Taisei Oncho (1904) AI Stock Analysis

• Market Cap: ¥33.95B
• Dividend Yield: 3.4%
• Average Volume (3M): 10.07K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.61
• Revenue Growth: 0.81%
• EPS Growth: -26.70%
• Country: JP
• Employees: 792
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 124.58
• Shares Outstanding: 6,882,487
• 10 Day Avg. Volume: 14,800
• 30 Day Avg. Volume: 10,073
• PEG Ratio: 0.42
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.36
• P/FCF Ratio: 256.23
• 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: 82 Outperform
• Price Target: ¥6,345.00 ▲(35.29% Upside)
• Action: Reiterated Date: 03/20/26
• Date: Action: Reiterated 03/20/26

The score is driven primarily by strong financial performance (improving profitability and a sturdy, low-leverage balance sheet), supported by an attractive valuation (low P/E with a ~2.8% dividend). Technicals are also favorable with a strong uptrend, though momentum is nearing overbought levels, and cash-flow volatility remains the key fundamental watch item.

Positive Factors

Balance Sheet Strength

A high equity ratio (59.53%), low reliance on debt and sizable cash reserves provide lasting financial resilience. This structural strength reduces refinancing risk, supports discretionary capital allocation (capex/dividends), and cushions cyclical downturns over the next several months.

Margin Improvement

Observed improvements in gross, net, EBIT and EBITDA margins indicate durable gains in cost control and operational efficiency. Sustained margin expansion supports persistent profitability, giving the company structural capacity to absorb revenue volatility and enhance free cash flow conversion.

Positive Free Cash Flow

The company produced positive free cash flow in 2025, signalling real cash generation capacity after capex. That structural ability supports reinvestment, dividends or balance-sheet strengthening and indicates management can fund operations internally across the next several quarters.

Negative Factors

Operating Cash Flow Volatility

Volatile operating cash flows and weaker conversion versus net income undermine predictability of internal funding. Over a multi-month horizon this increases risk to consistent capex funding, dividend coverage and reduces visibility into sustainable free cash flow generation.

Negative EPS Trend

A significant reported EPS decline (≈-17% in the fundamentals data) indicates pressure on earnings power. Persisting EPS weakness can constrain reinvestment, slow margin recovery efforts, and weaken stakeholder confidence in sustainable profitability over the coming quarters.

Top-line Variability

Reported negative revenue growth in the fundamentals metric points to recent top-line deterioration or volatility. Durable revenue variability reduces forecasting confidence, pressures margin leverage and makes multi-month organic growth planning and investment deployment more uncertain.

Taisei Oncho Business Overview & Revenue Model

Company Description

Taisei Oncho Co., Ltd. engages in the design and construction of air conditioning, water supply/drainage sanitary, and electrical equipment systems in Japan. It also offers maintenance and renovation services. The company operates 8 branches, 24 sales offices, and 17 maintenance stations. Taisei Oncho Co., Ltd. was founded in 1941 and is based in Tokyo, Japan.

How the Company Makes Money

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Taisei Oncho Financial Statement Overview

Summary

Strong overall fundamentals: solid income statement (revenue growth and improving margins) and a robust, low-leverage balance sheet with a high equity ratio and meaningful cash reserves. The main offset is cash flow quality/consistency, with operating cash flow volatility and weaker conversion vs. net income.

Income Statement

Taisei Oncho's income statement shows a solid performance with consistent revenue growth over the years. The company achieved a 2.37% revenue growth from 2024 to 2025. Gross Profit Margin and Net Profit Margin have improved, indicating better cost management and profitability. The EBIT and EBITDA margins also reflect strong operational efficiency. However, margins could be further optimized to enhance overall profitability.

Balance Sheet

The balance sheet is robust, with a healthy equity ratio of 59.53% in 2025, indicating a strong asset base funded by equity. The Debt-to-Equity ratio is low, showcasing financial stability with minimal reliance on debt. Return on Equity has seen an improvement, reflecting enhanced profitability from shareholders' investments. The company maintains substantial cash reserves, bolstering its liquidity position.

