Toa Road Corporation (1882) AI Stock Analysis

• Market Cap: ¥94.17B
• Dividend Yield: 8.02%
• Average Volume (3M): 417.02K
• Price to Earnings (P/E): 25.9
• Beta (1Y): 0.54
• Revenue Growth: 2.51%
• EPS Growth: 4.02%
• Country: JP
• Employees: 1,655
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 34.14
• Shares Outstanding: 50,394,730
• 10 Day Avg. Volume: 328,020
• 30 Day Avg. Volume: 417,023
• PEG Ratio: 1.38
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 0.52
• P/FCF Ratio: -15.18
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥2,144.00 ▲(25.16% Upside)
• Action: Upgraded Date: 10/17/25
• Date: Action: Upgraded 10/17/25

Toa Road Corporation's strong valuation and financial performance are offset by weak technical indicators. The high dividend yield and reasonable P/E ratio are significant positives, but negative cash flows and bearish market momentum present risks.

Positive Factors

Low leverage and solid capital structure

Very low leverage and a high equity ratio provide financial resilience and low refinancing risk. A 7.4% ROE indicates the company is generating healthy returns on equity, supporting capacity to fund projects and absorb cyclical downturns without heavy new borrowing.

Recent revenue growth

A 7.2% year-over-year revenue gain points to stable demand and execution in core construction and road projects. Sustained top-line growth supports longer-term backlog expansion and scale benefits that can improve operational efficiency over a multi-month horizon.

Stable gross profit margins

Stable gross margins imply structural cost control and some pricing power on projects. This margin stability cushions profitability against input cost swings and underpins sustainable operating performance as revenues grow, aiding long-term margin durability.

Negative Factors

Negative operating and free cash flow

Operating and free cash flow turning negative reduces internal funding for capex, working capital, and dividends. Even with low leverage, persistent cash conversion weakness forces reliance on external financing or asset sales, raising execution risk over the next several months.

Net profit margin compression

Rising operating expenses have trimmed net margin despite stable gross margins, indicating operating leverage issues or higher overhead. If expense trends continue, profitability and cash generation will be pressured, weakening long-term reinvestment capacity.

Material EPS decline

A roughly 33% contraction in EPS signals meaningful earnings volatility or non-recurring hits that undermine underlying profitability. This deterioration weakens cover for dividends and signals potential earnings instability despite revenue growth and a strong balance sheet.

Toa Road Corporation Business Overview & Revenue Model

Company Description

Toa Road Corporation engages in civil engineering business in Japan. The company constructs road networks and transportation infrastructure, such as expressways and national roads, as well as paving on bridges and tunnels; and enhances aged infrastructure. It also undertakes civil works, including airport projects and civil construction parts of the road projects, as well as super express, railway container yard, photovoltaic power generation, and regional contribution and disaster recovery projects. In addition, the company manufactures and sells asphalt emulsion for roads, railways, landscape, and sports facilities; asphalt mixtures; polymer modified asphalt for heavy traffic roads, porous asphalt pavements, bridge deck pavements, and cold regions; and pavement materials for various applications, such as garages and bridges. Further, it provides pavement materials for various landscaping locations comprising historical places and parks; and sports pavement materials for use in running tracks, baseball stadiums, tennis courts, bicycle racetracks, and others. Additionally, the company conducts surveying/cleaning of soil pollution; designs and builds various underground reservoirs; demolishes buildings, factories, chimneys, etc. for redevelopment projects; and provides road maintenance plans that integrate pavement maintenance techniques comprising planning, inspection/diagnosis, performance evaluation/forecasting, maintenance/rehabilitation design, etc. with asset management. The company was founded in 1930 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Toa Road Corporation generates revenue primarily through contracts for construction projects, which include roadworks, bridges, tunnels, and other civil engineering tasks. The company bids for public and private sector projects, securing contracts that provide a steady stream of income. Key revenue streams include project management fees, construction service fees, and maintenance contracts. The company also benefits from strategic partnerships with government agencies and private developers, which facilitate access to large-scale projects and funding opportunities. Additionally, Toa Road Corporation may derive income from consulting services related to urban planning and environmental assessments, further diversifying its revenue portfolio.

