Takasago Thermal Engineering Co., Ltd. (1969) AI Stock Analysis

• Market Cap: ¥727.12B
• Dividend Yield: 2.13%
• Average Volume (3M): 593.99K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.78
• Revenue Growth: 15.98%
• EPS Growth: 82.99%
• Country: JP
• Employees: 5,606
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 84.41
• Shares Outstanding: 140,478,800
• 10 Day Avg. Volume: 596,360
• 30 Day Avg. Volume: 593,993
• PEG Ratio: 0.07
• Price to Book (P/B): 2.04
• Price to Sales (P/S): 0.97
• P/FCF Ratio: 238.14
• 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): 270.89
• Revenue Forecast (FY): ¥420.50B

• Rating: 79 Outperform
• Price Target: ¥5,995.00 ▲(35.17% Upside)
• Action: Reiterated Date: 10/30/25
• Date: Action: Reiterated 10/30/25

Takasago Thermal Engineering Co., Ltd. demonstrates strong financial performance and technical indicators, positioning it well for future growth. The stock's valuation is reasonable, though not exceptional. The absence of recent earnings call data or notable corporate events means these factors do not influence the score.

Positive Factors

Integrated design-to-maintain business model

End-to-end design, procurement, installation and recurring maintenance creates durable client relationships and multiple revenue layers. Recurring service contracts smooth project cyclicality, enable cross-sell of retrofits and support steady cash generation over multi-year horizons.

Consistent revenue growth and improving margins

Sustained top-line expansion combined with rising gross and net margins indicates structural improvements in pricing, procurement, or execution efficiency. Margin durability supports reinvestment and resilience against cost pressures over the coming months.

Healthy balance sheet and improving ROE

Low leverage and a strong equity ratio provide financial flexibility to bid on large projects and weather construction cyclicality. Improving ROE shows more efficient capital use, supporting sustainable profitability and optionality for strategic investment.

Negative Factors

Variable cash flows and liquidity management

Historic swings in operating and free cash flow reflect project timing and milestone billing patterns, which can strain working capital during heavy capex or long projects. That variability may force short-term financing needs and constrain investment pacing.

Project-centric revenue risks

Reliance on milestone-driven, one-off contracts creates timing and backlog exposure: revenue and margins can swing with project wins, delays or cancellations. This structural dependence increases forecasting uncertainty and working-capital pressure.

Limited forward guidance / investor visibility

Absence of guidance and limited published earnings-call highlights reduces visibility into near-term bookings and margins. For stakeholders, this makes medium-term planning and revenue forecasting harder, increasing perceived execution risk.

Takasago Thermal Engineering Co., Ltd. Business Overview & Revenue Model

Company Description

Takasago Thermal Engineering Co., Ltd. designs, constructs, manufactures, sells, and installs heating, ventilation, and air conditioning (HVAC) systems in Japan and internationally. It also offers cleanrooms and associated equipment and devices; district heating and cooling facilities; and air conditioning, plumbing and sanitary, co-generation, electrical, instrumentation and communication, equipment and failure diagnosis, and dehumidifying/drying systems. In addition, the company provides HVAC systems for nuclear energy facilities; high precision HVAC, waste vacuum transfer, exhaust heat recovery, heating/cooling, refrigerating/freezing, and other types of environmental control and thermal engineering systems; GODA Cloud, a data collection and analysis tool; and swirling induction type HVAC and clean dry air supply systems. Further, it is involved in the construction works; and labor dispatch, security, cleaning, energy supply, power generation, and water treatment businesses. Additionally, the company engages in the purchase and sale, brokerage, lease, and management of real estate; business related to greenhouse gas emission rights trading; consulting, energy saving, and environmental measures services; and manufacture, sale, import, and export of machinery, equipment, and various materials. Takasago Thermal Engineering Co., Ltd. was formerly known as Takasago Heating Works Co., Ltd. and changed its name to Takasago Thermal Engineering Co., Ltd. in 1943. The company was incorporated in 1923 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Takasago Thermal Engineering generates revenue through multiple channels, primarily by selling HVAC systems and components to various sectors, including commercial and industrial clients. The company's revenue model is built on direct sales of its products, installation services, and ongoing maintenance contracts. Additionally, Takasago benefits from strategic partnerships with other technology firms and construction companies that enhance its product offerings and market reach. The emphasis on energy efficiency and sustainability also aligns with government initiatives and regulations, driving demand for its advanced thermal solutions. Overall, the company's earnings are bolstered by its commitment to innovation, customer service, and adapting to market trends.

