Buy Or Sell Opportunity • Jun 10
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 25% to JP¥1,892. The fair value is estimated to be JP¥2,389, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Meanwhile, the company became loss making. Reported Earnings • May 18
Full year 2026 earnings: EPS and revenues miss analyst expectations Full year 2026 results: JP¥373 loss per share (down from JP¥34.47 profit in FY 2025). Revenue: JP¥182.9b (down 34% from FY 2025). Net loss: JP¥14.9b (down JP¥17.0b from profit in FY 2025). Revenue missed analyst estimates by 17%. Earnings per share (EPS) were also behind analyst expectations. Revenue is forecast to grow 11% p.a. on average during the next 2 years, compared to a 4.2% growth forecast for the Construction industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 142 percentage points per year, which is a significant difference in performance. Announcement • May 14
Toyo Engineering Corporation, Annual General Meeting, Jun 25, 2026 Toyo Engineering Corporation, Annual General Meeting, Jun 25, 2026. Announcement • Apr 01
Toyo Engineering Corporation to Report Fiscal Year 2026 Results on May 14, 2026 Toyo Engineering Corporation announced that they will report fiscal year 2026 results on May 14, 2026 Buy Or Sell Opportunity • Mar 23
Now 34% undervalued Over the last 90 days, the stock has risen 12% to JP¥2,910. The fair value is estimated to be JP¥4,441, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.4% over the last 3 years. Meanwhile, the company became loss making. Buy Or Sell Opportunity • Feb 19
Now 22% undervalued Over the last 90 days, the stock has risen 23% to JP¥3,280. The fair value is estimated to be JP¥4,194, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.4% over the last 3 years. Meanwhile, the company became loss making. Reported Earnings • Feb 14
Third quarter 2026 earnings released: JP¥247 loss per share (vs JP¥9.09 profit in 3Q 2025) Third quarter 2026 results: JP¥247 loss per share (down from JP¥9.09 profit in 3Q 2025). Revenue: JP¥37.9b (down 55% from 3Q 2025). Net loss: JP¥14.5b (down JP¥15.0b from profit in 3Q 2025). Revenue is forecast to grow 3.9% p.a. on average during the next 3 years, compared to a 3.5% growth forecast for the Construction industry in Japan. Over the last 3 years on average, earnings per share has fallen by 52% per year but the company’s share price has increased by 92% per year, which means it is well ahead of earnings. Announcement • Feb 14
Toyo Engineering Corporation Receives Notice Regarding Lawsuit Filed by Asunaro Aoki Construction Co., Ltd Toyo Engineering Corporation announced that company received, on February 13, 2026, a notice that a lawsuit has been filed against the Company. Details are as follows: Court and Date of Filing: Court: Tokyo District Court; Date of Filing: December 26, 2025 (Date of Service of Complaint: February 13, 2026); Plaintiff: Name: Asunaro Aoki Construction Co. Ltd. Address: 4-8-2 Shiba, Minato-ku, Tokyo; Representative: Mr. Naoyuki Mochizuki; Outline of the Lawsuit: Nature of Claim: Claim for payment of contract fees (including additional costs); Amount Claimed: JPY 4,958,754,653. Background: The Company, acting as the prime contractor for a petrochemical plant construction project, subcontracted a portion of the construction work to the plaintiff. The plaintiff subsequently claimed additional costs associated with the performance of the subcontracted work. Although the parties engaged in discussions to resolve the matter, they were unable to reach an agreement, and the plaintiff has now filed the present lawsuit. Buy Or Sell Opportunity • Jan 27
Now 34% overvalued after recent price rise Over the last 90 days, the stock has risen 143% to JP¥5,980. The fair value is estimated to be JP¥4,448, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Meanwhile, the company became loss making. Buy Or Sell Opportunity • Jan 13
Now 23% overvalued after recent price rise Over the last 90 days, the stock has risen 202% to JP¥5,370. The fair value is estimated to be JP¥4,380, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Meanwhile, the company became loss making. Announcement • Dec 19