Cash Flow

Cash flow analysis reveals a mixed picture. The operating cash flow has fluctuated, but the company managed to generate positive free cash flow in 2025 despite a decline from the previous year, indicating efficient capital expenditure management. However, the ratio of operating cash flow to net income suggests potential volatility in cash generation capabilities, warranting monitoring.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	63.62B	62.50B	61.06B	46.46B	49.15B	48.63B
Gross Profit	9.50B	8.99B	8.22B	6.53B	5.69B	5.70B
EBITDA	3.99B	3.64B	3.50B	2.10B	1.62B	1.58B
Net Income	2.27B	2.49B	1.96B	1.47B	974.26M	1.14B
Balance Sheet
Total Assets	43.56B	46.41B	45.77B	41.18B	40.23B	39.99B
Cash, Cash Equivalents and Short-Term Investments	13.37B	12.84B	11.18B	11.84B	12.37B	13.24B
Total Debt	2.00B	2.74B	14.01M	31.30M	53.07M	56.56M
Total Liabilities	15.92B	18.78B	20.06B	15.92B	15.53B	16.01B
Stockholders Equity	27.63B	27.63B	25.71B	25.26B	24.70B	23.98B
Cash Flow
Free Cash Flow	0.00	87.92M	2.85B	488.34M	-606.59M	5.15B
Operating Cash Flow	0.00	560.79M	3.01B	719.55M	-533.45M	7.50B
Investing Cash Flow	0.00	-113.91M	-767.73M	-241.43M	42.69M	-2.21B
Financing Cash Flow	0.00	1.14B	-3.22B	-1.38B	-878.34M	-495.72M

Taisei Oncho Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4690.00
• 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:1904, the sentiment is Positive. The current price of 4690 is below the 20-day moving average (MA) of 5158.00, below the 50-day MA of 4945.90, and above the 200-day MA of 4338.06, indicating a bullish trend. The MACD of 102.49 indicates Negative momentum. The RSI at 68.36 is Neutral, neither overbought nor oversold. The STOCH value of 66.43 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	82 Outperform	¥33.95B	9.14	7.87%	3.40%	0.81%	-26.70%
5288	80 Outperform	¥54.32B	7.15	―	3.25%	9.50%	77.72%
5268	69 Neutral	¥12.29B	18.59	―	1.24%	-2.82%	-44.93%
5233	67 Neutral	¥388.03B	-16.12	7.93%	2.32%	-2.26%	-10.86%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5232	61 Neutral	¥121.66B	45.55	6.98%	3.13%	-2.13%	37.10%
5269	49 Neutral	¥18.18B	743.26	―	3.24%	-3.73%	-143.19%

Taisei Oncho Corporate Events

Taisei Oncho Lifts Dividend Despite Forecast Profit Decline for FY2025

Taisei Oncho reported consolidated net sales of ¥43.89 billion for the nine months ended December 31, 2025, down 1.3% year on year, while operating profit jumped 26.4% to ¥2.74 billion and profit attributable to owners of parent edged up 2.5% to ¥2.09 billion. The company’s financial position strengthened with total assets rising to ¥48.52 billion and an equity ratio of 59.7%, and it continued share buybacks, reducing treasury shares from the previous fiscal year.

The board maintained its earlier guidance for the year to March 31, 2026, forecasting full-year sales of ¥60.2 billion and a 27.6% decline in net profit to ¥1.8 billion, implying a weaker fourth quarter after a solid nine-month performance. Taisei Oncho also plans to raise annual dividends from ¥132.00 to ¥174.00 per share, signaling confidence in shareholder returns despite the expected earnings decline and a modest contraction in top-line growth.

The most recent analyst rating on (JP:1904) stock is a Buy with a Yen5448.00 price target. To see the full list of analyst forecasts on Taisei Oncho stock, see the JP:1904 Stock Forecast page.