Techno Ryowa Ltd. (1965) AI Stock Analysis

• Market Cap: ¥81.15B
• Dividend Yield: 2.48%
• Average Volume (3M): 63.68K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 1.19
• Revenue Growth: 14.25%
• EPS Growth: 63.31%
• Country: JP
• Employees: 899
• Sector: Industrials
• Sector Strength: 93
• Industry: Engineering & Construction
• EPS (TTM): 265.10
• Shares Outstanding: 21,228,603
• 10 Day Avg. Volume: 65,510
• 30 Day Avg. Volume: 63,680
• PEG Ratio: 0.55
• Price to Book (P/B): 1.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 8.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 81 Outperform
• Price Target: ¥4,320.00 ▲(8.14%Upside)

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. (1965) is a Japanese company specializing in the design, installation, and maintenance of air conditioning, plumbing, and electrical systems. The company primarily serves sectors such as commercial, industrial, and residential construction, offering bespoke solutions tailored to client needs. With a focus on innovation and sustainability, Techno Ryowa Ltd. aims to provide efficient and environmentally friendly building services.

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. shows strong revenue growth and profitability in its financial statements. With improved EBIT, EBITDA, and net profit margins, the company demonstrates enhanced operational efficiency. A solid balance sheet with minimal leverage and robust equity structure further supports its financial health. Although cash flow has improved significantly, maintaining this trajectory is crucial for sustained growth.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	79.89B	84.19B	73.69B	61.03B	56.90B	54.87B
Gross Profit	15.63B	17.14B	12.69B	9.54B	9.08B	7.91B
EBITDA	8.73B	10.54B	6.16B	3.52B	3.38B	2.06B
Net Income	6.12B	7.26B	4.51B	2.34B	2.24B	1.23B
Balance Sheet
Total Assets	72.88B	80.16B	76.23B	63.46B	63.70B	62.44B
Cash, Cash Equivalents and Short-Term Investments	10.04B	12.77B	10.02B	13.26B	14.87B	14.82B
Total Debt	840.00M	65.00M	125.00M	65.00M	165.00M	121.00M
Total Liabilities	22.22B	27.21B	27.05B	20.08B	21.24B	21.16B
Stockholders Equity	50.66B	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: 3995.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 3995 is above the 20-day moving average (MA) of 3718.75, above the 50-day MA of 3552.60, and above the 200-day MA of 2818.82, indicating a bullish trend. The MACD of 114.73 indicates Negative momentum. The RSI at 71.31 is Negative, neither overbought nor oversold. The STOCH value of 91.94 is Negative, 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	¥72.43B	8.78		2.66%	9.78%	38.89%
1965	81 Outperform	¥81.15B	11.70		2.48%	14.25%	63.31%
1982	78 Outperform	¥89.34B	14.94		2.34%	7.19%	25.44%
1952	77 Outperform	¥122.28B	12.14		3.03%	7.58%	35.42%
1967	76 Outperform	¥44.92B	11.06		0.28%	10.09%	170.06%
1960	74 Outperform	¥14.10B	8.08		4.35%	33.76%	―
Sector *	71 Outperform	¥269.20B	13.89	8.47%	2.88%	6.35%	13.11%