Takamatsu Construction Group Co., Ltd. (1762) AI Stock Analysis

• Market Cap: ¥124.57B
• Dividend Yield: 2.13%
• Average Volume (3M): 25.62K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.75
• Revenue Growth: 7.22%
• EPS Growth: 21.92%
• Country: JP
• Employees: 4,892
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 75.29
• Shares Outstanding: 34,818,577
• 10 Day Avg. Volume: 21,930
• 30 Day Avg. Volume: 25,623
• PEG Ratio: -0.50
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.28
• P/FCF Ratio: 25.83
• 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): 303
• Revenue Forecast (FY): ¥360.00B

• Rating: 64 Neutral
• Price Target: ¥4,185.00 ▲(4.23% Upside)
• Action: Downgraded Date: 02/14/26
• Date: Action: Downgraded 02/14/26

The score is primarily supported by solid financial structure (low leverage, healthy equity ratio) and continued revenue growth, but it is held back by weakening profitability/returns and only moderate cash-flow conversion. Technicals are mixed with softer short-term trend versus stronger longer-term averages, while valuation is reasonable with a mid-teens P/E and a ~2.19% dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.

Balance Sheet Strength

A low debt-to-equity ratio suggests financial stability and flexibility, allowing the company to invest in growth opportunities without excessive risk.

Market Position

Strong market presence and commitment to sustainability enhance competitive positioning, attracting clients and securing long-term contracts.

Negative Factors

Profitability Margins

Declining profit margins may indicate rising costs or competitive pressures, potentially impacting long-term profitability if not addressed.

Cash Flow Efficiency

Moderate cash flow efficiency suggests potential challenges in liquidity management, which could affect the company's ability to fund operations and growth.

Return on Equity

A declining ROE indicates reduced efficiency in generating returns on equity, potentially impacting investor confidence and long-term growth prospects.

Takamatsu Construction Group Co., Ltd. Business Overview & Revenue Model

Company Description

Takamatsu Construction Group Co., Ltd. engages in the construction, civil engineering, and real estate businesses in Japan. The company operates through Architecture, Civil Engineering, and Real Estate segments. It constructs urban development projects, high-rise buildings, condominiums, individual housing projects, public facilities, medical/welfare facilities, shrines/temples/churches, educational and cultural institutions, commercial facilities, and factories/warehouses. The company also provides civil engineering services for various projects, including rivers, roads, railways, ports, airports, dams, tunnels, bridges, residential developments, water and sewerage systems, erosion flood control, marine civil engineering, underwater civil engineering, and wind power plants. In addition, it rents, develops, and sells condominiums; maintains buildings; and offers real estate agency, subleasing, and financing services. The company was founded in 1917 and is headquartered in Osaka, Japan.

How the Company Makes Money

Takamatsu Construction Group generates revenue through multiple streams, primarily by executing construction contracts for public and private sector projects. The company earns money by providing general contracting services, where it manages the entire construction process and oversees subcontractors. Additionally, the company engages in civil engineering projects, which include infrastructure works such as roads, bridges, and utilities. Revenue is also supplemented by real estate development activities, where Takamatsu develops residential and commercial properties for sale or lease. Strategic partnerships with government agencies and private developers play a crucial role in securing contracts and expanding their project portfolio. Furthermore, the company may benefit from recurring maintenance and renovation services, contributing to a steady income flow.

Takamatsu Construction Group Co., Ltd. Financial Statement Overview

Summary

Revenue growth is solid (10.87% in 2025) and the balance sheet is strong with low leverage (Debt-to-Equity ~0.22; equity ratio 51%), but profitability is under pressure (net margin down to 1.86% in 2025; ROE down to 4.68%) and cash flow quality is only moderate (operating cash flow to net income ratio 0.80).

Income Statement

The company has shown a consistent increase in revenue over the last few years, with a notable revenue growth rate of 10.87% in 2025. Gross profit margin is stable, hovering around 12-13%, and net profit margin has slightly decreased from 2.93% in 2024 to 1.86% in 2025. The EBIT margin remains steady, but a slight decrease in EBITDA margin from 2024 to 2025 indicates potential efficiency issues. Overall, the company is growing but with some pressure on profitability.

Balance Sheet

The balance sheet shows a strong equity position with a Debt-to-Equity ratio of approximately 0.22 in 2025, indicating low leverage. The equity ratio is healthy at 51%, and ROE has decreased from 6.84% in 2024 to 4.68% in 2025, suggesting pressure on shareholder returns. Overall, the company maintains a solid financial structure with manageable debt levels.

