Taiyo Kisokogyo Co., Ltd. (1758) AI Stock Analysis

• Market Cap: ¥6.07B
• Dividend Yield: 2.03%
• Average Volume (3M): 3.74K
• Price to Earnings (P/E): 21.7
• Beta (1Y): 0.63
• Revenue Growth: 14.17%
• EPS Growth: N/A
• Country: JP
• Employees: 220
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 26.21
• Shares Outstanding: 2,458,800
• 10 Day Avg. Volume: 5,640
• 30 Day Avg. Volume: 3,743
• PEG Ratio: 2.30
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.26
• P/FCF Ratio: -38.85
• 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: 75 Outperform
• Price Target: ¥2,937.00 ▲(28.59% Upside)
• Action: Reiterated Date: 10/23/25
• Date: Action: Reiterated 10/23/25

Taiyo Kisokogyo Co., Ltd. scores well due to strong financial health and positive technical indicators. The stock is attractively valued with a reasonable P/E ratio and a solid dividend yield. However, attention is needed on declining revenue and negative Free Cash Flow to sustain long-term growth.

Positive Factors

Robust balance sheet / low leverage

Very low leverage and a high equity ratio give the company durable financial flexibility. This reduces refinancing and solvency risk in downturns, supports investment in specialized equipment, and preserves capacity to bid for projects or absorb delays without stressing cash flows.

Specialized foundation & geotechnical expertise

Niche specialization in foundation and ground-improvement creates structural competitive barriers: technical know-how, specialized equipment and longstanding client relationships. These attributes support repeat business on infrastructure and building projects and cushion competition from general contractors.

Sustained profitability and healthy margins

Consistent gross and operating margins indicate efficient project execution and pricing power on specialized works. Margin durability helps preserve returns even if revenues fluctuate, enabling reinvestment, steady dividends, or margin-driven cash generation once working-capital issues are addressed.

Negative Factors

Negative / falling free cash flow

Recent negative free cash flow is a durable concern: it constrains the firm's ability to fund capex, service unexpected project costs, and sustain dividends without drawing on equity or reserves. Persistent FCF weakness limits strategic investments and increases financial sensitivity.

Revenue trend inconsistency / recent decline

A noted revenue decline signals structural demand or execution issues that can erode scale economies and future margins. Without stable contract wins or geographic/product diversification, revenue volatility undermines long-term growth planning and return on invested capital.

Project-based, cyclical business and limited scale

Heavy reliance on project-based contracts ties revenue to construction cycles and contract timing, raising cash and utilization volatility. A relatively small workforce and niche focus limit simultaneous large-project capacity and diversification, constraining sustained top-line expansion.

Taiyo Kisokogyo Co., Ltd. Business Overview & Revenue Model

Company Description

Taiyo Kisokogyo Co.,Ltd. engages in the civil engineering business in Japan. It operates through six segments: Special Civil Engineering Work, Housing-Related Construction Business, Environmental Construction Business, Construction Business, Machinery Manufacturing and Sales Business, and Renewable Business. The company engages in housing correction work; building construction and renovation business; manufacture and sale of construction machinery; and sale of solar power generation and renewable energy. The company undertakes underground special civil engineering work, such as underground continuous walls, underground obstacle removal; and ground improvement and pipeline work in various fields, including general civil works, such as water and sewage, electric and gas pipelines, and rivers and roads, as well as construction works. It is also involved in the soil pollution purification, underground heat utilization, and urban redevelopment activities. The company was founded in 1958 and is headquartered in Nagoya, Japan.

How the Company Makes Money

Taiyo Kisokogyo Co., Ltd. generates revenue through multiple streams, primarily by selling its industrial equipment and components to a diverse clientele in the manufacturing sector. The company's revenue model is centered around both direct sales and long-term contracts with large industrial clients. Key revenue streams include the sale of precision machinery, automation systems, and maintenance services. Additionally, Taiyo Kisokogyo has established strategic partnerships with other technology firms, which help expand its market reach and enhance its product offerings. The company may also benefit from research and development grants, as well as government contracts aimed at boosting industrial automation in Japan.