Toa Road Corporation Financial Statement Overview

Summary

Toa Road Corporation shows strong revenue growth and a solid balance sheet with low leverage. However, negative operating and free cash flows are concerning and need attention to sustain growth.

Income Statement

Toa Road Corporation has demonstrated consistent revenue growth, with a 7.2% increase from 2024 to 2025. The gross profit margin is stable, reflecting efficient cost management. However, the net profit margin slightly declined due to increased operating expenses, which also impacted the EBIT and EBITDA margins.

Balance Sheet

The company maintains a strong equity position with a debt-to-equity ratio of 0.11, indicating low leverage. The return on equity is healthy at 7.4%, showcasing effective use of equity capital. The equity ratio of 61.1% suggests a stable financial structure, minimizing financial risk.

Cash Flow

The cash flow analysis highlights a significant decline in operating cash flow, turning negative in 2025. This is concerning despite the company's strong liquidity position. The free cash flow also turned negative, indicating potential challenges in cash generation from operations.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	126.54B	126.58B	118.06B	118.72B	112.12B	111.80B
Gross Profit	14.09B	13.49B	13.48B	12.34B	12.78B	14.52B
EBITDA	7.95B	8.61B	7.91B	6.96B	7.66B	9.39B
Net Income	4.46B	4.13B	3.79B	3.16B	3.71B	4.70B
Balance Sheet
Total Assets	76.03B	90.72B	92.89B	87.18B	84.69B	87.85B
Cash, Cash Equivalents and Short-Term Investments	10.55B	12.31B	14.23B	10.00B	11.65B	12.76B
Total Debt	787.00M	5.90B	1.50B	2.19B	1.91B	3.35B
Total Liabilities	23.99B	33.79B	36.82B	34.48B	34.23B	39.82B
Stockholders Equity	50.55B	55.41B	54.65B	51.34B	49.07B	46.74B
Cash Flow
Free Cash Flow	0.00	-4.37B	6.83B	-65.00M	2.06B	4.80B
Operating Cash Flow	0.00	-1.75B	10.91B	2.18B	4.58B	6.69B
Investing Cash Flow	0.00	-1.22B	-4.00B	-2.97B	-2.84B	-2.09B
Financing Cash Flow	0.00	1.06B	-2.69B	-853.00M	-2.86B	-3.89B

Toa Road Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1713.00
• 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:1882, the sentiment is Positive. The current price of 1713 is below the 20-day moving average (MA) of 1874.55, below the 50-day MA of 1798.38, and above the 200-day MA of 1604.83, indicating a bullish trend. The MACD of 39.31 indicates Negative momentum. The RSI at 71.16 is Negative, neither overbought nor oversold. The STOCH value of 90.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1882.

Toa Road Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1852	82 Outperform	¥87.56B	14.45	―	3.64%	18.01%	15.27%
1870	79 Outperform	¥102.74B	9.64	―	3.63%	35.73%	62.37%
6226	76 Outperform	¥102.71B	26.83	―	0.99%	14.46%	51.80%
9621	73 Outperform	¥91.83B	15.13	―	1.25%	2.61%	-13.38%
1882	70 Outperform	¥94.17B	25.88	―	8.02%	2.51%	4.02%
1815	64 Neutral	¥71.41B	22.76	―	2.73%	-3.59%	49.34%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Toa Road Corporation Corporate Events

Toa Road’s Nine-Month Profit Slips, But Full-Year Outlook and Dividend Remain Intact

Toa Road Corporation reported a 4.9% year-on-year decline in net sales to ¥86.1 billion and a 4.2% drop in operating profit to ¥2.9 billion for the nine months ended December 31, 2025, with profit attributable to owners of parent falling 27.3% to ¥2.0 billion as margins weakened. Total assets and equity decreased compared with the previous fiscal year-end, pushing the equity ratio down to 58.0%, yet the company maintained its full-year forecast of ¥127.0 billion in net sales and a significant recovery in operating and ordinary profit, while keeping its annual dividend plan unchanged at ¥90 per share, signaling management’s confidence in earnings resilience despite short-term profit pressure.

The most recent analyst rating on (JP:1882) stock is a Buy with a Yen2012.00 price target. To see the full list of analyst forecasts on Toa Road Corporation stock, see the JP:1882 Stock Forecast page.