Toa Road Corporation (1882) AI Stock Analysis

• Market Cap: ¥79.20B
• Dividend Yield: 5.69%
• Average Volume (3M): 141.79K
• Price to Earnings (P/E): 17.7
• Beta (1Y): 0.51
• Revenue Growth: 7.21%
• EPS Growth: 11.22%
• Country: JP
• Employees: 1,655
• Sector: Industrials
• Sector Strength: 94
• Industry: Engineering & Construction
• EPS (TTM): 28.39
• Shares Outstanding: 50,394,730
• 10 Day Avg. Volume: 171,330
• 30 Day Avg. Volume: 141,793
• PEG Ratio: -1.03
• Price to Book (P/B): 1.32
• 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: ¥1,684.00
• Price Target Upside: 6.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: ¥1,684.00 ▲(6.45%Upside)

Toa Road Corporation's financial strength and attractive valuation are the primary drivers of its score. While technical indicators are positive, concerns about cash flow generation slightly temper the overall outlook.

Toa Road Corporation Business Overview & Revenue Model

Company Description

Toa Road Corporation is a Japanese company engaged in the construction and civil engineering industry. It specializes in road construction, repair, and maintenance, offering services that include asphalt paving, concrete work, and bridge construction. The company also manufactures and sells materials related to its construction projects, such as asphalt mixtures and other construction materials.

How the Company Makes Money

Toa Road Corporation generates revenue primarily through its construction services, which include the planning, design, and execution of road and bridge projects. The company secures contracts from governmental bodies and private sector clients looking to build or maintain infrastructure. Additionally, it earns income from the sale of construction materials, including asphalt mixtures, which are used in its projects as well as sold to other construction firms. Strategic partnerships with suppliers and contractors further enhance its operational efficiency and profitability.

Toa Road Corporation Financial Statement Overview

Summary

Toa Road Corporation shows solid financial health with strong revenue growth and a stable balance sheet. However, negative operating and free cash flows present a concern that needs addressing to maintain 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	126.58B	118.06B	118.72B	112.12B	111.80B
Gross Profit	13.49B	13.48B	12.34B	12.78B	14.52B
EBITDA	8.61B	7.91B	6.80B	7.66B	9.29B
Net Income	4.13B	3.79B	3.16B	3.71B	4.70B
Balance Sheet
Total Assets	90.72B	92.89B	87.18B	84.69B	87.85B
Cash, Cash Equivalents and Short-Term Investments	12.31B	14.23B	10.00B	11.65B	12.76B
Total Debt	5.90B	1.50B	2.19B	1.91B	3.35B
Total Liabilities	33.79B	36.82B	34.48B	34.23B	39.82B
Stockholders Equity	55.41B	54.65B	51.34B	49.07B	46.74B
Cash Flow
Free Cash Flow	-4.37B	6.83B	-65.00M	2.06B	4.80B
Operating Cash Flow	-1.75B	10.91B	2.18B	4.58B	6.69B
Investing Cash Flow	-1.22B	-4.00B	-2.97B	-2.84B	-2.09B
Financing Cash Flow	1.06B	-2.69B	-853.00M	-2.86B	-3.89B

Toa Road Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1582.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 1582 is above the 20-day moving average (MA) of 1544.70, above the 50-day MA of 1511.02, and above the 200-day MA of 1359.49, indicating a bullish trend. The MACD of 17.42 indicates Positive momentum. The RSI at 64.01 is Neutral, neither overbought nor oversold. The STOCH value of 53.49 is Neutral, 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
1871	84 Outperform	¥82.57B	10.05		4.07%	4.90%	62.09%
1884	79 Outperform	¥107.87B	17.44		2.39%	2.35%	25.15%
1882	77 Outperform	¥79.20B	17.73		5.69%	7.21%	11.22%
1822	75 Outperform	¥74.31B	20.38		3.52%	-12.15%	―
1888	69 Neutral	¥60.83B	16.45		2.64%	-8.91%	-27.27%
1870	66 Neutral	¥83.96B	14.86		2.05%	17.42%	-12.69%
Sector *	58 Neutral	HK$14.89B	4.74	-2.78%	5.07%	3.80%	-54.55%

Toa Road Corporation Corporate Events

TOA ROAD CORPORATION Completes Treasury Share Disposal for Stock Compensation

TOA ROAD CORPORATION has completed the payment procedure for the disposal of 57,742 treasury shares as restricted stock compensation, following a resolution by the Board of Directors. This move involves allocating shares to directors and executive officers, potentially impacting the company’s governance and aligning management interests with shareholder value.

Toa Road Corporation Announces Treasury Share Disposal for Employee Incentive

Toa Road Corporation has announced the disposal of 240,000 treasury shares as restricted stock to its Employee Shareholding Association. This initiative aims to enhance employee welfare by allowing them to acquire company stock, thereby aligning their interests with shareholders and promoting sustainable corporate value growth.

Toa Road Corporation Completes Share Repurchase to Enhance Shareholder Value

Toa Road Corporation has completed the repurchase of 350,000 shares of its common stock, representing 0.76% of its total issued shares, for approximately ¥519.75 million. This move is part of the company’s strategy to increase shareholder value by improving capital efficiency and adopting a flexible capital policy.

Toa Road Corporation Announces Treasury Share Buyback

Toa Road Corporation announced a resolution to purchase up to 350,000 of its own shares, aiming to improve capital efficiency and return more profits to shareholders. This strategic move, executed through the Tokyo Stock Exchange’s off-auction trading system, reflects the company’s flexible capital policy and commitment to shareholder value, potentially impacting its market positioning positively.

Toa Road Corporation to Introduce Interim Dividend System

Toa Road Corporation announced plans to introduce an interim dividend system, allowing for more frequent profit returns to shareholders, pending approval at the upcoming shareholders’ meeting. Additionally, the company proposes amendments to its Articles of Incorporation to facilitate this change, reflecting a strategic move to enhance shareholder engagement and financial flexibility.

Toa Road Corporation Announces Dividend of Surplus for Fiscal Year 2025

Toa Road Corporation has announced a resolution to pay dividends of surplus, with a record date of March 31, 2025, and an effective date of June 30, 2025. The dividend per share is set at ¥90, reflecting a 100% dividend payout ratio and a dividend on equity of 8.1%. This decision aligns with the company’s strategy to improve capital efficiency and maintain stable shareholder returns, following a 5-for-1 stock split conducted on April 1, 2024.

Toa Road Corporation Reports FY2025 Financial Results with Increased Sales and Strategic Dividend Payout

Toa Road Corporation reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a 7.2% increase in net sales to ¥126,575 million. However, operating and ordinary profits declined by 8.4% and 8.8%, respectively. The company conducted a 5-for-1 stock split and increased its dividend payout ratio to 100.9%, reflecting a strategic shift to enhance shareholder returns. Despite a decrease in cash flows from operating activities, the company maintains a strong equity-to-asset ratio of 61.1%.