Toyo Engineering Corporation to Report Q3, 2026 Results on Feb 12, 2026 Toyo Engineering Corporation announced that they will report Q3, 2026 results on Feb 12, 2026 Reported Earnings • Nov 15
Second quarter 2026 earnings released: JP¥92.96 loss per share (vs JP¥11.89 profit in 2Q 2025) Second quarter 2026 results: JP¥92.96 loss per share (down from JP¥11.89 profit in 2Q 2025). Revenue: JP¥44.7b (down 24% from 2Q 2025). Net loss: JP¥3.56b (down JP¥4.26b from profit in 2Q 2025). Revenue is expected to decline by 2.7% p.a. on average during the next 3 years, while revenues in the Construction industry in Japan are expected to grow by 2.6%. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has increased by 70% per year, which means it is tracking significantly ahead of earnings growth. Buy Or Sell Opportunity • Nov 12
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 47% to JP¥2,644. The fair value is estimated to be JP¥2,192, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 14% over the last 3 years. Earnings per share has grown by 39%. Revenue is forecast to decline by 18% in 2 years. Earnings are forecast to grow by 241% in the next 2 years. Board Change • Nov 11
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Senior Executive Officer, CSO & Director Yasutaka Suzuki was the last director to join the board, commencing their role in 2025. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Buy Or Sell Opportunity • Oct 22
Now 25% overvalued after recent price rise Over the last 90 days, the stock has risen 130% to JP¥2,787. The fair value is estimated to be JP¥2,228, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 14% over the last 3 years. Earnings per share has grown by 39%. Revenue is forecast to decline by 18% in 2 years. Earnings are forecast to grow by 241% in the next 2 years. Valuation Update With 7 Day Price Move • Oct 20
Investor sentiment improves as stock rises 32% After last week's 32% share price gain to JP¥2,038, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 13x in the Construction industry in Japan. Total returns to shareholders of 277% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥2,121 per share. Announcement • Sep 26
Toyo Engineering Corporation to Report Q2, 2026 Results on Nov 13, 2025 Toyo Engineering Corporation announced that they will report Q2, 2026 results on Nov 13, 2025 Buy Or Sell Opportunity • Sep 02
Now 22% undervalued Over the last 90 days, the stock has risen 138% to JP¥1,644. The fair value is estimated to be JP¥2,102, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 14% over the last 3 years. Earnings per share has grown by 39%. Revenue is forecast to decline by 18% in 2 years. Earnings are forecast to grow by 241% in the next 2 years. Valuation Update With 7 Day Price Move • Aug 28
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to JP¥1,529, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 13x in the Construction industry in Japan. Total returns to shareholders of 133% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥2,068 per share. Buy Or Sell Opportunity • Aug 12
Now 21% undervalued Over the last 90 days, the stock has risen 148% to JP¥1,672. The fair value is estimated to be JP¥2,112, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 14% over the last 3 years. Earnings per share has grown by 39%. Revenue is forecast to decline by 18% in 2 years. Earnings are forecast to grow by 241% in the next 2 years. Reported Earnings • Aug 08
First quarter 2026 earnings released: EPS: JP¥14.58 (vs JP¥18.28 in 1Q 2025) First quarter 2026 results: EPS: JP¥14.58 (down from JP¥18.28 in 1Q 2025). Revenue: JP¥49.3b (down 22% from 1Q 2025). Net income: JP¥559.0m (down 48% from 1Q 2025). Profit margin: 1.1% (down from 1.7% in 1Q 2025). Revenue is expected to decline by 4.9% p.a. on average during the next 3 years, while revenues in the Construction industry in Japan are expected to grow by 2.4%. Over the last 3 years on average, earnings per share has increased by 39% per year whereas the company’s share price has increased by 36% per year. Valuation Update With 7 Day Price Move • Aug 01
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to JP¥1,475, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 13x in the Construction industry in Japan. Total returns to shareholders of 136% over the past three years. Valuation Update With 7 Day Price Move • Jul 02
