Toyo Construction Co., Ltd. (1890) AI Stock Analysis

• Market Cap: ¥151.40B
• Dividend Yield: 5.48%
• Average Volume (3M): 474.88K
• Price to Earnings (P/E): 18.2
• Beta (1Y): 0.62
• Revenue Growth: -7.59%
• EPS Growth: 18.77%
• Country: JP
• Employees: 1,656
• Sector: Industrials
• Sector Strength: 93
• Industry: Engineering & Construction
• EPS (TTM): 46.26
• Shares Outstanding: 94,371,185
• 10 Day Avg. Volume: 498,920
• 30 Day Avg. Volume: 474,876
• PEG Ratio: 0.67
• Price to Book (P/B): 1.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -14.61
• 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: ¥1,549.00
• Price Target Upside: -3.61% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ¥1,549.00 ▼(-3.61%Downside)

Toyo Construction Co., Ltd. has a solid overall stock score, driven primarily by strong technical indicators and a reasonable valuation with a high dividend yield. Financial performance is stable but highlights areas for improvement, particularly in cash flow management. The stock benefits from bullish market momentum, although investors should be aware of the underlying financial challenges.

Toyo Construction Co., Ltd. Business Overview & Revenue Model

Company Description

Toyo Construction Co., Ltd., established in 1929, is a Japanese construction company primarily engaged in civil engineering and building construction. The company operates in various sectors, including infrastructure development, environmental projects, and marine construction, offering services such as project management, design, and construction of public works, commercial facilities, and residential buildings.

How the Company Makes Money

Toyo Construction Co., Ltd. generates revenue primarily through contracts for large-scale construction projects in both public and private sectors. The company undertakes infrastructure development projects, including roads, bridges, and tunnels, as well as marine construction projects like ports and harbors. Revenue is also derived from environmental projects, such as waste treatment facilities and renewable energy developments. The company secures contracts through competitive bidding processes and often partners with government agencies and private developers, leveraging its expertise in engineering and project management to deliver complex construction solutions. Additionally, Toyo Construction may engage in joint ventures or partnerships with other construction firms to expand its project portfolio and enhance its service offerings.

Toyo Construction Co., Ltd. Financial Statement Overview

Summary

Toyo Construction Co., Ltd. displays a stable operational performance with decent profitability margins. However, challenges exist in revenue growth and cash flow, with liabilities increasing. The balance sheet remains robust with controlled debt levels, but cash flow weaknesses suggest a need for strategic improvements to enhance liquidity and sustain operations.

Income Statement

Toyo Construction Co., Ltd. showed a moderate gross profit margin of around 13.9% for 2025, indicating stable profitability. Net profit margin improved to 4.8%, reflecting better cost management. However, revenue growth was negative at -7.6%, showing a decline in sales compared to the previous year, which could be a concern for future growth. EBIT and EBITDA margins were solid at 6.6% and 8.1% respectively, pointing to efficient operations.

Balance Sheet

The company's debt-to-equity ratio stood at 0.31, showcasing a manageable level of debt. Return on equity was 10.8%, indicating a reasonable return on shareholder investments. The equity ratio was 42.7%, suggesting a stable financial structure with a good proportion of assets financed by equity. However, the company's total liabilities increased, which could pose a risk if not managed carefully.

Cash Flow

Toyo Construction experienced a negative free cash flow growth rate, indicating challenges in generating cash after capital expenditures. Operating cash flow to net income ratio was low at 0.34, suggesting less cash generation from operations relative to net income. Free cash flow to net income was also negative, highlighting potential liquidity issues. The cash flow situation reflects a need for improvement in operational efficiency and cash management.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	172.60B	186.78B	168.35B	152.52B	172.97B
Gross Profit	24.04B	23.33B	19.53B	19.04B	23.23B
EBITDA	14.05B	12.95B	10.65B	11.23B	15.99B
Net Income	8.31B	7.02B	5.66B	5.86B	9.18B
Balance Sheet
Total Assets	180.46B	164.16B	153.72B	135.58B	148.95B
Cash, Cash Equivalents and Short-Term Investments	21.25B	23.57B	39.11B	30.59B	16.77B
Total Debt	24.00B	8.15B	4.71B	5.59B	10.59B
Total Liabilities	100.38B	83.36B	79.73B	65.69B	83.08B
Stockholders Equity	77.06B	78.14B	71.82B	68.12B	64.27B
Cash Flow
Free Cash Flow	-10.08B	-16.39B	10.82B	21.11B	-7.63B
Operating Cash Flow	2.82B	-8.51B	11.79B	22.29B	-6.55B
Investing Cash Flow	-11.19B	-7.88B	-485.00M	-1.11B	-961.00M
Financing Cash Flow	5.89B	572.00M	-2.87B	-7.46B	-2.10B

Toyo Construction Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1607.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1890, the sentiment is Positive. The current price of 1607 is above the 20-day moving average (MA) of 1524.75, above the 50-day MA of 1469.70, and above the 200-day MA of 1329.29, indicating a bullish trend. The MACD of 36.46 indicates Negative momentum. The RSI at 73.46 is Negative, neither overbought nor oversold. The STOCH value of 79.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1890.

Toyo Construction Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1884	79 Outperform	¥107.87B	17.44		2.39%	2.35%	25.15%
1890	74 Outperform	¥151.40B	18.21		5.48%	-7.59%	18.77%
1835	74 Outperform	¥139.60B	12.07		2.44%	12.83%	39.37%
1820	71 Outperform	¥195.58B	11.15		4.44%	-8.67%	40.83%
1720	69 Neutral	¥107.30B	16.34		3.71%	2.61%	-9.19%
1762	69 Neutral	¥94.42B	16.57		2.67%	10.88%	-29.60%
Sector *	58 Neutral	HK$14.89B	4.75	-2.78%	5.07%	3.80%	-54.55%

Toyo Construction Co., Ltd. Corporate Events

Toyo Construction Announces Shareholder Structure and Maintains Independence

Toyo Construction Co., Ltd. has announced its controlling shareholder structure, highlighting WK 1 Limited as the entity with the greatest influence, holding 28.56% of voting rights. Despite this, Toyo Construction maintains its independence with no business restrictions from its parent company or associates, allowing it to pursue its own management policies and strategies.

Toyo Construction Issues Correction on Financial Forecast

Toyo Construction Co., Ltd. has issued a correction notice regarding a calculation error in its previously released financial results for the year ended March 31, 2025. The correction affects the forecast of consolidated construction orders for the fiscal year ending March 31, 2026, with adjustments made to the figures for both domestic and overseas projects. This correction is crucial for stakeholders as it impacts the company’s financial projections and market positioning.

Toyo Construction Proposes Increased Dividend Payout

Toyo Construction Co., Ltd. announced a proposal for dividends of surplus with a record date of March 31, 2025, to be submitted at the upcoming Annual General Meeting. The proposed year-end dividend is 58 yen per share, resulting in an annual dividend of 88 yen per share, reflecting a 99.4% payout ratio. This decision aligns with the company’s mid-term business plan policy of a 100% dividend payout ratio, demonstrating its commitment to returning profits to shareholders.