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

• Market Cap: ¥163.43B
• Dividend Yield: 5.03%
• Average Volume (3M): 352.73K
• Price to Earnings (P/E): 18.3
• Beta (1Y): 0.62
• Revenue Growth: 12.80%
• EPS Growth: 34.19%
• Country: JP
• Employees: 1,656
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 20.76
• Shares Outstanding: 94,371,185
• 10 Day Avg. Volume: 235,080
• 30 Day Avg. Volume: 352,726
• PEG Ratio: 0.79
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 0.72
• P/FCF Ratio: -12.27
• 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: 75 Outperform
• Price Target: ¥1,988.00 ▲(13.73% Upside)

Toyo Construction Co., Ltd. benefits from strong technical indicators and a robust dividend yield, which outweigh the challenges in revenue growth and cash flow. The stock shows strong bullish momentum with a fair valuation, making it attractive for investors. However, potential overbought conditions should be monitored for short-term risks.

Positive Factors

Balance Sheet Health

A low debt-to-equity ratio indicates a stable financial structure, providing Toyo Construction with financial flexibility to invest in growth opportunities.

Profitability Margins

Improved net profit margins suggest effective cost management, enhancing the company's ability to sustain profitability despite revenue challenges.

Operational Efficiency

Strong EBIT and EBITDA margins indicate efficient operations, allowing Toyo Construction to maintain profitability even in a challenging revenue environment.

Negative Factors

Revenue Decline

A decline in revenue growth poses a challenge for Toyo Construction, potentially impacting long-term growth prospects if not addressed.

Cash Flow Challenges

Negative free cash flow highlights potential liquidity issues, necessitating improvements in operational efficiency and cash management to support financial health.

Increased Liabilities

Rising liabilities may strain Toyo Construction's financial resources, requiring careful management to prevent adverse effects on financial stability.

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

Company Description

Toyo Construction Co., Ltd., established in 1890, is a leading construction firm based in Japan, specializing in a diverse range of sectors including civil engineering, building construction, and infrastructure development. The company is renowned for its innovative construction solutions, encompassing residential, commercial, and industrial projects. With a commitment to quality and sustainability, Toyo Construction focuses on delivering high-value projects that enhance urban environments and contribute to societal development.

How the Company Makes Money

Toyo Construction Co., Ltd. generates revenue primarily through its construction services, which include project management, design, and execution of various construction projects. The company earns money by bidding on public and private sector contracts, which can range from large infrastructure developments to smaller commercial buildings. Key revenue streams include construction contracts, maintenance services, and consulting fees. Additionally, Toyo Construction has established partnerships with government agencies and private enterprises, enabling it to secure a steady flow of projects and enhance its market presence. The company's focus on innovation and sustainability also allows it to access funding and grants for environmentally friendly construction practices, further contributing to its earnings.

Toyo Construction Co., Ltd. Financial Statement Overview

Summary

Toyo Construction Co., Ltd. displays stable operational performance with decent profitability margins but faces challenges in revenue growth and cash flow. The balance sheet is robust with controlled debt levels, though increased liabilities require attention. Overall, the company is financially stable but must address growth and cash flow issues to strengthen its financial position.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	193.59B	172.60B	186.78B	168.35B	152.52B	172.97B
Gross Profit	25.29B	24.04B	23.33B	19.53B	19.04B	23.23B
EBITDA	14.66B	14.05B	12.95B	10.65B	10.63B	15.99B
Net Income	8.95B	8.31B	7.02B	5.66B	5.86B	9.18B
Balance Sheet
Total Assets	173.65B	180.46B	164.16B	153.72B	135.58B	148.95B
Cash, Cash Equivalents and Short-Term Investments	12.23B	21.25B	23.57B	39.11B	30.59B	16.77B
Total Debt	38.40B	24.00B	8.15B	4.71B	5.59B	10.59B
Total Liabilities	97.04B	100.38B	83.36B	79.73B	65.69B	83.08B
Stockholders Equity	73.71B	77.06B	78.14B	71.82B	68.12B	64.27B
Cash Flow
Free Cash Flow	-20.78B	-10.08B	-16.39B	10.82B	21.11B	-7.63B
Operating Cash Flow	-13.62B	2.82B	-8.51B	11.79B	22.29B	-6.55B
Investing Cash Flow	-5.82B	-11.19B	-7.88B	-485.00M	-1.11B	-961.00M
Financing Cash Flow	16.62B	5.89B	572.00M	-2.87B	-7.46B	-2.10B

