Tekken Corporation (1815) AI Stock Analysis

• Market Cap: ¥76.63B
• Dividend Yield: 2.73%
• Average Volume (3M): 40.82K
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.73
• Revenue Growth: -3.59%
• EPS Growth: 49.34%
• Country: JP
• Employees: 1,909
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 111.04
• Shares Outstanding: 14,973,956
• 10 Day Avg. Volume: 48,650
• 30 Day Avg. Volume: 40,820
• PEG Ratio: -0.74
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.19
• P/FCF Ratio: -1.70
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥5,311.00 ▲(16.85% Upside)

The overall stock score is driven by strong technical indicators and reasonable valuation metrics. However, financial performance is hindered by cash flow challenges and increasing leverage, which are significant risks that need addressing.

Positive Factors

Diversified B2B revenue streams and service contracts

A diversified product mix across semiconductors, consumer electronics and industrial automation plus recurring service contracts and tech partnerships supports revenue stability and cross‑sell opportunities. This reduces exposure to any single end market and supports predictable mid‑term cash generation.

Improving gross and EBITDA margins

Observed improvement in gross and EBITDA margins indicates progress on pricing, cost control or higher‑value product mix. Sustained margin expansion would enhance operating leverage and allow reinvestment in R&D, strengthening competitive positioning over the next several quarters.

Stable equity base and moderate ROE

A stable equity base and positive ROE provide a capital buffer and demonstrate the company can generate returns on shareholder funds. This supports resilience to shocks, access to capital markets if needed, and the ability to pursue strategic investments without immediate equity dilution.

Negative Factors

Negative operating cash flow and weak free cash flow

Persistent negative operating cash flow undermines the firm's ability to self‑fund capital expenditures, service debt, or sustain dividends. Over months this raises reliance on external financing, increasing interest costs and reducing flexibility for strategic investments or margin improvements.

Rising leverage (higher debt-to-equity)

An elevated and rising debt burden increases fixed interest obligations and financial risk. Higher leverage can pressure credit metrics, limit the company's ability to invest in growth initiatives, and magnify earnings volatility if markets or margins deteriorate over the medium term.

Thin operating profitability (low EBIT and net margins)

Very low EBIT and net margins leave little buffer against cost shocks or pricing pressure. Structural margin weakness constrains free cash flow potential and the capacity to fund R&D or product development, making durable competitive improvements harder without efficiency gains or higher‑margin products.

Tekken Corporation Business Overview & Revenue Model

Company Description

Tekken Corporation engages in the construction business in Japan and internationally. It constructs infrastructure projects, including roads, tunnels, bridges, water supply and sewerage facilities, revetments, etc.; railway projects, such as grade-separated intersections, tunnels, bridges, embankments, railway station buildings, train depots, etc.; and commercial buildings, schools, and medical and welfare facilities. The company was founded in 1944 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Tekken Corporation generates revenue through multiple streams, primarily through the sale of its technologically advanced products, including semiconductors and consumer electronics. The company operates a B2B model, supplying its products to various sectors such as telecommunications, automotive, and manufacturing industries. Additionally, Tekken earns revenue through service contracts related to the installation and maintenance of its automation systems. Significant partnerships with major tech firms and collaborations with research institutions also contribute to its earnings, enabling Tekken to leverage joint ventures and shared technology initiatives that enhance product offerings and market reach.

Tekken Corporation Financial Statement Overview

Summary

Tekken Corporation shows moderate revenue growth and a stable balance sheet, but faces challenges with cash flow management and profitability. Increasing leverage and negative cash flows present potential risks.

Income Statement

Tekken Corporation shows moderate revenue growth with a 0.83% increase in the latest year. The gross profit margin is improving at 8.03%, and the net profit margin is stable at 1.85%. However, the EBIT margin remains low at 1.87%. Despite EBITDA margin improvements to 3.67%, profitability is pressured by fluctuating margins.

Balance Sheet

The balance sheet reflects a stable equity base with an equity ratio of 31.01%. However, the debt-to-equity ratio has increased to 0.80, indicating higher leverage. ROE is moderate at 4.91%, suggesting reasonable returns on equity despite rising debt levels.

Cash Flow

Cash flow analysis reveals negative operating cash flow, resulting in a negative free cash flow growth rate. The operating cash flow to net income ratio is unfavorable, highlighting cash flow challenges. Free cash flow to net income ratio is negative, indicating the need for improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	185.43B	185.11B	183.59B	160.74B	151.55B	182.02B
Gross Profit	16.27B	14.86B	11.93B	11.97B	15.11B	15.79B
EBITDA	5.76B	6.79B	7.55B	4.84B	7.32B	7.57B
Net Income	2.63B	3.43B	4.26B	2.36B	4.71B	4.39B
Balance Sheet
Total Assets	241.01B	225.10B	211.27B	183.40B	173.08B	185.24B
Cash, Cash Equivalents and Short-Term Investments	16.93B	16.53B	18.61B	17.19B	19.30B	17.95B
Total Debt	82.25B	55.93B	34.25B	30.03B	28.98B	30.18B
Total Liabilities	169.53B	154.98B	139.14B	117.85B	109.15B	122.19B
Stockholders Equity	71.15B	69.81B	71.83B	65.08B	63.47B	62.59B
Cash Flow
Free Cash Flow	0.00	-20.77B	-4.29B	-721.00M	5.12B	4.15B
Operating Cash Flow	0.00	-20.29B	3.97B	-219.00M	5.27B	4.23B
Investing Cash Flow	0.00	615.00M	-4.29B	-2.49B	-810.00M	-1.72B
Financing Cash Flow	0.00	17.93B	1.15B	580.00M	-3.43B	-3.71B

Tekken Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4545.00
• 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:1815, the sentiment is Positive. The current price of 4545 is above the 20-day moving average (MA) of 4540.50, above the 50-day MA of 4192.20, and above the 200-day MA of 3328.47, indicating a bullish trend. The MACD of 204.36 indicates Negative momentum. The RSI at 87.00 is Negative, neither overbought nor oversold. The STOCH value of 94.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1815.

Tekken Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1899	79 Outperform	¥69.71B	11.65	―	2.56%	1.71%	14.20%
1929	75 Outperform	¥56.90B	16.95	―	3.78%	11.81%	52.35%
1967	73 Outperform	¥54.85B	12.56	―	2.19%	5.45%	86.27%
1815	69 Neutral	¥76.63B	17.17	―	2.73%	-3.59%	49.34%
1811	69 Neutral	¥60.52B	14.77	―	1.57%	11.01%	231.83%
1813	65 Neutral	¥44.91B	14.78	―	2.26%	12.93%	98.16%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Tekken Corporation Corporate Events

Tekken Corporation to Sell Investment Securities for Capital Efficiency

Tekken Corporation has announced its decision to sell a portion of its investment securities to reduce policy shareholdings and improve capital efficiency. The sale, expected to generate approximately 1.3 billion yen, will take place between November 14, 2025, and March 31, 2026, and its impact has already been reflected in the company’s earnings forecast for the fiscal year ending March 2026.

The most recent analyst rating on (JP:1815) stock is a Hold with a Yen3946.00 price target. To see the full list of analyst forecasts on Tekken Corporation stock, see the JP:1815 Stock Forecast page.