Tanabe Engineering Corporation (1828) AI Stock Analysis

• Market Cap: ¥31.52B
• Dividend Yield: 3.44%
• Average Volume (3M): 9.65K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.67
• Revenue Growth: -5.43%
• EPS Growth: 34.48%
• Country: JP
• Employees: 1,061
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 67.52
• 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: ¥3,277.00 ▲(25.08% Upside)
• Action: Reiterated Date: 11/01/25
• Date: Action: Reiterated 11/01/25

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

Balance sheet strength

Low leverage and an improving equity ratio provide durable financial flexibility: supports bidding on large projects, funds capital expenditure, sustains dividends and helps absorb cyclical downturns without urgent refinancing. This underpins long-term operational stability and strategic optionality.

Free cash flow generation

Strong FCF and high cash conversion indicate the company can internally fund capex, working capital and shareholder returns without overreliance on external markets. Persistent free cash flow strengthens liquidity, supports debt reduction and enables reinvestment over the medium term.

Margin quality and profitability

Sustained gross margins above 15% and improving net margins reflect operational efficiency and pricing discipline. Healthy EBIT/EBITDA margins support competitive bidding, help absorb input cost swings, and make profitability more resilient across project cycles over the coming months.

Negative Factors

Declining revenue and EPS

Negative revenue and EPS growth indicate recent demand softness or margin pressure. Continued top-line and earnings contraction weakens backlog visibility, erodes operating leverage, limits internal reinvestment and dividend capacity, and hampers the firm’s ability to expand or absorb shocks over several quarters.

Revenue volatility and recent decline

Fluctuating revenue with a recent decline reduces predictability of project wins, backlog and cash inflows. For a project-driven engineering firm, volatile top-line undermines capacity planning, margin leverage and contractor credibility with clients and lenders, impacting medium-term stability.

Free cash flow volatility

Historical variability in free cash flow presents a structural risk despite a strong latest-year result. Irregular cash generation can force external financing at unfavorable times, pressure dividend or capex plans, and increase refinancing and liquidity risk across business cycles.

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	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2021
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: Negative
• 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 2842.40, below the 50-day MA of 2755.92, and above the 200-day MA of 2466.56, indicating a bullish trend. The MACD of 38.21 indicates Negative momentum. The RSI at 64.26 is Neutral, neither overbought nor oversold. The STOCH value of 76.48 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
9768	77 Outperform	¥31.56B	13.72	―	2.37%	3.01%	-13.60%
1960	73 Outperform	¥22.84B	11.42	―	2.97%	22.32%	5024.88%
9621	73 Outperform	¥95.79B	16.27	―	1.25%	2.61%	-13.38%
1828	73 Outperform	¥31.52B	11.49	―	3.44%	-5.43%	34.48%
2311	70 Outperform	¥7.25B	17.40	―	3.77%	11.25%	26.01%
4642	70 Outperform	¥8.30B	16.96	―	2.03%	16.10%	-10.63%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Tanabe Engineering Corporation Corporate Events

Tanabe Engineering Posts Stable Nine-Month Earnings and Raises Dividend Outlook

Tanabe Engineering Corporation reported nine-month net sales to December 31, 2025 of ¥38.09 billion, essentially flat year on year, while operating profit was unchanged at ¥3.10 billion and ordinary profit dipped slightly. Profit attributable to owners of the parent rose 3.7% to ¥2.15 billion, lifting earnings per share to ¥204.89 and helping boost the equity ratio from 54.3% at the previous fiscal year-end to 59.1%.

Total assets fell to ¥44.50 billion from ¥45.98 billion, but net assets increased to ¥26.33 billion, reflecting an improvement in the company’s financial position. The company maintained a zero interim dividend for the year ending March 31, 2026 but plans to raise the full-year dividend to ¥92.00 per share, and it forecasts full-year net sales of ¥53.0 billion and profit attributable to owners of ¥2.7 billion, indicating modest growth expectations and a stable outlook for shareholders.

The most recent analyst rating on (JP:1828) stock is a Buy with a Yen3093.00 price target. To see the full list of analyst forecasts on Tanabe Engineering Corporation stock, see the JP:1828 Stock Forecast page.