Tomoe Corporation (1921) AI Stock Analysis

• Market Cap: ¥79.32B
• Dividend Yield: 0.79%
• Average Volume (3M): 41.12K
• Price to Earnings (P/E): 35.9
• Beta (1Y): 0.30
• Revenue Growth: -8.53%
• EPS Growth: -83.61%
• Country: JP
• Employees: 466
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 19.51
• Shares Outstanding: 40,763,046
• 10 Day Avg. Volume: 47,230
• 30 Day Avg. Volume: 41,116
• PEG Ratio: <0.01
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 1.37
• P/FCF Ratio: 18.51
• 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: 80 Outperform
• Price Target: ¥2,607.00 ▲(29.57% Upside)
• Action: Reiterated Date: 11/07/25
• Date: Action: Reiterated 11/07/25

Tomoe Corporation's strong financial performance and attractive valuation are the primary drivers of its high stock score. The company's robust profitability and stable balance sheet position it well for future growth. Technical indicators suggest strong momentum, though overbought conditions warrant caution. The lack of earnings call and corporate events data did not impact the score.

Positive Factors

High profitability and ROE

Sustained high net margins and a 23.4% ROE indicate durable operational efficiency and strong capital returns. These metrics support internal reinvestment, dividend capacity, and competitive resilience, helping the company fund growth without relying solely on external financing.

Strong balance sheet and low leverage

A high equity ratio and low debt-to-equity provide long-term financial flexibility, lowering refinancing and solvency risk. This positioning enables the company to pursue strategic investments, weather downturns, and access capital on favorable terms, supporting stable operations over months.

Free cash flow turned positive

A shift to positive free cash flow demonstrates improving cash-generation capacity, enabling sustainable capex, debt reduction, or returns to shareholders. Over a multi-month horizon, consistent positive FCF strengthens funding for strategic initiatives and reduces reliance on external funding.

Negative Factors

Sharp EPS decline

An ~83% EPS contraction is a material deterioration in earnings power that can limit reinvestment and shareholder returns. If persistent, it signals structural margin pressure, one-off losses, or operating setbacks that materially weaken long-term profitability and management options.

Negative revenue growth reported

Reported revenue decline of ~8.5% weakens top-line momentum and raises questions about demand or competitive positioning. Sustained revenue weakness can erode operating leverage, put pressure on margins, and limit the company's ability to fund growth or absorb cost increases over the coming months.

Weak cash conversion of earnings

A 0.34 operating cashflow-to-net-income ratio indicates earnings are not converting efficiently into cash. Over time this constrains investment capacity and increases reliance on external funding, making it harder to sustain capex, dividends, or debt repayment without improving working capital or cash collection.

Tomoe Corporation Business Overview & Revenue Model

Company Description

Tomoe Corporation engages in the general construction, steel structures construction, and real estate businesses in Japan. The company plans, designs, manufactures, and constructs three-dimensional structures, bridges, steel frames, and steel-towers. It also purchases, manages, leases, sells, and mediates real estate properties. The company was founded in 1917 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Tomoe Corporation generates revenue through the sale of its chemical products and materials across various industries. The primary revenue streams include the production of specialty chemicals used in manufacturing processes, polymers for packaging and construction applications, and advanced materials for electronics and automotive components. The company benefits from long-term contracts with major industrial clients, which provide a steady income stream. Additionally, Tomoe Corporation invests in research and development to create innovative products that meet market demands, enhancing its competitive edge. Strategic partnerships with other firms and participation in joint ventures also contribute to its earnings by expanding its market reach and capabilities.

Tomoe Corporation Financial Statement Overview

Summary

Tomoe Corporation demonstrates strong financial performance with robust profitability metrics, including a net profit margin of 41.9% and a commendable EBIT margin of 11.3%. The balance sheet is stable with a healthy equity ratio of 53.4% and a low debt-to-equity ratio of 0.29. Cash flow improvements are evident, though further strengthening is needed to support long-term investments.

Income Statement

Tomoe Corporation exhibits strong growth in revenue with a 4.0% increase from the previous year, alongside a robust gross profit margin of 19.2% and a net profit margin of 41.9% for 2025. The EBIT and EBITDA margins are also commendable at 11.3% and 51.4%, respectively. The company's profitability metrics reflect strong operational efficiency and effective management of costs, contributing to a high income statement score.

Balance Sheet

The balance sheet demonstrates a healthy equity ratio of 53.4%, indicating financial stability. The debt-to-equity ratio stands at 0.29, suggesting prudent leverage. Return on Equity (ROE) at 23.4% showcases effective utilization of shareholders' investments. While the overall balance sheet is strong, the increase in total debt warrants monitoring.

Cash Flow

The cash flow statement highlights a significant improvement in free cash flow, turning positive to 2,575 million yen from a negative position in prior years. The operating cash flow to net income ratio is at 0.34, indicating adequate cash generation relative to profits. Although free cash flow growth is positive, it remains an area for further strengthening to support long-term investments.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	33.86B	34.67B	33.34B	35.98B	25.30B	23.22B
Gross Profit	6.61B	6.64B	5.56B	5.89B	5.45B	3.96B
EBITDA	5.14B	17.83B	4.81B	5.00B	4.69B	3.12B
Net Income	14.36B	14.85B	2.78B	3.18B	2.76B	1.68B
Balance Sheet
Total Assets	113.43B	116.12B	76.31B	56.57B	51.64B	51.01B
Cash, Cash Equivalents and Short-Term Investments	9.08B	11.13B	9.80B	3.64B	4.46B	9.49B
Total Debt	17.02B	17.86B	11.22B	2.56B	1.87B	2.51B
Total Liabilities	40.45B	43.47B	24.91B	14.64B	13.98B	15.83B
Stockholders Equity	62.39B	62.06B	51.40B	41.92B	37.66B	35.17B
Cash Flow
Free Cash Flow	0.00	2.58B	-228.29M	-837.98M	-499.27M	2.59B
Operating Cash Flow	0.00	4.98B	2.20B	436.88M	636.01M	3.43B
Investing Cash Flow	0.00	-4.50B	-3.95B	-1.43B	-4.67B	-1.67B
Financing Cash Flow	0.00	853.96M	7.91B	178.97M	-1.01B	1.22B

Tomoe Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2012.00
• 50DMA: Negative
• 100DMA: Negative
• 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:1921, the sentiment is Negative. The current price of 2012 is below the 20-day moving average (MA) of 2070.60, below the 50-day MA of 2076.22, and above the 200-day MA of 1708.08, indicating a neutral trend. The MACD of -31.39 indicates Positive momentum. The RSI at 39.45 is Neutral, neither overbought nor oversold. The STOCH value of 41.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:1921.

Tomoe Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1921	80 Outperform	¥79.32B	35.86	―	0.79%	-8.53%	-83.61%
1976	80 Outperform	¥88.51B	11.23	―	3.46%	-3.62%	9.37%
1799	79 Outperform	¥84.39B	13.28	―	3.55%	8.02%	64.54%
1939	76 Outperform	¥96.51B	17.90	―	4.38%	-0.84%	-1.80%
9621	73 Outperform	¥95.23B	15.69	―	1.25%	2.61%	-13.38%
1815	64 Neutral	¥71.56B	22.81	―	2.73%	-3.59%	49.34%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%