Toa Road Corporation (1882) AI Stock Analysis

Toa Road Corporation

(TSE/TYO:1882)

Select Model

Rating:69Neutral

Price Target:JPY 1,775.00▲(15.48% Upside)

Action:reiterated

Date:08/17/26

Toa Road Corporation's strong balance sheet and healthy cash flows are key strengths, providing a cushion against industry headwinds. Technical indicators point to a neutral to positive trend, while the high dividend yield adds to the stock's appeal. However, pressure on revenue and net income tempers the outlook. The overall score of 69 reflects a moderately attractive investment with a balance of stability and yield, but requires monitoring of profitability trends.

Positive Factors

Conservative Balance SheetLow leverage and a sizeable equity base provide financial resilience for a cyclical contracting business. This supports continued investment and helps the company absorb project volatility without relying heavily on additional borrowing.

Negative Factors

Range-Bound RevenueLimited top-line expansion suggests constrained market growth or project volume and reduces the operating leverage available to offset rising costs. A sustained lack of revenue growth could restrict earnings progression over the medium term.

Toa Road Corporation (1882) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 71.34B
Dividend Yield: 5.83%
Average Volume (3M): 341.25K
Price to Earnings (P/E): 20.6
Beta (1Y): 0.54
Revenue Growth: -3.89%
EPS Growth: -22.30%
Country: Japan
Employees: 1,644
Sector: Industrials
Sector Strength: 63
Industry: Engineering & Construction

Toa Road Corporation Business Overview & Revenue Model

Company Description

Established in Tokyo in 1930, Toa Road Corporation is a Japanese civil engineering firm. The company specializes in the construction and enhancement of vital infrastructure, including road networks, expressways, and national routes, alongside related...

Toa Road Corporation Financial Statement Overview

Summary

Revenue declined 4.1% in fiscal 2026, with net income down 17%, indicating profitability pressure. However, the balance sheet is strong with low debt (debt/equity 0.08x) and robust cash flow generation (OCF ¥12.2B, FCF ¥9.7B). Overall financial health is solid but tempered by weak income growth.

Income Statement

48Neutral

Balance Sheet

85Very Positive

Cash Flow

78Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	121.33B	121.33B	126.58B	118.06B	118.72B	112.12B
Gross Profit	14.53B	14.53B	13.49B	13.48B	12.34B	12.78B
EBITDA	7.23B	5.57B	8.61B	7.90B	6.98B	7.76B
Net Income	3.43B	3.43B	4.13B	3.79B	3.16B	3.71B
Balance Sheet
Total Assets	88.50B	88.50B	90.72B	92.89B	87.18B	84.69B
Cash, Cash Equivalents and Short-Term Investments	13.91B	13.91B	12.31B	14.23B	10.00B	11.65B
Total Debt	4.63B	4.63B	6.68B	2.10B	2.80B	2.13B
Total Liabilities	33.44B	33.44B	33.79B	36.82B	34.47B	34.22B
Stockholders Equity	53.64B	53.64B	55.41B	54.65B	51.34B	49.07B
Cash Flow
Free Cash Flow	0	9.68B	-4.37B	6.83B	-65.00M	2.06B
Operating Cash Flow	0	12.21B	-1.75B	10.91B	2.18B	4.58B
Investing Cash Flow	0	-2.33B	-1.22B	-4.00B	-2.97B	-2.84B
Financing Cash Flow	0	-8.27B	1.06B	-2.69B	-853.00M	-2.86B

Toa Road Corporation Technical Analysis

Technical Analysis SentimentNegative

Last Price1537.00

Price Trends

50DMA1566.12Negative

100DMA1546.03Negative

200DMA1597.66Negative

Market Momentum

MACD-1.28Positive

RSI43.20Neutral

STOCH4.17Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1882, the sentiment is Negative. The current price of 1537.00 is below the 20-day moving average (MA) of 1562.05, below the 50-day MA of 1566.12, and below the 200-day MA of 1597.66, indicating a bearish trend. The MACD of -1.28 indicates Positive momentum. The RSI at 43.20 is Neutral, neither overbought nor oversold. The STOCH value of 4.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:1882.

Toa Road Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

JP:1882 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6226	82Outperform	JPY 74.74B	17.10	―	1.82%	20.15%	38.61%
JP:1852	80Outperform	JPY 68.38B	12.32	―	5.37%	-4.26%	11.07%
JP:1870	79Outperform	JPY 89.60B	10.12	―	5.29%	2.98%	16.13%
JP:1882	69Neutral	JPY 77.30B	20.64	―	5.83%	-3.89%	-22.30%
JP:9621	68Neutral	JPY 101.73B	14.97	―	2.09%	7.70%	18.20%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
JP:1815	55Neutral	JPY 62.75B	10.32	―	8.10%	-5.15%	115.86%

* Industrials Sector Average

Performance Comparison

JP:1882 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:1882	Toa Road Corporation	1544.00	55.04	3.70%
JP:1815	Tekken Corporation	2100.00	295.09	16.35%
JP:1852	Asanuma Corporation	856.00	-0.17	-0.02%
JP:1870	Yahagi Construction Co., Ltd.	2080.00	-8.38	-0.40%
JP:6226	Moriya Transportation Engineering and Manufacturing Co.,Ltd.	2113.00	-341.83	-13.92%
JP:9621	CTI Engineering Co., Ltd.	3595.00	861.84	31.53%

Toa Road Corporation Corporate Events

Toa Road Stays in the Red but Keeps Profit and Dividend Outlook Intact

Aug 3, 2026

Toa Road Corporation reported a slight 1.3% year-on-year increase in net sales to ¥23.56 billion for the three months ended June 30, 2026, but remained in the red with an operating loss of ¥333 million and a net loss of ¥80 million. De...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 17, 2026

Toa Road Corporation AI Stock Analysis