TAISEI (1801) AI Stock Analysis

• Market Cap: ¥3.32T
• Dividend Yield: 1.83%
• Average Volume (3M): 755.97K
• Price to Earnings (P/E): 24.2
• Beta (1Y): 0.88
• Revenue Growth: 6.60%
• EPS Growth: 114.38%
• Country: JP
• Employees: 16,285
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 237.08
• Shares Outstanding: 163,185,870
• 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: ¥16,272.00
• Price Target Upside: -20.00% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 874.93
• Revenue Forecast (FY): ¥2.10T

• Rating: 67 Neutral
• Price Target: ¥20,756.00 ▲(2.05% Upside)
• Action: Downgraded Date: 01/14/26
• Date: Action: Downgraded 01/14/26

The score is driven primarily by solid financial performance (strong revenue and margin improvement and a stable balance sheet), tempered by cash flow weakness. Technically, the trend is strong but indicators show overextended momentum, and valuation appears moderate with a modest dividend yield.

Positive Factors

Revenue & Margin Improvement

TAISEI's 22.1% revenue increase and improved gross and net margins reflect sustained contract wins and better cost control across projects. Over the next months this supports stronger project throughput, steadier contribution per project and enhanced long-term profitability resilience.

Balance Sheet Strength

A conservative leverage profile (D/E ~0.37) and a healthy equity ratio provide financial flexibility for bidding and absorbing timing shocks. Improved ROE indicates efficient capital use, supporting sustainable investment capacity for large infrastructure contracts over months.

Integrated Project Capabilities

TAISEI's full-lifecycle services and exposure to both building and civil infrastructure create durable competitive advantage. Bundled offerings and design-to-maintenance capabilities support larger, higher-margin contracts and recurring service revenue across multi-year project cycles.

Negative Factors

Weak Cash Conversion

Negative free cash flow and a negative operating cash flow to net income ratio show earnings are not converting into cash, partly due to high capex. Persisting cash conversion issues can constrain working capital, limit organic investment, and increase reliance on external financing.

Eroding Equity Base

A declining stockholders' equity trend reduces the capital cushion against project overruns and weakens long-term financial flexibility. Continued erosion could elevate financing costs and restrict the firm's ability to commit equity to large, capital-intensive bids over months.

Margin Variability / Operational Risk

Variability in EBIT and EBITDA margins points to execution and cost control inconsistency across projects. In construction this raises the risk of profit volatility, complicates medium-term planning and bidding discipline, and can pressure margins if not managed consistently.

TAISEI Business Overview & Revenue Model

Company Description

Taisei Corporation engages in the civil engineering, construction contracts, and real estate development businesses in Japan and internationally. The company constructs offices, commercial facilities, factories, schools, hospitals, tunnels, bridges, dams, railways, expressways, etc.; and engineers production facilities and warehouses in the fields of pharmaceuticals, food products, and logistics. It is also involved in the redevelopment of projects, public-private partnership/private finance initiative projects, property management, and condominium sales projects; and purchase, sale, and rental of land and buildings. The company was formerly known as Nippon Doboku Corporation and changed its name to Taisei Corporation in 1946. Taisei Corporation was founded in 1873 and is headquartered in Tokyo, Japan.

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

Strong income statement trends (revenue up 22.1% YoY, improved gross and net margins) and a stable balance sheet with moderate leverage support the score. However, weak cash generation (negative free cash flow and negative operating cash flow to net income ratio) meaningfully offsets these strengths.

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	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
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	190.72B	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: 20340.00
• 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 20340 is above the 20-day moving average (MA) of 17878.50, above the 50-day MA of 16462.60, and above the 200-day MA of 11607.66, indicating a bullish trend. The MACD of 785.54 indicates Negative momentum. The RSI at 70.66 is Negative, neither overbought nor oversold. The STOCH value of 92.68 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
1719	79 Outperform	¥385.85B	13.02	16.55%	4.26%	9.49%	64.79%
1802	75 Outperform	¥3.04T	17.00	14.23%	2.47%	2.27%	70.36%
1803	75 Outperform	$2.33T	22.36	11.22%	1.48%	5.14%	773.86%
1861	74 Outperform	¥349.33B	16.73	7.62%	3.44%	7.54%	115.47%
1812	71 Outperform	$3.47T	19.26	13.03%	1.96%	10.52%	71.09%
1801	67 Neutral	¥3.32T	24.19	15.61%	1.83%	6.60%	114.38%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%