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

• Market Cap: ¥49.65B
• Dividend Yield: 3.21%
• Average Volume (3M): 94.93K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 0.94
• Revenue Growth: -23.45%
• EPS Growth: <0.01%
• Country: JP
• Employees: 1,563
• Sector: Industrials
• Sector Strength: 93
• Industry: Engineering & Construction
• EPS (TTM): 54.06
• Shares Outstanding: 34,973,750
• 10 Day Avg. Volume: 124,150
• 30 Day Avg. Volume: 94,930
• PEG Ratio: 0.32
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,341.00
• Price Target Upside: -13.71% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥1,695.00 ▲(9.07%Upside)

The overall score of 73 reflects strong technical momentum and a robust balance sheet, partially offset by cash flow challenges and moderate valuation. The stock's bullish momentum is significant, with prices above key moving averages, but investors should be cautious of potential overbought conditions. The stable dividend yield adds appeal for income investors, while financial stability supports long-term prospects despite liquidity concerns.

Tokyo Energy & Systems Inc. Business Overview & Revenue Model

Company Description

Tokyo Energy & Systems Inc. (1945) is a Japanese company primarily engaged in the provision of integrated engineering services for the energy and infrastructure sectors. The company offers a wide range of services including the design, construction, and maintenance of power and industrial plants, energy-related facilities, and environmental systems. It also engages in the development of renewable energy projects, contributing to sustainable energy solutions.

How the Company Makes Money

Tokyo Energy & Systems Inc. generates revenue through multiple streams, primarily from engineering, procurement, and construction (EPC) contracts for power plants and industrial facilities. The company earns income by providing maintenance and operational services for energy-related infrastructure, ensuring the longevity and efficiency of its projects. Additionally, it is involved in the development and management of renewable energy projects, which may include solar, wind, and biomass energy solutions. The company may also benefit from strategic partnerships and collaborations with other firms in the energy sector, leveraging its expertise to participate in joint ventures or consortia, thus broadening its market reach and revenue base.

Tokyo Energy & Systems Inc. Financial Statement Overview

Summary

Tokyo Energy & Systems Inc. presents a mixed financial picture. While the income statement reflects stable profitability and a strong balance sheet with low leverage, cash flow challenges indicate potential liquidity 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	67.72B	88.47B	79.06B	72.58B	59.51B
Gross Profit	9.01B	10.60B	9.30B	8.58B	8.40B
EBITDA	7.13B	7.68B	5.21B	4.35B	4.93B
Net Income	2.90B	2.96B	2.12B	1.23B	2.75B
Balance Sheet
Total Assets	108.08B	107.47B	108.51B	102.98B	89.62B
Cash, Cash Equivalents and Short-Term Investments	7.77B	12.30B	13.26B	10.09B	23.30B
Total Debt	19.60B	6.94B	9.19B	8.65B	1.83B
Total Liabilities	39.65B	38.92B	42.58B	38.51B	24.76B
Stockholders Equity	68.43B	68.55B	66.26B	64.63B	64.92B
Cash Flow
Free Cash Flow	-15.99B	7.57B	4.19B	-12.02B	7.35B
Operating Cash Flow	-15.23B	8.50B	8.14B	-5.73B	10.75B
Investing Cash Flow	-90.00M	-5.13B	-3.12B	-385.00M	-16.16B
Financing Cash Flow	10.65B	-4.45B	-656.00M	5.78B	469.00M

Tokyo Energy & Systems Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1554.00
• 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:1945, the sentiment is Positive. The current price of 1554 is above the 20-day moving average (MA) of 1384.55, above the 50-day MA of 1277.50, and above the 200-day MA of 1119.30, indicating a bullish trend. The MACD of 72.40 indicates Negative momentum. The RSI at 81.75 is Negative, neither overbought nor oversold. The STOCH value of 90.49 is Negative, 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
1952	77 Outperform	¥122.28B	11.94		3.11%	7.58%	35.42%
1948	74 Outperform	¥22.17B	7.77		3.39%	12.61%	204.84%
1960	74 Outperform	¥13.98B	7.99		4.39%	33.76%	―
1945	73 Outperform	¥49.65B	17.94		3.21%	-23.45%	<0.01%
1939	73 Outperform	¥63.95B	12.08		4.52%	14.94%	13.18%
1946	71 Outperform	¥124.91B	11.07		3.75%	7.16%	15.86%
Sector *	65 Neutral	$11.05B	15.76	5.13%	1.92%	3.11%	-24.90%

Tokyo Energy & Systems Inc. Corporate Events

Tokyo Energy & Systems Finalizes Treasury Share Disposal for Executive Remuneration

Tokyo Energy & Systems Inc. has completed the payment procedures for the disposal of 25,700 treasury shares as part of a restricted share-based remuneration plan. This move, resolved by the company’s Board of Directors, aims to allocate shares to key company executives, potentially aligning their interests with long-term company performance.

Tokyo Energy & Systems Inc. Announces Disposal of Treasury Shares for Executive Incentives

Tokyo Energy & Systems Inc. has announced a disposal of 25,700 treasury shares as part of a restricted share-based remuneration plan aimed at incentivizing its directors and executive officers. This initiative is designed to align the interests of the company’s leadership with those of its shareholders, promoting sustainable corporate growth and enhancing value sharing. The plan involves a monetary remuneration claim of ¥31,842,300, with shares allotted to eligible directors and officers, subject to transfer restrictions to ensure long-term commitment.

Tokyo Energy & Systems Affirms Independence Amid Strong Ties with TEPCO

Tokyo Energy & Systems Inc. has reported its relationship with Tokyo Electric Power Company Holdings, Inc., highlighting that 24.1% of its net sales are derived from transactions with this group. The company ensures that construction contracts are negotiated based on market prices, maintaining its independence in business operations and decision-making, despite the significant influence of its major trading partner.

Tokyo Energy & Systems Inc. Reports Decline but Projects Recovery

Tokyo Energy & Systems Inc. reported a significant decline in its financial performance for the fiscal year ended March 31, 2025, with net sales dropping by 23.5% and operating profit decreasing by 32.7% compared to the previous year. Despite these declines, the company plans to increase its annual dividends per share, reflecting a commitment to shareholder returns. The forecast for the next fiscal year shows an optimistic outlook with expected growth in net sales and profits, indicating potential recovery and strategic adjustments to enhance its market position.