Takada Corporation (1966) AI Stock Analysis

• Market Cap: ¥13.74B
• Dividend Yield: 3.97%
• Average Volume (3M): 7.44K
• Price to Earnings (P/E): 34.6
• Beta (1Y): 0.92
• Revenue Growth: 5.33%
• EPS Growth: -27.53%
• Country: JP
• Employees: 1,718
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 13.15
• Shares Outstanding: 7,334,350
• 10 Day Avg. Volume: 8,800
• 30 Day Avg. Volume: 7,440
• PEG Ratio: 0.11
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.16
• P/FCF Ratio: -2.54
• 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: 77 Outperform
• Price Target: ¥2,169.00 ▲(19.24% Upside)
• Action: Reiterated Date: 11/18/25
• Date: Action: Reiterated 11/18/25

Takada Corporation's stock is rated highly due to its strong technical indicators and attractive valuation metrics. While financial performance shows resilience, the potential liquidity issues from declining cash flows need attention. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue and gross margin improvement

An 11.1% year-on-year revenue increase coupled with a rising gross margin to 12.3% indicates the company is growing sales while improving cost efficiency. That durable combination supports sustainable operating cash generation potential and capacity to invest in projects over the medium term.

Balanced leverage and improved ROE

A moderate debt-to-equity ratio (0.46) and a near-45% equity ratio alongside improved ROE (11.4%) suggest disciplined capital structure and effective use of shareholder capital. This provides financial flexibility to fund capex or bids and cushions against cyclical downturns over the medium term.

Access to financing supports investment capacity

Maintained positive financing cash flow demonstrates the company's ability to raise or direct external funds when needed. That structural ability to access financing can support strategic investments, working capital needs, or project execution while operating cash recovers, preserving growth options.

Negative Factors

Declining operating cash flow

Operating cash flow turning negative and a material drop in free cash flow weaken internal funding for operations and capex. Over the coming months this raises reliance on external financing, increases liquidity risk, and could constrain investment, dividend policy, or bid competitiveness.

Modest net profit margin

A low net margin (~4.0%) limits retained earnings and the ability to absorb cost shocks or higher interest costs. Even with stable EBIT/EBITDA, modest ultimate profitability constrains long-term cash build-up and reduces resilience against project overruns or slower revenue cycles.

Rising total debt trend

An observed trend of increasing total debt raises eventual interest and refinancing exposure if operating cash does not recover. Over a 2-6 month horizon this trend can pressure leverage ratios and limit strategic flexibility, making the company more sensitive to funding cost changes.

Takada Corporation Business Overview & Revenue Model

Company Description

Takada Corporation engages in the plant, engineering, plant diagnosis, and electronics equipment businesses in Japan and internationally. It designs, procures, manufactures, constructs, and maintains industrial facilities comprising steel manufacturing, chemical plants, oil/natural gas, energy, and environmental plants, as well as electronics-related business. The company also provides engineering and plant diagnosis services. In addition, it offers electronic equipment, including ultrasonic cutting, polish cut, single wafer wet processing, and batch process automated wafer cleaning systems, as well as dicing frame cleaners and IPA vapor dryers. Takada Corporation was founded in 1940 and is headquartered in Kitakyushu, Japan.

How the Company Makes Money

Takada Corporation generates revenue through multiple channels, primarily by selling its products to both retail and wholesale markets. The company has a diverse portfolio that includes electronics, automotive parts, and appliances, allowing it to tap into various consumer demands. Key revenue streams include direct sales through its extensive network of distributors and retailers, as well as partnerships with major corporations for bulk supply agreements. Additionally, Takada invests in research and development to create cutting-edge products, ensuring a competitive edge in the market. Strategic alliances with suppliers and technology firms further enhance its offerings and profitability.

Takada Corporation Financial Statement Overview

Summary

Takada Corporation shows strong revenue growth and stable operational performance with a balanced leverage position. However, declining cash flow metrics indicate potential liquidity issues that need to be addressed.

Income Statement

Takada Corporation's income statement shows a strong revenue growth of 11.1% from 2024 to 2025, indicating a positive trajectory. The gross profit margin improved to 12.3% in 2025, reflecting efficient cost management. However, the net profit margin is relatively modest at 4.0%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are stable at 5.1% and 6.2%, respectively, indicating consistent operational performance.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.46, indicating a balanced leverage position. Return on equity improved to 11.4% in 2025, showing effective use of shareholder funds. The equity ratio stands at 44.9%, suggesting a solid equity base. However, the increase in total debt over the years could pose a potential risk if not managed carefully.

Cash Flow

Cash flow analysis highlights a concerning decline in operating cash flow, turning negative in 2025. Free cash flow also decreased significantly, indicating potential liquidity challenges. The operating cash flow to net income ratio is negative, suggesting inefficiencies in converting income into cash. Despite these challenges, the company has managed to maintain positive financing cash flow, which could support future investments.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	56.12B	58.07B	52.26B	57.88B	47.24B	47.79B
Gross Profit	6.66B	7.14B	6.39B	6.20B	4.36B	5.07B
EBITDA	2.75B	3.61B	3.15B	3.14B	1.81B	2.18B
Net Income	1.87B	2.31B	1.67B	1.65B	788.13M	1.05B
Balance Sheet
Total Assets	44.80B	45.16B	37.63B	39.70B	32.63B	30.98B
Cash, Cash Equivalents and Short-Term Investments	4.12B	5.19B	4.22B	4.49B	3.37B	2.72B
Total Debt	11.85B	9.37B	6.14B	4.99B	2.80B	2.90B
Total Liabilities	24.83B	24.59B	20.74B	23.62B	18.90B	18.60B
Stockholders Equity	19.69B	20.28B	16.57B	15.78B	13.48B	12.13B
Cash Flow
Free Cash Flow	0.00	-3.72B	25.07M	-1.12B	688.88M	1.36B
Operating Cash Flow	0.00	-687.33M	1.74B	-506.50M	1.67B	2.07B
Investing Cash Flow	0.00	-2.46B	-1.65B	-576.64M	-1.01B	-1.08B
Financing Cash Flow	0.00	4.02B	-562.00M	1.89B	-253.68M	-1.00B

Takada Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1819.00
• 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:1966, the sentiment is Positive. The current price of 1819 is below the 20-day moving average (MA) of 1868.45, below the 50-day MA of 1855.74, and above the 200-day MA of 1667.66, indicating a bullish trend. The MACD of 3.49 indicates Positive momentum. The RSI at 50.63 is Neutral, neither overbought nor oversold. The STOCH value of 24.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1966.

Takada Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1450	84 Outperform	¥13.61B	7.69	―	3.91%	12.31%	1.81%
1966	77 Outperform	¥13.74B	34.60	―	3.97%	5.33%	-27.53%
5918	70 Outperform	¥15.92B	6.90	―	1.39%	2.98%	11.88%
1914	67 Neutral	¥15.27B	4.49	―	3.68%	5.82%	-22.14%
1768	66 Neutral	¥10.99B	6.31	―	2.16%	24.11%	1644.12%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1826	59 Neutral	¥15.13B	11.13	―	5.36%	-3.19%	109.84%