Toa Road Corporation (1882) AI Stock Analysis

• Market Cap: ¥78.65B
• Dividend Yield: 8.25%
• Average Volume (3M): 417.02K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.51
• Revenue Growth: 2.51%
• EPS Growth: 4.02%
• Country: JP
• Employees: 1,655
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 12.57
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥1,670.00 ▲(3.66% Upside)

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

Revenue Growth

Consistent revenue growth indicates strong demand for Toa Road's services, enhancing its market position and supporting long-term business expansion.

Balance Sheet Health

A low debt-to-equity ratio suggests financial stability, providing Toa Road with flexibility to invest in growth opportunities without excessive risk.

Gross Profit Margin

Stable gross profit margins indicate effective cost control, allowing Toa Road to maintain profitability even as it scales operations.

Negative Factors

Negative Cash Flow

Negative operating cash flow could hinder Toa Road's ability to fund operations and growth initiatives, potentially impacting long-term financial health.

Net Profit Margin Decline

A decline in net profit margin suggests rising costs, which may pressure profitability if not managed, affecting future earnings potential.

Free Cash Flow Concerns

Negative free cash flow raises concerns about Toa Road's ability to generate sufficient cash to cover capital expenditures and shareholder returns.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: 1611.00
• 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 1611 is above the 20-day moving average (MA) of 1606.75, above the 50-day MA of 1562.96, and above the 200-day MA of 1497.94, indicating a bullish trend. The MACD of 15.51 indicates Positive momentum. The RSI at 53.59 is Neutral, neither overbought nor oversold. The STOCH value of 53.31 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	79 Outperform	¥85.80B	10.63	―	3.17%	5.39%	33.02%
1870	79 Outperform	¥94.73B	12.42	―	3.78%	35.73%	62.37%
1884	79 Outperform	―	―	―	―	4.84%	62.58%
1882	70 Outperform	¥78.65B	16.32	―	8.25%	2.51%	4.02%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1822	63 Neutral	¥70.93B	20.38	―	3.92%	-8.79%	―
1888	59 Neutral	¥61.66B	16.33	―	2.86%	15.45%	43.95%

Toa Road Corporation Corporate Events

Toa Road Corporation Reports Lower-than-Expected Financial Results for H1 2025

Toa Road Corporation announced a shortfall in its financial results for the six months ending September 30, 2025, compared to its earlier forecasts. The discrepancies were attributed to project delays in the construction sector and lower-than-expected asphalt prices, which impacted net sales and profits. Despite these challenges, the company anticipates favorable progress in ongoing projects and an increase in shipment volumes for the remainder of the fiscal year, maintaining its full-year financial forecasts.

Toa Road Corporation Reports Mixed Financial Results for First Half of 2025

Toa Road Corporation reported a decrease in net sales by 4.5% for the six months ending September 30, 2025, compared to the previous year. Despite the decline in sales, the company saw a significant increase in operating profit by 129.3% and ordinary profit by 71.8%. However, profit attributable to owners of the parent decreased by 22.1%. The company maintains a strong equity-to-asset ratio of 63.7% as of September 30, 2025, indicating a stable financial position. The financial results forecast for the fiscal year ending March 31, 2026, anticipates slight growth in net sales and substantial increases in operating and ordinary profits.