Takasago Thermal Engineering Co., Ltd. Financial Statement Overview

Summary

Takasago Thermal Engineering Co., Ltd. exhibits strong financial performance with consistent revenue growth and improving profitability metrics. The balance sheet reflects financial stability with a sound capital structure. While cash flow performance shows some historic volatility, recent improvements suggest prudent cash management strategies.

Income Statement

Takasago Thermal Engineering Co., Ltd. has demonstrated strong revenue growth with a consistent increase in total revenue over the past five years. The gross profit margin and net profit margin have improved, indicating effective cost management and profitability. The EBIT and EBITDA margins also show a positive trend, contributing to a robust income statement.

Balance Sheet

The company's balance sheet indicates a healthy financial position with a favorable debt-to-equity ratio, suggesting lower leverage risks. The return on equity (ROE) has improved, reflecting efficient use of equity to generate profits. The equity ratio is strong, underscoring the company's solid capital structure and financial stability.

Cash Flow

Takasago Thermal Engineering Co., Ltd. has shown variability in cash flow performance. Despite recent improvements in free cash flow and operating cash flow, historical fluctuations suggest potential liquidity management challenges. However, the free cash flow to net income ratio remains acceptable, indicating adequate cash generation relative to net income.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	405.45B	381.66B	363.37B	338.83B	302.75B	275.18B
Gross Profit	81.45B	69.03B	59.95B	46.36B	41.40B	36.85B
EBITDA	51.29B	41.07B	30.07B	19.61B	18.90B	16.61B
Net Income	34.56B	27.63B	19.61B	12.23B	11.54B	10.12B
Balance Sheet
Total Assets	301.08B	334.95B	340.11B	313.39B	300.74B	271.15B
Cash, Cash Equivalents and Short-Term Investments	37.29B	47.65B	53.30B	72.32B	56.96B	64.13B
Total Debt	24.43B	37.74B	39.13B	29.82B	33.06B	29.93B
Total Liabilities	119.96B	150.66B	172.88B	166.23B	163.84B	135.30B
Stockholders Equity	177.69B	180.67B	164.36B	142.47B	132.90B	132.13B
Cash Flow
Free Cash Flow	-9.03B	1.55B	-16.45B	20.78B	-1.82B	17.93B
Operating Cash Flow	-5.80B	5.88B	-13.10B	25.83B	1.19B	22.57B
Investing Cash Flow	745.00M	-1.41B	-8.10B	-5.43B	1.04B	-324.00M
Financing Cash Flow	10.48B	-12.71B	-491.00M	-8.32B	-8.01B	3.64B

Takasago Thermal Engineering Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4435.00
• 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:1969, the sentiment is Positive. The current price of 4435 is below the 20-day moving average (MA) of 5053.85, below the 50-day MA of 4782.26, and above the 200-day MA of 4181.11, indicating a bullish trend. The MACD of 85.38 indicates Positive momentum. The RSI at 59.58 is Neutral, neither overbought nor oversold. The STOCH value of 52.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1969.

Takasago Thermal Engineering Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1969	79 Outperform	¥727.12B	16.31	―	2.13%	15.98%	82.99%
1979	76 Outperform	¥245.18B	18.03	8.53%	2.45%	5.14%	-10.92%
5332	67 Neutral	¥971.34B	205.69	0.83%	2.36%	-0.03%	-89.02%
5943	67 Neutral	¥106.46B	33.11	2.01%	3.57%	2.69%	1.74%
6367	66 Neutral	¥5.83T	21.33	9.46%	1.52%	1.60%	5.80%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5938	50 Neutral	¥527.50B	55.39	1.44%	4.80%	0.68%	―

Takasago Thermal Engineering Co., Ltd. Corporate Events

Takasago Thermal Engineering Doubles Profits and Lifts Full-Year Forecast on Strong Nine-Month Results

Takasago Thermal Engineering reported strong results for the nine months ended December 31, 2025, with net sales rising 15.4% year on year to ¥306.0 billion and profit attributable to owners of parent surging 88.0% to ¥31.3 billion. The company also saw a sharp improvement in operating and ordinary profit, nearly doubling operating profit, while total assets and equity increased, reflecting a stronger balance sheet and earnings power.

