Tokyo Energy & Systems Inc. (1945) AI Stock Analysis

• Market Cap: ¥57.46B
• Dividend Yield: 2.95%
• Average Volume (3M): 154.56K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 1.03
• Revenue Growth: -7.98%
• EPS Growth: 37.92%
• Country: JP
• Employees: 1,563
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 39.40
• Shares Outstanding: 33,223,750
• 10 Day Avg. Volume: 156,500
• 30 Day Avg. Volume: 154,563
• PEG Ratio: -218.11
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.54
• P/FCF Ratio: -2.28
• 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: 73 Outperform
• Price Target: ¥2,268.00 ▲(23.73% Upside)
• Action: Reiterated Date: 11/06/25
• Date: Action: Reiterated 11/06/25

The stock's strong technical indicators and reasonable valuation are the primary strengths, offsetting the mixed financial performance. The lack of earnings call data and corporate events does not impact the score.

Positive Factors

Strong balance sheet and low leverage

A strong equity position and low debt-to-equity provide durable financial flexibility, lowering default risk and supporting investment in capital-intensive energy projects. This balance sheet strength enhances credit access and resilience across multi-year renewable infrastructure cycles.

Diversified renewable and energy services mix

A multi-pronged business model—generation, energy management systems, and consulting—aligns with structural decarbonization trends. Diversified revenue streams and public/private project partnerships support recurring contracts and reduce reliance on any single market, improving long-term revenue stability.

Stable gross margins and moderate profitability

Consistent gross margins signal effective cost control and pricing power in core operations, enabling sustainable profitability despite top-line variability. Moderate net margins indicate the company can convert operations into earnings, supporting reinvestment and shareholder returns over multiple quarters.

Negative Factors

Declining revenue trend

Nearly 8% revenue contraction is a persistent headwind that can erode scale benefits and pressure operating leverage. If the top-line decline continues, investment in renewables or systems rollout may be deferred, and fixed costs could compress margins over the coming 2–6 month horizon.

Inconsistent cash flow with recent negative FCF

Negative and uneven free cash flow reduces the company's ability to self-fund capital projects and increases reliance on external financing. Over time this can raise financing costs, limit strategic investment in infrastructure, and strain liquidity during cyclical demand downturns.

Variable operating margins and efficiency issues

Fluctuating EBIT/EBITDA margins point to execution or cost-structure volatility in projects and operations. Persistent margin variability makes earnings less predictable, complicates budgeting for multi-year energy projects, and may weaken competitive positioning against more consistent peers.

Tokyo Energy & Systems Inc. Business Overview & Revenue Model

Company Description

Tokyo Energy & Systems Inc. engages in the planning, study, design, construction, and supervision of electric and mechanical facilities in Japan. It primarily constructs thermal and nuclear power, hydro-electric power, chemical, and industrial plants, as well as substations, environmental facilities, and building and housing projects. The company also provides design and construction services for civil and architectural, and telecommunication system and electronic facilities; market research services, such as information related services to merchandise sales; and maintenance, inspection, repair, modification, demolition, and transportation services for various plants and facilities. In addition, it is involved in electricity supply and worker dispatching businesses; and the sale/purchase, lease, and management of real estate. The company was formerly known as Tokyo Denki Komusho Co., Ltd. and changed its name to Tokyo Energy & Systems Inc. in April 2001. Tokyo Energy & Systems Inc. was founded in 1947 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Tokyo Energy & Systems Inc. generates revenue primarily through the sale of electric power and energy management systems. Key revenue streams include the generation and distribution of electricity, particularly from renewable sources such as solar and wind. The company also earns income from providing energy consulting services and implementing energy-saving technologies for businesses and households. Additionally, strategic partnerships with local governments and private enterprises for energy projects and infrastructure development contribute significantly to its earnings. The increasing demand for sustainable energy solutions further enhances its financial performance.