Toyo Construction Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1748.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 1748 is above the 20-day moving average (MA) of 1744.70, above the 50-day MA of 1742.42, and above the 200-day MA of 1549.35, indicating a bullish trend. The MACD of 2.46 indicates Negative momentum. The RSI at 58.76 is Neutral, neither overbought nor oversold. The STOCH value of 25.00 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	―	―	―	―	4.84%	62.58%
1890	75 Outperform	¥163.43B	18.30	―	5.03%	12.80%	34.19%
1820	75 Outperform	¥210.85B	13.21	―	3.75%	-3.72%	59.02%
1762	73 Outperform	¥103.65B	16.55	―	2.19%	7.22%	21.92%
1835	73 Outperform	¥146.65B	12.36	―	3.56%	11.25%	36.92%
1720	69 Neutral	¥141.01B	13.22	―	2.82%	20.38%	128.85%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Toyo Construction Co., Ltd. Corporate Events

Toyo Construction Announces Share Consolidation and Delisting

Toyo Construction Co., Ltd. announced that its Extraordinary General Meeting of Shareholders approved a share consolidation and amendments to its Articles of Incorporation, leading to the company’s shares meeting delisting criteria from the Tokyo Stock Exchange. This decision will result in the company’s shares being delisted on December 16, 2025, impacting shareholders as the shares will no longer be tradeable on the TSE Prime Market.

Toyo Construction Reports Strong Q2 Financial Performance

Toyo Construction Co., Ltd. reported a significant increase in its consolidated financial results for the second quarter ending September 30, 2025, with net sales rising by 28.5% compared to the previous year. Despite a slight decrease in total assets and equity, the company maintained a stable financial position, and its comprehensive income nearly doubled, indicating strong operational performance and positive outlook for the fiscal year ending March 2026.

Toyo Construction Announces Treasury Share Cancellation

Toyo Construction Co., Ltd. has announced a resolution to cancel a portion of its treasury shares, amounting to 310,764 shares or 0.33% of its outstanding shares, as part of a broader corporate restructuring plan. This move, subject to shareholder approval, is expected to streamline the company’s share structure and potentially enhance shareholder value.

Toyo Construction Plans Share Consolidation and Delisting

Toyo Construction Co., Ltd. has announced an Extraordinary General Meeting of Shareholders to discuss share consolidation and amendments to its Articles of Incorporation. This move follows a successful tender offer by Taisei Corporation, which aims to consolidate Toyo’s shares and delist them from the Tokyo Stock Exchange, impacting the company’s market presence and shareholder structure.

Toyo Construction Announces Director Resignations Amid Acquisition by Taisei

Toyo Construction Co., Ltd. announced the resignation of its Representative Director and six other Directors, effective December 31, 2025. This decision follows Taisei Corporation’s successful tender offer, which will result in Toyo Construction becoming a wholly-owned subsidiary of Taisei. The resignations are intended to facilitate a new Board of Directors that will maximize synergies expected from the acquisition.

Toyo Construction’s Ownership Changes Following Successful Tender Offer

Toyo Construction Co., Ltd. announced the successful completion of a tender offer for its shares by TAISEI CORPORATION, which will result in changes to its parent company and largest shareholder. As a result of the tender offer, TAISEI CORPORATION will become the new parent company and principal shareholder, holding over 50% of the voting rights, while previous major shareholders, including WK 1 LLC and its affiliates, will no longer hold significant stakes.

Toyo Construction Sets Record Date for Potential Extraordinary Shareholders Meeting

Toyo Construction Co., Ltd. announced the setting of a record date for an upcoming Extraordinary General Meeting of Shareholders, slated for mid-November 2025. This meeting is contingent upon the successful completion of a tender offer by Taisei Corporation for Toyo’s common shares. If the tender offer is partially successful, the agenda will include proposals for share consolidation and amendments to the Articles of Incorporation. The outcome of this meeting could significantly impact Toyo’s corporate structure and shareholder dynamics.