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

• Market Cap: ¥58.53B
• Dividend Yield: 2.95%
• Average Volume (3M): 154.56K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 1.08
• Revenue Growth: -7.98%
• EPS Growth: 37.92%
• Country: JP
• Employees: 1,563
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 21.54
• Shares Outstanding: 34,973,750
• 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)

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Neutral
• Last Price: 1833.00
• 50DMA: Negative
• 100DMA: Positive
• 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:1945, the sentiment is Neutral. The current price of 1833 is below the 20-day moving average (MA) of 1926.45, below the 50-day MA of 1868.64, and above the 200-day MA of 1572.11, indicating a neutral trend. The MACD of -10.76 indicates Positive momentum. The RSI at 40.30 is Neutral, neither overbought nor oversold. The STOCH value of 21.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
1946	77 Outperform	¥196.34B	12.14	―	3.09%	3.75%	87.00%
1939	77 Outperform	¥80.74B	14.97	―	4.38%	-0.84%	-1.80%
1948	76 Outperform	¥56.82B	19.86	―	2.01%	14.48%	122.79%
1952	73 Outperform	¥156.36B	12.69	―	2.81%	8.83%	49.49%
1960	73 Outperform	¥21.66B	8.53	―	2.97%	22.32%	5024.88%
1945	73 Outperform	¥58.53B	16.28	―	2.95%	-7.98%	37.92%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Tokyo Energy & Systems Inc. Corporate Events

Tokyo Energy & Systems Completes Share Buyback to Boost Capital Efficiency

Tokyo Energy & Systems Inc. announced the completion of its acquisition of 200,000 of its own shares, valued at ¥371,400,000, through the Tokyo Stock Exchange’s off-auction trading system. This move aims to enhance shareholder returns and improve capital efficiency, reflecting the company’s strategic focus on optimizing its financial structure.

The most recent analyst rating on (JP:1945) stock is a Buy with a Yen1873.00 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 Inc. Announces Share Repurchase Plan

Tokyo Energy & Systems Inc. has announced a decision to repurchase up to 200,000 of its own shares, representing 0.6% of its total issued shares, at a maximum cost of ¥371,400,000. This move, aimed at enhancing shareholder returns and improving capital efficiency, will take place through the Tokyo Stock Exchange’s off-auction trading system, with the transaction results to be announced on November 6, 2025.

The most recent analyst rating on (JP:1945) stock is a Buy with a Yen1873.00 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 Inc. Reports Strong Half-Year Financial Performance

Tokyo Energy & Systems Inc. reported a substantial improvement in its financial performance for the six months ending September 30, 2025, with net sales increasing by 12.3% and a significant rise in profit attributable to owners of the parent by 136.3%. This positive financial outcome reflects the company’s strengthened market position and operational efficiency, with an optimistic forecast for the fiscal year ending March 31, 2026, indicating continued growth and profitability.

The most recent analyst rating on (JP:1945) stock is a Buy with a Yen1873.00 price target. To see the full list of analyst forecasts on Tokyo Energy & Systems Inc. stock, see the JP:1945 Stock Forecast page.