Toa Corporation (6809) AI Stock Analysis

• Market Cap: ¥35.84B
• Dividend Yield: 3.58%
• Average Volume (3M): 44.24K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.88
• Revenue Growth: 2.16%
• EPS Growth: 35.53%
• Country: JP
• Employees: 3,025
• Sector: Industrials
• Sector Strength: 83
• Industry: Security & Protection Services
• EPS (TTM): 35.75
• Shares Outstanding: 34,136,635
• 10 Day Avg. Volume: 70,290
• 30 Day Avg. Volume: 44,240
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• 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: ¥1,133.00
• Price Target Upside: 0.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• Price Target: ¥1,133.00 ▲(0.98% Upside)

Toa Corporation's strong financial performance and robust technical indicators are the primary drivers of its overall score. The company's solid balance sheet and effective cash flow management contribute significantly to its financial stability. While the stock's valuation is fair, it is supplemented by an attractive dividend yield. The absence of recent corporate events or earnings call data does not detract from the overall positive outlook.

Toa Corporation Business Overview & Revenue Model

Company Description

Toa Corporation (6809) is a Japanese company engaged primarily in the construction sector, focusing on civil engineering and building construction projects. The company offers a range of services that include planning, designing, and executing construction projects across various domains such as infrastructure development, roads, bridges, and commercial buildings. With a strong presence in the domestic market, Toa Corporation leverages its extensive expertise in engineering and construction to deliver high-quality projects.

How the Company Makes Money

Toa Corporation generates revenue primarily through its construction and engineering projects. The company secures contracts for large-scale infrastructure and building projects, which involve the planning, design, and execution phases. Revenue streams are driven by contracts with government entities, private sector clients, and public-private partnerships. A significant portion of its earnings comes from long-term infrastructure projects, which provide a steady stream of income over the duration of the contract. Additionally, the company may engage in joint ventures or partnerships to expand its project portfolio and enhance its service offerings. Factors such as a strong reputation, technical expertise, and a robust network of suppliers and subcontractors contribute to the company's ability to secure and successfully execute large projects, thereby driving its earnings.

Toa Corporation Financial Statement Overview

Summary

Toa Corporation exhibits strong financial performance with consistent revenue and profit growth. Healthy profit margins and a robust balance sheet with low leverage highlight its financial stability. Effective cash flow management further supports its solid financial health, although there is room for improvement in free cash flow growth.

Income Statement

Toa Corporation shows a strong financial performance with consistent revenue growth, achieving a 3.71% increase from 2024 to 2025. The gross profit margin remains healthy at 44.42%, and the net profit margin is solid at 4.67%. EBIT and EBITDA margins of 7.09% and 11.16% respectively indicate robust operational efficiency. Overall, the company's profitability is strong, supported by a steady increase in revenue and margins.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.06, indicating minimal leverage. The equity ratio stands at 72.15%, reflecting a strong capital structure with significant equity backing its assets. Return on equity is commendable at 4.78%, showcasing efficient use of shareholders' equity to generate profits. The balance sheet demonstrates stability and low financial risk.

Cash Flow

Operating cash flow to net income ratio is robust at 2.38, indicating strong cash generation from operations relative to net income. The free cash flow to net income ratio of 2.12 highlights effective cash management and the ability to generate free cash flow. However, the free cash flow growth rate of 20.58% from 2024 to 2025 could be improved for better financial flexibility. Overall, the cash flow position is solid with potential for further growth.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	50.63B	48.81B	45.12B	40.86B	40.58B
Gross Profit	22.48B	20.92B	18.16B	17.38B	17.31B
EBITDA	5.65B	4.62B	4.22B	3.88B	4.09B
Net Income	2.37B	2.00B	1.76B	1.47B	1.60B
Balance Sheet
Total Assets	68.63B	64.73B	63.91B	60.69B	58.57B
Cash, Cash Equivalents and Short-Term Investments	18.97B	16.35B	16.94B	17.91B	16.84B
Total Debt	2.98B	3.02B	3.84B	2.91B	2.18B
Total Liabilities	16.04B	15.50B	15.14B	13.75B	12.21B
Stockholders Equity	49.51B	46.58B	46.24B	44.72B	44.40B
Cash Flow
Free Cash Flow	5.01B	4.16B	-819.00M	867.00M	3.07B
Operating Cash Flow	5.62B	5.07B	583.00M	1.63B	5.29B
Investing Cash Flow	-2.40B	-928.00M	-2.79B	-752.00M	-2.07B
Financing Cash Flow	-2.08B	-5.23B	-1.44B	-458.00M	-3.06B

