TANAKEN (1450) AI Stock Analysis

• Market Cap: ¥12.26B
• Dividend Yield: 3.79%
• Average Volume (3M): 6.72K
• Price to Earnings (P/E): 8.3
• 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): 30.11
• Shares Outstanding: 8,699,600
• 10 Day Avg. Volume: 7,010
• 30 Day Avg. Volume: 6,723
• 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): 21,095.68
• Revenue Forecast (FY): ¥2.16T

• Rating: 68 Neutral
• Price Target: ―

TANAKEN's stock score is supported by strong financial performance, particularly in profitability and a solid balance sheet. However, liquidity concerns due to weak cash flow metrics pose risks. The stock's undervaluation, indicated by a low P/E ratio and a high dividend yield, presents an opportunity for value investors. Technical analysis suggests mixed trends with short-term challenges but long-term potential.

TANAKEN Business Overview & Revenue Model

Company Description

Tanaken engages in the construction and construction management of demolition work of building structures and related construction work in Japan. It also undertakes demolition business, soil and underground remediation, civil engineering work, and recycling business. The company was incorporated in 1982 and is headquartered in Tokyo, Japan. Tanaken is a subsidiary of Three Hundred Holdings Co., Ltd.

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

TANAKEN demonstrates strong income statement and balance sheet metrics, with excellent profitability and a robust capital structure. However, the absence of positive cash flow in the TTM highlights potential liquidity issues that need to be addressed. The company is well-positioned in terms of profitability and financial stability, but improving cash flow performance will be crucial for sustaining long-term growth.

Income Statement

TANAKEN's income statement reflects robust performance with a consistent increase in total revenue from the previous year, showing a revenue growth rate of 11.6% for the TTM. The gross profit margin for TTM stands at 27.8%, indicating effective cost management. The net profit margin is 13.3%, showcasing strong profitability. EBIT and EBITDA margins are 20.2% and 20.6% respectively, further underscoring operational efficiency.

Balance Sheet

The balance sheet is exceptionally strong with a debt-free structure, as indicated by the zero total debt. The equity ratio is 77.6%, displaying a solid capital structure. Return on equity (ROE) is 20.4% for TTM, reflecting effective utilization of shareholder equity to generate profit. Overall, the balance sheet portrays a well-capitalized company with minimal financial risk.

Cash Flow

Cash flow performance presents challenges. Although free cash flow was positive in the past, the TTM data shows no reported free cash flow. The operating cash flow to net income ratio is currently indeterminable due to missing data. The lack of positive cash flow metrics in the latest period raises concerns about cash generation and liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Negative
• Last Price: 1379.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1450, the sentiment is Negative. The current price of 1379 is below the 20-day moving average (MA) of 1413.80, below the 50-day MA of 1414.60, and above the 200-day MA of 1358.06, indicating a neutral trend. The MACD of 2.81 indicates Positive momentum. The RSI at 44.16 is Neutral, neither overbought nor oversold. The STOCH value of 46.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:1450.

TANAKEN Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1867	82 Outperform	¥16.60B	7.83	―	3.01%	4.18%	1.38%
1960	73 Outperform	¥21.46B	13.13	―	2.78%	22.32%	5024.88%
1966	70 Outperform	¥12.52B	6.22	―	4.11%	5.33%	-27.53%
1450	68 Neutral	¥12.26B	8.35	―	3.79%	12.31%	1.81%
1433	65 Neutral	¥9.73B	18.83	―	2.30%	-13.55%	29.77%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5079	60 Neutral	¥13.45B	20.13	―	4.60%	-13.70%	146.67%