Tsuchiya Holdings Co., Ltd. (1840) AI Stock Analysis

• Market Cap: ¥5.57B
• Dividend Yield: 4.52%
• Average Volume (3M): 81.30K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.53
• Revenue Growth: -11.79%
• EPS Growth: 817.61%
• Country: JP
• Employees: 718
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Residential Construction
• EPS (TTM): -13.43
• Shares Outstanding: 25,775,118
• 10 Day Avg. Volume: 61,990
• 30 Day Avg. Volume: 81,296
• PEG Ratio: 0.03
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 3.47
• 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: 72 Outperform
• Price Target: ¥282.00 ▲(27.60% Upside)

The stock's overall score is driven by strong valuation metrics, including a low P/E ratio and high dividend yield, making it attractive for value and income investors. Financial performance is solid, with strong profitability and a robust balance sheet, though cash flow stability remains a concern. Technical indicators suggest potential for a short-term reversal, but current trends are bearish.

Positive Factors

Strong Profitability

Strong profitability indicates effective cost management and operational efficiency, which can support long-term financial health and investment capacity.

Robust Balance Sheet

A robust balance sheet with low leverage enhances financial stability and reduces risk, enabling the company to withstand economic fluctuations.

Improved Cash Management

Positive free cash flow indicates better liquidity management, allowing for reinvestment in growth opportunities and debt reduction.

Negative Factors

Revenue Decline

Declining revenue can signal challenges in market demand or competitive positioning, potentially impacting long-term growth prospects.

Cash Flow Volatility

Volatile cash flows can lead to liquidity issues, limiting the company's ability to invest in growth and meet financial obligations consistently.

Fluctuating EBIT Margins

Inconsistent EBIT margins may reflect operational inefficiencies or cost management issues, affecting profitability and competitive edge.

Tsuchiya Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Tsuchiya Holdings Co., Ltd., through its subsidiaries, operates in the construction industry in Japan. The company provides construction services, including construction of new homes and renovation of buildings. It also offers real estate and renting services; and construction, installation, and operation services for industrial solar panels, as well as handles buildings comprising stores and public facilities. The company was formerly known as Tsuchiya Home Co., Ltd. and changed its name to Tsuchiya Holdings Co., Ltd. in November 2008. Tsuchiya Holdings Co., Ltd. was founded in 1969 and is headquartered in Sapporo, Japan.

How the Company Makes Money

Tsuchiya Holdings generates revenue through multiple streams primarily centered around its construction and real estate activities. The company earns money by undertaking large-scale civil engineering projects, which may include roads, bridges, and other infrastructure developments. Additionally, it profits from residential and commercial real estate development, where it designs, constructs, and sells properties. Tsuchiya Holdings also engages in property management services, providing maintenance and operational oversight for buildings, which contributes to its ongoing revenue. Significant partnerships with government agencies and private sector clients for public works projects are crucial to its earnings, along with a focus on sustainable construction practices that can attract environmentally conscious investors and clients.

Tsuchiya Holdings Co., Ltd. Financial Statement Overview

Summary

Tsuchiya Holdings Co., Ltd. displays strong profitability and a robust balance sheet, with effective equity management and low leverage. However, challenges in revenue growth and cash flow stability highlight areas for potential improvement.

Income Statement

Gross profit margin is solid, showing consistent profitability despite slight revenue declines in recent years. Net profit margin has improved significantly, indicating effective cost management. However, the recent revenue decline and fluctuating EBIT margins suggest potential operational challenges.

Balance Sheet

The company maintains a strong equity base with a favorable debt-to-equity ratio, suggesting low financial leverage and risk. Return on equity has been stable, indicating efficient use of equity capital. The equity ratio is healthy, reflecting strong asset financing through equity.

Cash Flow

Cash flow from operations has been volatile, with a recent turnaround to positive free cash flow, demonstrating improved cash management. However, historical negative free cash flows and inconsistent operating cash flow indicate potential liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	30.67B	33.28B	34.40B	34.72B	31.05B	28.74B
Gross Profit	8.49B	8.70B	8.85B	8.86B	8.54B	7.45B
EBITDA	1.28B	1.52B	794.05M	945.16M	1.04B	-214.62M
Net Income	566.93M	758.49M	233.50M	230.42M	477.92M	-788.50M
Balance Sheet
Total Assets	30.41B	27.19B	24.97B	21.65B	22.20B	19.47B
Cash, Cash Equivalents and Short-Term Investments	3.93B	6.83B	3.32B	2.83B	5.68B	3.53B
Total Debt	7.78B	4.00B	2.99B	49.00M	65.86M	58.41M
Total Liabilities	18.37B	14.26B	12.63B	9.55B	10.25B	8.00B
Stockholders Equity	12.04B	12.93B	12.34B	12.09B	11.95B	11.47B
Cash Flow
Free Cash Flow	0.00	1.48B	-2.14B	-2.78B	2.14B	-391.22M
Operating Cash Flow	0.00	3.22B	-1.86B	-2.24B	2.45B	176.00M
Investing Cash Flow	0.00	-530.71M	-282.90M	-443.35M	-243.02M	-46.49M
Financing Cash Flow	0.00	818.29M	2.73B	-171.37M	-45.22M	-173.35M

Tsuchiya Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 221.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1840, the sentiment is Negative. The current price of 221 is below the 20-day moving average (MA) of 223.85, below the 50-day MA of 235.59, and below the 200-day MA of 228.25, indicating a neutral trend. The MACD of -4.78 indicates Negative momentum. The RSI at 44.06 is Neutral, neither overbought nor oversold. The STOCH value of 91.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:1840.

Tsuchiya Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1840	72 Outperform	¥5.57B	9.54	―	4.52%	-11.79%	817.61%
1430	68 Neutral	¥11.19B	6.98	―	4.58%	41.95%	35.36%
1420	64 Neutral	¥7.83B	7.07	―	3.58%	10.75%	117.39%
1873	62 Neutral	¥12.60B	35.79	―	3.50%	―	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8904	54 Neutral	¥11.73B	18.56	―	4.59%	-2.47%	7.50%
2999	46 Neutral	¥4.30B	10.69	―	2.18%	-11.99%	―