Tanabe Engineering Corporation (1828) AI Stock Analysis

• Market Cap: ¥29.83B
• Dividend Yield: 3.44%
• Average Volume (3M): 9.65K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.65
• Revenue Growth: -5.43%
• EPS Growth: 34.48%
• Country: JP
• Employees: 1,061
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 53.30
• Shares Outstanding: 10,728,000
• 10 Day Avg. Volume: 7,920
• 30 Day Avg. Volume: 9,646
• PEG Ratio: 0.23
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 1.91
• 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: 73 Outperform
• Price Target: ¥3,098.00 ▲(18.24% Upside)

Tanabe Engineering Corporation's strong financial performance and attractive valuation are the primary drivers of its overall score. The technical analysis indicates some short-term weakness, but the stock's low P/E ratio and solid dividend yield make it appealing for long-term investors. The absence of earnings call data and corporate events does not impact the overall score.

Positive Factors

Profitability & Margins

Consistently healthy gross margins (above 15%) and improving net margins indicate durable operational efficiency and pricing power. Over 2-6 months this supports sustained cash generation, resilience to cost swings, and capacity to fund reinvestment or shareholder distributions without eroding core profitability.

Balance Sheet Strength

A robust equity base and low leverage provide long-term financial flexibility for bidding on projects, absorbing contract delays, and funding capex without urgent refinancing. This conservatism reduces default and liquidity risk and underpins strategic optionality in downturns.

Free Cash Flow Generation

Recent strong free cash flow enhances liquidity and supports sustainable investment in operations, maintenance capex, and shareholder returns. Durable FCF improves credit metrics and provides runway for selective M&A or backlog financing, strengthening long-term competitive positioning.

Negative Factors

Revenue Decline & Variability

A recent revenue decline amid historically fluctuating top-line growth undermines predictability of earnings and utilization. For an engineering & construction firm, this makes backlog and capacity planning harder, compresses scale benefits, and raises execution and bidding risk over the medium term.

Volatile Free Cash Flow History

While latest-year FCF was strong, a history of volatile free cash flow complicates multi-quarter planning for capex, dividends, and debt servicing. This variability increases refinancing and covenant risk during downturns and reduces reliability of cash for strategic initiatives.

Cyclicality & Low Liquidity

Operating in the cyclical engineering & construction sector exposes revenue and margins to economic swings and public investment cycles. Low average trading volume also implies limited liquidity, making equity raises and exits more costly and potentially deterring larger institutional holders over time.

Tanabe Engineering Corporation Business Overview & Revenue Model

Company Description

Tanabe Engineering Corporation engages in plant construction and machinery production activities in Japan. The company offers plant engineering services, including planning, design, purchasing, construction, trial operation, and maintenance. It also engages in the design and construction of electric instrumentation and control systems fitting, as well as the integrated construction of machinery and electricity; and provision of automated/work-saving equipment for industrial fields, such as automobile, liquid crystal, pharmaceutical, etc. Further, the company designs and produces thermal machinery/industrial furnaces. Tanabe Engineering Corporation was incorporated in 1969 and is headquartered in Joetsu, Japan.

How the Company Makes Money

Tanabe Engineering Corporation generates revenue through multiple streams, primarily by selling its specialized machinery and equipment to manufacturers in the semiconductor and electronics sectors. The company earns money from direct sales of its products, which include advanced fabrication tools and automated systems. Additionally, Tanabe benefits from offering maintenance and support services to its clients, creating a recurring revenue model. Strategic partnerships with major technology firms enhance its market reach and provide opportunities for collaborative product development, further contributing to its earnings. The company may also engage in research and development projects funded by governmental or private sector contracts, adding to its revenue base.

Tanabe Engineering Corporation Financial Statement Overview

Summary

Tanabe Engineering Corporation shows strong profitability with consistent gross profit margins and improving net profit margins. The balance sheet is robust with a low debt-to-equity ratio and strong equity. Cash flow is solid but has shown historical volatility. Overall, the company is financially stable with efficient operations.

