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

• Market Cap: ¥5.93B
• Dividend Yield: 2.03%
• Average Volume (3M): 3.74K
• Price to Earnings (P/E): 10.3
• 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: ¥2,869.00 ▲(25.61% Upside)

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

Balance Sheet Strength

Very low leverage and a high equity ratio reduce insolvency risk and preserve financial flexibility. This durability supports bidding on larger contracts, funding targeted equipment or bond requirements, and weathering construction cycles without forcing equity raises.

Sustainable Profitability

Consistently positive gross and operating margins indicate pricing power and operational efficiency in specialized works. Persistent margin headroom supports reinvestment, dividend capacity, and resilience to input cost swings, underpinning sustainable earnings generation.

Specialized Service Niche

Focus on foundation and geotechnical engineering creates technical barriers to entry and differentiated expertise. This niche positioning fosters repeat business for infrastructure and complex builds, enabling long-term client relationships and steady demand from maintenance and renewal cycles.

Negative Factors

Declining Revenue

A downtrend in revenue reduces scale, limits pricing leverage, and pressures investment in backlog-building activities. Persistent top-line decline can erode margins, weaken competitive positioning, and force management to prioritize short-term contract wins over strategic investments.

Negative Free Cash Flow

A meaningful decline to negative free cash flow constrains the company's ability to self-fund capex, service unexpected costs, or increase returns to shareholders. Even with positive operating cash flow, negative FCF signals working capital or investment timing issues that reduce financial optionality.

Project-Based Revenue Cyclicality

Dependence on winning discrete construction contracts creates revenue volatility and exposure to tender competition and macro construction cycles. This structurally increases execution and cash-timing risk, making multi-period growth and forecasting more challenging.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: 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:1758, the sentiment is Neutral. The current price of 2284 is below the 20-day moving average (MA) of 2643.77, below the 50-day MA of 2463.34, and above the 200-day MA of 2093.53, indicating a neutral trend. The MACD of 21.36 indicates Positive momentum. The RSI at 47.73 is Neutral, neither overbought nor oversold. The STOCH value of 28.88 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
1841	82 Outperform	¥5.68B	10.32	―	1.88%	-16.60%	-19.91%
1795	81 Outperform	¥4.11B	10.33	―	3.63%	19.00%	46.05%
1758	75 Outperform	¥5.93B	10.28	―	2.03%	14.17%	―
1764	66 Neutral	¥3.38B	7.35	―	4.09%	14.64%	48.31%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1844	61 Neutral	¥11.49B	23.17	―	2.74%	4.36%	17.63%