TANAKEN (1450) AI Stock Analysis

• Market Cap: ¥13.68B
• Dividend Yield: 3.91%
• Average Volume (3M): 6.06K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.51
• Revenue Growth: 12.31%
• EPS Growth: 1.81%
• Country: JP
• Employees: 105
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 46.13
• Shares Outstanding: 8,699,600
• 10 Day Avg. Volume: 5,380
• 30 Day Avg. Volume: 6,063
• PEG Ratio: 0.17
• Price to Book (P/B): 1.42
• Price to Sales (P/S): 0.95
• P/FCF Ratio: 5.51
• 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: 84 Outperform
• Price Target: ¥1,901.00 ▲(37.85% Upside)
• Action: Upgraded Date: 12/30/25
• Date: Action: Upgraded 12/30/25

The score is driven primarily by strong financial quality (high profitability and a debt-free balance sheet) and supportive valuation (low P/E with a solid dividend yield). Technicals are steady but not strongly directional, while historical cash-flow volatility remains the key risk despite the latest-year rebound.

Positive Factors

Margin expansion (profitability)

Sustained margin expansion into 2025 indicates improving operating leverage and pricing or cost controls. Higher gross and EBIT margins increase durable earnings power, supporting cash generation and resilience across business cycles, and enabling reinvestment or steady dividends over the medium term.

Debt-free conservative balance sheet

A debt-free balance sheet materially reduces financial risk and interest burden, giving management flexibility to invest, weather downturns, or return capital. Steady equity growth to 2025 supports capital stability and cushions operational volatility over multiple years.

Improved free cash flow conversion

Near-par free cash flow conversion in 2025 shows the company can turn accounting profits into real cash, supporting dividends, capex, and deleveraging. If sustained, strong FCF underpins long-term financial flexibility and value creation despite prior variability.

Negative Factors

Volatile operating cash flow

Large swings in operating cash flow show inconsistent cash realization tied to working-capital timing or project cycles. This volatility raises execution risk, can constrain reinvestment or payouts in weaker years, and requires conservative planning despite strong trailing FCF.

Top-line cyclicality

Intermittent revenue declines indicate exposure to project timing or cyclical end markets common in engineering & construction. Patchy top-line trends make long-term planning harder, pressuring margins and cash in downturns and requiring robust backlog and diversification to smooth outcomes.

Negative recent EPS growth

Negative EPS growth despite wider margins signals episodic earnings pressure or non-operating impacts. Persisting EPS declines can limit retained earnings growth, reduce reinvestment capacity, and signal execution risks that undermine steady long-term shareholder returns if not reversed.

TANAKEN Business Overview & Revenue Model

Company Description

TANAKEN (1450) is a company engaged in the construction and civil engineering industry. It specializes in providing comprehensive construction services, including planning, designing, and executing various infrastructure projects. The company's core services encompass residential, commercial, and industrial construction, as well as renovation and maintenance services.

How the Company Makes Money

TANAKEN makes money primarily through its construction and civil engineering projects. The company generates revenue by securing contracts from both private and public sector clients for the construction of buildings, infrastructure, and other development projects. Key revenue streams include project-based contracts, long-term maintenance agreements, and consultancy services. The company may also leverage strategic partnerships with subcontractors and suppliers to optimize project costs and efficiency, thereby enhancing its profitability.

TANAKEN Financial Statement Overview

Summary

Strong overall fundamentals: profitability expanded meaningfully (2025 gross margin ~26.7%, net margin ~12.8%, EBIT margin ~19.0%) and the balance sheet is exceptionally conservative with zero reported debt in 2022–2025. The main offset is cash-flow variability (notably negative/weak operating cash flow in 2021 and 2023), despite a strong rebound in 2025.

Income Statement

Profitability strengthened meaningfully: annual revenue rose from 6.7B (2020) to 12.3B (2025), and margins expanded with 2025 gross margin at ~26.7% and net margin at ~12.8% (both above prior years). Operating profitability also improved (2025 EBIT margin ~19.0%). The main weakness is top-line consistency—revenue dipped in 2024 (about -5.1%) before rebounding in 2025 (+3.1%), suggesting some cyclicality in demand.

Balance Sheet

Balance sheet is very conservative with zero reported debt in 2022–2025 (and low debt even in 2021), reducing financial risk and interest burden. Equity and assets have grown steadily (equity ~3.95B in 2020 to ~8.22B in 2025), and returns on equity are strong (mid-teens to ~19% in 2025). A key watch item is that the debt-free profile can’t fully offset operating/cash volatility if working capital swings sharply (seen in cash flow history).

Cash Flow

Cash generation is improving but has been volatile: operating cash flow swung from strongly positive (2022 ~1.90B) to negative (2023 ~-0.22B), then recovered (2024 ~0.51B) and surged in 2025 (~2.14B). Free cash flow also rebounded to ~2.12B in 2025 and is roughly in line with net income that year (free cash flow to net income ~0.99), which is a clear strength. The weakness is the uneven conversion of earnings into operating cash flow across years (notably weak/negative in 2021 and 2023), which raises execution and working-capital timing risk.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	13.08B	12.29B	10.68B	11.25B	9.82B	9.01B
Gross Profit	3.32B	3.27B	2.50B	2.33B	2.14B	2.08B
EBITDA	2.37B	2.39B	1.70B	1.63B	1.47B	1.49B
Net Income	1.59B	1.58B	1.09B	1.09B	967.39M	982.27M
Balance Sheet
Total Assets	10.73B	11.38B	9.12B	8.02B	7.05B	7.01B
Cash, Cash Equivalents and Short-Term Investments	5.02B	4.12B	2.40B	2.28B	2.98B	1.71B
Total Debt	0.00	0.00	0.00	0.00	0.00	300.00M
Total Liabilities	2.65B	3.16B	2.13B	1.80B	1.61B	2.23B
Stockholders Equity	8.07B	8.22B	6.99B	6.22B	5.44B	4.78B
Cash Flow
Free Cash Flow	0.00	2.12B	402.51M	-271.24M	1.88B	-28.72M
Operating Cash Flow	0.00	2.14B	510.81M	-222.20M	1.90B	23.69M
Investing Cash Flow	0.00	-78.29M	-43.94M	-154.21M	-41.94M	-64.45M
Financing Cash Flow	0.00	-348.44M	-348.02M	-317.36M	-595.55M	125.87M

TANAKEN Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1379.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1450, the sentiment is Positive. The current price of 1379 is below the 20-day moving average (MA) of 1538.85, below the 50-day MA of 1472.34, and below the 200-day MA of 1422.31, indicating a bullish trend. The MACD of 47.32 indicates Negative momentum. The RSI at 78.06 is Negative, neither overbought nor oversold. The STOCH value of 92.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1450.

TANAKEN Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1450	84 Outperform	¥13.68B	9.30	―	3.91%	12.31%	1.81%
1966	77 Outperform	¥13.35B	10.56	―	3.97%	5.33%	-27.53%
1807	71 Outperform	¥12.19B	11.52	―	4.39%	2.65%	45.12%
1434	70 Outperform	¥14.30B	10.43	―	2.65%	28.80%	5.92%
1848	64 Neutral	¥11.09B	4.30	―	2.33%	7.66%	562.50%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1844	61 Neutral	¥10.03B	20.16	―	2.74%	4.36%	17.63%