forecasts on Toda Corporation stock, see the JP:1860 Stock Forecast page.

Toda Corporation Revises Stock Compensation Plan for Directors

Toda Corporation has announced a proposal to continue and partially revise its performance-linked stock compensation plan for directors and executive officers. This plan, initially introduced in 2016 and revised in 2019 and 2022, aims to enhance motivation for business performance improvement and corporate value growth. The revised plan includes extending the trust period by three years and increasing the upper limit of funds and shares allocated to directors, reflecting the company’s strategy to align management incentives with long-term business performance.

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 to Recognize ¥7.5 Billion Extraordinary Income from Securities Sale

Toda Corporation announced it expects to recognize an extraordinary income of ¥7.5 billion from the sale of investment securities in the fiscal year ending March 31, 2026. This move aims to reduce cross-shareholdings and improve asset efficiency, reflecting strategic financial management to strengthen the company’s market position.

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 Reports Strong Financial Results and Strategic Expansion

Toda Corporation reported a strong financial performance for the fiscal year ending March 31, 2025, with net sales increasing by 12.3% to ¥586,661 million and operating profit rising by 48.8% to ¥26,638 million. The company also announced a dividend increase and forecasted continued growth in net sales for the next fiscal year, although it anticipates a decline in profits. The inclusion of Coherent Hotel Ltd. in its consolidation scope marks a strategic expansion, potentially impacting its market positioning and stakeholder 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 Revises Dividend Policy to Enhance Shareholder Returns

Toda Corporation announced a significant change to its dividend policy, effective from the fiscal year ending March 31, 2026. The revised policy aims to enhance profit distribution and better meet shareholder expectations, with a new target of a dividend on equity (DOE) of 3.5% or higher and a total payout ratio of approximately 70%. This change is part of the company’s ‘Medium-Term Management Plan 2027,’ which seeks to secure funds for sustainable growth while maintaining financial stability.

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.