Tokyo Energy & Systems, Inc. (1945) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Nittoc Construction Co., Ltd.

Wakachiku Construction Co., Ltd.

TANSEISHA Co., Ltd.

P.S. Mitsubishi Construction Co., Ltd.

Yondenko Corp.

Fuji Furukawa Engineering & Construction Co. Ltd.

Fukuda Corp.

Tokyo Energy & Systems, Inc.

Hibiya Engineering, Ltd.

Kawada Technologies, Inc.

Oriental Shiraishi Corp.

Why is Tokyo Energy & Systems, Inc. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 35.26

Poor long term growth as Operating profit has grown by an annual rate -7.41% of over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

INTEREST(9M) At JPY 181 MM has Grown at 29.29%
NET SALES(9M) At JPY 52,826 MM has Grown at -14.82%
CASH AND EQV(HY) Lowest at JPY 16,195 MM

With ROE of 4.45%, it has a very attractive valuation with a 0.60 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 77.21%, its profits have risen by 2.1% ; the PEG ratio of the company is 6.5
At the current price, the company has a high dividend yield of 0

Market Beating Performance

The stock has generated a return of 77.21% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Tokyo Energy & Systems, Inc. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Tokyo Energy & Systems, Inc. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Tokyo Energy & Systems, Inc.

77.21%

0.89

33.30%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.36%

EBIT Growth (5y)

-7.41%

EBIT to Interest (avg)

35.26

Debt to EBITDA (avg)

0.51

Net Debt to Equity (avg)

0.17

Sales to Capital Employed (avg)

0.99

Tax Ratio

40.70%

Dividend Payout Ratio

60.02%

Pledged Shares

Institutional Holding

ROCE (avg)

5.92%

ROE (avg)

4.00%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.60

EV to EBIT

19.94

EV to EBITDA

11.35

EV to Capital Employed

0.66

EV to Sales

0.79

PEG Ratio

6.47

Dividend Yield

0.05%

ROCE (Latest)

3.32%

ROE (Latest)

4.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -99.28% (YoY

NET PROFIT(9M)

Higher at JPY 3,008.8 MM

PRE-TAX PROFIT(Q)

At JPY 1,411 MM has Grown at 67.78%

-13What is not working for the Company

INTEREST(9M)

At JPY 181 MM has Grown at 29.29%

NET SALES(9M)

At JPY 52,826 MM has Grown at -14.82%

CASH AND EQV(HY)

Lowest at JPY 16,195 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 22.71%

Here's what is working for Tokyo Energy & Systems, Inc.

Net Profit

At JPY 2,614.92 MM has Grown at 116.51%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Profit

Higher at JPY 2,614.92 MM

than preceding 12 month period ended Jun 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (JPY MM)

Pre-Tax Profit

At JPY 1,411 MM has Grown at 67.78%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Raw Material Cost

Fallen by -99.28% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Tokyo Energy & Systems, Inc.

Interest

At JPY 127 MM has Grown at 39.56%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

At JPY 52,826 MM has Grown at -14.82%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Cash and Eqv

Lowest at JPY 16,195 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 22.71%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio