TANAKEN (1450) AI Stock Analysis

• Market Cap: ¥13.83B
• Dividend Yield: 3.91%
• Average Volume (3M): 6.06K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.49
• 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: ¥1,838.00 ▲(33.28% 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

Debt-free balance sheet

Zero reported debt from 2022–2025 materially lowers financial risk and interest expense, giving durable flexibility for capex, dividends or opportunistic M&A. A debt-free profile supports operations through cycles and amplifies returns on equity if profitability persists.

Sustained margin expansion

Meaningful margin expansion to 2025 levels suggests improved pricing, cost control or favorable mix that can be structural. Higher sustainable margins provide lasting cash-flow buffers, strengthen reinvestment capacity and make the business more resilient to cyclical revenue pressure.

Improved cash conversion in 2025

FCF ~2.12B and FCF/net income ~0.99 in 2025 indicate strong cash conversion in that year, improving earnings quality. Durable cash generation enables funding for dividends, capex and strategic initiatives without adding leverage, provided working-capital stability is maintained.

Negative Factors

Operating cash-flow volatility

Large swings in operating cash flow point to working-capital or project-timing risks that impair predictability. This volatility can disrupt investment plans, stress liquidity in weak years and complicate dividend or payout commitments unless management tightens working-capital controls.

Top-line cyclicality

A revenue decline followed by a rebound signals cyclical demand in engineering & construction end markets. Persistent top-line swings make capacity planning and fixed-cost absorption harder, increasing the challenge of maintaining margins across cycles and limiting long-term predictability.

Negative recent EPS growth

Negative EPS growth indicates episodic profit pressure despite margin gains in 2025. If EPS declines recur, they weaken confidence in sustainable earnings power, constrain reinvestment and raise the risk that dividends or growth initiatives will require trade-offs or be curtailed.

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: 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 Positive. The current price of 1379 is below the 20-day moving average (MA) of 1568.75, below the 50-day MA of 1491.52, and below the 200-day MA of 1429.76, indicating a bullish trend. The MACD of 28.14 indicates Positive momentum. The RSI at 57.99 is Neutral, neither overbought nor oversold. The STOCH value of 55.92 is Neutral, 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	¥13.83B	7.69	―	3.91%	12.31%	1.81%
1966	77 Outperform	¥13.38B	34.60	―	3.97%	5.33%	-27.53%
1807	71 Outperform	¥11.95B	8.32	―	4.39%	2.65%	45.12%
1434	70 Outperform	¥13.85B	6.39	―	2.65%	28.80%	5.92%
1848	64 Neutral	¥10.47B	190.24	―	2.33%	7.66%	562.50%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1844	61 Neutral	¥10.16B	30.26	―	2.74%	4.36%	17.63%