Taisei Oncho (1904) AI Stock Analysis

• Market Cap: ¥24.83B
• Dividend Yield: 3.37%
• Average Volume (3M): 6.76K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.87
• Revenue Growth: 2.37%
• EPS Growth: 21.34%
• Country: JP
• Employees: 792
• Sector: Industrials
• Sector Strength: 89
• Industry: Construction Materials
• EPS (TTM): 74.11
• Shares Outstanding: 6,882,487
• 10 Day Avg. Volume: 8,140
• 30 Day Avg. Volume: 6,763
• PEG Ratio: -19.55
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥4,410.04
• Price Target Upside: 12.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 79 Outperform
• Price Target: ¥4,384.00 ▲(12.12%Upside)

Taisei Oncho demonstrates strong financial health with consistent growth and attractive valuation. The technical indicators suggest moderate bullish momentum, though cash flow stability is an area for improvement.

Taisei Oncho Business Overview & Revenue Model

Company Description

Taisei Oncho Co., Ltd., established in 1904, is a leading Japanese company specializing in the construction and engineering sectors. The company provides a wide array of services, including mechanical and electrical engineering, air conditioning systems, plumbing, and fire protection systems. Taisei Oncho is renowned for its expertise in creating energy-efficient and sustainable building solutions, catering to both public and private sector clients in Japan and internationally.

How the Company Makes Money

Taisei Oncho generates revenue primarily through its engineering and construction services. The company earns money by designing, installing, and maintaining HVAC (heating, ventilation, and air conditioning) systems, plumbing, and fire protection systems for various building projects. A significant portion of its income comes from contracts with government agencies, commercial enterprises, and industrial clients. Taisei Oncho also benefits from ongoing maintenance contracts and retrofitting services, which provide a steady stream of recurring revenue. The company's focus on sustainable and energy-efficient technologies positions it favorably in markets that prioritize green building solutions, further enhancing its revenue potential.

Taisei Oncho Financial Statement Overview

Summary

Taisei Oncho demonstrates strong financial health with consistent revenue growth and profitability, supported by a solid balance sheet and low leverage. However, the cash flow management presents uncertainties, which require careful monitoring.

Income Statement

The company demonstrates strong income statement metrics with consistent revenue growth, a healthy gross profit margin of 14.5% TTM, and a net profit margin of 4.8% TTM. The revenue growth of 1.6% TTM indicates stability in the market. EBIT and EBITDA margins of 5.7% and 5.9% TTM respectively suggest efficient operational management. The company shows a positive trend in profitability, though slight fluctuations in margins could be explored further.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.16 TTM, indicating low leverage. The equity ratio is robust at 59.7% TTM, showing strong equity financing. However, the return on equity of 11.4% TTM, while healthy, indicates room for improvement. The company maintains strong cash reserves, enhancing its ability to invest in growth opportunities.

Cash Flow

The cash flow statement shows challenges, with a lack of reported operating, investing, and free cash flow TTM making it difficult to assess recent performance. Historically, free cash flow has seen significant fluctuations, impacting stability. The free cash flow to net income ratio has been inconsistent, suggesting potential volatility in cash flow management. This poses a risk to liquidity and investment capabilities.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	62.04B	61.06B	46.46B	49.15B	48.63B	58.07B
Gross Profit	9.03B	8.29B	6.53B	5.69B	5.70B	6.41B
EBITDA	3.66B	3.31B	2.29B	1.67B	1.90B	2.43B
Net Income	3.00B	1.96B	1.47B	974.26M	1.14B	1.48B
Balance Sheet
Total Assets	44.30B	45.77B	41.18B	40.23B	39.99B	45.09B
Cash, Cash Equivalents and Short-Term Investments	12.33B	11.18B	11.84B	12.37B	13.24B	8.52B
Total Debt	4.11B	31.30M	53.07M	78.95M	95.15M	90.78M
Total Liabilities	17.87B	20.06B	15.92B	15.53B	16.01B	21.62B
Stockholders Equity	26.43B	25.71B	25.26B	24.70B	23.98B	23.47B
Cash Flow
Free Cash Flow	0.00	2.74B	488.34M	-606.59M	5.15B	-603.00M
Operating Cash Flow	0.00	3.01B	719.55M	-533.45M	7.50B	-563.00M
Investing Cash Flow	0.00	-767.73M	-241.43M	42.69M	-2.21B	123.00M
Financing Cash Flow	0.00	-3.22B	-1.38B	-878.34M	-495.72M	-773.00M

Taisei Oncho Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3910.00
• 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:1904, the sentiment is Positive. The current price of 3910 is above the 20-day moving average (MA) of 3888.50, above the 50-day MA of 3871.60, and above the 200-day MA of 3804.54, indicating a bullish trend. The MACD of 15.81 indicates Positive momentum. The RSI at 55.84 is Neutral, neither overbought nor oversold. The STOCH value of 39.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1904.

Taisei Oncho Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1904	79 Outperform	¥24.83B	9.58	9.22%	3.37%	2.37%	21.34%
5288	78 Outperform	¥37.10B	15.88		4.62%	-2.28%	-38.60%
5285	77 Outperform	¥19.60B	9.08		3.13%	12.80%	51.15%
5363	76 Outperform	¥26.35B	8.32		3.76%	6.40%	31.47%
1981	75 Outperform	¥15.43B	14.19		2.53%	4.25%	11.76%
Sector *	59 Neutral	AU$1.63B	9.68	11.24%	3.66%	6.75%	3.18%
5269	42 Neutral	¥16.33B	98.19		4.47%	-1.86%	-134.14%