Techno Ryowa Ltd. (1965) AI Stock Analysis

• Market Cap: ¥100.76B
• Dividend Yield: 1.9%
• Average Volume (3M): 75.94K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 1.19
• 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: 45,450
• 30 Day Avg. Volume: 75,936
• PEG Ratio: 0.12
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.66
• P/FCF Ratio: 12.40
• 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: -13.77% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 81 Outperform
• Price Target: ¥4,320.00 ▼(-13.77% 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., established in 1965, is a leading company specializing in the development and manufacturing of advanced technological solutions in the fields of electronics and automation. The company operates primarily in the industrial and commercial sectors, providing innovative products such as automated control systems, precision measurement devices, and electronic components. With a strong focus on research and development, Techno Ryowa Ltd. aims to enhance operational efficiency and productivity for its diverse client base.

How the Company Makes Money

Techno Ryowa Ltd. generates revenue through multiple streams, primarily by selling its core products, including industrial automation systems and electronic components, to various industries such as manufacturing, automotive, and telecommunications. The company also offers maintenance and support services for its products, creating a steady income stream from existing customers. Strategic partnerships with other technology firms and collaboration on joint projects further enhance its market reach and product offerings. Additionally, the firm invests in research and development to innovate and adapt its products to meet the evolving needs of the market, which helps in retaining clients and attracting new business.

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	88.48B	84.19B	73.69B	61.03B	56.90B	54.87B
Gross Profit	19.41B	17.14B	12.69B	9.54B	9.08B	7.91B
EBITDA	12.15B	10.54B	6.16B	3.52B	3.38B	2.40B
Net Income	8.34B	7.26B	4.51B	2.34B	2.24B	1.23B
Balance Sheet
Total Assets	78.42B	80.16B	76.23B	63.46B	63.70B	62.44B
Cash, Cash Equivalents and Short-Term Investments	18.01B	12.77B	10.02B	13.26B	14.87B	14.82B
Total Debt	810.00M	65.00M	125.00M	65.00M	165.00M	121.00M
Total Liabilities	24.89B	27.21B	27.05B	20.08B	21.24B	21.16B
Stockholders Equity	53.53B	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: Neutral
• Last Price: 5010.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1965, the sentiment is Neutral. The current price of 5010 is below the 20-day moving average (MA) of 5055.13, above the 50-day MA of 4861.26, and above the 200-day MA of 3488.25, indicating a neutral trend. The MACD of 123.47 indicates Positive momentum. The RSI at 50.30 is Neutral, neither overbought nor oversold. The STOCH value of 31.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥76.99B	9.85	―	3.66%	4.24%	22.05%
1965	81 Outperform	¥100.76B	12.64	―	1.90%	17.42%	83.57%
1960	74 Outperform	¥15.45B	9.46	―	3.97%	28.15%	895.81%
1982	73 Outperform	¥95.66B	14.56	―	2.36%	7.26%	29.33%
1952	70 Outperform	¥138.75B	12.58	―	3.09%	9.14%	43.46%
1967	66 Neutral	¥43.65B	11.41	―	2.31%	10.35%	152.81%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%