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to JP¥933, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 12x in the Construction industry in Japan. Total returns to shareholders of 58% over the past three years. New Risk • Jul 01
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 6.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (6.4% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.7% net profit margin). Reported Earnings • Jul 01
Full year 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2025 results: EPS: JP¥34.47 (down from JP¥168 in FY 2024). Revenue: JP¥278.1b (up 6.6% from FY 2024). Net income: JP¥2.02b (down 79% from FY 2024). Profit margin: 0.7% (down from 3.8% in FY 2024). Revenue exceeded analyst estimates by 24%. Earnings per share (EPS) missed analyst estimates by 66%. Revenue is expected to decline by 6.6% p.a. on average during the next 3 years, while revenues in the Construction industry in Japan are expected to grow by 2.4%. Over the last 3 years on average, earnings per share has increased by 57% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Announcement • Jun 25
Toyo Engineering Corporation to Report Q1, 2026 Results on Aug 07, 2025 Toyo Engineering Corporation announced that they will report Q1, 2026 results on Aug 07, 2025 Major Estimate Revision • Jun 11
Consensus EPS estimates fall by 10% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has deteriorated. 2026 revenue forecast decreased from JP¥215.0b to JP¥210.0b. EPS estimate also fell from JP¥106 per share to JP¥94.90 per share. Net income forecast to grow 120% next year vs 5.8% growth forecast for Construction industry in Japan. Consensus price target down from JP¥800 to JP¥755. Share price was steady at JP¥682 over the past week. Reported Earnings • May 20
Full year 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2025 results: EPS: JP¥52.70 (down from JP¥168 in FY 2024). Revenue: JP¥278.1b (up 6.6% from FY 2024). Net income: JP¥2.02b (down 79% from FY 2024). Profit margin: 0.7% (down from 3.8% in FY 2024). Revenue exceeded analyst estimates by 24%. Earnings per share (EPS) missed analyst estimates by 66%. Revenue is expected to decline by 6.9% p.a. on average during the next 3 years, while revenues in the Construction industry in Japan are expected to grow by 1.8%. Over the last 3 years on average, earnings per share has increased by 59% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Announcement • May 15
Toyo Engineering Corporation, Annual General Meeting, Jun 26, 2025 Toyo Engineering Corporation, Annual General Meeting, Jun 26, 2025. New Risk • Apr 07
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.8% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 18% per year for the foreseeable future. Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (5.8% average weekly change). Large one-off items impacting financial results. Valuation Update With 7 Day Price Move • Apr 04
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥608, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 11x in the Construction industry in Japan. Total loss to shareholders of 3.0% over the past three years. Announcement • Mar 26
Toyo Engineering Corporation to Report Fiscal Year 2025 Results on May 15, 2025 Toyo Engineering Corporation announced that they will report fiscal year 2025 results on May 15, 2025 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥25.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 30 June 2025. Payout ratio is a comfortable 7.8% but the company is not cash flow positive. Trailing yield: 3.3%. Lower than top quartile of Japanese dividend payers (3.7%). In line with average of industry peers (3.3%). Announcement • Feb 28