Tokyo Energy & Systems Inc. Financial Statement Overview

Summary

Tokyo Energy & Systems Inc. shows stable profitability with a strong balance sheet. However, revenue declines and cash flow challenges pose risks.

Income Statement

Tokyo Energy & Systems Inc. has shown fluctuating revenue over the past years with a recent decline. The gross profit margin has remained relatively stable, suggesting consistent cost management. However, the EBIT and EBITDA margins have seen variations, indicating some operational efficiency issues. The net profit margin is moderate, reflecting steady profitability despite revenue declines.

Balance Sheet

The company's balance sheet shows a strong equity position with a low debt-to-equity ratio, indicating financial stability. The return on equity is moderate, reflecting decent profitability relative to shareholder investments. The equity ratio is high, illustrating a solid capital structure with a significant proportion of assets financed by equity.

Cash Flow

Cash flow performance has been inconsistent, with negative free cash flow in recent periods, indicating liquidity challenges. The operating cash flow to net income ratio suggests some difficulty in converting profits into cash. However, the company has managed substantial financing activities, which may support its liquidity needs.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	68.47B	67.72B	88.47B	79.06B	72.58B	59.51B
Gross Profit	10.14B	9.01B	10.60B	9.30B	8.58B	8.40B
EBITDA	7.29B	7.13B	7.68B	5.21B	3.06B	4.99B
Net Income	2.96B	2.90B	2.96B	2.12B	1.23B	2.75B
Balance Sheet
Total Assets	95.27B	108.08B	107.47B	108.51B	102.98B	89.62B
Cash, Cash Equivalents and Short-Term Investments	8.43B	7.77B	12.30B	13.26B	10.09B	23.30B
Total Debt	9.30B	19.60B	6.94B	9.19B	8.65B	1.83B
Total Liabilities	26.49B	39.65B	38.92B	42.58B	38.51B	24.76B
Stockholders Equity	68.77B	68.43B	68.55B	66.26B	64.63B	64.92B
Cash Flow
Free Cash Flow	0.00	-15.99B	7.57B	4.19B	-12.02B	7.35B
Operating Cash Flow	0.00	-15.23B	8.50B	8.14B	-5.73B	10.75B
Investing Cash Flow	0.00	-90.00M	-5.13B	-3.12B	-385.00M	-16.16B
Financing Cash Flow	0.00	10.65B	-4.45B	-656.00M	5.78B	469.00M

Tokyo Energy & Systems Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1833.00
• 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:1945, the sentiment is Positive. The current price of 1833 is below the 20-day moving average (MA) of 1888.95, below the 50-day MA of 1893.22, and above the 200-day MA of 1650.33, indicating a bullish trend. The MACD of 8.55 indicates Negative momentum. The RSI at 56.07 is Neutral, neither overbought nor oversold. The STOCH value of 68.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1945.

Tokyo Energy & Systems Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1941	76 Outperform	¥282.69B	16.21	9.20%	2.78%	1.31%	59.20%
1939	76 Outperform	¥99.84B	18.89	―	4.38%	-0.84%	-1.80%
1959	74 Outperform	¥737.86B	22.29	―	2.15%	-5.20%	-1.20%
1945	73 Outperform	¥57.46B	14.04	―	2.95%	-7.98%	37.92%
1942	72 Outperform	¥1.41T	25.17	14.15%	2.00%	16.43%	53.76%
1930	70 Outperform	¥50.33B	13.93	7.09%	3.06%	-5.41%	5.68%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Tokyo Energy & Systems Inc. Corporate Events

Tokyo Energy & Systems Sets Terms for Secondary Share Offering and Over-Allotment

Tokyo Energy & Systems Inc. has set the terms for a secondary offering of its common stock, confirming a selling price of 1,837 yen per share and a total selling amount of approximately 4.95 billion yen for shares to be purchased and underwritten by a syndicate of underwriters. The underwriters will acquire the shares at a discounted purchase price of 1,761.24 yen per share, with settlement and share delivery scheduled for March 4, 2026, in a transaction structured for the Japanese market.

