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

• Market Cap: ¥93.50B
• Dividend Yield: 2.71%
• Average Volume (3M): 26.65K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.74
• Revenue Growth: 10.88%
• EPS Growth: -29.60%
• Country: JP
• Employees: 4,892
• Sector: Industrials
• Sector Strength: 93
• Industry: Engineering & Construction
• EPS (TTM): 75.81
• Shares Outstanding: 34,818,577
• 10 Day Avg. Volume: 18,030
• 30 Day Avg. Volume: 26,646
• PEG Ratio: -0.64
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥2,971.00
• Price Target Upside: -2.27% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: ¥3,141.00 ▲(3.32%Upside)

The company's stock is supported by strong financial growth and a stable technical outlook. While the financial performance highlights robust revenue growth and a healthy balance sheet, profitability margins and cash flow efficiency require improvement. The technical indicators suggest a bullish trend, and the valuation appears fair, supported by a reasonable P/E ratio and a decent dividend yield. These factors combined contribute to a favorable stock assessment.

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

Company Description

Takamatsu Construction Group Co., Ltd. is a Japanese construction company that operates primarily in the construction and civil engineering sectors. The company is engaged in the design, planning, and construction of residential, commercial, and infrastructure projects. It offers a wide range of services including building construction, real estate development, and architectural design, catering to both public and private sector clients in Japan.

How the Company Makes Money

Takamatsu Construction Group Co., Ltd. generates revenue through its construction and civil engineering operations. The company earns income by undertaking various construction projects, including residential buildings, commercial facilities, and public infrastructure. Key revenue streams include contract-based construction services, real estate development, and engineering consulting. The company may also engage in partnerships or joint ventures to expand its project portfolio and enhance its service offerings. Revenue is primarily driven by project completions and the successful bidding of new contracts in the competitive Japanese construction market.

Takamatsu Construction Group Co., Ltd. Financial Statement Overview

Summary

The company 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	346.69B	312.68B	282.50B	263.91B	283.08B
Gross Profit	44.63B	43.05B	42.02B	38.54B	38.31B
EBITDA	13.69B	13.79B	13.57B	13.18B	13.83B
Net Income	6.45B	9.16B	7.53B	6.73B	7.47B
Balance Sheet
Total Assets	269.73B	245.15B	233.96B	236.72B	220.83B
Cash, Cash Equivalents and Short-Term Investments	35.72B	26.79B	36.05B	67.90B	73.37B
Total Debt	30.00B	21.00B	15.00B	32.20B	31.00B
Total Liabilities	131.97B	111.08B	106.20B	115.25B	105.08B
Stockholders Equity	137.71B	134.03B	127.72B	121.43B	115.72B
Cash Flow
Free Cash Flow	3.73B	-13.91B	-13.44B	-2.04B	-7.76B
Operating Cash Flow	5.13B	-10.48B	-6.28B	2.51B	-4.12B
Investing Cash Flow	-1.70B	-2.07B	-5.35B	-6.55B	-7.30B
Financing Cash Flow	5.46B	3.24B	-19.56B	-1.18B	12.34B

Takamatsu Construction Group Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3040.00
• 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 3040 is above the 20-day moving average (MA) of 3039.60, above the 50-day MA of 2905.08, and above the 200-day MA of 2782.00, indicating a neutral trend. The MACD of 38.95 indicates Positive momentum. The RSI at 54.19 is Neutral, neither overbought nor oversold. The STOCH value of 29.61 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	84 Outperform	¥81.97B	9.97		4.07%	4.90%	62.09%
1822	75 Outperform	¥74.66B	20.47		3.57%	-12.15%	―
1762	69 Neutral	¥93.50B	16.41		2.71%	10.88%	-29.60%
1720	69 Neutral	¥105.94B	16.14		3.76%	2.61%	-9.19%
1879	67 Neutral	¥100.55B	7.85		1.69%	10.43%	-0.74%
1870	66 Neutral	¥83.62B	14.80		2.06%	17.42%	-12.69%
Sector *	65 Neutral	€9.20B	16.82	3.99%	3.02%	2.75%	-24.44%

Takamatsu Construction Group Co., Ltd. Corporate Events

Takamatsu Construction Group Unveils New Mid-Term Business Plan

Takamatsu Construction Group has announced its new mid-term business plan spanning from FY 2026 to FY 2028, emphasizing growth through upstream and downstream expansion, development of new business domains, and strategic cash allocation. The plan also highlights the company’s focus on sustainability, shareholder returns, and U.S. market strategies, aiming to enhance its industry positioning and stakeholder value.

Takamatsu Construction Group Unveils Ambitious Mid-Term Business Plan

Takamatsu Construction Group Co., Ltd. announced a new Mid-Term Business Plan for 2026-2028, aiming to expand its business domain and strengthen its foundation by developing new business areas and optimizing its portfolio. The plan includes specific financial targets and a shareholder return policy, reflecting the company’s commitment to growth and enhanced organizational capabilities.

Takamatsu Construction Group Reports Increased Sales but Declining Profits

Takamatsu Construction Group Co., Ltd. reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a 10.9% increase in net sales to ¥346,685 million. However, the company experienced a decline in profits, with operating profit decreasing by 1.6% and ordinary profit by 6.1%. The profit attributable to owners of the parent fell by 29.6% to ¥6,452 million. Despite the profit decline, the company forecasts a positive outlook for the next fiscal year, anticipating a 7.3% increase in orders received and a 6.7% rise in net sales.

Takamatsu Construction Group Revises Financial Forecasts Amid Industry Challenges

Takamatsu Construction Group has revised its financial forecasts for the fiscal year ending March 31, 2025, citing a decrease in expected orders and sales. The revision is attributed to sluggish growth in the civil engineering segment and challenges in negotiating increased construction costs in the architectural segment, impacting operating and net income.