Tomoe Corporation (1921) AI Stock Analysis

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Tomoe Corporation

(TSE/TYO:1921)

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Rating:84Outperform

Price Target:JPY 2,384.00▲(18.25% Upside)

Action:upgraded

Date:08/17/26

The overall score is driven primarily by solid financial strength and improving core profitability, underpinned by a conservative balance sheet and better, more cash‑backed earnings in recent years. Supportive, low‑volatility technicals and an undemanding valuation enhance the attractiveness of the stock. However, the non‑recurring nature of the 2025 profit spike and the historically lumpy free cash flow, combined with only moderate dividend income, keep the score below the very top of the range.

Positive Factors

Conservative LeverageLow and declining leverage provides Tomoe with a stronger equity cushion and greater financial flexibility. This can help the company withstand operating fluctuations, support investment in engineering and industrial activities, and reduce the balance-sheet burden on future cash generation.

Negative Factors

Earnings VolatilityThe sharp margin spike followed by normalization makes recent earnings less predictable and reduces confidence that the highest reported profitability level is sustainable. Greater earnings variability can complicate planning, weaken forecasting reliability, and produce uneven returns across future reporting periods.

Tomoe Corporation (1921) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 67.40B
Dividend Yield: 1.80%
Average Volume (3M): 14.17K
Price to Earnings (P/E): 11.1
Beta (1Y): 0.42
Revenue Growth: 3.35%
EPS Growth: -49.91%
Country: Japan
Employees: 518
Sector: Industrials
Sector Strength: 63
Industry: Engineering & Construction

Tomoe Corporation Business Overview & Revenue Model

Company Description

Based in Tokyo, Japan, and established in 1917, Tomoe Corporation engages in diverse activities within the Japanese market. Its primary operations span general construction, specialized steel structure fabrication and erection, and comprehensive real...

Tomoe Corporation Financial Statement Overview

Summary

Financial performance is strong overall: revenue and core profitability have improved steadily, margins are healthy, and the balance sheet is conservatively financed with growing equity and modest leverage. Cash generation has turned robust in recent years, though the history of volatile free cash flow and the one‑off 2025 profit spike introduce some risk and argue for a slightly tempered score rather than the very top of the range.

Income Statement

82Very Positive

Balance Sheet

88Very Positive

Cash Flow

74Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	35.00B	34.95B	34.67B	33.34B	35.98B	25.30B
Gross Profit	7.76B	7.53B	6.64B	5.56B	5.89B	5.45B
EBITDA	6.66B	6.39B	5.21B	3.98B	4.46B	4.23B
Net Income	6.60B	6.23B	14.85B	2.78B	3.18B	2.76B
Balance Sheet
Total Assets	124.55B	121.16B	116.49B	76.31B	56.57B	51.64B
Cash, Cash Equivalents and Short-Term Investments	11.42B	9.47B	11.13B	9.80B	3.64B	4.46B
Total Debt	18.00B	15.87B	18.16B	11.28B	2.62B	1.94B
Total Liabilities	47.40B	46.98B	43.53B	24.91B	14.64B	13.98B
Stockholders Equity	75.47B	72.51B	62.37B	51.40B	41.92B	37.66B
Cash Flow
Free Cash Flow	0	9.00B	2.58B	-341.96M	-795.47M	-419.83M
Operating Cash Flow	0	9.69B	4.98B	2.04B	436.88M	636.01M
Investing Cash Flow	0	2.78B	-4.50B	-3.95B	-1.43B	-4.67B
Financing Cash Flow	0	-14.13B	853.96M	8.07B	178.97M	-1.01B

Tomoe Corporation Technical Analysis

Technical Analysis SentimentPositive

Last Price2016.00

Price Trends

50DMA1932.94Positive

100DMA1857.67Positive

200DMA1918.81Positive

Market Momentum

MACD17.37Negative

RSI57.71Neutral

STOCH49.56Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1921, the sentiment is Positive. The current price of 2016.00 is above the 20-day moving average (MA) of 1913.05, above the 50-day MA of 1932.94, and above the 200-day MA of 1918.81, indicating a bullish trend. The MACD of 17.37 indicates Negative momentum. The RSI at 57.71 is Neutral, neither overbought nor oversold. The STOCH value of 49.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1921.

Tomoe Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

JP:1921 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:1921	84Outperform	JPY 67.26B	11.10	―	1.80%	3.35%	-49.91%
JP:1939	81Outperform	JPY 116.28B	12.32	―	3.88%	6.91%	84.84%
JP:9621	73Outperform	JPY 101.73B	15.05	―	2.09%	7.70%	18.20%
JP:1976	69Neutral	JPY 79.34B	14.26	―	4.20%	-4.58%	-23.98%
JP:1799	68Neutral	JPY 66.32B	11.03	―	4.93%	14.66%	-4.83%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
JP:1815	46Neutral	JPY 64.49B	10.87	―	7.73%	-5.15%	115.86%

* Industrials Sector Average

Performance Comparison

JP:1921 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:1921	Tomoe Corporation	2016.00	42.84	2.17%
JP:1799	Daiichi Kensetsu Corporation	3245.00	-380.32	-10.49%
JP:1815	Tekken Corporation	2198.00	289.46	15.17%
JP:1939	Yondenko Corporation	2447.00	1074.81	78.33%
JP:1976	Meisei Industrial Co., Ltd.	1665.00	119.16	7.71%
JP:9621	CTI Engineering Co., Ltd.	3580.00	757.14	26.82%

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

Tomoe Corporation AI Stock Analysis