TOKYO GAS Co (9531) AI Stock Analysis

• Market Cap: $2.11T
• Dividend Yield: 1.4%
• Average Volume (3M): 1.23M
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.55
• Revenue Growth: 3.67%
• EPS Growth: 53.88%
• Country: JP
• Employees: 15,504
• Sector: Utilities
• Sector Strength: 76
• Industry: Regulated Gas
• EPS (TTM): 282.35
• Shares Outstanding: 371,090,850
• 10 Day Avg. Volume: 1,179,210
• 30 Day Avg. Volume: 1,231,480
• 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: 1.37
• Enterprise Value/Revenue: 1.11
• Enterprise Value/Gross Profit: 7.18
• Enterprise Value/Ebitda: 9.06
• 1Y Price Target: $5,439.53
• Price Target Upside: -3.14% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: ¥5,317.00 ▼(-5.32% Downside)

TOKYO GAS Co's stock score is primarily influenced by its mixed financial performance, which highlights the need for improved profitability and debt management. The positive technical indicators support a favorable short-term outlook, while valuation concerns suggest potential overpricing. The absence of earnings call and corporate event data limits additional insights.

TOKYO GAS Co Business Overview & Revenue Model

Company Description

Tokyo Gas Co., Ltd. engages in the production, supply, and sale of city and liquid gas, and LNG in Japan. The company operates through five segments: Gas, Electric Power, Overseas, Energy Related, and Real Estate. It offers engineering solutions; gas installation work and construction; and gas pipelines services, as well as engages in gas appliances business. The company is also involved in overseas resource development and investment, and energy supply activities. In addition, it engages in the real estate development business; and leasing and management of land and buildings. The company was incorporated in 1885 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Tokyo Gas Co. makes money through multiple revenue streams, with its core business centered around the supply and sale of natural gas. This involves the procurement, transportation, and distribution of natural gas to a wide customer base in the Kanto region of Japan. The company generates significant revenue from residential customers who use gas for heating, cooking, and hot water, as well as from commercial and industrial clients who require large volumes of gas for their operations. Additionally, Tokyo Gas has expanded into the electricity market, offering electricity supply services to complement its gas offerings. The company also invests in LNG (liquefied natural gas) projects and infrastructure, both domestically and internationally, to secure stable gas supplies and capitalize on global energy demand. Furthermore, Tokyo Gas engages in renewable energy projects, consulting services, and energy-saving solutions, contributing to its diversified income. Strategic partnerships and joint ventures, such as those in the LNG sector, enhance its capacity to innovate and grow its market presence.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.64T	2.66T	3.29T	2.15T	1.77T
Gross Profit	406.24B	475.26B	693.17B	598.61B	552.52B
EBITDA	405.65B	484.24B	632.59B	352.64B	259.49B
Net Income	74.19B	169.94B	280.92B	95.70B	49.51B
Balance Sheet
Total Assets	3.86T	3.89T	3.58T	3.22T	2.74T
Cash, Cash Equivalents and Short-Term Investments	244.49B	363.94B	453.51B	179.78B	159.09B
Total Debt	1.31T	1.34T	1.24T	1.12T	939.59B
Total Liabilities	2.05T	2.16T	1.99T	1.96T	1.56T
Stockholders Equity	1.73T	1.70T	1.56T	1.23T	1.15T
Cash Flow
Free Cash Flow	177.20B	117.07B	302.09B	-51.75B	46.15B
Operating Cash Flow	363.12B	331.21B	487.03B	145.23B	255.57B
Investing Cash Flow	-246.31B	-362.01B	-203.52B	-224.66B	-295.91B
Financing Cash Flow	-273.20B	-73.21B	-22.40B	90.49B	52.01B

