Techno Ryowa Ltd. (1965) AI Stock Analysis

0 Followers

Techno Ryowa Ltd.

(TSE/TYO:1965)

Select Model

Rating:78Outperform

Price Target:JPY 2,003.00▲(9.81% Upside)

Action:reiterated

Date:10/09/26

The score is driven primarily by strong financial performance (margin expansion, conservative balance sheet, and improved ROE) and supportive valuation (low P/E and solid dividend yield). Offsetting these positives, technical indicators suggest weaker short-term momentum and the financial profile still carries some cash-flow volatility risk typical of project timing.

Positive Factors

Revenue and margin expansionAccelerating revenue and materially wider gross and net margins indicate stronger project execution, operating leverage, or a better project mix. If maintained, this combination can support higher earnings capacity and improve the company’s ability to reinvest in its engineering and facilities businesses.

Negative Factors

Cash-flow volatilityPast periods of negative operating and free cash flow show that reported profits may not consistently convert into cash when working-capital movements and project timing are unfavorable. This can create uneven funding needs and make financial performance less predictable between reporting periods.

Techno Ryowa Ltd. (1965) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 112.38B
Dividend Yield: 7.02%
Average Volume (3M): 309.52K
Price to Earnings (P/E): 10.4
Beta (1Y): 1.37
Revenue Growth: 6.67%
EPS Growth: 9.44%
Country: Japan
Employees: 981
Sector: Industrials
Sector Strength: 63
Industry: Engineering & Construction

Techno Ryowa Ltd. Business Overview & Revenue Model

Company Description

Techno Ryowa Ltd. is a specialist in environmental control systems, offering services from initial design and construction through to ongoing maintenance, primarily within Japan. Its comprehensive industrial portfolio features cleanroom technologies,...

Techno Ryowa Ltd. Financial Statement Overview

Summary

Strong fundamentals overall: accelerating revenue growth in 2026 and meaningful margin expansion (gross and net), paired with an exceptionally low-debt balance sheet and improving ROE. The main constraint on the score is historical cash-flow volatility (negative OCF/FCF in 2023–2024), which is a key risk in project-based businesses despite the strong rebound in 2025–2026.

Income Statement

86Very Positive

Balance Sheet

92Very Positive

Cash Flow

74Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	88.48B	98.68B	84.19B	73.69B	61.03B	56.91B
Gross Profit	19.41B	24.62B	17.14B	12.44B	9.31B	8.84B
EBITDA	11.71B	16.35B	10.04B	6.16B	3.52B	3.38B
Net Income	8.34B	11.80B	7.26B	4.51B	2.34B	2.24B
Balance Sheet
Total Assets	78.42B	100.87B	80.16B	76.23B	63.46B	63.70B
Cash, Cash Equivalents and Short-Term Investments	18.01B	19.82B	12.77B	10.02B	13.26B	14.87B
Total Debt	810.00M	105.00M	65.00M	125.00M	65.00M	165.00M
Total Liabilities	24.89B	34.51B	27.21B	27.04B	20.08B	21.23B
Stockholders Equity	53.53B	66.31B	52.95B	49.19B	43.38B	42.46B
Cash Flow
Free Cash Flow	0	11.69B	4.45B	-1.60B	-308.00M	659.00M
Operating Cash Flow	0	12.15B	4.65B	-1.45B	-157.00M	904.00M
Investing Cash Flow	0	-940.00M	-159.00M	-340.00M	-625.00M	-130.00M
Financing Cash Flow	0	-4.25B	-1.79B	-1.72B	-883.00M	-565.00M

Techno Ryowa Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price1824.00

Price Trends

50DMA2175.56Negative

100DMA2082.26Negative

200DMA2170.02Negative

Market Momentum

MACD-130.95Positive

RSI41.09Neutral

STOCH26.84Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1965, the sentiment is Negative. The current price of 1824.00 is below the 20-day moving average (MA) of 1978.60, below the 50-day MA of 2175.56, and below the 200-day MA of 2170.02, indicating a bearish trend. The MACD of -130.95 indicates Positive momentum. The RSI at 41.09 is Neutral, neither overbought nor oversold. The STOCH value of 26.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:1965.

Techno Ryowa Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

JP:1965 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:1965	78Outperform	JPY 109.93B	10.42	―	7.02%	6.67%	9.44%
JP:1952	75Outperform	JPY 135.09B	10.10	―	4.44%	11.40%	26.49%
JP:1941	74Outperform	JPY 279.39B	13.73	8.01%	2.76%	8.69%	-4.66%
JP:1959	71Outperform	JPY 527.38B	11.62	―	3.28%	5.31%	51.56%
JP:1945	65Neutral	JPY 56.62B	13.67	―	3.84%	25.55%	25.72%
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:1965 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:1965	Techno Ryowa Ltd.	1824.00	19.49	1.08%
JP:1941	CHUDENKO CORPORATION	5080.00	954.96	23.15%
JP:1815	Tekken Corporation	2198.00	284.65	14.88%
JP:1945	Tokyo Energy & Systems Inc.	1900.00	214.28	12.71%
JP:1952	Shin Nippon Air Technologies Co., Ltd.	2925.00	44.76	1.55%
JP:1959	Kraftia Corporation	7632.00	323.76	4.43%

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 09, 2026

Techno Ryowa Ltd. AI Stock Analysis