Toyo Engineering Corporation Announces Changes in Directors and Executive Officers Toyo Engineering Corporation announced the following changes in Directors and Executive Officers of the Company, with the decision at the meeting of the Board of Directors held February 27, 2025. Retiring Members: Masayuki Yoshizawa as Director, Executive Vice President and Kensuke Waki as Director, Senior Executive Officer as of April 1, 2025. With the retirement of the directors of the above two directors, Masayuki Yoshizawa will be appointed as a Assistant to President and Kensuke Waki will be appointed as an Advisor. Change of Executive Officers and Fellow (Scheduled April 1, 2025): Tetsuya Honda - Executive Officer; Takeshi Yamato - Executive Officer; Yoshihide Izumi - Executive Officer; Takashi Kawahara - Executive Officer; Hiroshi Fujita - Fellow. Newly promoted candidates: Eiji Sakata Currently Executive Officer to Senior Executive Officer and Kenichi Tominaga urrently Executive Officer to Senior Executive Officer. Retiring Members: Shoji Koshikawa - Senior Executive Officer; Hiroshi Fujita - Senior Executive Officer; Casey Matsumuro - Senior Executive Officer; Keiji Morino - Senior Executive Officer; Masahiro Fujino - Senior Executive Officer; and Masato Otsuki Executive Officer. Change of Advisor, Assistant to Presidents: New candidates (Scheduled April 1, 2025): Shoji Koshikawa Currently Senior Executive Officer as Assistant to President and Casey Matsumuro Currently Senior Executive Officer as Assistant to President. (Scheduled June 26, 2025): Masayuki Yoshizawa Currently Director Executive Vice President to Assistant to President and Kensuke Waki Currently Director
Senior Executive Officer to Advisor. Organization after April 1, 2025 - Directors and Audit & Supervisory Board Members: Chairman - Haruo Nagamatsu; President/Chief Executive Officer - Eiji Hosoi; Executive Vice President - Noriyoshi Torigoe (CCOChief Compliance Officer); Director - Masayuki Yoshizawa; Director - Kensuke Waki; Outside Director - Masami Tashiro; Outside Director - Reijiro Yamamoto; Outside Director - Tatsuya Terazawa;
Outside Director - Sayoko Miyairi; Audit & Supervisory Board Member - Toshihiko Nemura; Audit & Supervisory Board Member - Hiroshi Yoshida; Outside Audit & Supervisory Board Member - Hideki Matsuo; Outside Audit & Supervisory Board Member - Takako Miyoshi. Executive Officers - Senior Executive Officer - Eiichiro Fukuhara; Senior Executive Officer - Yasutaka Suzuki(CSOChief Strategy Officer); Senior Executive Officer - Yasuo Miyokawa(CFOChief Financial Officer); Senior Executive Officer - Yoshinari Miyazaki; Senior Executive Officer - Eiji Sakata; Senior Executive Officer - Kenichi Tominaga (CTO Chief Technology Officer); Executive Officer - Katsumi Hashimoto;
Executive Officer - Naoyuki Sawada; Executive Officer - Ryoji Nakamura; Executive Officer - Yukihiro Akimoto; Executive Officer - Ippeita Kishiguchi; Executive Officer - Hiroshi Isomura; Executive Officer - Yoshimasa Wakita; Executive Officer - Tetsuya Honda; Executive Officer - Takeshi Yamato; Executive Officer - Yoshihide Izumi; Executive Officer - Takashi Kawahara; and Fellow - Hiroshi Fujita. Assistant to President - Shoji Koshikawa; Assistant to President - Casey Matsumuro. Organization after the Annual Meeting of Shareholders on June 26, 2025 - Directors and Audit & Supervisory Board Members: Chairman - Haruo Nagamatsu; President/Chief Executive Officer - Eiji Hosoi; Executive Vice President - Noriyoshi Torigoe (CCO Chief Compliance Officer); Director/Senior Executive Officer - Yasutaka Suzuki(CSO Chief Strategy Officer); Director/Senior Executive Officer - Yasuo Miyokawa (CFO Chief Financial Officer); Outside Director - Masami Tashiro; Outside Director - Reijiro Yamamoto; Outside Director - Tatsuya Terazawa; Outside Director - Sayoko Miyairi; Audit & Supervisory Board Member - Toshihiko Nemura; Audit & Supervisory Board Member - Hiroshi Yoshida; Outside Audit & Supervisory Board Member - Hideki Matsuo; and Outside Audit & Supervisory Board Member - Takako Miyoshi. Executive Officers: Senior Executive Officer - Eiichiro Fukuhara; Senior Executive Officer - Yoshinari Miyazaki; Senior Executive Officer - Eiji Sakata; Senior Executive Officer - Kenichi Tominaga(CTO Chief Technology Officer); Executive Officer - Katsumi Hashimoto; Executive Officer - Naoyuki Sawada; Executive Officer - Ryoji Nakamura; Executive Officer - Yukihiro Akimoto; Executive Officer - Ippeita Kishiguchi; Executive Officer - Hiroshi Isomura; Executive Officer - Yoshimasa Wakita;
