Toa Road Corporation (1882) AI Stock Analysis

• Market Cap: ¥79.20B
• Dividend Yield: 8.53%
• Average Volume (3M): 417.02K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.51
• Revenue Growth: 6.09%
• EPS Growth: 21.09%
• Country: JP
• Employees: 1,655
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -2.38
• Shares Outstanding: 50,394,730
• 10 Day Avg. Volume: 328,020
• 30 Day Avg. Volume: 417,023
• PEG Ratio: 1.38
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 0.52
• P/FCF Ratio: -15.18
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: ¥1,670.00 ▲(5.56% Upside)

Toa Road Corporation's strong valuation and financial performance are offset by weak technical indicators. The high dividend yield and reasonable P/E ratio are significant positives, but negative cash flows and bearish market momentum present risks.

Toa Road Corporation Business Overview & Revenue Model

Company Description

Toa Road Corporation, established in 1882, is a prominent player in the infrastructure and construction sector, specializing in road construction, civil engineering, and related services. The company operates across various sectors, including transportation, urban development, and environmental engineering, providing comprehensive solutions that encompass project planning, design, construction, and maintenance. Toa Road Corporation is known for its commitment to quality and safety, leveraging advanced technology to deliver infrastructure projects that enhance connectivity and support economic growth.

How the Company Makes Money

Toa Road Corporation generates revenue primarily through contracts for construction projects, which include roadworks, bridges, tunnels, and other civil engineering tasks. The company bids for public and private sector projects, securing contracts that provide a steady stream of income. Key revenue streams include project management fees, construction service fees, and maintenance contracts. The company also benefits from strategic partnerships with government agencies and private developers, which facilitate access to large-scale projects and funding opportunities. Additionally, Toa Road Corporation may derive income from consulting services related to urban planning and environmental assessments, further diversifying its revenue portfolio.

Toa Road Corporation Financial Statement Overview

Summary

Toa Road Corporation shows strong revenue growth and a solid balance sheet with low leverage. However, negative operating and free cash flows are concerning and could hinder future growth.

Income Statement

Toa Road Corporation has demonstrated consistent revenue growth, with a 7.2% increase from 2024 to 2025. The gross profit margin is stable, reflecting efficient cost management. However, the net profit margin slightly declined due to increased operating expenses, which also impacted the EBIT and EBITDA margins.

Balance Sheet

The company maintains a strong equity position with a debt-to-equity ratio of 0.11, indicating low leverage. The return on equity is healthy at 7.4%, showcasing effective use of equity capital. The equity ratio of 61.1% suggests a stable financial structure, minimizing financial risk.

Cash Flow

The cash flow analysis highlights a significant decline in operating cash flow, turning negative in 2025. This is concerning despite the company's strong liquidity position. The free cash flow also turned negative, indicating potential challenges in cash generation from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	126.54B	126.58B	118.06B	118.72B	112.12B	111.80B
Gross Profit	14.09B	13.49B	13.48B	12.34B	12.78B	14.52B
EBITDA	7.95B	8.61B	7.91B	6.96B	7.74B	9.39B
Net Income	4.46B	4.13B	3.79B	3.16B	3.71B	4.70B
Balance Sheet
Total Assets	76.03B	90.72B	92.89B	87.18B	84.69B	87.85B
Cash, Cash Equivalents and Short-Term Investments	10.55B	12.31B	14.23B	10.00B	11.65B	12.76B
Total Debt	787.00M	5.90B	1.50B	2.19B	1.91B	3.35B
Total Liabilities	23.99B	33.79B	36.82B	34.48B	34.23B	39.82B
Stockholders Equity	50.55B	55.41B	54.65B	51.34B	49.07B	46.74B
Cash Flow
Free Cash Flow	0.00	-4.37B	6.83B	-65.00M	2.06B	4.80B
Operating Cash Flow	0.00	-1.75B	10.91B	2.18B	4.58B	6.69B
Investing Cash Flow	0.00	-1.22B	-4.00B	-2.97B	-2.84B	-2.09B
Financing Cash Flow	0.00	1.06B	-2.69B	-853.00M	-2.86B	-3.89B

Toa Road Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1582.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1882, the sentiment is Positive. The current price of 1582 is above the 20-day moving average (MA) of 1523.00, above the 50-day MA of 1566.74, and above the 200-day MA of 1440.81, indicating a bullish trend. The MACD of -0.51 indicates Negative momentum. The RSI at 62.03 is Neutral, neither overbought nor oversold. The STOCH value of 97.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1882.

Toa Road Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1884	―	―	―	―	―	4.84%	62.58%
1871	―	¥83.69B	10.37	―	4.91%	3.55%	36.89%
1870	―	¥93.35B	12.24	―	3.55%	27.51%	11.09%
1882	―	¥79.20B	16.43	―	8.53%	6.09%	21.09%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1822	―	¥71.55B	20.38	―	3.63%	-10.85%	―
1888	―	¥66.18B	17.53	―	2.43%	1.00%	-6.09%

Toa Road Corporation Corporate Events

Toa Road Corporation Reports Q1 Financial Results with Modest Sales Decline

Toa Road Corporation reported its consolidated financial results for the three months ended June 30, 2025, showing a slight decline in net sales by 0.1% compared to the previous year. Despite a decrease in losses, the company still faced a negative operating profit and ordinary profit, indicating ongoing financial challenges. The company forecasts a modest increase in net sales and a significant improvement in operating and ordinary profit for the fiscal year ending March 31, 2026, suggesting a potential recovery in its financial performance.

TOA ROAD CORPORATION Completes Treasury Share Disposal for Stock Compensation

TOA ROAD CORPORATION has completed the payment procedure for the disposal of 57,742 treasury shares as restricted stock compensation, following a resolution by the Board of Directors. This move involves allocating shares to directors and executive officers, potentially impacting the company’s governance and aligning management interests with shareholder value.