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Toenec Corporation (JP:1946)
:1946
Japanese Market

Toenec Corporation (1946) AI Stock Analysis

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JP

Toenec Corporation

(1946)

Rating:72Outperform
Price Target:
Toenec Corporation demonstrates solid financial performance with steady revenue and profit growth, and a healthy equity position. While its technical indicators show upward momentum, caution is advised due to overbought conditions. The stock's attractive valuation, including a low P/E ratio and a significant dividend yield, further strengthens its investment case. Overall, this positions Toenec Corporation as a promising investment prospect, balanced by strategic considerations around cash flow and technical conditions.

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

Toenec Corporation Business Overview & Revenue Model

Company DescriptionToenec Corporation, established in 1946, is a Japanese company operating primarily in the construction and engineering sectors. The company provides a wide range of services, including electrical and telecommunication infrastructure development, equipment installation, and maintenance services, catering to both public and private sectors. Toenec Corporation is known for its expertise in creating efficient and sustainable infrastructure solutions, contributing to the development of essential facilities and networks across Japan.
How the Company Makes MoneyToenec Corporation generates revenue through its comprehensive suite of services in construction and engineering. The company's primary revenue streams include contracts for electrical and telecommunication infrastructure projects, where they offer design, installation, and maintenance services. Additionally, Toenec earns income from long-term service agreements with clients in various industries, ensuring the ongoing operation and upkeep of installed systems. Significant partnerships with governmental bodies and private sector companies further bolster its revenue by securing large-scale, multi-year projects that provide a steady flow of income.

Toenec Corporation Financial Statement Overview

Summary
Toenec Corporation exhibits strong financial health, characterized by steady revenue and profit growth, stable margins, and a robust equity position. The company has effectively managed its debt, though the solid cash generation capacity could be further optimized to enhance free cash flow. The financial statements indicate a well-managed company poised for continued growth, albeit with a focus on maintaining balance between debt and equity.
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.
Breakdown
TTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
268.70B270.97B252.86B232.05B219.62B215.68B
Gross Profit
39.59B40.48B37.41B32.32B34.90B35.54B
EBIT
16.01B16.04B15.91B10.29B14.07B15.51B
EBITDA
26.37B28.82B27.40B20.49B23.36B23.77B
Net Income Common Stockholders
10.04B10.77B9.35B-5.55B8.28B8.83B
Balance SheetCash, Cash Equivalents and Short-Term Investments
38.88B43.03B39.78B30.10B29.02B46.91B
Total Assets
309.46B310.56B304.93B300.17B301.60B308.23B
Total Debt
85.60B91.17B93.02B97.06B98.98B109.11B
Net Debt
46.72B48.13B55.00B66.95B69.96B62.20B
Total Liabilities
179.12B173.88B173.79B182.98B175.00B188.49B
Stockholders Equity
130.29B136.63B131.10B117.16B126.57B119.72B
Cash FlowFree Cash Flow
2.48B11.62B15.81B10.26B969.00M19.29B
Operating Cash Flow
3.72B17.77B19.12B12.64B5.94B24.11B
Investing Cash Flow
-806.00M-3.72B-2.06B-2.12B2.97B-3.72B
Financing Cash Flow
-4.62B-11.79B-9.90B-8.36B-27.52B-9.93B

Toenec Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1169.00
Price Trends
50DMA
1052.06
Positive
100DMA
974.84
Positive
200DMA
909.64
Positive
Market Momentum
MACD
33.15
Positive
RSI
63.63
Neutral
STOCH
42.00
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 1169 is above the 20-day moving average (MA) of 1154.45, above the 50-day MA of 1052.06, and above the 200-day MA of 909.64, indicating a bullish trend. The MACD of 33.15 indicates Positive momentum. The RSI at 63.63 is Neutral, neither overbought nor oversold. The STOCH value of 42.00 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 (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥104.62B10.39
3.61%7.58%35.09%
76
Outperform
¥131.96B11.34
4.67%5.77%62.13%
74
Outperform
¥38.24B13.82
4.34%-23.45%<0.01%
74
Outperform
¥137.21B16.50
7.95%-7.59%18.77%
73
Outperform
¥61.54B11.66
5.07%14.94%13.18%
72
Outperform
¥112.24B10.11
4.24%7.16%15.78%
66
Neutral
$4.51B12.295.40%3.67%4.15%-12.21%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:1946
Toenec Corporation
1,172.00
168.41
16.78%
JP:1890
Toyo Construction Co., Ltd.
1,463.00
200.30
15.86%
JP:1934
Yurtec Corporation
1,933.00
473.32
32.43%
JP:1939
Yondenko Corporation
1,287.00
160.82
14.28%
JP:1945
Tokyo Energy & Systems Inc.
1,215.00
-31.08
-2.49%
JP:1952
Shin Nippon Air Technologies Co., Ltd.
2,182.00
227.83
11.66%

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.