Executive Officer - Tetsuya Honda; Executive Officer - Takeshi Yamato; Executive Officer - Yoshihide Izumi; Executive Officer - Takashi Kawahara; Fellow - Hiroshi Fujita; Advisor - Kensuke Waki; Assistant to President - Masayuki Yoshizawa; Assistant to President - Shoji Koshikawa; Assistant to President - Casey Matsumuro. Reported Earnings • Feb 15
Third quarter 2025 earnings released: EPS: JP¥9.09 (vs JP¥12.27 in 3Q 2024) Third quarter 2025 results: EPS: JP¥9.09 (down from JP¥12.27 in 3Q 2024). Revenue: JP¥83.7b (up 16% from 3Q 2024). Net income: JP¥532.0m (down 26% from 3Q 2024). Profit margin: 0.6% (down from 1.0% in 3Q 2024). Revenue is expected to decline by 7.1% p.a. on average during the next 3 years, while revenues in the Construction industry in Japan are expected to grow by 2.3%. Over the last 3 years on average, earnings per share has increased by 76% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. New Risk • Feb 13
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.1% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 20% per year for the foreseeable future. Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (5.1% average weekly change). Large one-off items impacting financial results. Announcement • Jan 03
Toyo Engineering Corporation to Report Q3, 2025 Results on Feb 13, 2025 Toyo Engineering Corporation announced that they will report Q3, 2025 results on Feb 13, 2025 New Risk • Nov 26
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 19% per year for the foreseeable future. Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (5.4% average weekly change). Large one-off items impacting financial results. Reported Earnings • Nov 19
Second quarter 2025 earnings released: EPS: JP¥11.89 (vs JP¥18.70 in 2Q 2024) Second quarter 2025 results: EPS: JP¥11.89 (down from JP¥18.70 in 2Q 2024). Revenue: JP¥59.0b (down 5.3% from 2Q 2024). Net income: JP¥697.0m (down 36% from 2Q 2024). Profit margin: 1.2% (down from 1.8% in 2Q 2024). Revenue is forecast to stay flat during the next 3 years compared to a 1.5% growth forecast for the Construction industry in Japan. Over the last 3 years on average, earnings per share has increased by 77% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Declared Dividend • Nov 16
Dividend of JP¥25.00 announced Shareholders will receive a dividend of JP¥25.00. Ex-date: 28th March 2025 Payment date: 30th June 2025 Dividend yield will be 3.6%, which is higher than the industry average of 2.9%. Sustainability & Growth Dividend is covered by both earnings (7% earnings payout ratio) and cash flows (57% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to decline by 35% over the next 3 years. However, it would need to fall by 92% to increase the payout ratio to a potentially unsustainable range. Announcement • Sep 26
Toyo Engineering Corporation to Report Q2, 2025 Results on Nov 14, 2024 Toyo Engineering Corporation announced that they will report Q2, 2025 results on Nov 14, 2024 Price Target Changed • Sep 02
Price target decreased by 12% to JP¥803 Down from JP¥910, the current price target is an average from 3 analysts. New target price is 6.5% above last closing price of JP¥754. Stock is up 16% over the past year. The company is forecast to post earnings per share of JP¥99.83 for next year compared to JP¥168 last year. Reported Earnings • Aug 13
First quarter 2025 earnings released: EPS: JP¥18.28 (vs JP¥21.64 in 1Q 2024) First quarter 2025 results: EPS: JP¥18.28 (down from JP¥21.64 in 1Q 2024). Revenue: JP¥62.8b (up 15% from 1Q 2024). Net income: JP¥1.07b (down 16% from 1Q 2024). Profit margin: 1.7% (down from 2.3% in 1Q 2024). Revenue is expected to decline by 4.8% p.a. on average during the next 3 years, while revenues in the Construction industry in Japan are expected to grow by 2.1%. Over the last 3 years on average, earnings per share has increased by 73% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. Announcement • Aug 09
Toyo Engineering Corporation (TSE:6330) agreed to acquire an additional minority stake in TS Participações e Investimentos S.A. Toyo Engineering Corporation (TSE:6330) agreed to acquire an additional minority stake in TS Participações e Investimentos S.A. on June 30, 2024. As a part of acquisition, Toyo Engineering Corporation, also consolidated TSE S.A. and Estaleiros do Brasil Ltda., which were the subsidiaries of TSPI and equity method affiliates of the Company,
