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Toenec Corporation (1946) AI Stock Analysis

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JP:1946

Toenec Corporation

(TSE/TYO:1946)

Select Model
Rating:69Neutral
Price Target:JPY 1,966.00â–²(6.96% Upside)
Action:reiterated
Date:10/31/26

The company's robust financial performance, marked by record profitability and strong cash flows, is the most significant positive factor. An attractive valuation with a low P/E and high dividend yield further supports the score. However, these strengths are offset by a weak technical picture, with the stock in a clear downtrend and exhibiting strong bearish momentum, which presents a significant headwind.

Positive Factors
Revenue GrowthConsistent revenue expansion through 2026 indicates sustained business activity and improving demand rather than a single-period uplift. Continued top-line growth can support operating scale, provide resources for reinvestment, and strengthen earnings durability over the next several quarters.
Negative Factors
Cyclical Exposure and DebtAlthough leverage is improving, the remaining debt burden can amplify downside when demand or margins weaken. Exposure to cyclicality may make earnings and balance-sheet performance more sensitive to industry conditions, potentially limiting flexibility during a prolonged downturn.

Toenec Corporation (1946) vs. iShares MSCI Japan ETF (EWJ)

-10%0%10%20%30%40%JP:1946+4.05%EWJ+13.61%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 174.31B
Dividend Yield
4.30%
Average Volume (3M)
237.00K
Price to Earnings (P/E)
9.4
Beta (1Y)
1.21
Revenue Growth
1.56%
EPS Growth
19.82%
Country
Japan
Employees
6,487
Sector
Industrials
Sector Strength
63
Industry
Engineering & Construction

Toenec Corporation Business Overview & Revenue Model

Company Description

Toenec Corporation engages in the construction and improvement of social infrastructure in the energy, environment, and information technology fields in Japan. The company constructs electricity distribution routes; underground power distribution lin...

Toenec Corporation Financial Statement Overview

Summary

Strong financial health with record net income and free cash flow. Profitability is at multi-year highs, and the balance sheet has significantly deleveraged. The primary weakness is a recent slowdown in revenue growth.

Income Statement

78Positive

Balance Sheet

82Very Positive

Cash Flow

85Very Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue272.70B272.47B270.97B252.86B232.05B219.62B
Gross Profit50.96B48.45B40.48B37.41B32.32B34.90B
EBITDA39.48B38.32B28.82B27.40B8.28B23.38B
Net Income20.14B17.81B10.76B9.35B-5.55B8.28B
Balance Sheet
Total Assets296.70B312.05B315.28B310.57B305.22B306.59B
Cash, Cash Equivalents and Short-Term Investments44.50B47.82B43.03B39.78B31.80B30.52B
Total Debt73.47B83.76B91.17B93.02B97.06B98.98B
Total Liabilities140.45B158.88B178.60B179.43B188.03B179.99B
Stockholders Equity156.20B153.12B136.63B131.10B117.16B126.57B
Cash Flow
Free Cash Flow018.12B11.62B14.44B9.02B-455.00M
Operating Cash Flow025.19B17.77B17.75B11.40B4.52B
Investing Cash Flow0-4.57B-3.72B-2.64B-3.01B2.29B
Financing Cash Flow0-14.94B-11.79B-7.95B-6.23B-25.42B

Toenec Corporation Technical Analysis

Technical Analysis SentimentNegative
Last Price1838.00

Price Trends

50DMA2073.96Negative
100DMA2096.86Negative
200DMA2095.44Negative

Market Momentum

MACD-87.10Positive
RSI42.40Neutral
STOCH51.82Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1946, the sentiment is Negative. The current price of 1838.00 is below the 20-day moving average (MA) of 1934.20, below the 50-day MA of 2073.96, and below the 200-day MA of 2095.44, indicating a bearish trend. The MACD of -87.10 indicates Positive momentum. The RSI at 42.40 is Neutral, neither overbought nor oversold. The STOCH value of 51.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:1946.

Toenec Corporation Peers Comparison

Overall Rating

UnderperformOutperform
Sector (63)

Financial Indicators

JP:1946 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:1939JP:193981OutperformJPY 118.02B12.31―3.88%6.91%84.84%
JP:1926JP:192678OutperformJPY 152.24B17.72―6.52%7.32%33.12%
JP:1965JP:196577OutperformJPY 114.13B10.29―7.06%6.67%9.44%
JP:1941JP:194174OutperformJPY 279.39B13.818.01%2.72%8.69%-4.66%
JP:1934JP:193472OutperformJPY 172.50B13.57―3.06%-2.22%5.62%
JP:1946JP:194669NeutralJPY 178.39B9.42―4.30%1.56%19.82%
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%

* Industrials Sector Average

Performance Comparison

0%20%40%60%JP:1946JP:1941JP:1926JP:1934JP:1939JP:1965Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:1946 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:1946Toenec Corporation1838.0085.104.85%
JP:1941CHUDENKO CORPORATION5150.001024.9624.85%
JP:1926Raito Kogyo Co., Ltd.1016.00238.0730.60%
JP:1934Yurtec Corporation2545.00169.877.15%
JP:1939Yondenko Corporation2449.001066.2677.11%
JP:1965Techno Ryowa Ltd.1813.008.490.47%

Toenec Corporation Corporate Events

Toenec boosts profitability and dividend as balance sheet strengthens

Oct 29, 2026

Toenec Corporation reported consolidated net sales of ¥125.3 billion for the six months ended September 30, 2026, a modest 0.5% year-on-year increase, while operating profit jumped 18.8% to ¥10.2 billion and profit attributable to owners of parent ro...

Toenec Completes Treasury Share Disposal for Restricted Stock Compensation

Aug 21, 2026

Toenec Corporation has completed the payment procedures for the disposal of its treasury shares used as restricted stock compensation, following a resolution approved by its board of directors on July 22, 2026. The transaction involved issuing 11,280...

Toenec Confirms Reviewed Quarterly Results as Profits Surge in First Quarter

Aug 6, 2026

Toenec Corporation reported consolidated financial results for the three months ended June 30, 2026, confirming that its quarterly financial statements have completed an interim review by independent certified public accountants. The company noted th...

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: Oct 31, 2026