Cash Flow

The company's cash flow performance is mixed. While operating cash flow has improved significantly from a negative position in 2024, the free cash flow growth rate is not calculable due to negative previous period values. The operating cash flow to net income ratio is 0.80, which indicates a moderate efficiency in converting income into cash. Cash flow management appears to have improved but remains an area for further enhancement.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2021
Income Statement
Total Revenue	347.63B	346.69B	312.68B	282.50B	263.91B	283.08B
Gross Profit	46.50B	44.63B	43.05B	42.02B	38.54B	38.31B
EBITDA	14.51B	13.05B	14.21B	13.57B	13.18B	13.74B
Net Income	7.09B	6.45B	9.16B	7.53B	6.73B	7.47B
Balance Sheet
Total Assets	257.97B	269.73B	245.15B	233.96B	236.72B	220.83B
Cash, Cash Equivalents and Short-Term Investments	32.99B	35.72B	26.79B	36.05B	67.90B	73.37B
Total Debt	18.78B	30.00B	21.00B	15.00B	32.20B	31.00B
Total Liabilities	121.27B	131.97B	111.08B	106.20B	115.25B	105.08B
Stockholders Equity	136.64B	137.71B	134.03B	127.72B	121.43B	115.72B
Cash Flow
Free Cash Flow	0.00	3.73B	-13.91B	-13.44B	-2.04B	-7.76B
Operating Cash Flow	0.00	5.13B	-10.48B	-6.28B	2.51B	-4.12B
Investing Cash Flow	0.00	-1.70B	-2.07B	-5.35B	-6.55B	-7.30B
Financing Cash Flow	0.00	5.46B	3.24B	-19.56B	-1.18B	12.34B

Takamatsu Construction Group Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4015.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1762, the sentiment is Positive. The current price of 4015 is below the 20-day moving average (MA) of 4038.50, below the 50-day MA of 4042.10, and above the 200-day MA of 3450.05, indicating a bullish trend. The MACD of 2.72 indicates Negative momentum. The RSI at 61.01 is Neutral, neither overbought nor oversold. The STOCH value of 55.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1762.

Takamatsu Construction Group Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1926	82 Outperform	¥157.39B	15.45	―	3.22%	12.23%	43.29%
1870	79 Outperform	¥106.49B	10.23	―	3.63%	35.73%	62.37%
1871	75 Outperform	¥165.19B	17.26	―	3.13%	5.39%	33.02%
1720	68 Neutral	¥173.15B	14.38	―	2.89%	20.38%	128.85%
1762	64 Neutral	¥124.57B	14.15	―	2.13%	7.22%	21.92%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1811	60 Neutral	¥67.40B	16.41	―	1.57%	11.01%	231.83%

Takamatsu Construction Group Co., Ltd. Corporate Events

Takamatsu Construction Group Releases 3Q FY2026 Analysis Outline

Takamatsu Construction Group Co., Ltd., a publicly listed Japanese construction company, released an analysis material for the third quarter of the fiscal year ending March 2026. The document outlines sections on 3Q financial results, full-year earnings and dividend forecasts, and key topics, but does not disclose specific figures or qualitative details, limiting insight into operational performance or strategic implications for stakeholders.

The most recent analyst rating on (JP:1762) stock is a Buy with a Yen4461.00 price target. To see the full list of analyst forecasts on Takamatsu Construction Group Co., Ltd. stock, see the JP:1762 Stock Forecast page.

Takamatsu Construction Group Profit More Than Doubles as FY2026 Outlook and Dividend Hike Hold

Takamatsu Construction Group reported solid results for the nine months ended December 31, 2025, with net sales rising 5.9% year-on-year to ¥262.3 billion and operating profit surging 75.3% to ¥12.0 billion, while profit attributable to owners of parent more than doubled to ¥7.1 billion, lifting basic earnings per share to ¥204.35. The company’s financial position remained robust with total assets of ¥285.7 billion and an equity ratio of 49.4%, and it maintained its full-year forecast for fiscal 2026, targeting 7.3% growth in orders to ¥420.0 billion and a 20.9% increase in profit attributable to owners of parent to ¥7.8 billion, alongside a planned increase in annual dividends to ¥90 per share, signaling confidence in earnings momentum and shareholder returns.

The firm’s net assets edged up to ¥141.3 billion from ¥137.8 billion at the previous fiscal year-end, reflecting retained earnings growth and supporting a stable capital base. With no changes in consolidation scope or accounting policies reported and no revisions to its earnings or dividend forecasts, Takamatsu Construction Group is positioning itself for continued moderate expansion in Japan’s construction market while offering investors improving profitability and a higher dividend payout.

The most recent analyst rating on (JP:1762) stock is a Buy with a Yen4461.00 price target. To see the full list of analyst forecasts on Takamatsu Construction Group Co., Ltd. stock, see the JP:1762 Stock Forecast page.