In addition, the company will conduct a secondary offering by way of over-allotment of 404,300 shares, also priced at 1,837 yen per share, bringing the total value of the over-allotment tranche to about 742.7 million yen. The combined offerings are designed to facilitate share distribution and liquidity without a public offer in the United States, potentially broadening the shareholder base and supporting trading stability in Tokyo Energy & Systems’ stock.

The most recent analyst rating on (JP:1945) stock is a Hold with a Yen2022.00 price target. To see the full list of analyst forecasts on Tokyo Energy & Systems Inc. stock, see the JP:1945 Stock Forecast page.

Tokyo Energy & Systems to Cancel 5% of Outstanding Shares

Tokyo Energy & Systems Inc. has resolved to cancel 1,750,000 of its common treasury shares, representing 5% of its issued shares prior to cancellation, under Article 178 of the Companies Act. The move, scheduled for February 26, 2026, will reduce the total number of shares outstanding to 33,223,752 and is likely aimed at optimizing capital structure and enhancing shareholder value by lowering the share count.

Following the cancellation, the company will still hold 1,838,879 treasury shares based on figures as of January 31, 2026. This capital action underscores active balance-sheet management and may marginally improve per-share metrics, which can be seen as supportive for existing shareholders while signaling disciplined capital allocation in a competitive infrastructure and energy-services market.

The most recent analyst rating on (JP:1945) stock is a Hold with a Yen2022.00 price target. To see the full list of analyst forecasts on Tokyo Energy & Systems Inc. stock, see the JP:1945 Stock Forecast page.

Tokyo Energy & Systems Plans Secondary Share Offering as TEPCO Cuts Stake

Tokyo Energy & Systems Inc. has approved a secondary offering of 2,695,700 existing common shares to be sold by major shareholder Tokyo Electric Power Company Holdings, with the shares to be fully purchased and underwritten by securities firms. The sale price will be set near the market level in late February or early March, with the final terms delegated to President and CEO Toshiaki Majima.

In addition, up to 404,300 shares may be offered through an over-allotment option, allowing the designated underwriter to adjust supply based on investor demand. The transaction will not raise new capital for Tokyo Energy & Systems itself but is expected to broaden its shareholder base and increase trading liquidity while reducing TEPCO’s ownership stake.

The most recent analyst rating on (JP:1945) stock is a Hold with a Yen2022.00 price target. To see the full list of analyst forecasts on Tokyo Energy & Systems Inc. stock, see the JP:1945 Stock Forecast page.

Tokyo Energy & Systems Swings to Strong Profit on Higher Sales, Keeps Growth Outlook Intact

Tokyo Energy & Systems Inc. reported a sharp recovery in earnings for the nine months ended December 31, 2025, with net sales rising 21.0% year on year to ¥56.24 billion and operating profit swinging from a small loss a year earlier to ¥2.29 billion. Ordinary profit surged 364.7% to ¥2.84 billion and profit attributable to owners of parent jumped 156.3% to ¥2.80 billion, lifting basic earnings per share to ¥84.09, while comprehensive income improved to ¥3.63 billion from a loss in the prior period. The balance sheet remained solid, with total assets at ¥110.19 billion and an equity-to-asset ratio of 63.5%, and the company maintained its dividend stance, paying ¥28 per share at the second quarter and forecasting a full‑year total dividend of ¥57 per share, up from ¥52 the previous year. For the full fiscal year ending March 31, 2026, the company left its guidance unchanged, projecting net sales of ¥82.0 billion, operating profit of ¥3.9 billion and profit attributable to owners of parent of ¥3.4 billion, signaling continued profit growth and stable returns to shareholders.

The most recent analyst rating on (JP:1945) stock is a Hold with a Yen2002.00 price target. To see the full list of analyst forecasts on Tokyo Energy & Systems Inc. stock, see the JP:1945 Stock Forecast page.