Tenox Corporation (1905) AI Stock Analysis

• Market Cap: ¥10.29B
• Dividend Yield: 4.09%
• Average Volume (3M): 10.72K
• Price to Earnings (P/E): 4.5
• Beta (1Y): 0.41
• Revenue Growth: -8.48%
• EPS Growth: 54.87%
• Country: JP
• Employees: 335
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 76.55
• Shares Outstanding: 7,347,680
• 10 Day Avg. Volume: 9,220
• 30 Day Avg. Volume: 10,720
• PEG Ratio: 0.11
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 3.21
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 81 Outperform
• Price Target: ¥1,875.00 ▲(35.09% Upside)
• Action: Reiterated Date: 03/20/26
• Date: Action: Reiterated 03/20/26

The score is driven primarily by very attractive valuation (low P/E and solid dividend) and a generally solid financial foundation (strong balance sheet and improving cash flow). Technicals are supportive but capped by overbought momentum signals, and income statement trends show thin margins and uneven revenue growth.

Positive Factors

Strong Balance Sheet

Tenox's low leverage and improved ROE (5.77%) provide durable financial flexibility. A strong equity ratio reduces refinancing risk, supports capital spending and dividends, and allows the company to bid selectively on projects without overreliance on external funding.

Positive Free Cash Flow

The shift to positive free cash flow signals steadier cash conversion and internal funding for operations, capex, and shareholder returns. Over months this improves liquidity resilience, lowers reliance on debt, and enables disciplined reinvestment into profitable projects.

Stable Gross Margin

A consistent ~15% gross margin with improving EBIT/EBITDA indicates durable cost control and operational efficiency gains. This structural margin stability supports sustainable operating profitability even if top-line growth is uneven, aiding long-term cash generation.

Negative Factors

Thin Net Margin

A net margin near 3% limits the company's ability to absorb cost shocks, invest heavily, or expand margins via scale. Persistently thin bottom-line profitability constrains retained earnings for growth and raises sensitivity to cyclical pressure in engineering and construction markets.

Revenue Decline/Inconsistency

Inconsistent and recently declining revenue undermines long-term planning and scale economics. For a project-driven engineering firm, uneven top-line trends can reduce pricing power, hinder long-term contracts, and make capacity utilization and fixed-cost absorption less predictable.

Cash Conversion Gap

Earnings not fully converting into free cash flow suggests working capital or capex demands remain elevated. Over months this can constrain discretionary investment, limit buffer against downturns, and reduce flexibility to pursue larger projects or strategic M&A without external funding.

Tenox Corporation Business Overview & Revenue Model

Company Description

Tenox Corporation engages in the construction business in Japan. The company specializes in foundation works; and provides civil engineering and construction consulting services, etc. It also sells concrete piles and steel pipe piles; rents equipment; and offers contracting services for ground improvement work. Tenox Corporation was founded in 1970 and is headquartered in Tokyo, Japan.

Tenox Corporation Financial Statement Overview

Summary

Financials are solid overall, led by a strong balance sheet (low leverage, improving ROE) and improving cash generation (free cash flow turning positive). Offsetting this, profitability remains thin (low net margin) and recent revenue decline/inconsistency raises growth risk.

Income Statement

Tenox Corporation shows a mixed performance in its income statement. The company has maintained a stable gross profit margin around 15%, indicating efficient cost management. However, the net profit margin is relatively low at 3.16% for the latest year, reflecting challenges in converting revenue into profit. Revenue growth has been inconsistent, with a decline in the most recent year, which could be a concern for future growth prospects. The EBIT and EBITDA margins have shown improvement, suggesting better operational efficiency.

Balance Sheet

The balance sheet of Tenox Corporation is strong, with a low debt-to-equity ratio indicating minimal leverage and financial risk. The return on equity (ROE) has improved to 5.77%, reflecting better profitability relative to shareholder equity. The equity ratio remains healthy, suggesting a stable financial structure with a significant portion of assets financed by equity.

