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

• Market Cap: ¥120.57B
• Dividend Yield: 2.13%
• Average Volume (3M): 25.62K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.71
• Revenue Growth: 7.22%
• EPS Growth: 21.92%
• Country: JP
• Employees: 4,892
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 105.96
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥4,421.00 ▲(12.78% Upside)

Takamatsu Construction Group Co., Ltd. receives a solid overall score driven by strong technical analysis indicators and a robust financial structure with low debt levels. However, the score is moderated by pressures on profitability margins and the need for improved cash flow efficiency. The stock's reasonable valuation and attractive dividend yield further support its investment appeal.

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

Takamatsu Construction Group Co., Ltd. demonstrates solid financial growth with increasing revenues and a robust balance sheet characterized by low debt levels. However, profitability margins are under pressure, and cash flow efficiency needs further improvement. The company is well-positioned within its industry but should focus on enhancing profitability and cash flow management to sustain long-term growth.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: 3920.00
• 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:1762, the sentiment is Positive. The current price of 3920 is below the 20-day moving average (MA) of 3951.75, above the 50-day MA of 3673.10, and above the 200-day MA of 3143.61, indicating a bullish trend. The MACD of 71.65 indicates Positive momentum. The RSI at 61.71 is Neutral, neither overbought nor oversold. The STOCH value of 75.52 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
1871	79 Outperform	¥132.25B	15.22	―	3.18%	5.39%	33.02%
1870	79 Outperform	¥100.80B	9.67	―	3.63%	35.73%	62.37%
1762	73 Outperform	¥120.57B	13.47	―	2.13%	7.22%	21.92%
1720	69 Neutral	¥137.25B	12.92	―	2.90%	20.38%	128.85%
1879	67 Neutral	¥117.74B	8.71	―	2.83%	-3.99%	13.29%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1822	63 Neutral	¥67.63B	20.76	―	3.87%	-8.79%	―

Takamatsu Construction Group Co., Ltd. Corporate Events

Takamatsu Construction Group Reports Strong Financial Growth for First Half of 2025

Takamatsu Construction Group Co., Ltd. reported significant growth in its financial performance for the six months ended September 30, 2025, with a notable increase in net sales and profits compared to the previous year. The company’s operating profit surged by 204.4%, and profit attributable to owners of the parent increased by 746.0%, indicating a strong recovery and improved operational efficiency. This positive financial outcome positions the company favorably in the construction industry, with expectations of continued growth as reflected in their full-year forecast.