Tobishima Holdings, Inc. (256A) AI Stock Analysis

• Market Cap: ¥44.40B
• Dividend Yield: 3.88%
• Average Volume (3M): 103.19K
• Price to Earnings (P/E): 6.7
• Beta (1Y): 0.67
• Revenue Growth: 4.11%
• EPS Growth: 28.37%
• Country: JP
• Employees: 1,425
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 88.50
• Shares Outstanding: 19,225,868
• 10 Day Avg. Volume: 87,460
• 30 Day Avg. Volume: 103,190
• PEG Ratio: 0.91
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 15.82
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: ¥2,934.00 ▲(24.53% Upside)
• Action: Upgraded Date: 11/30/25
• Date: Action: Upgraded 11/30/25

Tobishima Holdings, Inc. is well-positioned with strong financial performance, robust technical indicators, and an attractive valuation. The company's consistent revenue growth and improving profitability are complemented by bullish market momentum and a low P/E ratio. However, attention to rising debt levels and potential short-term technical pullbacks is advised.

Positive Factors

Revenue Growth

Sustained top-line expansion, including a notable revenue increase from 2024 to 2025, indicates successful project wins and market penetration in engineering/construction. Durable revenue growth supports scale economies, backlog conversion, and predictable cash generation for medium-term reinvestment.

Improving Profitability & ROE

Rising net margins and improved ROE signal better project pricing, cost control and capital deployment. Persistent margin improvement enhances retained earnings and financial resilience, enabling the firm to fund capex or strategic initiatives without relying solely on external financing.

Recovery in Cash Generation

Operating cash flow recovery and positive free cash flow demonstrate the company's ability to convert earnings into spendable cash. Sustainable FCF supports debt servicing, maintenance capex, and shareholder returns, improving balance sheet resilience and funding optionality over multiple quarters.

Negative Factors

Rising Total Debt

An increasing absolute debt level, even with a moderate debt-to-equity ratio, raises leverage risk if cash flow weakens. Higher debt increases interest obligations and reduces strategic flexibility, making prudent capital structure management and cash conversion critical over the medium term.

Cash Flow Volatility

Historic swings in operating and free cash flow reduce predictability for capex, debt repayment, and dividends. Persistent volatility complicates multi‑period planning and increases refinancing and liquidity risks, potentially constraining investments during downturns or bid cycles.

Operating Margin Pressure

EBIT and EBITDA margins below peer-best levels indicate operational efficiency gaps. In engineering and construction, sustainable margin improvement is key to competitiveness; failure to lift operating margins could cap profitability despite revenue growth and leave earnings vulnerable to cost inflation.

Tobishima Holdings, Inc. Business Overview & Revenue Model

Company Description

Tobishima Holdings Inc. engages in the construction business in Japan and internationally. The company is involved in the research, survey, planning, designing, supervision, and management of civil engineering and building construction works, as well as regional and urban developments, ocean developments and environmental considerations, etc.; and planning, designing, development, possession, maintenance, operation, and management of various public facilities and infrastructure, including roads, ports, water supply and sewage works, government office buildings, educational and cultural facilities, solid waste disposal facilities, medical and sports facilities, hotels, and restaurants. It also engages in the environmental enhancement business, such as soil enhancement, river and lake bottom sediment purification, and lake and seawater improvement; collection, transportation, treatment, and recycling of general and industrial waste; thermal and other electricity and energies supply; and fabrication, procurement, sale, and lease of construction machinery, equipment, materials, and other manufactured items. In addition, the company is involved in the real estate dealing and leasing, and housing businesses; maintenance and security services works for buildings and incidental facilities; and life insurance business. Further, it acquires, licenses, and sells industrial property rights, copyrights, and other intellectual proprietary rights; offers information processing services; develops computer software and hardware; produces, processes, and sells agricultural, forestry, and fishery products; researches, studies, and develops production related agricultural, forestry, and fishery products; offers consulting services; and operates as a non-life and car insurance agent. TOBISHIMA HOLDINGS Inc. was founded in 1883 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Tobishima Holdings generates revenue primarily through its construction and engineering projects, which include public infrastructure works, residential and commercial building construction, and real estate development initiatives. The company earns money by bidding on and executing contracts with government entities and private sector clients. Key revenue streams include project management fees, construction contracts, and real estate sales. Additionally, Tobishima Holdings may engage in joint ventures or partnerships with other firms in the construction industry to enhance its project portfolio and expand its market reach, further contributing to its earnings.

Tobishima Holdings, Inc. Financial Statement Overview

Summary

Tobishima Holdings, Inc. exhibits solid financial performance with consistent revenue growth and improving profitability. The balance sheet is robust, supported by a strong equity base, though rising debt levels warrant attention. Cash flow stability is improving, yet historical volatility suggests the need for cautious cash management.

Income Statement

Tobishima Holdings, Inc. has demonstrated consistent revenue growth over the past few years, with a notable increase in total revenue from 2024 to 2025. The gross profit margin has remained stable, indicating efficient cost management. The net profit margin has shown improvement, reflecting better profitability. However, the EBIT and EBITDA margins, while positive, suggest room for improvement in operational efficiency.

