Balance Sheet StrengthExtremely low leverage and a 66% equity ratio give durable financial resilience and low refinancing risk. Improved ROE (13.71%) shows capital is being used efficiently, allowing the company to withstand downturns and fund opportunistic investments without reliance on debt.

Sustained ProfitabilityConsistent operating margins (EBIT/EBITDA) and positive net margin indicate structural operational efficiency. These margins support durable cash generation and reinvestment capacity, helping maintain profitability through project cycles and fund strategic initiatives over the medium term.

Revenue Growth And Cash GenerationDouble-digit revenue growth alongside a positive free cash flow trend and FCF/net income of 0.61 demonstrates the business can grow sales while converting earnings into cash. This strengthens self-funding ability for capex and reduces dependency on external financing over coming quarters.

Bears Say

Inconsistent Cash ConversionOCF converts only ~64% of net income and historical negative operating cash flows highlight volatility in cash quality. If cash conversion remains inconsistent, earnings may not reliably fund operations or investments, increasing reliance on careful working-capital and capital-allocation execution.

Margin VulnerabilityNet margin (~8.6%) requires defence in a described competitive industry. Durable margin pressure from aggressive bidding or input-cost inflation could erode profitability, so sustained operational improvements are necessary to protect long-term margins and cash generation capability.

Modest ScaleA workforce of 899 suggests relatively modest scale for the engineering & construction sector. This can limit capacity to pursue very large or simultaneous projects and slow geographic expansion, constraining market-share gains and the ability to capture large contract-driven growth opportunities.

1965 FAQ

What was Techno Ryowa Ltd.’s price range in the past 12 months?

Techno Ryowa Ltd. lowest stock price was ¥2000.00 and its highest was ¥9340.00 in the past 12 months.

What is Techno Ryowa Ltd.’s market cap?

Techno Ryowa Ltd.’s market cap is ¥125.70B.

When is Techno Ryowa Ltd.’s upcoming earnings report date?

Techno Ryowa Ltd.’s upcoming earnings report date is May 19, 2026 which is in 70 days.

How were Techno Ryowa Ltd.’s earnings last quarter?

Techno Ryowa Ltd. released its earnings results on Feb 06, 2026. The company reported ¥172.42 earnings per share for the quarter, beating the consensus estimate of N/A by ¥172.42.

Is Techno Ryowa Ltd. overvalued?

According to Wall Street analysts Techno Ryowa Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Techno Ryowa Ltd. pay dividends?

Techno Ryowa Ltd. pays a Semiannually dividend of ¥58 which represents an annual dividend yield of 1.55%. See more information on Techno Ryowa Ltd. dividends here

What is Techno Ryowa Ltd.’s EPS estimate?

Techno Ryowa Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Techno Ryowa Ltd. have?

Techno Ryowa Ltd. has 21,228,603 shares outstanding.

What happened to Techno Ryowa Ltd.’s price movement after its last earnings report?

Techno Ryowa Ltd. reported an EPS of ¥172.42 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 7.905%.

Which hedge fund is a major shareholder of Techno Ryowa Ltd.?

Currently, no hedge funds are holding shares in JP:1965

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Techno Ryowa Ltd.

Techno Ryowa Ltd. engages in the design, construction, and maintenance of environmental control systems primarily in Japan. The company offers industrial equipment, including clean systems, temperature/humidity control systems, energy/resource conservation equipment, spot air conditioning systems, industrial waste water/air treatment facilities, refrigeration/low-temperature equipment, production process operations, clean effluent processing plants, and nuclear power-related equipment. It also provides general building equipment comprising general air conditioning equipment, plumbing systems, disaster prevention/fire extinguishing systems, waste water treatment systems, district cooling/heating products, and co-generation systems. In addition, the company is involved in the provision of equipment maintenance services, such as equipment diagnosis and overhaul maintenance; design/construction of building ancillary equipment; and manufacture/sales of related machinery. Techno Ryowa Ltd. was incorporated in 1949 and is headquartered in Tokyo, Japan.