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

• Market Cap: ¥127.63B
• Dividend Yield: 6.51%
• Average Volume (3M): 489.40K
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.63
• Revenue Growth: -12.06%
• EPS Growth: -8.20%
• Country: JP
• Employees: 1,656
• Sector: Industrials
• Sector Strength: 90
• Industry: Engineering & Construction
• EPS (TTM): 46.26
• Shares Outstanding: 94,371,185
• 10 Day Avg. Volume: 853,180
• 30 Day Avg. Volume: 489,400
• PEG Ratio: -12.06
• Price to Book (P/B): 1.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.90
• 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

• Rating: 64 Neutral
• Price Target: ―

Toyo Construction Co., Ltd.'s stock is weighed down by liquidity challenges and bearish technical signals. However, its valuation appears reasonable, offering a high dividend yield that may appeal to income-focused investors. The company's operational stability provides a solid foundation, though attention to cash flow management is crucial.

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

Company Description

Toyo Construction Co., Ltd. engages in the marine and civil engineering, and building construction activities in Japan and internationally. It undertakes civil engineering works, such as ports, fishery ports, and reclamation and dredging; airports; railways; power stations; rivers and dams; waterworks and sewerage service; expressway; and waste disposal site projects. It also constructs commercial, distribution and warehouse, medical and welfare, sports and leisure, resident, and education and culture facilities, as well as offices, accommodations, and factories. In addition, it is involved in the real estate and other businesses. The company was formerly known as Hanshin Harbor Construction Co., Ltd. and changed its name to Toyo Construction Co., Ltd. in 1964. The company was incorporated in 1929 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Toyo Construction Co., Ltd. generates revenue primarily through its civil engineering and construction projects. The company secures contracts from both public and private sector clients for large-scale infrastructure projects such as roads, bridges, tunnels, and ports. Revenue is derived from project contracts, which include design, construction, and maintenance services. Additionally, the company engages in urban development projects and environmental initiatives, contributing to its revenue streams. Strategic partnerships and joint ventures with other construction firms and technology providers enhance its project capabilities and market reach, further supporting its financial performance.

Toyo Construction Co., Ltd. Financial Statement Overview

Summary

Toyo Construction Co., Ltd. demonstrates operational stability with consistent profitability margins. However, recent pressures on revenue growth and negative cash flows point to potential liquidity challenges that need to be addressed to maintain financial health.

Income Statement

Toyo Construction Co., Ltd. shows a stable gross profit margin and a slightly declining net profit margin over the years. The revenue growth rate has been inconsistent, with a recent drop in TTM figures. EBIT and EBITDA margins are relatively stable, indicating consistent operational efficiency.

Balance Sheet

The company's balance sheet is strong with a moderate debt-to-equity ratio, indicating manageable leverage. The return on equity is healthy, reflecting good profitability for shareholders. The equity ratio shows a strong equity position, enhancing financial stability.

Cash Flow

Cash flow analysis reveals challenges with negative operating and free cash flows in TTM, indicating potential liquidity constraints. The free cash flow to net income ratio has been volatile, suggesting inconsistent cash generation relative to profits.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
166.01B	186.78B	168.35B	152.52B	172.97B	174.80B
	Gross Profit
21.62B	23.33B	19.53B	19.04B	23.23B	18.11B
	EBIT
9.02B	10.89B	8.99B	9.62B	14.26B	9.27B
	EBITDA
10.95B	12.95B	10.65B	11.23B	15.99B	11.18B
	Net Income Common Stockholders
6.57B	7.02B	5.66B	5.86B	9.18B	5.77B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
15.97B	23.57B	39.11B	30.59B	16.77B	26.37B
	Total Assets
159.82B	164.16B	153.72B	135.58B	148.95B	135.52B
	Total Debt
27.85B	8.15B	4.71B	5.59B	10.59B	11.15B
	Net Debt
11.99B	-15.43B	-34.40B	-24.99B	-6.18B	-15.22B
	Total Liabilities
85.08B	83.36B	79.73B	65.69B	83.08B	78.19B
	Stockholders Equity
72.04B	78.14B	71.82B	68.12B	64.27B	55.95B
Cash Flow		Free Cash Flow
-18.75B	-16.39B	10.82B	21.11B	-7.63B	-3.49B
	Operating Cash Flow
-6.23B	-8.51B	11.79B	22.29B	-6.55B	-269.00M
	Investing Cash Flow
-11.20B	-7.88B	-485.00M	-1.11B	-961.00M	-2.97B
	Financing Cash Flow
9.78B	572.00M	-2.87B	-7.46B	-2.10B	-2.63B

Toyo Construction Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1351.00
• 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:1890, the sentiment is Positive. The current price of 1351 is below the 20-day moving average (MA) of 1351.95, above the 50-day MA of 1316.90, and above the 200-day MA of 1297.28, indicating a bullish trend. The MACD of 13.17 indicates Positive momentum. The RSI at 56.03 is Neutral, neither overbought nor oversold. The STOCH value of 35.65 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
1835	75 Outperform	¥118.60B	10.26		3.91%	10.24%	15.88%
1884	70 Neutral	¥107.95B	17.45		2.39%	2.02%	8.48%
Sector *	64 Neutral	$4.39B	11.81	5.17%	249.38%	3.98%	-12.17%
1890	64 Neutral	¥127.63B	15.35		6.51%	-12.06%	-8.20%
1762	64 Neutral	¥84.06B	14.75		3.03%	11.30%	25.26%
1720	62 Neutral	¥91.60B	13.95		4.34%	-5.39%	18.83%
1820	57 Neutral	¥193.72B	11.04		4.46%	-4.62%	17.56%

Toyo Construction Co., Ltd. Corporate Events

Toyo Construction Reports Decline in Nine-Month Financial Results

Toyo Construction Co., Ltd. reported a decline in its financial performance for the nine months ending December 31, 2024, with net sales down by 15.1% and a decrease in operating profit by 24.5% compared to the previous year. Despite the downturn, the company maintains its financial forecast for the full year ending March 31, 2025, indicating a slight year-on-year decline in net sales and a modest increase in operating profit and ordinary profit. Stakeholders might need to consider these financial results and forecasts in their decision-making, as they reflect the company’s ongoing challenges in the competitive construction industry.