Toenec Corporation (1946) AI Stock Analysis

• Market Cap: ¥124.91B
• Dividend Yield: 3.75%
• Average Volume (3M): 145.71K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.77
• Revenue Growth: 7.16%
• EPS Growth: 15.86%
• Country: JP
• Employees: 6,077
• Sector: Industrials
• Sector Strength: 93
• Industry: Engineering & Construction
• EPS (TTM): 50.68
• Shares Outstanding: 96,649,950
• 10 Day Avg. Volume: 135,080
• 30 Day Avg. Volume: 145,706
• PEG Ratio: 1.51
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 48.81
• 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

• Rating: 71 Outperform
• 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 Business Overview & Revenue Model

Company Description

Toenec 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 Money

Toenec 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

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

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

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	270.97B	252.86B	232.05B	219.62B	215.68B
Gross Profit	40.48B	37.41B	32.32B	34.90B	35.54B
EBITDA	28.82B	27.40B	20.49B	23.36B	23.77B
Net Income	10.77B	9.35B	-5.55B	8.28B	8.83B
Balance Sheet
Total Assets	310.56B	304.93B	300.17B	301.60B	308.23B
Cash, Cash Equivalents and Short-Term Investments	43.03B	39.78B	30.10B	29.02B	46.91B
Total Debt	91.17B	93.02B	97.06B	98.98B	109.11B
Total Liabilities	173.88B	173.79B	182.98B	175.00B	188.49B
Stockholders Equity	136.63B	131.10B	117.16B	126.57B	119.72B
Cash Flow
Free Cash Flow	11.62B	15.81B	10.26B	969.00M	19.29B
Operating Cash Flow	17.77B	19.12B	12.64B	5.94B	24.11B
Investing Cash Flow	-3.72B	-2.06B	-2.12B	2.97B	-3.72B
Financing Cash Flow	-11.79B	-9.90B	-8.36B	-27.52B	-9.93B

Toenec Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1335.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1934	78 Outperform	¥164.69B	14.15		2.83%	5.77%	63.30%
1952	77 Outperform	¥122.28B	12.14		3.03%	7.58%	35.42%
1890	74 Outperform	¥151.40B	18.21		5.48%	-7.59%	18.77%
1939	73 Outperform	¥63.95B	12.12		4.53%	14.94%	13.18%
1945	73 Outperform	¥49.65B	17.94		3.21%	-23.45%	<0.01%
1946	71 Outperform	¥124.91B	11.25		3.75%	7.16%	15.86%
Sector *	67 Neutral	€8.39B	21.10	6.46%	2.81%	1.89%	-39.33%

Toenec Corporation Corporate Events

Toenec Corporation Emphasizes Independence Amidst Group Affiliations

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

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

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

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

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.