Income Statement

Tanabe Engineering Corporation has demonstrated solid profitability with a consistent gross profit margin above 15% and improving net profit margin over the years. The revenue growth rate, however, has been fluctuating, with a recent decline from the previous year. EBIT and EBITDA margins are healthy, highlighting efficient operational control.

Balance Sheet

The company's balance sheet shows strong equity with an improving equity ratio, indicating financial stability. The debt-to-equity ratio is low, reflecting prudent leverage management. Return on equity is positive, suggesting effective use of shareholder funds.

Cash Flow

The cash flow analysis reveals strong free cash flow generation in the latest year, enhancing liquidity. The operating cash flow to net income ratio indicates robust cash conversion, but historical volatility in free cash flow growth needs attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	50.31B	50.83B	51.84B	42.94B	42.53B	38.12B
Gross Profit	8.75B	8.73B	7.33B	7.23B	6.94B	6.58B
EBITDA	4.59B	4.59B	3.36B	3.37B	3.50B	3.24B
Net Income	2.62B	2.59B	1.90B	1.66B	1.87B	1.75B
Balance Sheet
Total Assets	45.02B	45.98B	46.24B	37.57B	35.09B	33.31B
Cash, Cash Equivalents and Short-Term Investments	9.81B	10.85B	3.29B	6.17B	5.12B	4.53B
Total Debt	1.62B	1.43B	5.09B	1.36B	1.19B	2.03B
Total Liabilities	20.43B	20.99B	23.61B	16.61B	15.73B	15.49B
Stockholders Equity	24.58B	24.98B	22.63B	20.97B	19.37B	17.82B
Cash Flow
Free Cash Flow	0.00	11.57B	-5.89B	1.20B	1.75B	195.00M
Operating Cash Flow	0.00	12.93B	-4.74B	1.83B	3.05B	1.63B
Investing Cash Flow	0.00	-1.28B	-1.09B	-647.69M	-1.35B	-1.13B
Financing Cash Flow	0.00	-4.17B	2.90B	-196.40M	-1.19B	367.94M

Tanabe Engineering Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2620.00
• 50DMA: Positive
• 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:1828, the sentiment is Positive. The current price of 2620 is below the 20-day moving average (MA) of 2760.85, above the 50-day MA of 2603.06, and above the 200-day MA of 2391.21, indicating a bullish trend. The MACD of 47.31 indicates Positive momentum. The RSI at 59.90 is Neutral, neither overbought nor oversold. The STOCH value of 62.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1828.

Tanabe Engineering Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1780	76 Outperform	¥27.82B	7.92	―	2.03%	26.15%	64.47%
1827	75 Outperform	¥43.37B	13.73	―	1.96%	2.55%	-14.37%
1828	73 Outperform	¥29.83B	10.40	―	3.44%	-5.43%	34.48%
1866	72 Outperform	¥38.31B	14.18	―	2.04%	-3.21%	-45.14%
1811	69 Neutral	¥56.30B	13.74	―	1.57%	11.01%	231.83%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1826	59 Neutral	¥14.64B	24.78	―	5.36%	-3.19%	109.84%

Tanabe Engineering Corporation Corporate Events

Tanabe Engineering Reports Increased Profits Amid Slight Sales Decline

Tanabe Engineering Corporation reported its consolidated financial results for the six months ended September 30, 2025, showing a slight decrease in net sales by 0.8% compared to the previous year. Despite this, the company achieved a notable increase in operating profit by 10.6% and profit attributable to owners by 18%, indicating improved operational efficiency. The company also forecasts a positive outlook for the full year ending March 31, 2026, with expected increases in net sales and profits, suggesting a stable financial position and potential growth opportunities for stakeholders.

The most recent analyst rating on (JP:1828) stock is a Buy with a Yen2591.00 price target. To see the full list of analyst forecasts on Tanabe Engineering Corporation stock, see the JP:1828 Stock Forecast page.