Taiyo Kisokogyo Co., Ltd. Financial Statement Overview

Summary

Taiyo Kisokogyo Co., Ltd. demonstrates solid financial health with strong profitability and a robust balance sheet. However, declining revenue and negative Free Cash Flow require attention. The company should enhance growth strategies and improve cash flow management to maintain financial strength.

Income Statement

Taiyo Kisokogyo Co., Ltd. shows strong profitability with a consistent Gross Profit Margin above 8%. The Net Profit Margin has been relatively stable, though there's been a slight decline in revenue from the previous year, indicating a need for growth focus. The company maintains healthy EBIT and EBITDA margins, which suggest efficient operations despite revenue fluctuations.

Balance Sheet

The company has a robust balance sheet with a very low Debt-to-Equity Ratio, indicating minimal leverage risk. High Equity Ratio and strong Return on Equity (ROE) reflect financial stability and effective utilization of equity. The consistently high Stockholders' Equity compared to Total Assets supports long-term sustainability.

Cash Flow

Cash flow performance is mixed, characterized by a substantial drop in Free Cash Flow, impacting the overall cash reserves. While Operating Cash Flow is positive, there is a concern with the recent negative Free Cash Flow figures. The company should focus on enhancing cash efficiency to improve liquidity.

Breakdown	TTM	Jan 2025	Jan 2024	Jan 2023	Jan 2022	Jan 2021
Income Statement
Total Revenue	14.42B	13.48B	14.57B	14.71B	12.93B	13.31B
Gross Profit	1.43B	1.15B	1.34B	1.66B	1.45B	1.49B
EBITDA	874.17M	589.00M	670.92M	1.26B	1.03B	1.03B
Net Income	393.00M	229.76M	212.22M	613.52M	474.02M	435.80M
Balance Sheet
Total Assets	11.70B	11.53B	11.64B	12.17B	10.56B	10.07B
Cash, Cash Equivalents and Short-Term Investments	4.24B	3.57B	3.61B	3.54B	3.46B	2.48B
Total Debt	64.90M	139.24M	287.40M	493.57M	131.04M	231.73M
Total Liabilities	2.60B	2.69B	2.93B	3.55B	2.69B	2.78B
Stockholders Equity	9.09B	8.84B	8.72B	8.62B	7.87B	7.30B
Cash Flow
Free Cash Flow	0.00	-89.74M	659.36M	-248.10M	1.08B	-1.24B
Operating Cash Flow	0.00	371.37M	858.75M	191.41M	1.15B	-419.16M
Investing Cash Flow	0.00	-437.69M	-343.47M	-275.21M	-129.39M	-706.33M
Financing Cash Flow	0.00	-217.68M	-497.49M	338.63M	-109.24M	-169.92M

Taiyo Kisokogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2284.00
• 50DMA: Negative
• 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:1758, the sentiment is Neutral. The current price of 2284 is below the 20-day moving average (MA) of 2639.20, below the 50-day MA of 2617.76, and above the 200-day MA of 2196.77, indicating a neutral trend. The MACD of 2.44 indicates Positive momentum. The RSI at 33.09 is Neutral, neither overbought nor oversold. The STOCH value of 22.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1758.

Taiyo Kisokogyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9768	77 Outperform	¥30.63B	11.92	―	2.37%	3.01%	-13.60%
1758	75 Outperform	¥6.07B	21.75	―	2.03%	14.17%	―
1443	74 Outperform	¥5.23B	5.08	―	0.46%	0.58%	25.48%
4673	73 Outperform	¥3.90B	6.39	―	1.16%	29.12%	428.78%
1828	73 Outperform	¥30.80B	9.70	―	3.44%	-5.43%	34.48%
4642	70 Outperform	¥8.23B	16.79	―	2.03%	16.10%	-10.63%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%