TOKYO GAS Co (9531) AI Stock Analysis

• Market Cap: ¥2.37T
• Dividend Yield: 1.48%
• Average Volume (3M): 953.27K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.55
• Revenue Growth: 5.72%
• EPS Growth: 148.08%
• Country: JP
• Employees: 15,504
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): 83.80
• Shares Outstanding: 371,090,850
• 10 Day Avg. Volume: 822,840
• 30 Day Avg. Volume: 953,273
• PEG Ratio: -0.46
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 0.70
• P/FCF Ratio: 10.38
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: ¥6,740.00 ▲(6.04% Upside)

TOKYO GAS Co's stock score is primarily driven by strong technical analysis indicators, suggesting bullish momentum. Financial performance shows moderate stability with challenges in profitability and debt management. Valuation is reasonable, providing a balanced outlook. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Stable Revenue Stream

The regulated pricing model provides predictable and stable revenue, reducing volatility and supporting long-term financial planning and investment.

Diversified Income Sources

Diversification into electricity and services reduces dependency on natural gas, enhancing resilience against market fluctuations and regulatory changes.

Renewable Energy Initiatives

Investing in renewable energy aligns with global sustainability trends, positioning the company for future growth as demand for clean energy rises.

Negative Factors

Rising Leverage

Increased leverage can strain financial flexibility, posing risks if cash flows do not adequately cover debt obligations, impacting long-term stability.

Profitability Pressures

Declining margins suggest challenges in cost control or pricing power, which could affect profitability and competitiveness over time.

Inconsistent Free Cash Flow

Inconsistent free cash flow growth can limit the company's ability to invest in growth opportunities and manage financial obligations effectively.

TOKYO GAS Co Business Overview & Revenue Model

Company Description

TOKYO GAS Co (9531) is a leading utility company in Japan, primarily engaged in the production, distribution, and sale of natural gas. Established in 1885, it serves the Tokyo metropolitan area and beyond, providing a range of energy solutions including city gas, electricity, and various energy-related services. The company is also involved in renewable energy initiatives and the development of energy-efficient technologies, catering to both residential and commercial customers.

How the Company Makes Money

TOKYO GAS generates revenue primarily through the sale of natural gas to residential, commercial, and industrial customers. The company operates on a regulated pricing model, where gas prices are determined by government regulations, ensuring a stable revenue stream. Additionally, TOKYO GAS has diversified its income through electricity sales, leveraging the deregulation of the electricity market in Japan. It also earns revenue from ancillary services, such as energy efficiency consulting and maintenance services for gas appliances. Significant partnerships with local governments and participation in renewable energy projects contribute to its earnings, as the company invests in sustainable energy solutions and infrastructure, positioning itself for future growth.

TOKYO GAS Co Financial Statement Overview

Summary

TOKYO GAS Co presents a mixed financial picture. The income statement demonstrates moderate profitability and revenue growth challenges. The balance sheet indicates solid equity but rising leverage, while the cash flow statement reveals adequate operating cash flow with concerns over free cash flow consistency. The company needs to address profitability pressures and manage its debt levels to enhance financial stability.

Income Statement

TOKYO GAS Co has shown a mixed performance in its income statement metrics. The gross profit margin has been declining, indicating potential pressure on cost management or pricing. The net profit margin has also decreased, reflecting challenges in maintaining profitability. Revenue growth rates have been inconsistent, with a notable drop in 2024, followed by a slight recovery. The EBIT and EBITDA margins have fluctuated, pointing to volatility in operational efficiency. Overall, the income statement reflects moderate stability with room for improvement in profitability and revenue growth.

Balance Sheet

The balance sheet of TOKYO GAS Co exhibits strong equity, with a healthy stockholders' equity base relative to total assets. However, the debt-to-equity ratio has increased, indicating rising leverage which could pose a risk if not managed properly. The equity ratio suggests a solid financial structure, though the rising debt levels warrant attention. Return on equity has been volatile, reflecting fluctuations in profitability relative to equity. Overall, the balance sheet shows resilience but highlights the need to monitor debt levels.

Cash Flow

Cash flow metrics for TOKYO GAS Co indicate challenges in maintaining consistent free cash flow growth, with negative growth in several years. The operating cash flow to net income ratio suggests that the company is generating sufficient cash from operations relative to its net income. However, the free cash flow to net income ratio has been inconsistent, reflecting variability in capital expenditure and cash generation. Overall, the cash flow statement shows adequate operational cash flow but highlights concerns regarding free cash flow sustainability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.70T	2.64T	2.66T	3.29T	2.15T	1.77T
Gross Profit	447.35B	406.24B	475.26B	693.17B	598.61B	552.52B
EBITDA	525.39B	396.93B	484.24B	632.59B	352.64B	259.49B
Net Income	156.02B	74.19B	165.48B	280.92B	95.70B	49.51B
Balance Sheet
Total Assets	3.65T	3.86T	3.89T	3.58T	3.22T	2.74T
Cash, Cash Equivalents and Short-Term Investments	156.18B	244.49B	363.94B	453.51B	179.78B	159.09B
Total Debt	1.24T	1.34T	1.44T	1.24T	1.22T	1.07T
Total Liabilities	1.99T	2.05T	2.16T	1.99T	1.96T	1.56T
Stockholders Equity	1.59T	1.73T	1.70T	1.56T	1.25T	1.15T
Cash Flow
Free Cash Flow	0.00	177.20B	117.07B	302.09B	-51.75B	46.15B
Operating Cash Flow	0.00	363.12B	316.32B	487.03B	145.23B	255.57B
Investing Cash Flow	0.00	-263.53B	-362.01B	-203.52B	-224.66B	-295.91B
Financing Cash Flow	0.00	-255.98B	-58.34B	-22.40B	90.49B	52.01B

