Taihei Dengyo Kaisha, Ltd. (1968) AI Stock Analysis

• Market Cap: ¥142.77B
• Dividend Yield: 2.72%
• Average Volume (3M): 102.62K
• Price to Earnings (P/E): 15.4
• Beta (1Y): 0.88
• Revenue Growth: -2.11%
• EPS Growth: -11.31%
• Country: JP
• Employees: 1,878
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Infrastructure Operations
• EPS (TTM): 38.10
• Shares Outstanding: 65,195,940
• 10 Day Avg. Volume: 113,530
• 30 Day Avg. Volume: 102,620
• PEG Ratio: 1.05
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.77
• P/FCF Ratio: -29.20
• 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: 75 Outperform
• Price Target: ¥2,664.00 ▲(23.16% Upside)

Taihei Dengyo Kaisha, Ltd. receives a strong overall score driven by its solid financial performance and attractive valuation. The company's robust balance sheet and high dividend yield are significant strengths. However, improvements in cash flow management are necessary to mitigate liquidity risks. Technical indicators suggest positive momentum, supporting a favorable outlook.

Positive Factors

Balance Sheet Strength

A robust equity ratio and prudent leverage provide long-term financial resilience, enabling the company to fund capex, absorb cyclical downturns, and pursue strategic investments without overreliance on external financing. This underpins durable operational stability.

Margin Sustainability

Consistently strong operating margins indicate effective cost control and operational efficiency. Sustained margins support reinvestment in R&D and service capabilities, preserve profitability through cycles, and improve the company’s ability to generate durable operating cash over time.

Recurring Revenue Mix

A mix of direct sales plus long-term contracts and maintenance services creates more predictable, recurring revenue and stronger customer retention. Strategic partnerships broaden market access and support product development, improving revenue visibility and durability.

Negative Factors

Revenue Decline

Negative revenue growth signals demand or market-share pressure that can erode scale economies and slow reinvestment. If the decline persists over several quarters, it undermines long-term margin expansion and constrains the company’s ability to fund strategic initiatives.

Weak Operating Cash Flow

Weak operating cash generation limits liquidity and reduces financial flexibility to invest, pay dividends, or service debt despite a strong balance sheet. Persistent cash flow shortfalls can force trade-offs between growth spending and capital returns over the medium term.

Earnings Per Share Pressure

A notable EPS contraction reflects falling per-share profitability, which may result from lower volumes or margin pressure. Continued EPS declines can erode retained earnings and hamper the company’s capacity to finance growth or sustain shareholder distributions over time.

Taihei Dengyo Kaisha, Ltd. Business Overview & Revenue Model

Company Description

Taihei Dengyo Kaisha, Ltd. engages in the plant construction business in Japan and internationally. The company constructs and maintains thermal, nuclear, gas turbine, diesel engine, geothermal, combined cycle, and wind power plants; steel mill, petrochemical, sugar refining, cement, and other industrial plants; and refuse incineration, dioxin treatment, sludge treatment, and waste recycling plants, as well as dome stadiums and bridge construction projects. It is also involved in the design, manufacture, installation, and maintenance of various electrical systems, sub-stations, control systems, optical fiber communication systems, instrumentation, and building electrical facilities; and design and construction of various industrial plants comprising heat ventilation and air conditioning systems, utility sanitary systems, etc. In addition, the company designs, procures, and fabricates machined products, tanks, piping, pressure vessels, electrical and control panels, etc., as well as provides equipment installation services for building facilities, amusement facilities, etc. Further, it involved in steel and paper manufacturing; petrochemical plant; maintenance service; and education and training programs. Taihei Dengyo Kaisha, Ltd. was incorporated in 1947 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Taihei Dengyo Kaisha generates revenue through multiple key streams, primarily focusing on the sale of its precision machinery and automation solutions. The company's revenue model is based on both direct sales and long-term contracts with businesses that require customized machinery for their production processes. Additionally, the company earns income from maintenance and support services, ensuring the longevity and efficiency of its products. Significant partnerships with leading firms in various industries enhance its market reach and facilitate joint ventures that can lead to new product developments, further contributing to its earnings.