Toyo Engineering Corporation (TSE:6330) completed the acquisition of additional minority stake in TS Participações e Investimentos S.A. on June 30, 2024. New Risk • Aug 05
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 7.8% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (7.8% average weekly change). Earnings are forecast to decline by an average of 29% per year for the foreseeable future. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 26% After last week's 26% share price decline to JP¥600, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 11x in the Construction industry in Japan. Total loss to shareholders of 22% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,138 per share. Buy Or Sell Opportunity • Jul 05
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 6.7% to JP¥845. The fair value is estimated to be JP¥1,068, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.6% over the last 3 years. Earnings per share has grown by 61%. For the next 3 years, revenue is forecast to decline by 3.5% per annum. Earnings are also forecast to decline by 29% per annum over the same time period. Announcement • Jun 26
Toyo Engineering Corporation to Report Q1, 2025 Results on Aug 08, 2024 Toyo Engineering Corporation announced that they will report Q1, 2025 results on Aug 08, 2024 New Risk • Jun 15
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 7.5% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (7.5% average weekly change). Earnings are forecast to decline by an average of 29% per year for the foreseeable future. Minor Risk Large one-off items impacting financial results. Reported Earnings • May 20
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: JP¥256 (up from JP¥28.11 in FY 2023). Revenue: JP¥260.8b (up 35% from FY 2023). Net income: JP¥9.82b (up 496% from FY 2023). Profit margin: 3.8% (up from 0.9% in FY 2023). Revenue exceeded analyst estimates by 4.2%. Earnings per share (EPS) also surpassed analyst estimates by 56%. Revenue is expected to decline by 5.3% p.a. on average during the next 3 years, while revenues in the Construction industry in Japan are expected to grow by 2.4%. Over the last 3 years on average, earnings per share has increased by 77% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Announcement • May 17
Toyo Engineering Corporation, Annual General Meeting, Jun 27, 2024 Toyo Engineering Corporation, Annual General Meeting, Jun 27, 2024. Announcement • May 16
Toyo Engineering Corporation Provides Year-End Dividend Forecast for the Fiscal Year Ending March 31, 2025 Toyo Engineering Corporation provided year-end dividend forecast for the fiscal year ending March 31, 2025. For the fiscal year ending March 31, 2025 to JPY 25.00 per share as compared to previous year of JPY 12 per share. Valuation Update With 7 Day Price Move • May 16
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to JP¥1,047, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 12x in the Construction industry in Japan. Total returns to shareholders of 54% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,631 per share. Announcement • Mar 24
Toyo Engineering Corporation to Report Fiscal Year 2024 Results on May 15, 2024 Toyo Engineering Corporation announced that they will report fiscal year 2024 results on May 15, 2024 Announcement • Mar 21
Toyo Engineering Corporation Revises Year-End Dividend Forecast for the Fiscal Year Ending March 31, 2024 Toyo Engineering Corporation at its board meeting held on March 21, 2024 resolved the revision to the year-end dividend forecast for the fiscal year ending March 31, 2024 to JPY 12.00 per share as compared to previous JPY 0.00 per share. Announcement • Feb 22
Toyo Engineering Corporation Announces Change of Audit & Supervisory Board Members Toyo Engineering Corporation announced that at the board meeting held on February 22, 2024, the company announced Chihiro Ubukata retired as Audit & Supervisory Board Member. Keisuke Ishii retired as Chief Technology Officer, (Scheduled April 1, 2024). Tomohisa Abe retire as Advisor, (Scheduled June 27, 2024). Buy Or Sell Opportunity • Feb 20
