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Techno Ryowa Ltd.
(1965)
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Rating:83Outperform
Price Target:
¥2,710.00
▼(-59.19% Downside)
Action:Reiterated
Date:09/30/26
The score is driven primarily by strong financial performance—material margin expansion, improving profitability, and an exceptionally low-debt balance sheet—offset by the key risk of historically volatile cash flows. Technicals are supportive with price above key moving averages and positive MACD, while valuation is reasonably attractive with a ~12.3 P/E and ~2.85% dividend yield.
Positive Factors
Revenue and Margin Expansion
Revenue rose steadily through 2026, while gross margin expanded from about 15.0% in 2022 to 24.9% and net margin from 3.9% to 12.0%. This combination indicates stronger project economics and execution, giving the company a more durable earnings base over the next several quarters.
Negative Factors
Volatile Cash Generation
Although cash generation improved recently, prior negative operating and free cash flow show that earnings may not consistently translate into cash. Working-capital swings and project timing can therefore create funding pressure and make cash available for investment or distributions less predictable.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Margin Expansion
Revenue rose steadily through 2026, while gross margin expanded from about 15.0% in 2022 to 24.9% and net margin from 3.9% to 12.0%. This combination indicates stronger project economics and execution, giving the company a more durable earnings base over the next several quarters.
Read all positive factors
Techno Ryowa Ltd. (1965) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥145.54B
Dividend Yield2.96%
Average Volume (3M)188.99K
Price to Earnings (P/E)11.7
Beta (1Y)1.10
Revenue Growth13.64%
EPS Growth49.43%
CountryJP
Employees981
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)396.37
Shares Outstanding63,685,814
10 Day Avg. Volume142,710
30 Day Avg. Volume188,990
Financial Highlights & Ratios
PEG Ratio0.15
Price to Book (P/B)1.80
Price to Sales (P/S)1.21
P/FCF Ratio10.24
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 technologi...
Techno Ryowa Ltd. Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
74
Positive
| 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 | 0.00 | 11.69B | 4.45B | -1.60B | -308.00M | 659.00M |
| Operating Cash Flow | 0.00 | 12.15B | 4.65B | -1.45B | -157.00M | 904.00M |
| Investing Cash Flow | 0.00 | -940.00M | -159.00M | -340.00M | -625.00M | -130.00M |
| Financing Cash Flow | 0.00 | -4.25B | -1.79B | -1.72B | -883.00M | -565.00M |
Techno Ryowa Ltd. Technical Analysis
Positive
6640.00
Price Trends
2146.07
Positive
2073.87
Positive
2179.56
Positive
Market Momentum
59.99
Positive
56.74
Neutral
50.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1965, the sentiment is Positive. The current price of 6640 is above the 20-day moving average (MA) of 2313.48, above the 50-day MA of 2146.07, and above the 200-day MA of 2179.56, indicating a bullish trend. The MACD of 59.99 indicates Positive momentum. The RSI at 56.74 is Neutral, neither overbought nor oversold. The STOCH value of 50.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1965.
Techno Ryowa Ltd. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | ¥145.54B | 11.71 | ― | 2.96% | 13.64% | 49.43% | |
80 Outperform | ¥149.46B | 10.73 | ― | 4.13% | 11.40% | 26.49% | |
78 Outperform | ¥63.05B | 16.02 | ― | 3.43% | 28.57% | 49.22% | |
77 Outperform | ¥278.29B | 14.81 | 7.68% | 2.74% | 5.94% | -10.93% | |
65 Neutral | ¥559.54B | 13.97 | ― | 2.98% | 1.48% | 41.27% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
55 Neutral | ¥66.28B | 11.18 | ― | 7.48% | -5.15% | 115.86% |
* Industrials Sector Average
JP:1965
Techno Ryowa Ltd.
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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.