Tokyu Construction Co., Ltd. (1720) AI Stock Analysis

• Market Cap: ¥112.54B
• Dividend Yield: 3.5%
• Average Volume (3M): 240.02K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 0.55
• Revenue Growth: 11.42%
• EPS Growth: 26.72%
• Country: JP
• Employees: 2,877
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 13.47
• Shares Outstanding: 106,761,210
• 10 Day Avg. Volume: 210,860
• 30 Day Avg. Volume: 240,016
• PEG Ratio: -1.40
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.29
• P/FCF Ratio: 2.19
• 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

• Rating: 64 Neutral
• Price Target: ¥1,147.00 ▲(5.71% Upside)

Tokyu Construction Co., Ltd. demonstrates a solid financial performance with strong cash flow management and a stable balance sheet. The valuation is reasonable with an attractive dividend yield. However, technical analysis indicates short-term bearish momentum, which slightly offsets the positive financial and valuation aspects. Maintaining financial improvements will be crucial for long-term success.

Tokyu Construction Co., Ltd. Business Overview & Revenue Model

Company Description

Tokyu Construction Co., Ltd. engages in the civil engineering and building construction businesses in Japan. It constructs railways, roads, tunnels, bridges, and other construction, reconstruction work after earthquakes, etc.; and commercial facilities, hotels, offices, housing, factories, hospitals, and distribution centers, and wooden building, as well as offers renovation services. The company also engages in the acquisition of properties; and rental business, as well as PPP/concession and the paprika business. The company was founded in 1946 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Tokyu Construction generates revenue through several key streams, primarily from its construction projects in civil engineering and building construction. The company undertakes contracts for public and private sector projects, which include infrastructure development such as roads, bridges, and urban facilities. Additionally, Tokyu Construction earns income by providing specialized services such as project management, design, and consultation. Significant partnerships with government agencies, real estate developers, and other construction firms also contribute to its revenue, allowing the company to secure large-scale contracts and diversify its project portfolio. Moreover, the firm benefits from the increasing demand for infrastructure development in Japan, driven by urbanization and government investment in public works.

Tokyu Construction Co., Ltd. Financial Statement Overview

Summary

Tokyu Construction Co., Ltd. has shown a solid financial performance with improved profitability metrics, strong cash flow generation, and a stable balance sheet. The company has effectively managed costs, resulting in positive EBIT margins and robust free cash flow.

Income Statement

Tokyu Construction Co., Ltd. shows a positive trajectory in profitability with an improving gross profit margin and net profit margin over the past few years. The company achieved a gross profit margin of 9.80% and a net profit margin of 2.26% in the latest period. Despite a modest revenue growth, the stability in EBIT and EBITDA margins indicates efficient cost management. The company has recovered from a negative EBIT margin in 2022 to a positive one in 2025.

Balance Sheet

The balance sheet reflects a strong equity position with a favorable equity ratio of 37.06%. The debt-to-equity ratio is 0.27, indicating prudent leverage management. Return on equity stands at 6.52%, showing moderate profitability relative to shareholder equity. Overall, the balance sheet portrays a stable financial position with manageable debt levels.

Cash Flow

Tokyu Construction Co., Ltd. demonstrates robust cash flow management, with a significant improvement in free cash flow, which increased substantially from previous negative levels. The operating cash flow to net income ratio is 6.14, indicating strong cash generation relative to net income. The improvement in free cash flow and operating cash flow highlights effective operational efficiency and financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	309.84B	293.14B	285.68B	288.87B	258.08B	231.48B
Gross Profit	32.03B	28.72B	26.08B	21.88B	9.72B	18.17B
EBITDA	15.26B	11.49B	11.42B	9.10B	-3.32B	6.17B
Net Income	8.15B	6.63B	7.27B	5.25B	-7.46B	2.65B
Balance Sheet
Total Assets	249.80B	274.31B	264.52B	249.16B	237.81B	226.57B
Cash, Cash Equivalents and Short-Term Investments	37.49B	39.67B	32.12B	58.72B	38.65B	34.17B
Total Debt	22.67B	27.20B	55.02B	22.21B	22.66B	26.92B
Total Liabilities	148.27B	171.64B	163.74B	153.15B	144.75B	123.06B
Stockholders Equity	100.49B	101.64B	99.97B	95.25B	92.49B	102.96B
Cash Flow
Free Cash Flow	0.00	38.53B	-55.69B	19.73B	10.24B	8.28B
Operating Cash Flow	0.00	41.20B	-54.02B	20.39B	12.20B	11.63B
Investing Cash Flow	0.00	-1.59B	-1.40B	2.40B	-476.00M	-3.75B
Financing Cash Flow	0.00	-31.88B	28.52B	-2.76B	-7.53B	-3.31B

Tokyu Construction Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1085.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1720, the sentiment is Positive. The current price of 1085 is above the 20-day moving average (MA) of 1083.11, below the 50-day MA of 1104.76, and above the 200-day MA of 908.38, indicating a neutral trend. The MACD of -7.96 indicates Negative momentum. The RSI at 49.27 is Neutral, neither overbought nor oversold. The STOCH value of 76.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1720.

Tokyu Construction Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1890	75 Outperform	¥163.62B	18.35	―	5.05%	0.57%	26.93%
1860	73 Outperform	¥321.27B	12.71	―	3.26%	16.62%	42.69%
1835	71 Outperform	¥146.82B	12.38	―	3.54%	13.51%	28.97%
1820	70 Outperform	¥204.66B	12.82	―	4.12%	-8.97%	9.14%
1879	67 Neutral	¥107.10B	7.56	―	3.00%	1.10%	17.54%
1720	64 Neutral	¥112.54B	13.97	―	3.50%	11.42%	26.72%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Tokyu Construction Co., Ltd. Corporate Events

Tokyu Construction Reports Strong Q1 Financial Performance

Tokyu Construction Co., Ltd. reported a significant increase in net sales and profits for the three months ended June 30, 2025, compared to the same period in the previous year. The company’s improved financial performance is marked by a 30.2% increase in net sales and a return to profitability, indicating a positive impact on its operations and potential benefits for stakeholders.

Tokyu Construction Completes Treasury Share Disposal for Remuneration

Tokyu Construction Co., Ltd. has completed the payment process for the disposal of 30,180 treasury shares as restricted share remuneration, a decision made by the Board of Directors on June 25, 2025. This move is part of the company’s strategy to align the interests of its directors with shareholders, potentially enhancing corporate governance and operational efficiency.