Toyo Construction Co., Ltd. (1890) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

MEITEC Group Holdings, Inc.

MIRAIT One Corp.

Okumura Corp.

Kumagai Gumi Co., Ltd.

CHUDENKO CORP.

Hazama Ando Corp.

Nippon Densetsu Kogyo Co., Ltd.

Toyo Construction Co., Ltd.

Yokogawa Bridge Holdings Corp.

Japan Elevator Service Holdings Co., Ltd.

Hitachi Zosen Corp.

Why is Toyo Construction Co., Ltd. ?

High Management Efficiency with a high ROE of 10.91%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 78.30

Poor long term growth as Net Sales has grown by an annual rate of -0.25% and Operating profit at 4.68% over the last 5 years

Negative results in Jun 25

INTEREST(HY) At JPY 206 MM has Grown at 103.96%
PRE-TAX PROFIT(Q) At JPY 816 MM has Fallen at -74.19%
NET PROFIT(Q) At JPY 540 MM has Fallen at -74.9%

With ROE of 11.46%, it has a very attractive valuation with a 1.76 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 34.82%, its profits have risen by 15.1% ; the PEG ratio of the company is 1
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Toyo Construction Co., Ltd. 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 Toyo Construction Co., Ltd. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Toyo Construction Co., Ltd.

35.79%

1.39

19.94%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.25%

EBIT Growth (5y)

4.68%

EBIT to Interest (avg)

78.30

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.04

Sales to Capital Employed (avg)

2.10

Tax Ratio

30.17%

Dividend Payout Ratio

99.45%

Pledged Shares

Institutional Holding

ROCE (avg)

20.53%

ROE (avg)

10.91%

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

1.76

EV to EBIT

11.85

EV to EBITDA

10.44

EV to Capital Employed

1.73

EV to Sales

0.80

PEG Ratio

1.02

Dividend Yield

0.03%

ROCE (Latest)

14.60%

ROE (Latest)

11.46%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Sideways

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bullish

Mildly Bearish

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

6What is working for the Company

NET PROFIT(HY)

At JPY 4,977.29 MM has Grown at 80.37%

ROCE(HY)

Highest at 12.4%

RAW MATERIAL COST(Y)

Fallen by -17.4% (YoY

-19What is not working for the Company

INTEREST(HY)

At JPY 206 MM has Grown at 103.96%

PRE-TAX PROFIT(Q)

At JPY 816 MM has Fallen at -74.19%

NET PROFIT(Q)

At JPY 540 MM has Fallen at -74.9%

OPERATING CASH FLOW(Y)

Lowest at JPY -11,580 MM

CASH AND EQV(HY)

Lowest at JPY 34,960 MM

NET SALES(Q)

At JPY 40,030 MM has Fallen at -7.23%

Here's what is working for Toyo Construction Co., Ltd.

Raw Material Cost

Fallen by -17.4% (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 Toyo Construction Co., Ltd.

Interest

At JPY 206 MM has Grown at 103.96%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY 816 MM has Fallen at -74.19%

over average net sales of the previous four periods of JPY 3,161.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 540 MM has Fallen at -74.9%

over average net sales of the previous four periods of JPY 2,151.58 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Operating Cash Flow

Lowest at JPY -11,580 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)

Net Sales

At JPY 40,030 MM has Fallen at -7.23%

over average net sales of the previous four periods of JPY 43,151.25 MM

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Cash and Eqv

Lowest at JPY 34,960 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents