Techno Ryowa Ltd. (1965) AI Stock Analysis

• Market Cap: ¥93.72B
• Dividend Yield: 2.15%
• Average Volume (3M): 80.73K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 1.21
• Revenue Growth: 17.42%
• EPS Growth: 83.57%
• Country: JP
• Employees: 899
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 80.61
• Shares Outstanding: 21,228,603
• 10 Day Avg. Volume: 102,200
• 30 Day Avg. Volume: 80,726
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥4,320.00
• Price Target Upside: -7.00% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 81 Outperform
• Price Target: ¥4,320.00 ▼(-7.00% Downside)

Techno Ryowa Ltd. scores well due to its strong financial performance and robust valuation metrics. The stock's technical analysis suggests positive momentum, though caution is warranted due to overbought conditions. The company's solid financials and fair valuation make it a promising candidate for investors, particularly in the context of an industry with growth potential.

Techno Ryowa Ltd. Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Techno Ryowa Ltd. generates revenue through the sale of its engineering and contracting services. Its primary revenue streams include the design and installation of HVAC (heating, ventilation, and air conditioning) systems, as well as electrical and plumbing systems for new construction and renovation projects. The company also offers maintenance and repair services as part of long-term contracts, providing a steady income stream. Additionally, Techno Ryowa Ltd. may engage in significant partnerships with construction firms and developers, contributing to its earnings through collaborative projects and joint ventures. Its commitment to sustainable technology and efficient systems often allows the company to attract clients seeking eco-friendly solutions, further enhancing its market position and revenue potential.

Techno Ryowa Ltd. Financial Statement Overview

Summary

Techno Ryowa Ltd. presents a robust financial profile with strong revenue growth, improved profitability, and a solid balance sheet. The company has effectively managed its operational expenses, leading to improved margins and cash flow. While the cash flow position has improved, maintaining this positive trajectory is crucial for sustained growth. Overall, the company is well-positioned for future expansion in the engineering and construction industry, with minimal financial risk and a strong equity base.

Income Statement

Techno Ryowa Ltd. demonstrates strong performance in its income statement, with a robust revenue growth rate of 14.26% over the last year. The company has improved its EBIT and EBITDA margins to 11.44% and 12.53%, respectively, indicating enhanced operational efficiency. Furthermore, the net profit margin increased to 8.62%, showcasing strong profitability. These metrics reflect a healthy financial trajectory, though the company should remain vigilant about maintaining these margins in a competitive industry.

Balance Sheet

The balance sheet of Techno Ryowa Ltd. is notably strong, with a low debt-to-equity ratio of 0.0012, indicating minimal leverage and financial risk. The return on equity has improved to 13.71%, reflecting efficient use of shareholder funds. Additionally, the equity ratio of 66.04% signifies a strong capital structure, with ample equity backing total assets. The company is well-positioned to withstand economic fluctuations and invest in growth opportunities.

Cash Flow

Techno Ryowa Ltd. has shown a significant turnaround in cash flow operations, with positive free cash flow growth. The operating cash flow to net income ratio stands at 0.64, indicating solid cash generation relative to net income. The free cash flow to net income ratio is 0.61, suggesting effective cash management. Despite previous years of negative operating cash flow, the current improvement signals a positive trend, though continued focus on maintaining cash flow strength is advisable.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	84.19B	84.19B	73.69B	61.03B	56.90B	54.87B
Gross Profit	17.43B	17.14B	12.69B	9.54B	9.08B	7.91B
EBITDA	10.54B	10.54B	6.16B	3.52B	3.38B	2.40B
Net Income	7.26B	7.26B	4.51B	2.34B	2.24B	1.23B
Balance Sheet
Total Assets	80.16B	80.16B	76.23B	63.46B	63.70B	62.44B
Cash, Cash Equivalents and Short-Term Investments	12.77B	12.77B	10.02B	13.26B	14.87B	14.82B
Total Debt	65.00M	65.00M	125.00M	65.00M	165.00M	121.00M
Total Liabilities	27.21B	27.21B	27.05B	20.08B	21.24B	21.16B
Stockholders Equity	52.95B	52.95B	49.18B	43.37B	42.46B	41.28B
Cash Flow
Free Cash Flow	0.00	4.45B	-1.85B	-359.00M	615.00M	675.00M
Operating Cash Flow	0.00	4.65B	-1.45B	-157.00M	904.00M	1.14B
Investing Cash Flow	0.00	-159.00M	-340.00M	-625.00M	-130.00M	-1.29B
Financing Cash Flow	0.00	-1.79B	-1.72B	-883.00M	-565.00M	-1.11B

Techno Ryowa Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4645.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1965, the sentiment is Positive. The current price of 4645 is below the 20-day moving average (MA) of 4718.84, above the 50-day MA of 4524.54, and above the 200-day MA of 3306.77, indicating a neutral trend. The MACD of 53.40 indicates Positive momentum. The RSI at 48.63 is Neutral, neither overbought nor oversold. The STOCH value of 16.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1965.

Techno Ryowa Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1976	82 Outperform	¥77.79B	9.95	12.33%	3.63%	4.24%	22.05%
1965	81 Outperform	¥93.72B	11.76	―	2.15%	17.42%	83.57%
1952	77 Outperform	¥147.08B	13.34	13.93%	2.91%	9.14%	43.46%
1967	76 Outperform	¥46.72B	12.21	9.56%	2.16%	10.35%	152.81%
1960	74 Outperform	¥15.42B	9.44	5.74%	3.98%	28.15%	895.81%
1982	74 Outperform	¥103.45B	15.75	8.36%	2.22%	7.26%	29.33%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%