Giken Holdings Co., Ltd. (1443) AI Stock Analysis

• Market Cap: ¥3.78B
• Dividend Yield: 0.47%
• Average Volume (3M): 106.51K
• Price to Earnings (P/E): 6.3
• Beta (1Y): 0.62
• Revenue Growth: 0.58%
• EPS Growth: 25.48%
• Country: JP
• Employees: 100
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 7.63
• Shares Outstanding: 16,237,976
• 10 Day Avg. Volume: 123,900
• 30 Day Avg. Volume: 106,510
• PEG Ratio: 0.59
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.64
• P/FCF Ratio: 9.57
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥271.00 ▲(14.83% Upside)

The overall stock score of 74 reflects a stable financial foundation with low leverage and positive profit margins, supported by favorable technical indicators. The low P/E ratio suggests potential undervaluation, although declining revenues and cash flow volatility pose risks. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Strong Equity Position

A strong equity position with low leverage enhances financial stability and provides flexibility for future investments and growth opportunities.

Positive Cash Flow Generation

Positive cash flow generation indicates improved operational efficiency, providing the company with resources to reinvest in growth and manage debt.

Healthy Profit Margins

Sustained profit margins suggest effective cost management and pricing strategies, supporting long-term profitability despite revenue challenges.

Negative Factors

Declining Revenue

Consistent revenue decline indicates potential issues with market demand or competitiveness, which could impact long-term growth prospects.

Fluctuating Cash Flows

Volatile cash flows can hinder the company's ability to fund operations and investments, posing risks to financial stability and growth.

Declining Asset Base

A shrinking asset base may limit the company's capacity to leverage assets for growth and could affect its ability to respond to market opportunities.

Giken Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Giken Holdings Co., Ltd. (1443) is a Japan-based company primarily engaged in the development and manufacturing of advanced construction machinery and environmental solutions. The company operates through several segments, including Construction, Environmental, and Machinery. Giken is known for its innovative products such as the hydraulic jacking system and other specialized equipment used in underground construction projects, infrastructure development, and waste management. The company emphasizes sustainable practices and technological advancement in its offerings.

How the Company Makes Money

Giken Holdings generates revenue through the sale and leasing of its construction machinery and equipment, particularly its unique hydraulic jacking systems, which are utilized in various infrastructure projects. Key revenue streams include direct sales to construction firms, governmental contracts, and partnerships with environmental agencies for waste management solutions. The company also earns income from maintenance services and spare parts sales related to its machinery. Additionally, Giken's emphasis on technological innovation has led to collaborations with other firms and institutions, enhancing its market presence and contributing to its overall earnings.

Giken Holdings Co., Ltd. Financial Statement Overview

Summary

Giken Holdings Co., Ltd. maintains a strong equity position with low leverage, but faces challenges with declining revenues and fluctuating cash flows. The positive gross and net profit margins provide some stability, yet growth and cash flow sustainability remain concerns.

Income Statement

The company's income statement shows a declining trend in total revenue over recent years, from 10 billion to approximately 4.9 billion. Despite this, the gross profit margin has remained relatively healthy at around 26.4% in the latest year, and the net profit margin is stable at about 10%. However, revenue growth is a concern with a consistent decline, indicating potential challenges in market demand or competitiveness. The EBIT and EBITDA margins are also lower compared to historical figures, suggesting pressures on operating efficiency.

Balance Sheet

The balance sheet reflects a strong equity position with a debt-to-equity ratio of 0.3, indicating low leverage. The return on equity is stable at around 4.5%, which is modest but consistent. The equity ratio remains robust at approximately 67.5%, highlighting a solid capital structure. However, the declining asset base and reduced cash reserves over recent years could pose potential risks to liquidity and future investment capabilities.

Cash Flow

The cash flow statement reveals significant volatility in free cash flow, which turned positive in the latest year to 325.6 million from a negative position in previous years. The operating cash flow to net income ratio is favorable, suggesting efficient cash generation from operations. However, the free cash flow to net income ratio indicates potential challenges in maintaining positive free cash flow consistently. The recent improvement in free cash flow growth is a positive sign, but sustainability remains uncertain.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.84B	4.91B	5.17B	5.48B	8.18B	9.36B
Gross Profit	1.31B	1.30B	1.22B	1.21B	1.88B	2.11B
EBITDA	1.15B	972.51M	881.59M	732.22M	1.07B	1.41B
Net Income	539.48M	491.95M	444.22M	329.15M	466.68M	746.47M
Balance Sheet
Total Assets	16.30B	16.16B	17.23B	15.73B	15.98B	16.29B
Cash, Cash Equivalents and Short-Term Investments	2.01B	1.86B	2.62B	3.24B	3.85B	4.83B
Total Debt	3.18B	3.31B	3.82B	4.13B	2.93B	3.19B
Total Liabilities	5.10B	5.25B	6.16B	6.19B	6.09B	6.91B
Stockholders Equity	11.20B	10.92B	11.06B	9.54B	9.88B	9.38B
Cash Flow
Free Cash Flow	0.00	325.61M	83.67M	-463.46M	-45.49M	1.40B
Operating Cash Flow	0.00	358.36M	932.67M	668.54M	98.51M	1.68B
Investing Cash Flow	0.00	-286.74M	-841.82M	-2.37B	-1.06B	-2.65B
Financing Cash Flow	0.00	-532.53M	-326.90M	935.49M	-13.36M	1.79B

Giken Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 236.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1443, the sentiment is Negative. The current price of 236 is above the 20-day moving average (MA) of 231.95, below the 50-day MA of 237.66, and above the 200-day MA of 211.72, indicating a neutral trend. The MACD of -0.85 indicates Negative momentum. The RSI at 48.39 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:1443.

Giken Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1841	82 Outperform	¥5.73B	10.40	―	1.88%	-16.60%	-19.91%
1788	78 Outperform	¥2.80B	8.32	―	2.17%	21.66%	385.30%
1743	76 Outperform	¥4.15B	10.15	―	1.92%	15.58%	-31.14%
1758	75 Outperform	¥5.30B	9.18	―	2.17%	14.17%	―
1443	74 Outperform	¥3.78B	6.29	―	0.47%	0.58%	25.48%
1764	66 Neutral	¥3.26B	7.08	―	4.10%	14.64%	48.31%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%