TOKYO GAS Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6356.00
• 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:9531, the sentiment is Positive. The current price of 6356 is above the 20-day moving average (MA) of 6169.75, above the 50-day MA of 5770.64, and above the 200-day MA of 5157.55, indicating a bullish trend. The MACD of 119.88 indicates Positive momentum. The RSI at 58.80 is Neutral, neither overbought nor oversold. The STOCH value of 71.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9531.

TOKYO GAS Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9531	77 Outperform	¥2.37T	12.43	11.05%	1.48%	5.72%	148.08%
8174	76 Outperform	¥327.37B	24.63	21.07%	3.26%	4.45%	53.88%
9533	73 Outperform	¥463.97B	16.49	6.03%	1.79%	7.08%	43.50%
9543	70 Outperform	¥89.74B	9.15	8.29%	3.92%	1.08%	37.11%
9536	68 Neutral	¥71.79B	8.01	9.07%	3.65%	9.39%	77.24%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
9532	63 Neutral	¥2.14T	12.02	10.44%	1.99%	1.99%	95.71%

TOKYO GAS Co Corporate Events

Tokyo Gas Advances Share Buyback Program

Tokyo Gas Co., Ltd. has announced the progress of its share buyback program, acquiring 2,519,500 shares for approximately 15.39 billion yen between November 10 and November 30, 2025. This move is part of a larger plan to acquire up to 20 million shares by March 31, 2026, reflecting the company’s strategy to enhance shareholder value and optimize its capital structure.

Tokyo Gas Transfers U.S. Subsidiary to Optimize Asset Portfolio

Tokyo Gas Co., Ltd. announced the transfer of its membership interests in TGNR TVL LLC, a subsidiary involved in natural gas development in the U.S., to Grayrock Energy IV, LLC for USD 255 million. This move is part of Tokyo Gas’s strategy to optimize its asset portfolio and improve capital efficiency, aligning with its Compass 2030 vision to transform the LNG value chain and expand LNG trading operations.

Tokyo Gas Reports Robust Financial Growth for H1 2025

Tokyo Gas Co., Ltd. reported significant financial growth for the six months ended September 30, 2025, with a notable increase in net sales and profits compared to the previous year. The company experienced a 10.3% rise in net sales and a substantial increase in operating profit by 141.8%, ordinary profit by 215.6%, and profit attributable to owners of the parent by 708.8%. Despite the positive financial performance, comprehensive income was negative, indicating potential challenges in other financial aspects. The company also revised its dividend forecast and financial results forecast for the fiscal year ending March 31, 2026, reflecting a positive outlook on future performance.

Tokyo Gas Unveils FY2026-2028 Strategic Plan

Tokyo Gas Co., Ltd. has announced its FY2026-2028 Medium-term Management Plan, which outlines strategic initiatives for the upcoming years. This plan is expected to impact the company’s operations and market positioning, potentially influencing stakeholders by setting new directions for growth and sustainability.

Tokyo Gas Revises Shareholder Return Policy to Enhance Capital Efficiency

Tokyo Gas Co., Ltd. has revised its shareholder return policy to focus on enhancing capital efficiency and aligning dividend increases with long-term earnings growth. The new policy, effective from the interim dividend for FY2025, aims to optimally allocate surplus cash between growth investments and share buybacks, with a commitment to return over ¥200 billion to shareholders by FY2028.

Tokyo Gas Increases Interim Dividend and Revises Forecasts

Tokyo Gas Co., Ltd. has announced an increase in its interim dividend and revised its dividend forecasts for the fiscal year ending March 31, 2026. The company has raised the interim dividend per share from ¥40 to ¥50 and revised the year-end dividend forecast from ¥80 to ¥100 per share, reflecting recent profit growth and a reduction in the number of shares outstanding due to share buybacks. This move aligns with Tokyo Gas’s policy of progressively returning medium- to long-term growth results to shareholders.

Tokyo Gas Announces Treasury Share Acquisition Plan

Tokyo Gas Co., Ltd. announced a resolution by its Board of Directors to acquire up to 20 million of its own shares, representing 5.4% of its outstanding shares, with a total value cap of ¥80 billion. This move is part of the company’s capital policy aimed at enhancing capital efficiency and managing equity capital, potentially impacting shareholder value and market perception.

Tokyo Gas Completes Major Stock Repurchase

Tokyo Gas Co., Ltd. has completed a significant stock repurchase, acquiring 1,930,900 shares for over 11 billion yen, reaching the upper limit approved by its Board of Directors. This strategic move is part of a larger plan to acquire up to 35 million shares, reflecting the company’s efforts to enhance shareholder value and optimize its capital structure.