The company raised its full-year forecast, now projecting fiscal 2025 net sales of ¥421.0 billion and profit attributable to owners of parent of ¥36.5 billion, implying double-digit growth in revenue and more than 30% profit expansion versus the previous year. It also revised its dividend plan, with a higher interim payout and a forecasted year-end dividend that, after accounting for a recent 2-for-1 share split, signals a more shareholder-friendly capital policy supported by robust orders of ¥458.0 billion for the full year.

The most recent analyst rating on (JP:1969) stock is a Buy with a Yen6127.00 price target. To see the full list of analyst forecasts on Takasago Thermal Engineering Co., Ltd. stock, see the JP:1969 Stock Forecast page.

Takasago Thermal Engineering Outlines Q3 FY2025 Results and Growth Strategy

Takasago Thermal Engineering has released materials for its financial results briefing covering the third quarter of fiscal year 2025, ended December 31, 2025. The agenda highlights a review of Q3 performance, updates to the annual forecast and shareholder return policies, and a progress report on the company’s growth strategy, signaling continued focus on operational execution and long-term value for stakeholders.

The most recent analyst rating on (JP:1969) stock is a Buy with a Yen6298.00 price target. To see the full list of analyst forecasts on Takasago Thermal Engineering Co., Ltd. stock, see the JP:1969 Stock Forecast page.

Takasago Thermal Engineering Lifts Earnings and Dividend Outlook on Strong Nine-Month Results

Takasago Thermal Engineering reported strong consolidated results for the nine months ended December 31, 2025, with net sales rising 15.4% to ¥306.0 billion and profit attributable to owners of parent surging 88.0% to ¥31.3 billion, driving a sharp jump in earnings per share despite the impact of a share split. The company also strengthened its balance sheet, with total assets climbing to ¥378.6 billion and equity increasing to ¥199.4 billion, while revising up its full-year forecasts and dividend outlook, signaling robust demand, improved profitability, and enhanced returns to shareholders.

For the fiscal year ending March 31, 2026, Takasago now projects net sales of ¥421.0 billion and profit attributable to owners of parent of ¥36.5 billion, implying double-digit growth in revenue and over 30% earnings expansion versus the previous year. The company plans to raise its interim and year-end dividends, adjusting for a 2-for-1 share split, which underscores management’s confidence in sustained earnings power and offers a positive signal for investors and other stakeholders focused on cash returns and capital efficiency.

The most recent analyst rating on (JP:1969) stock is a Buy with a Yen6298.00 price target. To see the full list of analyst forecasts on Takasago Thermal Engineering Co., Ltd. stock, see the JP:1969 Stock Forecast page.

Takasago Thermal Engineering Lifts Profit and Dividend Forecasts for FY2026

Takasago Thermal Engineering has raised its full-year consolidated and non-consolidated profit forecasts for the fiscal year ending March 31, 2026, while keeping net sales unchanged, reflecting stronger profitability from more efficient project management and cost reduction efforts. The company now expects higher operating, ordinary, and net profits, supported by solid performance at domestic and international group companies and improved earnings per share after a share split.

Alongside the earnings upgrade, Takasago revised its dividend forecast upward, lifting the expected fiscal-year-end dividend to 69 yen per share and increasing the total annual payout when adjusted for the share split. The move underscores its policy of progressive dividends with a target payout ratio of 40 percent, signaling confidence in sustainable earnings growth and offering a more attractive return to shareholders ahead of the June 2026 general meeting.

The most recent analyst rating on (JP:1969) stock is a Buy with a Yen6298.00 price target. To see the full list of analyst forecasts on Takasago Thermal Engineering Co., Ltd. stock, see the JP:1969 Stock Forecast page.

Takasago Thermal Engineering Overhauls Leadership to Bolster Management Base

Takasago Thermal Engineering announced a series of top management and board changes aimed at strengthening its management foundation, including the promotion of long-time executive Hiroshi Kubota to Representative Director and Executive Vice President effective April 1, 2026. The company also outlined upcoming board reshuffles after the June 2026 shareholders’ meeting, with Director and Executive Officer Masatoshi Morino set to retire from both director and executive officer roles, and R&D chief Ichiro Yamamoto to be newly appointed as a director, reinforcing the leadership pipeline and maintaining continuity through the reappointment of the president and key outside directors, which signals an emphasis on stable governance and sustained strategic direction.

The most recent analyst rating on (JP:1969) stock is a Buy with a Yen5070.00 price target. To see the full list of analyst forecasts on Takasago Thermal Engineering Co., Ltd. stock, see the JP:1969 Stock Forecast page.