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

• Market Cap: ¥5.98B
• Dividend Yield: 2.03%
• Average Volume (3M): 3.74K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.59
• Revenue Growth: 14.17%
• EPS Growth: N/A
• Country: JP
• Employees: 220
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 69.67
• Shares Outstanding: 2,458,800
• 10 Day Avg. Volume: 5,640
• 30 Day Avg. Volume: 3,743
• PEG Ratio: 0.11
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.35
• P/FCF Ratio: 9.64
• 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: 68 Neutral
• Price Target: ¥2,983.00 ▲(30.60% Upside)
• Action: Downgraded Date: 03/15/26
• Date: Action: Downgraded 03/15/26

The score is primarily supported by strong financial stability (low leverage) and an improving trend setup (price above major moving averages with positive MACD). Offsetting this, cash-flow consistency is mixed and valuation is only fair (P/E ~21.7 with a ~2.19% yield), limiting upside on the composite score.

Positive Factors

Conservative balance sheet

Extremely low leverage gives durable financial flexibility for a project-driven construction firm. It reduces bankruptcy risk during project slowdowns, supports bidding for larger contracts, funds working-capital swings, and allows selective investment in equipment or capex without relying on external debt.

Rebound in revenue and profitability

A meaningful top-line recovery and improved net and EBITDA margins show the company can restore earnings when demand returns. This demonstrates resilience in winning contracts and operational leverage potential, supporting a multi-month improvement in earnings capacity if project influx persists.

Specialized geotechnical niche

Concentration in foundation and ground-improvement services creates a structural competitive edge: specialized know-how, equipment, and certifications are barriers to entry. This niche exposure aligns with steady infrastructure and maintenance demand, supporting repeat contracts and pricing power over time.

Negative Factors

Volatile cash generation

Operating and free cash flows have swung materially across years, with negative FCF in several periods. For a contractor with project timing swings, inconsistent cash conversion pressures liquidity and forces reliance on retained equity, limiting reliable reinvestment, dividend stability, and smoothing of working-capital needs.

Cyclical and pressured margins

Profitability is sensitive to project mix and cost pressures; margins improved but are still below earlier peaks. In a cyclical construction market, margin recovery is not guaranteed and prolonged cost inflation or adverse contract mix could compress long-term profitability and return volatility for shareholders.

Moderate returns on equity

A modest ROE indicates the company generates limited returns from its equity base. Persistently low capital efficiency can constrain shareholder value creation, requiring either higher-margin contracts, better asset utilization, or scale expansion to materially lift long-term returns.

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 makes money primarily by contracting and executing specialized construction works, with revenue recognized from project-based contracts. Its core revenue stream comes from providing foundation and geotechnical engineering services (such as foundation works and ground-related construction methods) for customers undertaking building and infrastructure projects. Earnings are driven by the volume and value of contracts won, the company’s ability to deliver projects profitably (through cost control, utilization of specialized equipment/engineering methods, and project management), and overall demand for construction and infrastructure maintenance/renewal. Specific breakdowns of revenue by segment, major customers, or material partnerships: null.

Taiyo Kisokogyo Co., Ltd. Financial Statement Overview

Summary

Strong balance-sheet strength (very low leverage; Balance Sheet Score 86) supports resilience. Income performance rebounded in 2026 (Income Statement Score 66) but margins are still below prior peaks, and cash generation remains uneven (Cash Flow Score 55) with historical volatility.

Income Statement

Revenue rebounded strongly in 2026 (annual revenue growth of ~65.5%) after a weaker 2024–2025 period, and profitability improved meaningfully versus 2025 (net margin ~3.2% and EBITDA margin ~6.0%). However, margins remain below the stronger 2022–2023 levels (when net margins were ~3.7%–4.2% and EBITDA margins ~8%+), indicating earnings power can be cyclical and sensitive to project mix and cost pressures.

Balance Sheet

The balance sheet is conservatively positioned with very low leverage (debt-to-equity ~0.016 in 2026) and a sizable equity base relative to assets. Returns on equity are positive but moderate (~4.9% in 2026), below prior peaks (notably 2023), suggesting strong financial stability but room to improve capital efficiency.

Cash Flow

Cash generation is mixed: 2026 shows positive operating cash flow (~¥898m) and positive free cash flow (~¥528m), a clear improvement from 2025’s negative free cash flow. That said, cash flows have been volatile across years (including negative free cash flow in 2021 and 2023), and operating cash flow has been a modest share of reported earnings in recent periods, pointing to working-capital/project timing swings that can pressure cash conversion.

Breakdown	TTM	Jan 2026	Jan 2025	Jan 2024	Jan 2023	Jan 2022
Income Statement
Total Revenue	14.42B	14.51B	13.48B	14.57B	14.71B	12.93B
Gross Profit	1.43B	1.42B	1.14B	1.33B	1.65B	1.44B
EBITDA	766.15M	870.94M	588.39M	576.75M	1.14B	963.01M
Net Income	394.37M	462.98M	229.76M	212.22M	613.52M	474.02M
Balance Sheet
Total Assets	11.70B	12.44B	11.72B	11.84B	12.27B	10.64B
Cash, Cash Equivalents and Short-Term Investments	4.24B	4.05B	3.57B	3.61B	3.54B	3.46B
Total Debt	64.90M	148.72M	139.24M	287.40M	434.90M	126.53M
Total Liabilities	2.60B	2.95B	2.88B	3.13B	3.65B	2.77B
Stockholders Equity	9.09B	9.50B	8.84B	8.72B	8.62B	7.87B
Cash Flow
Free Cash Flow	0.00	527.54M	-87.00M	669.09M	-244.12M	1.08B
Operating Cash Flow	0.00	898.17M	371.37M	858.75M	191.41M	1.15B
Investing Cash Flow	0.00	-159.18M	-437.69M	-343.47M	-275.21M	-129.39M
Financing Cash Flow	0.00	-89.80M	-217.68M	-497.49M	338.63M	-109.24M

Taiyo Kisokogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2284.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1758, the sentiment is Negative. The current price of 2284 is below the 20-day moving average (MA) of 2640.85, below the 50-day MA of 2637.95, and above the 200-day MA of 2232.90, indicating a neutral trend. The MACD of 7.58 indicates Negative momentum. The RSI at 46.33 is Neutral, neither overbought nor oversold. The STOCH value of 80.51 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥28.74B	11.92	―	2.37%	3.01%	-13.60%
1443	74 Outperform	¥5.28B	5.08	―	0.46%	0.58%	25.48%
4673	73 Outperform	¥3.70B	6.39	―	1.16%	29.12%	428.78%
1828	73 Outperform	¥29.02B	9.70	―	3.44%	-5.43%	34.48%
4642	70 Outperform	¥8.42B	16.79	―	2.03%	16.10%	-10.63%
1758	68 Neutral	¥5.98B	10.98	―	2.03%	14.17%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%