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Toa Road Corporation (JP:1882)
:1882
Japanese Market
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Toa Road Corporation (1882) AI Stock Analysis

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JP:1882

Toa Road Corporation

(1882)

Rating:77Outperform
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 (1882) vs. iShares MSCI Japan ETF (EWJ)

Toa Road Corporation Business Overview & Revenue Model

Company DescriptionToa 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 MoneyToa 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
78
Positive
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
82
Very Positive
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
65
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue126.58B118.06B118.72B112.12B111.80B
Gross Profit13.49B13.48B12.34B12.78B14.52B
EBITDA8.61B7.91B6.80B7.66B9.29B
Net Income4.13B3.79B3.16B3.71B4.70B
Balance Sheet
Total Assets90.72B92.89B87.18B84.69B87.85B
Cash, Cash Equivalents and Short-Term Investments12.31B14.23B10.00B11.65B12.76B
Total Debt5.90B1.50B2.19B1.91B3.35B
Total Liabilities33.79B36.82B34.48B34.23B39.82B
Stockholders Equity55.41B54.65B51.34B49.07B46.74B
Cash Flow
Free Cash Flow-4.37B6.83B-65.00M2.06B4.80B
Operating Cash Flow-1.75B10.91B2.18B4.58B6.69B
Investing Cash Flow-1.22B-4.00B-2.97B-2.84B-2.09B
Financing Cash Flow1.06B-2.69B-853.00M-2.86B-3.89B

Toa Road Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1582.00
Price Trends
50DMA
1511.02
Positive
100DMA
1479.17
Positive
200DMA
1359.49
Positive
Market Momentum
MACD
17.42
Positive
RSI
64.01
Neutral
STOCH
53.49
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

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
84
Outperform
¥82.57B10.05
4.07%4.90%62.09%
79
Outperform
¥107.87B17.44
2.39%2.35%25.15%
77
Outperform
¥79.20B17.73
5.69%7.21%11.22%
75
Outperform
¥74.31B20.38
3.52%-12.15%
69
Neutral
¥60.83B16.45
2.64%-8.91%-27.27%
66
Neutral
¥83.96B14.86
2.05%17.42%-12.69%
58
Neutral
HK$14.89B4.74-2.78%5.07%3.80%-54.55%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:1882
Toa Road Corporation
1,582.00
403.34
34.22%
JP:1822
Daiho Corporation
839.00
145.92
21.05%
JP:1870
Yahagi Construction Co., Ltd.
1,949.00
395.06
25.42%
JP:1871
P.S. Mitsubishi Construction Co., Ltd.
1,767.00
806.50
83.97%
JP:1884
NIPPON ROAD CO., LTD.
2,511.00
866.34
52.68%
JP:1888
Wakachiku Construction Co., Ltd.
4,790.00
1,604.03
50.35%

Toa Road Corporation Corporate Events

TOA ROAD CORPORATION Completes Treasury Share Disposal for Stock Compensation
Jul 28, 2025

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
Jul 7, 2025

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
May 29, 2025

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
May 28, 2025

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
May 9, 2025

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
May 9, 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
May 9, 2025

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%.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 27, 2025