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

• Market Cap: ¥5.77B
• Dividend Yield: 4.52%
• Average Volume (3M): 81.30K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.62
• Revenue Growth: -5.47%
• EPS Growth: -111.99%
• Country: JP
• Employees: 718
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Residential Construction
• EPS (TTM): -22.34
• 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: ¥239.00 ▲(8.64% 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 and healthy equity ratio

A manageable debt-to-equity and healthy equity ratio give the company durable financial flexibility. Over a 2-6 month horizon this reduces refinancing and default risk, supports funding for ongoing residential projects, and provides buffer against cyclical revenue pressures.

Stable gross profit margin

A relatively stable gross profit margin indicates underlying pricing power or stable input cost pass-through on core construction activities. This supports long-run unit economics, helping preserve operating margins even if overhead or SG&A pressures fluctuate in the medium term.

Attractive dividend yield for income investors

A 4.55% dividend yield signals a commitment to shareholder returns that can attract patient, income-focused capital. If maintained, dividends provide a steady return component and can stabilize investor base while management works to restore earnings.

Negative Factors

Negative net income undermining profitability

Sustained negative net income erodes retained earnings and restricts reinvestment into projects or backlog execution. Over several months, continued losses can force cost cuts, delay strategic initiatives, and increase reliance on external financing, weakening long-term competitiveness.

Persistent negative free cash flow

Negative free cash flow and weak operating-cash-to-income indicate the business is not converting sales into spendable cash. This limits ability to fund capex, service dividends, or absorb project overruns without fresh financing, increasing liquidity and execution risk over months.

Deteriorating returns and margins

A negative ROE and weakening EBIT/EBITDA margins reflect structural profitability erosion. This impairs shareholder value creation and reduces internal funding for growth; if trends persist, competitive positioning and ability to win margin-accretive contracts will deteriorate over the medium term.

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

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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	8.85B	8.53B
EBITDA	244.43M	530.15M	759.57M	570.22M	1.00B
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	48.86M
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	1.53B	-2.06B	-2.72B	2.19B
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: Negative
• Last Price: 220.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 220 is below the 20-day moving average (MA) of 241.80, below the 50-day MA of 235.66, and below the 200-day MA of 232.85, indicating a bearish trend. The MACD of -0.69 indicates Positive momentum. The RSI at 41.85 is Neutral, neither overbought nor oversold. The STOCH value of 18.33 is Positive, 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
3291	74 Outperform	¥670.32B	9.63	5.64%	4.02%	0.20%	44.96%
1928	69 Neutral	¥2.28T	9.60	11.84%	4.17%	9.27%	-11.27%
1430	68 Neutral	¥12.43B	8.37	―	4.36%	41.95%	35.36%
1911	64 Neutral	¥892.82B	9.21	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	¥116.05B	13.82	―	5.49%	-16.48%	-77.63%
1840	47 Neutral	¥5.77B	-2.53	―	4.52%	-5.47%	-111.99%