Tokyo Energy & Systems Inc. (1945) AI Stock Analysis

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Tokyo Energy & Systems Inc.

(TSE/TYO:1945)

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Rating:65Neutral

Price Target:JPY 1,829.00▼(-3.94% Downside)

Action:downgraded

Date:08/17/26

The score is driven primarily by improved financial performance (stronger revenue, margins, and earnings with moderate leverage), partially offset by historically volatile cash flow and only neutral-to-weak technical momentum. Valuation is supportive with a moderate P/E and a ~3.1% dividend yield.

Positive Factors

Revenue and Margin ExpansionThe latest period shows meaningful operating improvement, with higher revenue, gross margin, net margin, and net income. If sustained, this combination indicates stronger execution and operating leverage, supporting more durable earnings capacity over the next several quarters.

Negative Factors

Volatile Cash ConversionRepeated periods of negative operating and free cash flow show that reported profits do not always translate into cash. Working-capital swings can weaken funding visibility, increase reliance on balance-sheet resources, and make sustainable cash generation less dependable across project cycles.

Tokyo Energy & Systems Inc. (1945) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 62.76B
Dividend Yield: 3.83%
Average Volume (3M): 175.42K
Price to Earnings (P/E): 13.5
Beta (1Y): 1.19
Revenue Growth: 25.55%
EPS Growth: 25.72%
Country: Japan
Employees: 1,687
Sector: Industrials
Sector Strength: 63
Industry: Engineering & Construction

Tokyo Energy & Systems Inc. Business Overview & Revenue Model

Company Description

Tokyo Energy & Systems Inc., a company founded in Tokyo, Japan, in 1947, specializes in a broad range of services for electrical and mechanical infrastructure within Japan. Its core business spans the entire project lifecycle, from initial planning a...

Tokyo Energy & Systems Inc. Financial Statement Overview

Summary

Fundamentals show a solid rebound but with uneven quality. Income statement strength (78) reflects strong YoY revenue growth and margin expansion with higher net income. Balance sheet (72) is generally sound with manageable leverage, though debt has trended higher versus earlier years. Cash flow (61) improved materially in the latest year, but historical volatility (including prior negative years) reduces confidence in consistency.

Income Statement

78Positive

Balance Sheet

72Positive

Cash Flow

61Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	88.03B	83.08B	67.72B	88.47B	79.06B	72.58B
Gross Profit	13.35B	12.70B	9.01B	10.60B	9.30B	8.58B
EBITDA	9.11B	9.49B	7.13B	7.69B	5.31B	3.06B
Net Income	4.39B	4.29B	2.90B	2.96B	2.12B	1.23B
Balance Sheet
Total Assets	110.08B	119.33B	108.08B	107.47B	108.51B	102.98B
Cash, Cash Equivalents and Short-Term Investments	9.00B	9.82B	7.77B	12.30B	13.26B	10.09B
Total Debt	17.13B	18.13B	19.62B	6.95B	9.19B	8.65B
Total Liabilities	38.16B	46.87B	39.65B	38.93B	42.58B	38.51B
Stockholders Equity	71.91B	72.45B	68.43B	68.55B	66.26B	64.63B
Cash Flow
Free Cash Flow	0	3.82B	-15.99B	7.57B	4.19B	-12.02B
Operating Cash Flow	0	4.71B	-15.23B	8.50B	8.14B	-5.73B
Investing Cash Flow	0	931.00M	-90.00M	-5.13B	-3.12B	-385.00M
Financing Cash Flow	0	-3.67B	10.65B	-4.45B	-656.00M	5.78B

Tokyo Energy & Systems Inc. Technical Analysis

Technical Analysis SentimentNeutral

Last Price1904.00

Price Trends

50DMA2026.38Negative

100DMA2034.87Negative

200DMA1980.26Negative

Market Momentum

MACD-52.47Positive

RSI45.78Neutral

STOCH62.92Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1945, the sentiment is Neutral. The current price of 1904.00 is below the 20-day moving average (MA) of 1932.20, below the 50-day MA of 2026.38, and below the 200-day MA of 1980.26, indicating a bearish trend. The MACD of -52.47 indicates Positive momentum. The RSI at 45.78 is Neutral, neither overbought nor oversold. The STOCH value of 62.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1945.

Tokyo Energy & Systems Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

JP:1945 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:1939	81Outperform	JPY 118.02B	12.31	―	3.88%	6.91%	84.84%
JP:1942	75Outperform	JPY 923.26B	13.99	16.79%	3.13%	3.74%	30.42%
JP:1941	74Outperform	JPY 279.39B	13.81	8.01%	2.72%	8.69%	-4.66%
JP:1959	71Outperform	JPY 540.70B	11.73	―	3.25%	5.31%	51.56%
JP:1930	68Neutral	JPY 41.32B	7.78	11.31%	3.39%	20.84%	68.55%
JP:1945	65Neutral	JPY 57.37B	13.46	―	3.83%	25.55%	25.72%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

* Industrials Sector Average

Performance Comparison

JP:1945 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:1945	Tokyo Energy & Systems Inc.	1904.00	152.78	8.72%
JP:1941	CHUDENKO CORPORATION	5150.00	981.23	23.54%
JP:1930	Hokuriku Electrical Construction Co	1475.00	158.36	12.03%
JP:1942	Kandenko Co., Ltd.	4599.00	-191.95	-4.01%
JP:1939	Yondenko Corporation	2449.00	1051.86	75.29%
JP:1959	Kraftia Corporation	7703.00	239.04	3.20%

Tokyo Energy & Systems Inc. Corporate Events

Tokyo Energy & Systems Reports Higher First-Half Revenue and Profit

Nov 5, 2026

Tokyo Energy & Systems Inc. is listed on the Tokyo Stock Exchange under securities code 1945. The release reports the company’s consolidated results for the six months ended September 30, 2026.Net sales increased 19.4% year over year to ¥40.924 billi...

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

Tokyo Energy & Systems Inc. AI Stock Analysis