Taihei Dengyo Kaisha, Ltd. Financial Statement Overview

Summary

Taihei Dengyo Kaisha, Ltd. shows a strong financial position with healthy profitability and solid balance sheet metrics. However, cash flow management is an area requiring improvement to ensure sustainable growth and liquidity.

Income Statement

The company demonstrated consistent revenue generation with a slight decrease in the most recent year. Gross profit margin and net profit margin showed stable performance, reflecting effective cost management. However, there was a noticeable drop in revenue growth, which may indicate potential market challenges. EBIT and EBITDA margins remain strong, suggesting operational efficiency.

Balance Sheet

The balance sheet indicates a strong equity base with a favorable debt-to-equity ratio, suggesting prudent financial leverage. The return on equity is satisfactory, indicating efficient use of equity to generate profits. The equity ratio is robust, which underscores the company's solid financial foundation and stability.

Cash Flow

The company faced challenges in generating positive operating cash flow, impacting its free cash flow generation. However, the negative free cash flow growth rate highlights potential liquidity concerns. The operating cash flow to net income ratio is unfavorable, which may reflect cash management issues needing attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	125.16B	125.67B	129.36B	125.77B	126.91B	127.78B
Gross Profit	22.50B	23.34B	19.84B	24.48B	19.23B	15.91B
EBITDA	12.72B	16.34B	13.64B	17.34B	14.39B	10.52B
Net Income	8.63B	9.75B	8.39B	10.62B	8.41B	5.61B
Balance Sheet
Total Assets	152.05B	154.93B	153.02B	147.04B	131.74B	128.76B
Cash, Cash Equivalents and Short-Term Investments	43.74B	42.61B	42.17B	48.94B	19.65B	31.15B
Total Debt	14.38B	14.11B	14.99B	15.59B	15.04B	17.08B
Total Liabilities	37.73B	39.97B	52.43B	57.51B	51.31B	55.64B
Stockholders Equity	113.00B	113.56B	99.23B	88.22B	79.17B	71.94B
Cash Flow
Free Cash Flow	0.00	-3.31B	-5.49B	31.45B	-7.76B	17.93B
Operating Cash Flow	0.00	-2.54B	-4.64B	32.50B	613.00M	19.58B
Investing Cash Flow	0.00	51.00M	-895.00M	-1.45B	-8.68B	-2.01B
Financing Cash Flow	0.00	2.63B	-1.68B	-1.77B	-3.85B	-3.93B

Taihei Dengyo Kaisha, Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2163.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1968, the sentiment is Neutral. The current price of 2163 is below the 20-day moving average (MA) of 2283.90, below the 50-day MA of 2231.04, and above the 200-day MA of 2011.79, indicating a neutral trend. The MACD of 13.27 indicates Positive momentum. The RSI at 46.21 is Neutral, neither overbought nor oversold. The STOCH value of 15.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1968.

Taihei Dengyo Kaisha, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1950	80 Outperform	¥214.23B	11.22	―	2.79%	10.62%	64.25%
1946	77 Outperform	¥196.34B	12.56	―	3.09%	3.75%	87.00%
1968	75 Outperform	¥142.77B	15.40	―	2.72%	-2.11%	-11.31%
1835	73 Outperform	¥160.25B	12.51	―	3.44%	11.25%	36.92%
1952	73 Outperform	¥156.36B	12.69	―	2.81%	8.83%	49.49%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Taihei Dengyo Kaisha, Ltd. Corporate Events

Taihei Dengyo Reports Increased Sales but Declining Profits Amid Share Split

Taihei Dengyo Kaisha, Ltd. reported its consolidated financial results for the six months ending September 30, 2025, showing a 5.3% increase in net sales compared to the previous year. However, the company experienced a decline in operating profit, ordinary profit, and profit attributable to owners of the parent, reflecting challenges in maintaining profitability despite increased sales. The company also completed a 3-for-1 share split, impacting earnings per share calculations. The forecast for the fiscal year ending March 31, 2026, anticipates continued growth in net sales and profits, suggesting a positive outlook despite current profit declines.

The most recent analyst rating on (JP:1968) stock is a Buy with a Yen2400.00 price target. To see the full list of analyst forecasts on Taihei Dengyo Kaisha, Ltd. stock, see the JP:1968 Stock Forecast page.