Cash Flow

Cash flow analysis reveals a significant improvement in free cash flow, which has turned positive after previous negative figures, indicating better cash generation capabilities. The operating cash flow to net income ratio is moderate, suggesting that the company is generating reasonable cash from its operations relative to its net income. However, the free cash flow to net income ratio is below 1, indicating that not all net income is translating into free cash flow.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	22.93B	23.72B	20.21B	18.32B	14.82B	15.91B
Gross Profit	4.10B	3.62B	2.83B	2.76B	2.36B	2.09B
EBITDA	2.12B	1.66B	999.44M	1.09B	936.38M	821.62M
Net Income	1.03B	749.32M	388.06M	482.82M	357.79M	173.28M
Balance Sheet
Total Assets	19.49B	21.07B	19.07B	18.77B	17.68B	18.16B
Cash, Cash Equivalents and Short-Term Investments	8.53B	10.23B	8.37B	9.55B	9.61B	8.34B
Total Debt	234.57M	173.46M	21.32M	31.05M	44.54M	241.77M
Total Liabilities	6.12B	7.78B	6.38B	6.30B	5.38B	5.95B
Stockholders Equity	13.08B	12.99B	12.39B	12.17B	12.01B	11.92B
Cash Flow
Free Cash Flow	0.00	2.28B	-565.02M	636.57M	1.61B	-441.98M
Operating Cash Flow	0.00	3.05B	142.55M	955.89M	1.80B	-6.20M
Investing Cash Flow	0.00	-792.76M	-947.02M	-622.78M	-107.64M	-638.03M
Financing Cash Flow	0.00	-301.84M	-309.61M	-404.49M	-514.38M	-257.61M

Tenox Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1388.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1905, the sentiment is Positive. The current price of 1388 is below the 20-day moving average (MA) of 1472.15, below the 50-day MA of 1436.50, and above the 200-day MA of 1322.43, indicating a bullish trend. The MACD of 25.62 indicates Negative momentum. The RSI at 72.76 is Negative, neither overbought nor oversold. The STOCH value of 92.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1905.

Tenox Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1905	81 Outperform	¥10.29B	4.52	―	4.09%	-8.48%	54.87%
1807	71 Outperform	¥11.94B	8.32	―	4.39%	2.65%	45.12%
4642	70 Outperform	¥8.19B	16.79	―	2.03%	16.10%	-10.63%
1853	68 Neutral	¥11.04B	9.54	―	4.35%	-7.40%	60.55%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1844	62 Neutral	¥11.25B	11.79	―	2.74%	4.36%	17.63%
1848	46 Neutral	¥10.19B	190.24	―	2.33%	7.66%	562.50%

Tenox Corporation Corporate Events

Tenox Lifts Profits and Dividends Despite Lower Sales, Signals Softer Outlook

Tenox Corporation reported a 19.3% year-on-year decline in net sales to ¥15.23 billion for the nine months ended December 31, 2025, but improved profitability, with operating profit up 7.8% to ¥1.12 billion and profit attributable to owners of parent rising 23% to ¥814 million. The company strengthened its balance sheet as the equity ratio increased to 68.0% and net assets grew, while it also raised interim dividends to ¥26 per share and plans a full-year payout of ¥52, even as it forecasts a 9.3% drop in full-year sales and lower profits for the year ending March 31, 2026.

Despite the projected decline in revenue and earnings for the full fiscal year, earnings per share for the nine-month period climbed to ¥122.37, reflecting higher profitability per share amid a slightly reduced treasury share balance. The combination of a solid capital position, ongoing dividend growth from ¥50 to a forecast ¥52 per share, and cautious guidance indicates a conservative stance in view of softer market conditions, while still signaling management’s confidence in returning cash to shareholders.

The most recent analyst rating on (JP:1905) stock is a Buy with a Yen1714.00 price target. To see the full list of analyst forecasts on Tenox Corporation stock, see the JP:1905 Stock Forecast page.

Tenox Forms Strategic Capital and Business Alliance with Japan Home Shield to Advance Seismic-Resilient Housing Solutions

Tenox Corporation has entered into a capital and business alliance with Japan Home Shield Corporation (JHS), subscribing to new shares via a third-party allotment and acquiring additional shares from JHS’s largest shareholder, MCP5 Investment Limited Partnership, to deepen their strategic collaboration. Through this partnership, Tenox and JHS plan to jointly develop highly earthquake-resistant foundation construction methods for detached houses, build a proprietary large-scale ground data and analysis platform by combining Tenox’s 40,000 construction records with JHS’s 2.4 million ground investigations, and leverage each other’s customer bases to deliver advanced digital solutions and stronger seismic resilience offerings, aiming to enhance both companies’ corporate value and competitive positioning in Japan’s structurally challenged construction market.

The most recent analyst rating on (JP:1905) stock is a Buy with a Yen1449.00 price target. To see the full list of analyst forecasts on Tenox Corporation stock, see the JP:1905 Stock Forecast page.