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

• Market Cap: ¥197.62B
• Dividend Yield: 2.72%
• Average Volume (3M): 102.62K
• Price to Earnings (P/E): 6.2
• Beta (1Y): 0.99
• 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: 1.04
• 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: 76 Outperform
• Price Target: ¥3,560.00 ▲(64.59% Upside)
• Action: Reiterated Date: 03/04/26
• Date: Action: Reiterated 03/04/26

The score is driven primarily by solid financial quality (profitability and balance sheet strength) and strong bullish technical trends. The main offsetting risk is weaker cash flow performance, while valuation is fair but not especially compelling.

Positive Factors

Strong balance sheet

A robust equity base and conservative leverage provide lasting financial flexibility. Prudent debt levels reduce refinancing risk, support capital allocation for working capital or selective investments, and underpin creditor confidence — all durable strengths through economic cycles.

Stable profitability & margins

Sustained gross and net margins and strong EBIT/EBITDA margins indicate enduring operational efficiency and pricing discipline. This margin stability supports cash generation capacity over time and cushions the business against moderate cost or volume swings in infrastructure end markets.

Consistent revenue growth and distribution model

Mid-single-digit revenue growth paired with a trading/distribution model serving infrastructure and construction creates steady demand durability. As an intermediary for recurring project and maintenance spend, the business benefits from ongoing infrastructure activity and diversified end-market exposure.

Negative Factors

Weak cash flow generation

Persistent weak operating cash flow and negative free cash flow growth constrain reinvestment, dividend sustainability, and debt servicing flexibility. Over several quarters this can force reliance on external financing or asset sales, reducing strategic optionality and increasing financial risk.

Negative EPS trend

Declining EPS signals pressure on underlying earnings power despite stable margins. If this trend persists it can erode retained earnings and limit returns to shareholders, and may reflect structural demand shifts, pricing pressure, or rising non-operating costs that undermine long-term profitability.

Limited diversification of revenue streams

A pure trading/distribution model with no disclosed recurring contracts or value-added service revenue leaves earnings dependent on procurement spreads and volumes. That exposes margins to supplier/customer concentration, commodity swings, and competition, limiting durable revenue visibility and pricing power.

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

The company makes money mainly by acting as an intermediary (trader/distributor) between manufacturers and end users such as construction contractors, industrial operators, and infrastructure-related customers. Its core revenue stream is sales revenue from purchasing materials/products from suppliers and reselling them to customers, earning a gross margin (the spread between procurement cost and selling price). Additional monetization mechanisms commonly associated with this model—such as logistics/handling fees, delivery coordination, inventory management, and project-based procurement support—are not specifically disclosed for this company in the provided context, so details are null. Information on significant partnerships, customer concentration, pricing structure, or recurring/contractual revenue arrangements is null.

Taihei Dengyo Kaisha, Ltd. Financial Statement Overview

Summary

Strong profitability and a solid balance sheet (good leverage and equity position) support the score, but weaker cash flow generation and negative free cash flow trends introduce liquidity risk and reduce confidence in sustainability.

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	13.61B	14.52B	11.61B	16.06B	12.16B	9.09B
Net Income	8.63B	9.75B	8.40B	10.62B	8.41B	5.61B
Balance Sheet
Total Assets	152.05B	155.08B	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	14.19B	14.11B	14.99B	15.59B	15.04B	17.08B
Total Liabilities	37.73B	40.01B	52.43B	57.50B	51.31B	55.64B
Stockholders Equity	113.00B	113.66B	99.23B	88.22B	79.17B	71.94B
Cash Flow
Free Cash Flow	0.00	-3.31B	-5.48B	31.33B	-7.82B	18.01B
Operating Cash Flow	0.00	-2.54B	-4.65B	32.33B	513.00M	19.57B
Investing Cash Flow	0.00	51.00M	-895.00M	-1.45B	-8.68B	-2.01B
Financing Cash Flow	0.00	2.63B	-1.67B	-1.60B	-3.75B	-3.92B

Taihei Dengyo Kaisha, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2163.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 2900.30, below the 50-day MA of 2595.04, and below the 200-day MA of 2200.78, indicating a bullish trend. The MACD of 117.99 indicates Negative momentum. The RSI at 64.60 is Neutral, neither overbought nor oversold. The STOCH value of 85.20 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	¥131.13B	9.59	―	1.55%	20.44%	106.45%
1952	80 Outperform	¥173.74B	11.69	―	2.81%	8.83%	49.49%
1982	80 Outperform	¥132.66B	11.19	―	2.14%	4.81%	-1.16%
1968	76 Outperform	¥197.62B	6.20	―	2.72%	-2.11%	-11.31%
1979	76 Outperform	¥216.44B	14.34	8.53%	2.45%	5.14%	-10.92%
1950	70 Outperform	¥310.43B	9.48	―	2.79%	10.62%	64.25%
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.