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Techno Ryowa Ltd. (JP:1965)
:1965
Japanese Market
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Techno Ryowa Ltd. (1965) AI Stock Analysis

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JP:1965

Techno Ryowa Ltd.

(1965)

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Outperform 70 (OpenAI - 5.2)
Rating:70Outperform
Price Target:
¥6,963.00
▲(4.86% Upside)
Action:Reiterated
Date:07/30/26
The score is supported primarily by strong financial performance (material margin and ROE improvement with very low leverage) and a favorable valuation (low P/E with a solid dividend yield). These positives are partially offset by weak technical positioning, with the stock trading below all key moving averages, signaling a bearish trend.
Positive Factors
Revenue & Margin Expansion
Accelerating revenue and meaningful margin expansion indicate durable improvement in project mix and operating execution. Higher gross and net margins provide structural operating leverage, improving cash generation potential and resilience to modest downturns across the next several quarters.
Negative Factors
Cash-Flow Volatility
Historical swings in operating and free cash flow reflect project timing and working-capital sensitivity typical in engineering. This volatility can strain liquidity when new contracts ramp or payments delay, increasing reliance on careful project financing and cash management over the next 2–6 months.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & Margin Expansion
Accelerating revenue and meaningful margin expansion indicate durable improvement in project mix and operating execution. Higher gross and net margins provide structural operating leverage, improving cash generation potential and resilience to modest downturns across the next several quarters.
Read all positive factors

Techno Ryowa Ltd. (1965) vs. iShares MSCI Japan ETF (EWJ)

Techno Ryowa Ltd. Business Overview & Revenue Model

Company Description
Techno Ryowa Ltd. is a specialist in environmental control systems, offering services from initial design and construction through to ongoing maintenance, primarily within Japan. Its comprehensive industrial portfolio features cleanroom technologi...

Techno Ryowa Ltd. Financial Statement Overview

Summary
Strong fundamentals driven by accelerating revenue growth and significant margin expansion (gross and net margins improved materially by 2026). Balance sheet strength is excellent with near-zero leverage and improving ROE, but the cash-flow profile has shown notable volatility in prior years despite a strong 2025–2026 rebound.
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
74
Positive
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue88.48B98.68B84.19B73.69B61.03B56.91B
Gross Profit19.41B24.62B17.14B12.44B9.31B8.84B
EBITDA11.71B16.35B10.04B6.16B3.52B3.38B
Net Income8.34B11.80B7.26B4.51B2.34B2.24B
Balance Sheet
Total Assets78.42B100.87B80.16B76.23B63.46B63.70B
Cash, Cash Equivalents and Short-Term Investments18.01B19.82B12.77B10.02B13.26B14.87B
Total Debt810.00M105.00M65.00M125.00M65.00M165.00M
Total Liabilities24.89B34.51B27.21B27.04B20.08B21.23B
Stockholders Equity53.53B66.31B52.95B49.19B43.38B42.46B
Cash Flow
Free Cash Flow0.0011.69B4.45B-1.60B-308.00M659.00M
Operating Cash Flow0.0012.15B4.65B-1.45B-157.00M904.00M
Investing Cash Flow0.00-940.00M-159.00M-340.00M-625.00M-130.00M
Financing Cash Flow0.00-4.25B-1.79B-1.72B-883.00M-565.00M

Techno Ryowa Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6640.00
Price Trends
50DMA
5933.60
Positive
100DMA
6240.27
Positive
200DMA
6388.13
Negative
Market Momentum
MACD
2.96
Negative
RSI
55.73
Neutral
STOCH
65.82
Neutral
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 6640 is above the 20-day moving average (MA) of 6061.50, above the 50-day MA of 5933.60, and above the 200-day MA of 6388.13, indicating a neutral trend. The MACD of 2.96 indicates Negative momentum. The RSI at 55.73 is Neutral, neither overbought nor oversold. The STOCH value of 65.82 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥272.79B14.357.85%2.72%5.94%-10.93%
75
Outperform
¥154.22B12.102.81%12.49%26.17%
73
Outperform
¥60.21B15.462.95%22.68%48.87%
70
Outperform
¥113.23B9.851.55%17.21%65.83%
65
Neutral
¥601.55B14.742.15%1.48%41.27%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
58
Neutral
¥65.60B12.192.73%-2.86%50.42%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:1965
Techno Ryowa Ltd.
6,190.00
1,535.79
33.00%
JP:1941
CHUDENKO
5,010.00
1,254.61
33.41%
JP:1815
Tekken Corporation
4,265.00
1,035.91
32.08%
JP:1945
Tokyo Energy & Systems Inc.
2,047.00
259.79
14.54%
JP:1952
Shin Nippon Air Technologies Co., Ltd.
3,020.00
-31.61
-1.04%
JP:1959
Kraftia Corporation
8,150.00
1,125.33
16.02%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 30, 2026