TAISEI (1801) AI Stock Analysis

• Market Cap: ¥2.29T
• Dividend Yield: 2.16%
• Average Volume (3M): 755.97K
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.83
• Revenue Growth: 6.60%
• EPS Growth: 114.38%
• Country: JP
• Employees: 16,285
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 204.88
• Shares Outstanding: 183,166,470
• 10 Day Avg. Volume: 1,052,490
• 30 Day Avg. Volume: 755,966
• PEG Ratio: 0.04
• Price to Book (P/B): 1.38
• Price to Sales (P/S): 0.56
• P/FCF Ratio: -26.18
• 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: ¥12,299.85
• Price Target Upside: 13.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥13,614.00 ▲(25.88% Upside)

TAISEI's stock score is driven by strong technical momentum and solid financial performance, despite cash flow challenges. The valuation is fair, but the overbought technical indicators suggest caution. Continued focus on cash management will be crucial for sustaining growth.

Positive Factors

Revenue Growth

Strong revenue growth indicates TAISEI's successful expansion in its market, driven by effective contract wins and project execution, enhancing its competitive position.

Profitability Improvement

Improved profitability margins reflect efficient cost management and operational effectiveness, supporting sustainable financial health and potential for reinvestment.

Balance Sheet Health

A stable balance sheet with moderate leverage provides TAISEI with financial flexibility to pursue growth opportunities and withstand economic fluctuations.

Negative Factors

Cash Flow Challenges

Negative free cash flow indicates potential liquidity issues, which could constrain TAISEI's ability to fund operations and invest in future growth without external financing.

Equity Reduction

Declining equity levels may signal financial strain or increased risk, potentially impacting TAISEI's ability to leverage its balance sheet for strategic initiatives.

Operational Margin Variability

Fluctuating operational margins suggest potential inefficiencies or market pressures, which could affect TAISEI's long-term profitability and competitive edge.

TAISEI Business Overview & Revenue Model

Company Description

TAISEI Corporation, established in 1801, is a leading Japanese construction and engineering company specializing in civil engineering, building construction, and other infrastructure projects. The company operates across various sectors, including transportation, energy, and urban development, providing innovative solutions for both public and private sector clients. TAISEI is known for its commitment to sustainability and advanced technology in construction, offering services such as project management, design, and renovation.

How the Company Makes Money

TAISEI generates revenue primarily through its construction and engineering contracts, which include large-scale infrastructure projects, commercial and residential buildings, and public works. The company earns money by bidding on and winning contracts from government entities and private companies, performing construction services, and managing the entire project lifecycle. Key revenue streams include construction services, project management fees, and design consultancy. Additionally, TAISEI may benefit from partnerships with local governments and other corporations, enabling them to secure major contracts and expand their operational footprint. Their focus on sustainable building practices and innovation also positions them favorably in securing projects that meet modern environmental standards.

TAISEI Financial Statement Overview

Summary

TAISEI shows strong revenue growth and improved profitability, with a solid balance sheet. However, cash flow challenges indicate potential liquidity issues that need addressing.

Income Statement

TAISEI demonstrates solid revenue growth, with a significant increase of 22.1% from 2024 to 2025. The gross profit margin improved to 10.73%, indicating efficient cost management. Net profit margin also increased to 5.75%, showing enhanced profitability. However, EBIT and EBITDA margins have shown variability over the years, hinting at operational challenges.

Balance Sheet

The company's balance sheet is stable with a healthy equity ratio of 35.68% in 2025, though slightly lower than previous years. The debt-to-equity ratio is moderate at 0.37, reflecting a conservative leverage strategy. ROE improved to 14.29%, indicating effective use of equity. However, a decrease in stockholders' equity over recent years could be concerning.

Cash Flow

TAISEI's cash flow statement reveals some concerns, with a negative free cash flow in 2025 driven by high capital expenditures. The operating cash flow to net income ratio is negative, indicating challenges in converting income into cash. The company needs to focus on improving cash generation to support long-term investments and debt repayments.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.14T	2.15T	1.77T	1.64T	1.54T	1.48T
Gross Profit	255.90B	231.14B	127.40B	147.77B	187.74B	218.80B
EBITDA	183.98B	197.22B	71.42B	80.48B	115.36B	146.89B
Net Income	129.97B	123.83B	40.27B	47.12B	71.44B	92.55B
Balance Sheet
Total Assets	2.21T	2.43T	2.58T	2.02T	1.96T	1.87T
Cash, Cash Equivalents and Short-Term Investments	247.05B	300.69B	434.71B	415.95B	499.11B	494.31B
Total Debt	290.46B	317.96B	378.53B	202.76B	225.23B	219.97B
Total Liabilities	1.34T	1.53T	1.62T	1.18T	1.08T	1.03T
Stockholders Equity	841.16B	866.19B	929.33B	829.19B	868.89B	840.84B
Cash Flow
Free Cash Flow	0.00	-45.78B	-81.70B	13.94B	67.28B	54.77B
Operating Cash Flow	0.00	-13.84B	40.61B	30.10B	80.51B	67.49B
Investing Cash Flow	0.00	10.53B	-138.75B	-14.06B	-37.68B	-18.68B
Financing Cash Flow	0.00	-133.77B	109.39B	-98.67B	-41.86B	-37.34B

TAISEI Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10815.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1801, the sentiment is Positive. The current price of 10815 is below the 20-day moving average (MA) of 12371.75, below the 50-day MA of 11240.52, and above the 200-day MA of 8739.67, indicating a bullish trend. The MACD of 643.57 indicates Negative momentum. The RSI at 70.63 is Negative, neither overbought nor oversold. The STOCH value of 83.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1801.

TAISEI Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1860	76 Outperform	¥358.53B	11.39	―	3.10%	18.92%	73.08%
1820	75 Outperform	¥210.85B	13.21	―	4.15%	-3.72%	59.02%
1801	74 Outperform	¥2.29T	15.33	15.61%	2.16%	6.60%	114.38%
1802	73 Outperform	¥2.00T	11.95	14.23%	3.06%	2.27%	70.36%
1812	71 Outperform	$2.79T	16.03	13.03%	2.05%	10.52%	71.09%
1803	69 Neutral	$1.41T	19.45	11.22%	1.81%	5.14%	773.86%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%