DB:TCW

Stock Analysis Report

Executive Summary

Tokyu Construction Co., Ltd. operates as a general contractor in Japan.

Rewards

PE ratio (4.4x) is below the German market (20.8x)

Earnings have grown 19.4% per year over the past 5 years

Risk Analysis

Earnings are forecast to decline by an average of -15.8% per year for the next 3 years

High level of non-cash earnings

Unstable dividend track record



Snowflake Analysis

Excellent balance sheet average dividend payer.

Share Price & News

How has Tokyu Construction's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TCW has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.4%

TCW

3.5%

DE Construction

0.7%

DE Market


1 Year Return

-17.5%

TCW

-1.3%

DE Construction

15.1%

DE Market

Return vs Industry: TCW underperformed the German Construction industry which returned -1.3% over the past year.

Return vs Market: TCW underperformed the German Market which returned 15.1% over the past year.


Shareholder returns

TCWIndustryMarket
7 Day2.4%3.5%0.7%
30 Day-4.4%-0.2%-0.7%
90 Day1.5%7.1%5.9%
1 Year-14.5%-17.5%2.8%-1.3%18.7%15.1%
3 Year-5.0%-14.0%-6.9%-13.9%19.2%8.6%
5 Year111.1%81.7%123.2%98.1%39.0%20.1%

Price Volatility Vs. Market

How volatile is Tokyu Construction's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Tokyu Construction undervalued compared to its fair value and its price relative to the market?

4.38x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TCW (€6.5) is trading above our estimate of fair value (€3.88)

Significantly Below Fair Value: TCW is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TCW is good value based on its PE Ratio (4.4x) compared to the Construction industry average (11.5x).

PE vs Market: TCW is good value based on its PE Ratio (4.4x) compared to the German market (20.8x).


Price to Earnings Growth Ratio

PEG Ratio: TCW's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: TCW is good value based on its PB Ratio (0.8x) compared to the XE Construction industry average (1.2x).


Next Steps

Future Growth

How is Tokyu Construction forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-15.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TCW's earnings are forecast to decline over the next 3 years (-15.8% per year).

Earnings vs Market: TCW's earnings are forecast to decline over the next 3 years (-15.8% per year).

High Growth Earnings: TCW's earnings are forecast to decline over the next 3 years.

Revenue vs Market: TCW's revenue is expected to decline over the next 3 years (-2.7% per year).

High Growth Revenue: TCW's revenue is forecast to decline over the next 3 years (-2.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TCW's Return on Equity is forecast to be low in 3 years time (11.4%).


Next Steps

Past Performance

How has Tokyu Construction performed over the past 5 years?

19.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TCW has a high level of non-cash earnings.

Growing Profit Margin: TCW's current net profit margins (5.4%) are higher than last year (5.2%).


Past Earnings Growth Analysis

Earnings Trend: TCW's earnings have grown by 19.4% per year over the past 5 years.

Accelerating Growth: TCW's earnings growth over the past year (6%) is below its 5-year average (19.4% per year).

Earnings vs Industry: TCW earnings growth over the past year (6%) underperformed the Construction industry 7.9%.


Return on Equity

High ROE: TCW's Return on Equity (19.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Tokyu Construction's financial position?


Financial Position Analysis

Short Term Liabilities: TCW's short term assets (¥192.1B) exceed its short term liabilities (¥145.6B).

Long Term Liabilities: TCW's short term assets (¥192.1B) exceed its long term liabilities (¥7.2B).


Debt to Equity History and Analysis

Debt Level: TCW's debt to equity ratio (19.1%) is considered satisfactory.

Reducing Debt: TCW's debt to equity ratio has reduced from 29.3% to 19.1% over the past 5 years.

Debt Coverage: TCW's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: TCW earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: TCW has a low level of unsold assets or inventory.

Debt Coverage by Assets: TCW's debt is covered by short term assets (assets are 10x debt).


Next Steps

Dividend

What is Tokyu Construction's current dividend yield, its reliability and sustainability?

