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

• Market Cap: ¥175.59B
• Dividend Yield: 2.72%
• Average Volume (3M): 102.62K
• Price to Earnings (P/E): 15.9
• Beta (1Y): 0.89
• Revenue Growth: -2.11%
• EPS Growth: -11.31%
• Country: JP
• Employees: 1,878
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Infrastructure Operations
• EPS (TTM): 87.26
• 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): 171.13
• Revenue Forecast (FY): ¥137.00B

• Rating: 70 Outperform
• Price Target: ¥3,164.00 ▲(46.28% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is primarily driven by solid profitability and a strong balance sheet, offset by weaker cash flow generation and quality. Technicals show strong trend strength but overextended momentum increases pullback risk, while valuation is reasonable with a modest dividend yield.

Positive Factors

Balance Sheet Strength

A robust equity ratio and prudent leverage give the company durable financial flexibility. This foundation supports supplier credit, absorbs cyclical downturns in construction demand, and enables measured capital allocation without materially increasing refinancing risk over the next months.

Consistent Revenue Growth

Mid-single-digit revenue growth reflects steady demand for infrastructure and industrial materials. For a distributor, consistent top-line expansion sustains scale advantages, strengthens supplier relationships, and improves negotiating leverage that should remain relevant across a 2-6 month horizon.

Stable Margins and Operational Efficiency

Maintained gross, net, and strong EBIT/EBITDA margins indicate effective cost control and pricing execution in distribution. Persistent margin resilience supports ongoing cash generation, operational sustainability, and the ability to fund dividends or reinvest in service capabilities over the medium term.

Negative Factors

Weak Operating Cash Flow

Subpar operating cash conversion and negative free cash flow growth create structural liquidity pressure for a distributor reliant on working capital. This limits capacity for capex, inventory buildup, or higher dividends without raising financing, increasing medium-term funding risk.

Earnings Per Share Decline

A decline in EPS signals pressure on profitability per share which can reflect margin compression, non-recurring items, or operational inefficiencies. Persisting EPS weakness over several quarters can reduce retained earnings and constrain shareholder return policies.

Distribution Model & Disclosure Gaps

Operating primarily as a trader/distributor with limited disclosure on contracts, customer concentration, or pricing power raises structural risk. Without visible long-term contracts or value-added services, revenue visibility and margin resilience are more vulnerable to supplier pricing and competitive pressure.

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

Profitability and balance sheet strength are solid (healthy margins, strong equity base and prudent leverage), but cash flow quality is weaker with challenges generating positive operating/free cash flow and an unfavorable operating cash flow to net income relationship.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Positive
• Last Price: 2163.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1968, the sentiment is Positive. The current price of 2163 is below the 20-day moving average (MA) of 2525.35, below the 50-day MA of 2351.94, and above the 200-day MA of 2098.93, indicating a bullish trend. The MACD of 131.90 indicates Negative momentum. The RSI at 80.36 is Negative, neither overbought nor oversold. The STOCH value of 91.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
1965	82 Outperform	¥147.02B	13.27	―	1.55%	20.44%	106.45%
1952	80 Outperform	¥191.11B	14.22	―	2.81%	8.83%	49.49%
1979	76 Outperform	$251.43B	17.46	8.53%	2.45%	5.14%	-10.92%
1950	76 Outperform	¥303.67B	15.90	―	2.79%	10.62%	64.25%
1982	74 Outperform	¥141.46B	17.22	―	2.14%	4.81%	-1.16%
1968	70 Outperform	¥175.59B	15.92	―	2.72%	-2.11%	-11.31%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Taihei Dengyo Kaisha, Ltd. Corporate Events

Taihei Dengyo Posts Double-Digit Profit Growth and Confirms Robust FY2026 Outlook

Taihei Dengyo Kaisha reported solid growth for the nine months ended December 31, 2025, with net sales rising 13.7% year on year to ¥103.3 billion and profit attributable to owners of parent increasing 14.2% to ¥9.0 billion, alongside improved comprehensive income and a stronger equity base, as total assets and equity-to-asset ratio both edged higher. The company maintained its full-year forecast for the fiscal year ending March 31, 2026, projecting continued double-digit gains in sales and profit, announced a year-end dividend forecast adjusted for a 3-for-1 share split, and expanded its consolidation scope with the addition of Murakami Green Power LLC., signaling ongoing business expansion and a commitment to shareholder returns.

The most recent analyst rating on (JP:1968) stock is a Hold with a Yen2581.00 price target. To see the full list of analyst forecasts on Taihei Dengyo Kaisha, Ltd. stock, see the JP:1968 Stock Forecast page.

Taihei Dengyo Raises Year-End Dividend, Reinforces Shareholder Return Policy

Taihei Dengyo Kaisha, Ltd. has approved an increase in its year-end dividend for the fiscal year ending March 31, 2026, raising the planned payout to ¥70 per share from the previously forecast ¥67, with a total dividend outlay of ¥4,435 million funded from retained earnings and reflecting the impact of a 3-for-1 share split effective October 1, 2025. The board’s decision underscores the company’s commitment to stable and enhanced shareholder returns, guided by targets of a minimum 3% dividend on equity and a 35% payout ratio, and takes into account current-year earnings, capital efficiency metrics, and the broader business environment, signaling confidence in its financial position and outlook for investors.

The most recent analyst rating on (JP:1968) stock is a Hold with a Yen2581.00 price target. To see the full list of analyst forecasts on Taihei Dengyo Kaisha, Ltd. stock, see the JP:1968 Stock Forecast page.