TOKYO GAS Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5616.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 5616 is above the 20-day moving average (MA) of 5301.85, above the 50-day MA of 4993.48, and above the 200-day MA of 4566.35, indicating a bullish trend. The MACD of 215.19 indicates Negative momentum. The RSI at 70.46 is Negative, neither overbought nor oversold. The STOCH value of 79.79 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	70 Outperform	$2.11T	13.31	9.66%	1.40%	3.67%	53.88%
Sector *	67 Neutral	$17.63B	18.14	8.12%	3.57%	7.33%	12.21%
NG0	―	€1.84B	23.24	20.08%	―	―	―
OSGSF	―	$11.56B	9.02	9.47%	2.82%	―	―
THOGF	―	$3.07B	15.97	6.41%	1.92%	―	―
XSG	―	€424.43M	8.46	8.21%	―	―	―
1KS	―	€507.60M	11.80	6.08%	―	―	―

TOKYO GAS Co Corporate Events

Tokyo Gas Advances Treasury Stock Buyback Program

Tokyo Gas Co., Ltd. announced the progress of its treasury stock buyback program, acquiring 4,949,000 shares worth approximately 24.19 billion yen between July 1 and July 31, 2025. This buyback is part of a larger plan approved by the Board of Directors to acquire up to 35 million shares, reflecting the company’s strategic move to optimize its capital structure and potentially enhance shareholder value.

Tokyo Gas Announces Treasury Shares Disposal for Employee Incentive Plan

Tokyo Gas Co., Ltd. has announced a plan to dispose of treasury shares as part of a Restricted Stock Incentive Plan aimed at its employee shareholding association. This initiative is designed to enhance employee benefits and align their interests with corporate goals by allowing them to acquire company stock, thereby promoting shared value and participation in management. The disposal involves 30,090 shares and is expected to have a minimal impact on the market due to its small scale.

Tokyo Gas Reports Strong Q1 2025 Financial Results

Tokyo Gas Co., Ltd. reported a significant increase in its financial performance for the three months ended June 30, 2025, with net sales rising by 10.3% and profit attributable to owners of the parent surging by 438.7% year-on-year. The company also announced a stable dividend forecast for the fiscal year ending March 31, 2026, maintaining its position in the energy market despite changes in its scope of consolidation.

Tokyo Gas Advances Share Buyback Program

Tokyo Gas Co., Ltd. announced the progress of its share buyback program, acquiring 3,694,300 shares worth approximately 17.6 billion yen between June 1 and June 30, 2025. This move is part of a broader strategy approved by the Board of Directors to acquire up to 35 million shares, aiming to enhance shareholder value and optimize capital structure, with potential implications for market positioning and investor relations.

Tokyo Gas Revises Financial Forecasts with Increased Profit Outlook

Tokyo Gas Co., Ltd. announced corrections to its financial results forecasts for the fiscal year ending March 2026. The revisions indicate an increase in profit attributable to owners of the parent company, with no changes to net sales, operating profit, or ordinary profit. This adjustment reflects a 36.6% increase in profit, highlighting a positive outlook for the company’s financial performance.

Tokyo Gas Revises Financial Forecasts Following Subsidiary Liquidation

Tokyo Gas Co., Ltd. has revised its financial forecast for the fiscal year ending March 2026, following the liquidation of its subsidiary, Tokyo Gas Australia Pty Ltd. This decision will result in a substantial gain from reversing the foreign currency translation adjustment, leading to an increase in the profit attributable to owners of the parent by 36.6% compared to previous forecasts.

Tokyo Gas Advances in Treasury Stock Buyback Program

Tokyo Gas Co., Ltd. announced the progress of its treasury stock buyback program, acquiring 4,645,900 shares for approximately 21.99 billion yen between May 1 and May 31, 2025. This move is part of a broader strategy approved by the Board of Directors to acquire up to 35 million shares, representing 9% of the total issued shares, by September 2025, indicating a significant investment in consolidating ownership and potentially enhancing shareholder value.

Tokyo Gas Co. to Wind Up Australian Subsidiary, Plans New Energy Ventures

Tokyo Gas Co., Ltd. has announced the voluntary winding up of its wholly-owned subsidiary, Tokyo Gas Australia Pty Ltd, following the transfer of its Australian project holdings to MidOcean Energy Holdings Pty Ltd. This move will result in an extraordinary income of approximately 65 billion yen due to foreign currency translation adjustments. The company plans to establish a new subsidiary, Tokyo Gas Energy Australia Pty Ltd, to explore energy-related businesses beyond its existing operations, contributing to a sustainable society in Japan and Australia.