Now 21% undervalued Over the last 90 days, the stock has risen 23% to JP¥826. The fair value is estimated to be JP¥1,043, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.8% over the last 3 years. Earnings per share has grown by 32%. For the next 3 years, revenue is forecast to decline by 2.4% per annum. Earnings are forecast to grow by 5.0% per annum over the same time period. Price Target Changed • Feb 15
Price target increased by 14% to JP¥837 Up from JP¥737, the current price target is an average from 3 analysts. New target price is approximately in line with last closing price of JP¥819. Stock is up 39% over the past year. The company is forecast to post earnings per share of JP¥101 for next year compared to JP¥28.11 last year. Major Estimate Revision • Feb 15
Consensus EPS estimates increase by 21% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has improved. 2024 revenue forecast increased from JP¥243.6b to JP¥250.3b. EPS estimate increased from JP¥83.10 to JP¥101 per share. Net income forecast to grow 33% next year vs 11% growth forecast for Construction industry in Japan. Consensus price target up from JP¥737 to JP¥837. Share price was steady at JP¥819 over the past week. Reported Earnings • Feb 10
Third quarter 2024 earnings released: EPS: JP¥12.27 (vs JP¥4.90 in 3Q 2023) Third quarter 2024 results: EPS: JP¥12.27 (up from JP¥4.90 in 3Q 2023). Revenue: JP¥72.3b (up 59% from 3Q 2023). Net income: JP¥719.0m (up 151% from 3Q 2023). Profit margin: 1.0% (up from 0.6% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue is expected to decline by 1.9% p.a. on average during the next 3 years, while revenues in the Construction industry in Japan are expected to grow by 2.5%. Over the last 3 years on average, earnings per share has increased by 32% per year but the company’s share price has only increased by 20% per year, which means it is significantly lagging earnings growth. New Risk • Jan 29
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 7.7% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. This is currently the only risk that has been identified for the company. Announcement • Jan 25
Toyo Engineering Corporation Revises Consolidated Earnings Guidance for the Year Ending March 31, 2024 Toyo Engineering Corporation revised consolidated earnings guidance for the year ending March 31, 2024. For the year, the company revised net sales of ¥250,000 million, operating income of ¥5,000 million, Profit attributable to owners of parents of ¥7,900 million compared to the previous guidance of ¥3,000 million and net income per share of ¥134.81 compared to the previous guidance of ¥51.19. Major Estimate Revision • Jan 13
Consensus EPS estimates increase by 24% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has improved. 2024 revenue forecast increased from JP¥233.6b to JP¥243.6b. EPS estimate increased from JP¥58.27 to JP¥72.47 per share. Net income forecast to grow 25% next year vs 14% growth forecast for Construction industry in Japan. Consensus price target up from JP¥693 to JP¥737. Share price fell 2.6% to JP¥796 over the past week. Announcement • Dec 24
Toyo Engineering Corporation to Report Q3, 2024 Results on Feb 08, 2024 Toyo Engineering Corporation announced that they will report Q3, 2024 results on Feb 08, 2024 Announcement • Nov 11
Toyo Engineering Corporation Revises Consolidated Earnings Guidance for the Fiscal Year Ending March 31, 2024 Toyo Engineering Corporation revised consolidated earnings guidance for the fiscal year ending March 31, 2024. For the period the company expects net sales to be JPY 250,000 million compared to previous guidance of JPY 240,000 million, operating profit to be JPY 5,000 million compared to previous guidance of JPY 3,000 million, profit attributable to owners of parent to be JPY 3,000 million and net income per share to be JPY 51.19. Reported Earnings • Nov 10
Second quarter 2024 earnings released: EPS: JP¥60.69 (vs JP¥3.21 in 2Q 2023) Second quarter 2024 results: EPS: JP¥60.69 (up from JP¥3.21 in 2Q 2023). Revenue: JP¥62.3b (up 24% from 2Q 2023). Net income: JP¥1.10b (up 483% from 2Q 2023). Profit margin: 1.8% (up from 0.4% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to stay flat during the next 3 years compared to a 2.2% growth forecast for the Construction industry in Japan. Over the last 3 years on average, earnings per share has increased by 43% per year but the company’s share price has only increased by 27% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Nov 10