Balance Sheet

The company's balance sheet shows a healthy equity ratio, indicating a strong capital structure with a significant portion of assets financed by equity. The debt-to-equity ratio is moderate, suggesting manageable leverage levels. Return on equity has improved, showcasing effective utilization of shareholder funds. However, the total debt level has increased, which could pose a risk if not managed carefully.

Cash Flow

Cash flow analysis reveals a recovery in operating cash flow in 2025 after a significant negative dip in 2024. Free cash flow has turned positive, indicating improved cash generation capabilities. The operating cash flow to net income ratio suggests that cash earnings are aligning with reported profits. However, fluctuations in free cash flow in previous years highlight potential volatility in cash management.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	138.26B	132.05B	125.94B	117.66B	117.30B
Gross Profit	15.80B	15.04B	13.60B	13.21B	12.11B
EBITDA	7.49B	6.50B	4.97B	5.15B	4.88B
Net Income	3.72B	3.40B	3.04B	3.22B	2.45B
Balance Sheet
Total Assets	157.17B	150.87B	128.06B	114.63B	121.60B
Cash, Cash Equivalents and Short-Term Investments	25.84B	24.07B	20.32B	12.97B	25.44B
Total Debt	36.41B	34.85B	18.64B	16.19B	20.19B
Total Liabilities	106.71B	102.07B	82.33B	70.76B	80.01B
Stockholders Equity	50.36B	48.79B	45.72B	43.86B	41.58B
Cash Flow
Free Cash Flow	1.99B	-11.88B	5.64B	-7.81B	1.96B
Operating Cash Flow	2.91B	-9.99B	6.33B	-6.19B	4.17B
Investing Cash Flow	-1.35B	-1.44B	-508.00M	-1.77B	-1.18B
Financing Cash Flow	207.00M	14.91B	1.45B	-4.56B	-846.00M

Tobishima Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2356.00
• 50DMA: Negative
• 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:256A, the sentiment is Neutral. The current price of 2356 is below the 20-day moving average (MA) of 2546.30, below the 50-day MA of 2486.82, and above the 200-day MA of 2160.15, indicating a neutral trend. The MACD of 3.60 indicates Positive momentum. The RSI at 41.73 is Neutral, neither overbought nor oversold. The STOCH value of 44.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:256A.

Tobishima Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1921	80 Outperform	¥79.43B	26.09	―	0.79%	-8.53%	-83.61%
1810	79 Outperform	¥55.03B	6.41	―	3.97%	2.85%	317.62%
256A	77 Outperform	¥44.40B	6.66	―	3.88%	4.11%	28.37%
1929	75 Outperform	¥57.69B	7.30	―	3.78%	11.81%	52.35%
1827	73 Outperform	¥55.99B	7.92	―	1.96%	2.55%	-14.37%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1811	60 Neutral	¥65.89B	19.35	―	1.57%	11.01%	231.83%

Tobishima Holdings, Inc. Corporate Events

Tobishima Holdings Delivers Profit Surge and Confirms Outlook for FY2025

Tobishima Holdings, Inc. reported consolidated net sales of ¥100.9 billion for the nine months ended Dec. 31, 2025, a slight 0.6% increase year on year, while operating profit jumped 27.9% to ¥5.2 billion and profit attributable to owners of parent surged 46.4% to ¥3.6 billion. Earnings per share rose to ¥188.45 and net assets climbed to ¥52.9 billion, indicating stronger profitability and a mildly improved balance sheet despite a marginal dip in the equity ratio.

The company maintained its full-year forecast for the fiscal year ending March 31, 2026, projecting net sales of ¥140 billion and profit attributable to owners of parent of ¥3.9 billion, alongside basic earnings per share of ¥203.62. Dividend guidance was also left unchanged, with a planned annual payout of ¥100 per share, signaling confidence in cash generation and a continued commitment to returning value to shareholders.

The most recent analyst rating on (JP:256A) stock is a Buy with a Yen2762.00 price target. To see the full list of analyst forecasts on Tobishima Holdings, Inc. stock, see the JP:256A Stock Forecast page.

Tobishima Holdings Lifts Profits and Confirms Outlook as Dividend Rises

Tobishima Holdings reported consolidated net sales of ¥100.9 billion for the nine months ended December 31, 2025, a slight year-on-year increase, while operating profit jumped 27.9% to ¥5.2 billion and profit attributable to owners of parent surged 46.4% to ¥3.6 billion. The company’s equity ratio remained broadly stable at 31.7%, and management maintained its full-year forecast, projecting modest growth in sales and profits, alongside a planned increase in the annual dividend to ¥100 per share, signaling confidence in earnings and a continued focus on shareholder returns.

For the fiscal year ending March 31, 2026, Tobishima expects net sales of ¥140 billion and profit attributable to owners of parent of ¥3.9 billion, implying single-digit growth over the prior year. The unchanged earnings guidance and higher dividend plan suggest steady business conditions and disciplined financial management, offering shareholders improved income while preserving a solid balance sheet position.

The most recent analyst rating on (JP:256A) stock is a Buy with a Yen3030.00 price target. To see the full list of analyst forecasts on Tobishima Holdings, Inc. stock, see the JP:256A Stock Forecast page.