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Toyo Construction Co., Ltd. (JP:1890)
:1890
Japanese Market

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

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JP

Toyo Construction Co., Ltd.

(1890)

Rating:74Outperform
Price Target:
¥1,549.00
▲(4.31%Upside)
Toyo Construction Co., Ltd. achieves a solid overall score due to its robust valuation and positive technical momentum. While financial performance shows stability, concerns about revenue growth and cash flow need addressing to improve the outlook. The absence of earnings call data and notable corporate events did not impact the score.

Toyo Construction Co., Ltd. (1890) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionToyo Construction Co., Ltd. (1890) is a prominent Japanese construction company specializing in civil engineering, building construction, and maritime works. The company is involved in infrastructure projects, including roads, bridges, tunnels, and ports, as well as urban development and environmental projects. Toyo Construction combines advanced technology with expertise to deliver high-quality construction solutions domestically and internationally.
How the Company Makes MoneyToyo 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. displays stable operational performance with decent profitability margins, yet faces challenges in terms of revenue growth and cash flow. The balance sheet remains robust with controlled debt levels, but increased liabilities require attention. Cash flow weaknesses suggest the need for strategic improvements to enhance liquidity and sustain operations. Overall, the company is financially stable but must address growth and cash flow issues to strengthen its financial position.
Income Statement
74
Positive
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
68
Positive
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
61
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue172.60B186.78B168.35B152.52B172.97B
Gross Profit24.04B23.33B19.53B19.04B23.23B
EBITDA14.05B12.95B10.65B11.23B15.99B
Net Income8.31B7.02B5.66B5.86B9.18B
Balance Sheet
Total Assets180.46B164.16B153.72B135.58B148.95B
Cash, Cash Equivalents and Short-Term Investments21.25B23.57B39.11B30.59B16.77B
Total Debt24.00B8.15B4.71B5.59B10.59B
Total Liabilities100.38B83.36B79.73B65.69B83.08B
Stockholders Equity77.06B78.14B71.82B68.12B64.27B
Cash Flow
Free Cash Flow-10.08B-16.39B10.82B21.11B-7.63B
Operating Cash Flow2.82B-8.51B11.79B22.29B-6.55B
Investing Cash Flow-11.19B-7.88B-485.00M-1.11B-961.00M
Financing Cash Flow5.89B572.00M-2.87B-7.46B-2.10B

Toyo Construction Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1485.00
Price Trends
50DMA
1414.06
Positive
100DMA
1355.07
Positive
200DMA
1314.55
Positive
Market Momentum
MACD
13.67
Positive
RSI
66.60
Neutral
STOCH
87.18
Negative
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 1485 is above the 20-day moving average (MA) of 1461.20, above the 50-day MA of 1414.06, and above the 200-day MA of 1314.55, indicating a bullish trend. The MACD of 13.67 indicates Positive momentum. The RSI at 66.60 is Neutral, neither overbought nor oversold. The STOCH value of 87.18 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥107.74B17.42
2.39%2.35%25.15%
74
Outperform
¥139.56B16.78
7.81%-7.59%18.77%
74
Outperform
¥136.15B11.77
2.53%12.83%39.37%
70
Outperform
¥189.58B10.81
5.00%-8.67%40.83%
69
Neutral
¥106.36B16.20
3.74%2.61%-9.19%
69
Neutral
¥92.73B16.27
2.72%10.88%-29.60%
65
Neutral
$10.81B15.655.50%1.89%3.10%-27.09%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:1890
Toyo Construction Co., Ltd.
1,485.00
88.49
6.34%
JP:1720
Tokyu Construction Co., Ltd.
1,016.00
274.09
36.94%
JP:1762
Takamatsu Construction Group Co., Ltd.
3,015.00
110.70
3.81%
JP:1820
Nishimatsu Construction Co., Ltd.
4,803.00
349.73
7.85%
JP:1835
Totetsu Kogyo Co., Ltd.
3,955.00
904.22
29.64%
JP:1884
NIPPON ROAD CO., LTD.
2,507.00
742.10
42.05%

Toyo Construction Co., Ltd. Corporate Events

Toyo Construction Announces Shareholder Structure and Maintains Independence
May 20, 2025

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
May 14, 2025

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
May 12, 2025

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.

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