TAISEI (1801) AI Stock Analysis

• Market Cap: ¥2.54T
• Dividend Yield: 1.83%
• Average Volume (3M): 755.97K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.96
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 904.79
• Revenue Forecast (FY): ¥2.11T

• Rating: 67 Neutral
• Price Target: ¥22,123.00 ▲(27.58% 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

Diversified end-to-end business model

TAISEI's full‑lifecycle service offering and presence in both private and public sectors create structural resilience. Capturing work across planning, design, construction and maintenance smooths revenue volatility, supports cross‑sell, and preserves margins over multi‑year projects.

Strong revenue and margin improvement

Material top‑line growth with concurrent gross and net margin expansion signals improved bidding, cost control and project execution. These operational improvements support sustained profitability and reinvestment capacity if the company maintains contract discipline and cost management.

Stable balance sheet and conservative leverage

A conservative leverage profile and healthy equity ratio give the company funding flexibility for large projects and capital spending. Improved ROE indicates more efficient use of equity, supporting long‑term financial stability and ability to withstand sector cyclicality.

Negative Factors

Weak cash generation

Persistent negative free cash flow and poor cash conversion undermine the company's ability to self‑fund growth, service debt, and build liquidity. If high capex does not translate into durable returns, financing reliance rises and strategic flexibility is reduced over the coming months.

Earnings margin variability

Volatile operating margins point to project execution, contract mix, or cost control inconsistency. Such variability reduces earnings predictability, complicates long‑term planning and bidding strategy, and can erode competitive positioning on large, fixed‑price contracts.

Decline in stockholders' equity

A falling equity base weakens the capital buffer against project losses and limits borrowing headroom. Over months this can constrain ability to scale bid capacity, support working capital needs, or absorb unexpected cost overruns, increasing financial vulnerability.

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	2.05T	2.15T	1.77T	1.64T	1.54T	1.48T
Gross Profit	292.30B	237.92B	127.40B	147.77B	187.74B	218.80B
EBITDA	181.50B	136.34B	39.18B	66.11B	107.03B	140.91B
Net Income	142.62B	123.83B	40.27B	47.13B	71.44B	92.55B
Balance Sheet
Total Assets	2.61T	2.50T	2.58T	2.02T	1.96T	1.87T
Cash, Cash Equivalents and Short-Term Investments	264.40B	300.69B	434.71B	415.95B	499.11B	494.31B
Total Debt	607.88B	317.96B	378.53B	202.76B	225.23B	219.97B
Total Liabilities	1.71T	1.59T	1.62T	1.18T	1.08T	1.03T
Stockholders Equity	862.30B	866.19B	929.33B	829.19B	868.89B	840.85B
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: Neutral
• Last Price: 17340.00
• 50DMA: Negative
• 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:1801, the sentiment is Neutral. The current price of 17340 is below the 20-day moving average (MA) of 18323.00, below the 50-day MA of 17402.20, and above the 200-day MA of 12377.62, indicating a neutral trend. The MACD of -170.07 indicates Positive momentum. The RSI at 41.90 is Neutral, neither overbought nor oversold. The STOCH value of 29.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥335.93B	11.11	16.55%	4.26%	9.49%	64.79%
1802	75 Outperform	¥2.53T	10.54	14.23%	2.47%	2.27%	70.36%
1803	75 Outperform	¥1.83T	12.97	11.22%	1.48%	5.14%	773.86%
1861	74 Outperform	¥272.89B	9.47	7.62%	3.44%	7.54%	115.47%
1812	71 Outperform	¥2.79T	15.14	13.56%	1.96%	10.52%	71.09%
1801	67 Neutral	¥2.54T	15.64	16.64%	1.83%	6.60%	114.38%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%