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Toenec Corporation (JP:1946)
:1946
Japanese Market
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Toenec Corporation (1946) AI Stock Analysis

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JP:1946

Toenec Corporation

(1946)

Rating:71Outperform
Price Target:
¥1,370.00
▲(2.62%Upside)
Toenec Corporation demonstrates strong financial performance with robust revenue growth and financial stability, supported by an attractive valuation. However, the technical indicators suggest the stock is currently overbought, which could lead to short-term volatility. The absence of earnings call and corporate events data slightly limits the overall analysis.

Toenec Corporation (1946) vs. iShares MSCI Japan ETF (EWJ)

Toenec Corporation Business Overview & Revenue Model

Company DescriptionToenec Corporation, established in 1946, operates primarily within the construction and engineering sectors in Japan. It offers a range of services including electrical and mechanical engineering, infrastructure development, and building construction. The company is known for its expertise in designing and implementing complex engineering projects, contributing to significant urban and industrial developments.
How the Company Makes MoneyToenec Corporation generates revenue through its diverse portfolio of engineering and construction services. The company earns money by undertaking large-scale projects for both public and private sector clients, including infrastructure developments such as roads, bridges, and utilities, as well as commercial and industrial building constructions. Toenec's revenue streams are bolstered by long-term contracts and collaborations with government agencies and major corporations, ensuring a steady flow of projects and engagements. Additionally, the company's focus on innovation and sustainability in engineering solutions helps it secure competitive bids and maintain a strong market presence.

Toenec Corporation Financial Statement Overview

Summary
Toenec Corporation exhibits strong financial health with consistent revenue growth and stable profitability. The income statement shows a strong upward trajectory in revenue and profitability, while the balance sheet reflects financial stability with moderate leverage. However, cash flow analysis indicates a decline in free cash flow, suggesting a need for strategic capital allocation.
Income Statement
78
Positive
Toenec Corporation has demonstrated consistent revenue growth, with a notable increase of 7.2% from 2024 to 2025. The gross profit margin has remained healthy at approximately 14.9% in 2025, indicating effective cost management. The net profit margin improved to 4.0% in 2025, reflecting enhanced profitability. EBIT and EBITDA margins were stable at 5.9% and 10.6% respectively, showcasing operational efficiency. Overall, the income statement reveals a strong upward trajectory in revenue and profitability.
Balance Sheet
72
Positive
The balance sheet of Toenec Corporation reflects robust equity, with an equity ratio of 44.0% as of 2025, highlighting financial stability. The debt-to-equity ratio of 0.67 indicates moderate leverage, suggesting prudent debt management. Return on equity improved to 7.88%, signaling effective utilization of equity to generate profits. While the company maintains a solid financial position, the relatively high debt level requires continuous monitoring to mitigate potential risks.
Cash Flow
65
Positive
Toenec Corporation's cash flow analysis shows a decline in operating cash flow, dropping to ¥17.77 billion in 2025, down from the previous year. Free cash flow decreased to ¥11.62 billion, reflecting higher capital expenditures. The operating cash flow to net income ratio remains healthy at 1.65, demonstrating strong cash generation relative to net income. While the cash flow position is stable, the reduction in free cash flow growth suggests a need for strategic capital allocation to sustain future growth.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue270.97B252.86B232.05B219.62B215.68B
Gross Profit40.48B37.41B32.32B34.90B35.54B
EBITDA28.82B27.40B20.49B23.36B23.77B
Net Income10.77B9.35B-5.55B8.28B8.83B
Balance Sheet
Total Assets310.56B304.93B300.17B301.60B308.23B
Cash, Cash Equivalents and Short-Term Investments43.03B39.78B30.10B29.02B46.91B
Total Debt91.17B93.02B97.06B98.98B109.11B
Total Liabilities173.88B173.79B182.98B175.00B188.49B
Stockholders Equity136.63B131.10B117.16B126.57B119.72B
Cash Flow
Free Cash Flow11.62B15.81B10.26B969.00M19.29B
Operating Cash Flow17.77B19.12B12.64B5.94B24.11B
Investing Cash Flow-3.72B-2.06B-2.12B2.97B-3.72B
Financing Cash Flow-11.79B-9.90B-8.36B-27.52B-9.93B