Consensus revenue estimates increase by 10% The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast increased from JP¥227.0b to JP¥250.0b. EPS estimate unchanged from JP¥52.33 at last update. Construction industry in Japan expected to see average net income growth of 10% next year. Consensus price target of JP¥693 unchanged from last update. Share price rose 9.4% to JP¥676 over the past week. New Risk • Oct 10
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.2% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Oct 05
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥587, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 11x in the Construction industry in Japan. Total returns to shareholders of 75% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,027 per share. Announcement • Sep 23
Toyo Engineering Corporation to Report Q2, 2024 Results on Nov 09, 2023 Toyo Engineering Corporation announced that they will report Q2, 2024 results on Nov 09, 2023 Reported Earnings • Aug 11
First quarter 2024 earnings released: EPS: JP¥21.64 (vs JP¥17.88 in 1Q 2023) First quarter 2024 results: EPS: JP¥21.64 (up from JP¥17.88 in 1Q 2023). Revenue: JP¥54.7b (up 19% from 1Q 2023). Net income: JP¥1.27b (up 21% from 1Q 2023). Profit margin: 2.3% (in line with 1Q 2023). Revenue is forecast to grow 2.2% p.a. on average during the next 3 years, compared to a 2.2% growth forecast for the Construction industry in Japan. Over the last 3 years on average, earnings per share has increased by 53% per year but the company’s share price has only increased by 24% per year, which means it is significantly lagging earnings growth. Announcement • Jun 24
Toyo Engineering Corporation to Report Q1, 2024 Results on Aug 10, 2023 Toyo Engineering Corporation announced that they will report Q1, 2024 results on Aug 10, 2023 Reported Earnings • May 18
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: JP¥42.97 (up from JP¥27.64 in FY 2022). Revenue: JP¥192.9b (down 5.0% from FY 2022). Net income: JP¥1.65b (up 1.7% from FY 2022). Profit margin: 0.9% (in line with FY 2022). Revenue missed analyst estimates by 3.9%. Earnings per share (EPS) also missed analyst estimates by 35%. Revenue is forecast to grow 4.5% p.a. on average during the next 3 years, compared to a 2.6% growth forecast for the Construction industry in Japan. Over the last 3 years on average, earnings per share has increased by 47% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. Announcement • May 14
Toyo Engineering Corporation, Annual General Meeting, Jun 28, 2023 Toyo Engineering Corporation, Annual General Meeting, Jun 28, 2023. Major Estimate Revision • Feb 16
Consensus EPS estimates increase by 38%, revenue downgraded The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast fell from JP¥215.0b to JP¥208.3b. EPS estimate rose from JP¥29.51 to JP¥40.62. Net income forecast to grow 8.0% next year vs 16% growth forecast for Construction industry in Japan. Consensus price target of JP¥710 unchanged from last update. Share price fell 5.2% to JP¥586 over the past week. Buying Opportunity • Feb 13
Now 20% undervalued The stock has been flat over the last 90 days. The fair value is estimated to be JP¥720, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 3.0% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 4.4% per annum. Earnings is also forecast to grow by 24% per annum over the same time period. Reported Earnings • Feb 12
Third quarter 2023 earnings released: EPS: JP¥4.90 (vs JP¥3.82 loss in 3Q 2022) Third quarter 2023 results: EPS: JP¥4.90 (up from JP¥3.82 loss in 3Q 2022). Revenue: JP¥45.6b (up 7.4% from 3Q 2022). Net income: JP¥287.0m (up JP¥511.0m from 3Q 2022). Profit margin: 0.6% (up from net loss in 3Q 2022). The move to profitability was driven by higher revenue. Revenue is forecast to grow 4.4% p.a. on average during the next 3 years, compared to a 2.7% growth forecast for the Construction industry in Japan. Over the last 3 years on average, earnings per share has increased by 55% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings.