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

• Market Cap: ¥6.30B
• Dividend Yield: 4.52%
• Average Volume (3M): 81.30K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• Revenue Growth: -5.47%
• EPS Growth: -111.99%
• Country: JP
• Employees: 718
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Residential Construction
• EPS (TTM): 37.43
• Shares Outstanding: 25,775,118
• 10 Day Avg. Volume: 61,990
• 30 Day Avg. Volume: 81,296
• PEG Ratio: 0.58
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.19
• P/FCF Ratio: -6.79
• 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: 47 Neutral
• Price Target: ¥248.00 ▲(12.73% Upside)
• Action: Downgraded Date: 12/20/25
• Date: Action: Downgraded 12/20/25

The overall stock score of 47 reflects significant financial challenges, particularly in profitability and cash flow generation. Technical indicators suggest a bearish trend, and the negative P/E ratio highlights valuation concerns. The dividend yield is a positive aspect, but it is overshadowed by the company's broader financial issues.

Positive Factors

Low leverage / healthy equity

A manageable debt-to-equity and healthy equity ratio provide financial flexibility over the medium term. Low leverage reduces refinancing and interest burdens, enabling the company to sustain operations, fund selective capex or repairs, and withstand cyclical weakness in residential construction without immediate liquidity stress.

Attractive dividend yield

A recurring dividend yield near 4.6% signals a shareholder-return commitment and can anchor investor expectations. Over 2-6 months this supports capital discipline and indicates management prioritizes cash distributions, which can attract income-focused holders and constrain excessive cash burn or non-core expansion.

Stable gross profit margin

A relatively stable gross margin implies the core construction business retains pricing power or cost control at the project level. This structural resilience in project economics supports recovery of operating margins if revenue stabilizes, making profitability improvements achievable without fundamental business model changes.

Negative Factors

Negative net profitability

A negative net margin reflects persistent losses that impair retained earnings and limit reinvestment capacity. Over months this undermines ROE and could force operational cuts or asset sales to restore profitability, challenging the company’s ability to fund growth or maintain dividends without external capital.

Negative free cash flow

Sustained negative free cash flow constrains liquidity, hampers debt servicing and capex funding, and increases reliance on financing. Structurally weak cash generation reduces flexibility to invest in backlog, absorb cost inflation, or stabilize operations, heightening execution risk in a capital-intensive residential construction business.

Revenue and earnings decline

Declining revenue and a collapse in EPS point to weakening demand and operational setbacks. Over the medium term this trend can erode market share, weaken negotiating leverage with suppliers/subcontractors, and lengthen recovery time for margins, making a sustained turnaround more challenging without strategic change.

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. faces several financial challenges, particularly in profitability and cash flow generation. While the balance sheet remains stable with low leverage, the negative net income and cash flow issues pose significant risks. The company needs to address operational inefficiencies and improve cash management to enhance financial health.

Income Statement

The company shows a mixed performance in its income statement. While the gross profit margin remains relatively stable, the net profit margin has turned negative in the latest year, indicating profitability challenges. Revenue growth has been inconsistent, with recent declines. The EBIT and EBITDA margins have also weakened, reflecting operational inefficiencies.

Balance Sheet

The balance sheet is relatively stable with a manageable debt-to-equity ratio, indicating low leverage. However, the return on equity has turned negative, highlighting profitability issues. The equity ratio remains healthy, suggesting a solid capital structure.

Cash Flow

Cash flow analysis reveals significant challenges. Free cash flow has been negative, and the free cash flow to net income ratio is unfavorable, indicating cash flow issues. The operating cash flow to net income ratio is also low, reflecting weak cash generation relative to earnings.

Breakdown	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	31.46B	33.28B	34.40B	34.72B	31.05B
Gross Profit	8.13B	8.70B	8.85B	8.86B	8.54B
EBITDA	473.18M	1.52B	794.05M	945.16M	1.04B
Net Income	-93.28M	758.49M	233.50M	230.42M	477.92M
Balance Sheet
Total Assets	26.99B	27.19B	24.97B	21.65B	22.20B
Cash, Cash Equivalents and Short-Term Investments	5.33B	6.83B	3.32B	2.83B	5.68B
Total Debt	3.08B	4.00B	2.99B	49.00M	65.86M
Total Liabilities	13.95B	14.26B	12.63B	9.55B	10.25B
Stockholders Equity	13.04B	12.93B	12.34B	12.09B	11.95B
Cash Flow
Free Cash Flow	-889.14M	1.48B	-2.14B	-2.78B	2.14B
Operating Cash Flow	1.25B	3.22B	-1.86B	-2.24B	2.45B
Investing Cash Flow	-2.10B	-530.71M	-282.90M	-443.35M	-243.02M
Financing Cash Flow	-996.98M	818.29M	2.73B	-171.37M	-45.22M

Tsuchiya Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 220.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1840, the sentiment is Positive. The current price of 220 is below the 20-day moving average (MA) of 238.35, below the 50-day MA of 230.02, and below the 200-day MA of 231.68, indicating a bullish trend. The MACD of 4.97 indicates Negative momentum. The RSI at 75.73 is Negative, neither overbought nor oversold. The STOCH value of 57.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
3291	74 Outperform	¥762.90B	13.83	5.12%	4.02%	0.20%	44.96%
1928	74 Outperform	¥2.50T	12.40	11.12%	4.17%	9.27%	-11.27%
1430	68 Neutral	¥13.86B	10.88	―	4.36%	41.95%	35.36%
1911	64 Neutral	¥1.05T	9.73	11.28%	3.21%	10.17%	-19.40%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1419	56 Neutral	¥117.22B	47.87	―	5.49%	-16.48%	-77.63%
1840	47 Neutral	¥6.30B	-59.79	―	4.52%	-5.47%	-111.99%