Toenec Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1335.00
Price Trends
50DMA
1208.62
Positive
100DMA
1094.79
Positive
200DMA
1009.85
Positive
Market Momentum
MACD
31.10
Negative
RSI
74.37
Negative
STOCH
74.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1946, the sentiment is Positive. The current price of 1335 is above the 20-day moving average (MA) of 1269.20, above the 50-day MA of 1208.62, and above the 200-day MA of 1009.85, indicating a bullish trend. The MACD of 31.10 indicates Negative momentum. The RSI at 74.37 is Negative, neither overbought nor oversold. The STOCH value of 74.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1946.

Toenec Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥164.69B14.15
2.83%5.77%63.30%
77
Outperform
¥122.28B12.14
3.03%7.58%35.42%
74
Outperform
¥151.40B18.21
5.48%-7.59%18.77%
73
Outperform
¥63.95B12.12
4.53%14.94%13.18%
73
Outperform
¥49.65B17.94
3.21%-23.45%<0.01%
71
Outperform
¥124.91B11.25
3.75%7.16%15.86%
67
Neutral
€8.39B21.106.46%2.81%1.89%-39.33%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:1946
Toenec Corporation
1,335.00
426.84
47.00%
JP:1890
Toyo Construction Co., Ltd.
1,607.00
172.17
12.00%
JP:1934
Yurtec Corporation
2,405.00
1,035.05
75.55%
JP:1939
Yondenko Corporation
1,324.00
175.10
15.24%
JP:1945
Tokyo Energy & Systems Inc.
1,620.00
402.59
33.07%
JP:1952
Shin Nippon Air Technologies Co., Ltd.
2,639.00
546.00
26.09%

Toenec Corporation Corporate Events

Toenec Corporation Emphasizes Independence Amidst Group Affiliations
May 29, 2025

Toenec Corporation, an affiliate of the Chubu Electric Power Group, maintains a significant portion of its sales through transactions with Chubu Electric Power entities, yet operates independently without business restrictions from its controlling shareholder. The company is actively working to increase its sales outside the group, highlighting its strategic focus on expanding its market reach and maintaining a degree of operational independence.

Toenec Corporation Announces Board of Directors Changes
Apr 28, 2025

Toenec Corporation has announced upcoming changes to its Board of Directors, which will be finalized at the General Meeting of Shareholders on June 26, 2025. These changes include the appointment of new directors and the retirement of some current members, reflecting the company’s ongoing efforts to strengthen its governance and oversight capabilities.

Toenec Corporation Proposes Amendments to Articles of Incorporation
Apr 28, 2025

Toenec Corporation announced a proposal to amend its Articles of Incorporation to include new business purposes, such as fittings work and the production, processing, and marketing of agricultural products. This change aims to prepare the company for future business development and will be presented at the upcoming General Meeting of Shareholders.

Toenec Corporation Reports Earnings Discrepancy and Proposes Dividend
Apr 28, 2025

Toenec Corporation reported discrepancies between its earnings forecast and actual results for the fiscal year ended March 31, 2025. Despite a slight decline in consolidated net sales due to delays in overseas projects, the company exceeded profit expectations due to improved profitability in domestic operations and gains from shareholdings. Additionally, the company announced a proposed dividend of ¥30 per share, reflecting its commitment to balancing shareholder returns with growth investments.

Toenec Corporation Reports Strong Financial Results and Announces Share Split
Apr 28, 2025

Toenec Corporation reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a 7.2% increase in net sales to ¥270,966 million and a 15.2% rise in profit attributable to owners of the parent to ¥10,765 million. The company also announced a 5-for-1 share split and a commemorative dividend for its 80th anniversary, reflecting a strong financial position and commitment to shareholder returns.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 02, 2025