3.77%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Tokyu Construction before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.8%marketbottom25%1.4%markettop25%3.6%industryaverage3.5%forecastin3Years4.0%

Current dividend yield vs market & industry

Notable Dividend: TCW's dividend (3.77%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: TCW's dividend (3.77%) is in the top 25% of dividend payers in the German market (3.61%)


Stability and Growth of Payments

Stable Dividend: TCW's dividend payments have been volatile in the past 10 years.

Growing Dividend: TCW's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16.5%), TCW's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Tokyu Construction's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Mitsuhiro Terada (62yo)

0.5yrs

Tenure

0

Mr. Mitsuhiro Terada has been the President at Tokyu Construction Co., Ltd. since June 2019. Mr. Terada was a Senior Managing Executive Officer at Tokyu Construction Co., Ltd. since April, 2016 until 2019  ...


Management Age and Tenure

1.3yrs

Average Tenure

63.5yo

Average Age

Experienced Management: TCW's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

3.5yrs

Average Tenure

68yo

Average Age

Experienced Board: TCW's board of directors are considered experienced (3.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Yasuyuki Izumi (63yo)

    Senior EVP & Director

    • Tenure: 0yrs
  • Kazushige Asano (68yo)

    Senior EVP & Representative Director

    • Tenure: 7.5yrs
  • Mitsuhiro Terada (62yo)

    President & Representative Director

    • Tenure: 0.5yrs
  • Masayuki Nemoto

    Senior Executive Officer and GM of Safety & Environment Division

    • Tenure: 0yrs
  • Motoyuki Takagi (64yo)

    Senior Managing Executive Officer

    • Tenure: 0yrs
  • Sadao Fukumoto

    Senior Executive Officer & GM of Corporate Strategy Division

    • Tenure: 0yrs
  • Kiyoshi Numakami

    Executive Officer & GM of Institute of Technology

    • Tenure: 0yrs
  • Shinichi Miyashita

    Senior Executive Officer & Deputy GM of Technology Dept.

    • Tenure: 0yrs
  • Masatoshi Shimizu

    Senior Executive Officer

    • Tenure: 2.5yrs
  • Yushi Tsukui

    Senior Executive Officer & Director

    • Tenure: 1.5yrs

Board Members

  • Yutaka Kubota (72yo)

    Outside Director

    • Tenure: 4.5yrs
  • Yasuyuki Izumi (63yo)

    Senior EVP & Director

    • Tenure: 0yrs
  • Hiroshi Otsuka (84yo)

    Outside Director

    • Tenure: 9.5yrs
  • Tsuneo Iizuka (71yo)

    Chairman of the board

    • Tenure: 1.5yrs
  • Kazushige Asano (68yo)

    Senior EVP & Representative Director

    • Tenure: 7.5yrs
  • Mitsuhiro Terada (62yo)

    President & Representative Director

    • Tenure: 0.5yrs
  • Motoyuki Takagi (64yo)

    Senior Managing Executive Officer

    • Tenure: 0yrs
  • Masatoshi Shimizu

    Senior Executive Officer

    • Tenure: 2.5yrs
  • Yushi Tsukui

    Senior Executive Officer & Director

    • Tenure: 1.5yrs
  • Toshio Imamura

    Vice Chairman

    • Tenure: 0.5yrs

Company Information

Tokyu Construction Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tokyu Construction Co., Ltd.
  • Ticker: TCW
  • Exchange: DB
  • Founded: 1946
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: JP¥84.757b
  • Listing Market Cap: JP¥702.712m
  • Shares outstanding: 106.61m
  • Website: https://www.tokyu-cnst.co.jp

Number of Employees


Location

  • Tokyu Construction Co., Ltd.
  • 1-16-14, Shibuya
  • Shibuya-ku
  • Tokyo
  • 150-8340
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1720TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYOct 2003
TCWDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2003

Biography

Tokyu Construction Co., Ltd. operates as a general contractor in Japan. It constructs educational, commercial, public/community, care, and sport facilities; and office, hotel, town planning, hospital/clini ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 21:12
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.