Tekken Corporation (1815) AI Stock Analysis

• Market Cap: ¥70.22B
• Dividend Yield: 2.73%
• Average Volume (3M): 40.82K
• Price to Earnings (P/E): 22.4
• Beta (1Y): 0.72
• Revenue Growth: -3.59%
• EPS Growth: 49.34%
• Country: JP
• Employees: 1,909
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -7.64
• 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: 64 Neutral
• Price Target: ¥5,040.00 ▲(10.89% Upside)
• Action: Reiterated Date: 02/10/26
• Date: Action: Reiterated 02/10/26

The score is held back mainly by weak cash flow (negative operating cash flow/free cash flow) and low operating profitability despite stable revenue and a relatively steady balance sheet. Technicals are a positive contributor due to a strong uptrend and positive MACD, though overbought readings add near-term risk. Valuation is fair with a moderate P/E and a decent dividend yield.

Positive Factors

Stable equity base and moderate ROE

A 31.01% equity ratio and a moderate ROE (4.91%) provide a durable capital cushion that supports ongoing operations and investment. This stable capital structure helps absorb shocks from cyclical construction demand and underpins credit access over the next several months.

Improving gross margin with flat revenue

Modest revenue growth alongside an improving gross margin (8.03%) indicates better cost control or pricing power in projects. Sustained margin improvement can drive durable operating cash generation if management maintains project discipline and input-cost controls over the medium term.

EBITDA margin improvement

An improving EBITDA margin (3.67%) signals operational leverage and efficiency gains. If sustained, higher EBITDA margins expand internal funding for working capital and capex needs, reducing reliance on external financing and improving long-term resilience in a capital-intensive sector.

Negative Factors

Negative operating and free cash flow

Persistently negative operating and free cash flow constrain the company's ability to self-fund projects, service debt, and invest. Over a multi-month horizon this raises refinancing and liquidity risk, forcing reliance on external financing or asset sales to bridge shortfalls.

Very low operating profitability

Thin EBIT and net margins (~1.8%) limit the company's capacity to absorb cost inflation, bid competitively on new contracts, or build reserves. Low operating profitability weakens long-term cash conversion and makes returns sensitive to small revenue or cost swings in construction cycles.

Rising leverage

An increased debt-to-equity ratio (~0.80) raises fixed interest obligations and reduces financial flexibility. Combined with weak cash flow, higher leverage elevates refinancing and covenant risk, constraining strategic moves and increasing vulnerability to interest-rate or demand shocks.

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

Moderate fundamentals: modest revenue growth (+0.83%) and some margin improvement (gross margin up; EBITDA margin 3.67%), but overall profitability remains low (EBIT margin 1.87%) and cash generation is weak with negative operating cash flow and negative free-cash-flow metrics. Balance sheet is relatively stable (equity ratio 31.01%) but leverage has risen (debt-to-equity 0.80).

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	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2021
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: Neutral
• Last Price: 4545.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1815, the sentiment is Neutral. The current price of 4545 is below the 20-day moving average (MA) of 5043.00, below the 50-day MA of 4851.20, and above the 200-day MA of 3705.49, indicating a neutral trend. The MACD of -47.44 indicates Positive momentum. The RSI at 40.47 is Neutral, neither overbought nor oversold. The STOCH value of 10.32 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1815.

Tekken Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1852	82 Outperform	¥91.85B	15.16	―	3.64%	18.01%	15.27%
1799	79 Outperform	¥90.28B	14.21	―	3.55%	8.02%	64.54%
9621	73 Outperform	¥98.62B	16.25	―	1.25%	2.61%	-13.38%
1882	70 Outperform	¥94.77B	26.05	―	8.02%	2.51%	4.02%
1815	64 Neutral	¥70.22B	22.38	―	2.73%	-3.59%	49.34%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1822	63 Neutral	¥77.25B	18.48	―	3.84%	-8.79%	―

Tekken Corporation Corporate Events

Tekken Corporation Books ¥1.26 Billion Gain From Sale of Policy Shareholdings

Tekken Corporation has completed the sale of three issues of listed investment securities between December 2025 and February 2026, realizing a gain of 1,258 million yen as part of its strategy to reduce policy shareholdings and improve capital efficiency. The gain from these sales has already been incorporated into the company’s full-year earnings forecast for the fiscal year ending March 2026, with the proceeds recognized as extraordinary income split between the third and fourth quarters, signaling a targeted effort to enhance returns on capital for shareholders and streamline its investment portfolio.

The most recent analyst rating on (JP:1815) stock is a Hold with a Yen5917.00 price target. To see the full list of analyst forecasts on Tekken Corporation stock, see the JP:1815 Stock Forecast page.

Tekken Overhauls Top Management as Masahito Imai Named President

Tekken Corporation announced a major leadership reshuffle, elevating Masahito Imai to President and Representative Director, while current President Yasushi Ito becomes Chairman and Representative Director, effective April 1, 2026. The move is framed as a step to strengthen the management structure for future growth, bringing Imai’s extensive experience from East Japan Railway and Hokkaido Railway into the top role.

Additional changes include the planned retirement of Director Akihiro Kusakari in June 2026 and his expected appointment as President and Representative Director of Tekken Properties Corporation, indicating a clearer separation of group leadership roles. Hiroyuki Uchida will be promoted to Director and Managing Officer overseeing the Business Administration Division, while several executive officers will retire or shift duties, signaling a broader generational transition and realignment of responsibilities across architectural, civil engineering and real estate functions.

The most recent analyst rating on (JP:1815) stock is a Hold with a Yen5917.00 price target. To see the full list of analyst forecasts on Tekken Corporation stock, see the JP:1815 Stock Forecast page.

Tekken Posts Higher Profits on Lower Sales, Raises Annual Dividend Payout

Tekken Corporation reported consolidated net sales of ¥131.99 billion for the nine months ended December 31, 2025, down 5.4% year-on-year, while operating profit rose 22.6% to ¥3.23 billion and ordinary profit jumped 37.2% to ¥3.82 billion. Profit attributable to owners of parent fell 15.4% to ¥2.73 billion and basic earnings per share declined to ¥195.69, even as total assets expanded to ¥283.84 billion and shareholders’ equity grew, diluting the equity ratio.

The company kept its full-year forecast unchanged, projecting a 3.3% decline in net sales to ¥179.0 billion but a 33.0% increase in operating profit to ¥4.6 billion and a 28.3% rise in profit attributable to owners of parent to ¥4.4 billion. Tekken also maintained its plan to lift the annual dividend from ¥122.00 to ¥160.00 per share for the year ending March 2026, signaling confidence in earnings strength and shareholder returns despite near-term revenue softness.

The most recent analyst rating on (JP:1815) stock is a Hold with a Yen5917.00 price target. To see the full list of analyst forecasts on Tekken Corporation stock, see the JP:1815 Stock Forecast page.