Toa Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1122.00
• 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:6809, the sentiment is Positive. The current price of 1122 is above the 20-day moving average (MA) of 1054.15, above the 50-day MA of 1024.00, and above the 200-day MA of 957.21, indicating a bullish trend. The MACD of 29.73 indicates Negative momentum. The RSI at 73.29 is Negative, neither overbought nor oversold. The STOCH value of 89.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6809.

Toa Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1909	79 Outperform	¥42.15B	9.55		0.91%	4.95%	20.09%
6809	77 Outperform	¥35.84B	13.43		3.58%	2.16%	35.53%
7734	77 Outperform	¥156.77B	19.59		1.23%	13.27%	-1.75%
9686	76 Outperform	¥17.70B	11.92		2.34%	24.48%	204.62%
6744	74 Outperform	¥236.39B	21.71		1.94%	11.91%	21.70%
9740	73 Outperform	¥36.56B	10.21		2.37%	9.40%	-32.82%
Sector *	66 Neutral	€10.82B	25.69	6.80%	2.53%	4.18%	-30.63%

Toa Corporation Corporate Events

Toa Corporation Maintains Financial Forecast Despite U.S. Subsidiary Incident

Toa Corporation has announced that despite a recent fund outflow incident at its U.S. subsidiary, the impact on its financial performance for the fiscal year ending March 2026 is minimal. Consequently, the company will maintain its previously disclosed earnings and dividend forecasts, indicating stability in its operations and financial outlook.

TOA Corporation Reports Improved Profitability and Positive Outlook for 2025

TOA Corporation reported a 1.8% increase in net sales for the three months ending June 30, 2025, compared to the same period last year. The company achieved a significant turnaround in profitability, with an ordinary profit increase of 314.4%, reflecting improved operational efficiency. Despite a slight decrease in total assets, the company maintains a strong capital adequacy ratio, indicating financial stability. The forecast for the fiscal year ending March 31, 2026, shows an optimistic outlook with expected growth in net sales and profits, suggesting a positive impact on stakeholders.

TOA Corporation Finalizes Treasury Share Disposal for Executive Remuneration

TOA Corporation has completed the payment procedure for the disposal of 26,000 treasury shares as part of its restricted share-based remuneration plan, which was resolved in a recent board meeting. This move is aimed at aligning the interests of its executives with those of the company, potentially impacting its governance and stakeholder relations positively.

TOA Corporation Reports Fraud Incident at U.S. Subsidiary

TOA Corporation has reported a significant financial incident at its U.S. subsidiary, where approximately $600,000 was fraudulently transferred due to malicious third-party instructions. The company is actively cooperating with law enforcement to investigate the criminal activity and is taking steps to recover the funds and prevent future occurrences. The impact on the company’s financial performance is still under investigation, and stakeholders are being informed of the situation’s developments.

TOA Corporation Announces Disposal of Treasury Shares for Executive Incentives

TOA Corporation announced its decision to dispose of 26,000 treasury shares as part of a restricted share-based remuneration plan aimed at enhancing corporate value and aligning the interests of directors and shareholders. This strategic move is expected to strengthen the company’s market position by incentivizing its leadership to improve the company’s share price and overall corporate value.

TOA Corporation Announces Stable Dividend Payout

TOA Corporation announced a resolution to pay dividends of surplus, with a record date of March 31, 2025, maintaining a dividend per share of ¥20. This decision underscores the company’s commitment to providing stable returns to shareholders while pursuing sustainable growth and adhering to financial regulations.