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

• Market Cap: ¥636.64B
• Dividend Yield: 2.05%
• Average Volume (3M): 544.86K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.68
• Revenue Growth: 14.04%
• EPS Growth: 75.99%
• Country: JP
• Employees: 5,606
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 67.98
• Shares Outstanding: 140,478,800
• 10 Day Avg. Volume: 547,530
• 30 Day Avg. Volume: 544,860
• PEG Ratio: 0.33
• 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

• Rating: 71 Outperform
• Price Target: ¥4,586.00 ▲(10.51% Upside)

Takasago Thermal Engineering Co., Ltd. receives a solid overall stock score driven by strong financial performance and a fair valuation. While technical indicators suggest some short-term weakness, the company's robust financial health and moderate dividend yield support its long-term investment potential.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: 4150.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 4150 is below the 20-day moving average (MA) of 4209.20, below the 50-day MA of 4247.65, and above the 200-day MA of 3404.41, indicating a bullish trend. The MACD of 59.67 indicates Negative momentum. The RSI at 64.60 is Neutral, neither overbought nor oversold. The STOCH value of 74.37 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
6458	―	¥99.42B	12.25	―	4.08%	7.20%	5.74%
1969	―	¥636.64B	16.40	―	2.05%	14.04%	75.99%
1979	―	$189.70B	16.28	8.06%	4.20%	-0.99%	-19.80%
5929	―	$911.88B	16.32	19.96%	2.89%	6.35%	30.39%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5332	―	$627.64B	68.19	2.03%	2.55%	2.18%	-75.73%
5938	―	$497.46B	71.53	1.08%	4.95%	0.38%	―

Takasago Thermal Engineering Co., Ltd. Corporate Events

Takasago Thermal Engineering Revises Financial and Dividend Forecasts Upward

Takasago Thermal Engineering Co., Ltd. has revised its financial and dividend forecasts for the fiscal year ending March 31, 2026, reflecting improved profitability and efficient project management. The company anticipates exceeding previous forecasts due to steady project progress and robust market demand, leading to increased earnings per share and a higher dividend payout.

The most recent analyst rating on (JP:1969) stock is a Buy with a Yen4586.00 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 Reports Strong Q1 Results and Announces Share Split

Takasago Thermal Engineering Co., Ltd. reported a significant increase in its consolidated financial results for the three months ended June 30, 2025, with net sales rising by 33.8% and operating profit surging by 433.1% compared to the previous year. The company also announced a share split and revised its dividend forecasts, indicating a strong financial outlook and commitment to enhancing shareholder value.

The most recent analyst rating on (JP:1969) stock is a Buy with a Yen9424.00 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 Expands Stock-Based Compensation Plan to Boost Corporate Value

Takasago Thermal Engineering Co., Ltd. has announced an expansion of its stock-based compensation system, the Board Incentive Plan Trust (BIP Trust), to include more eligible directors and to revise the performance-linked range for its subsidiaries. This move is part of the company’s medium-term management plan aimed at aligning business performance with remuneration to enhance corporate value, requiring additional funds for share acquisition due to the increased number of shares needed.

Takasago Thermal Engineering Announces Treasury Share Disposal for Stock Compensation

Takasago Thermal Engineering Co., Ltd. announced the disposal of 26,200 treasury shares as part of a stock-based compensation plan for officers and employees of its overseas subsidiaries. This initiative, utilizing an ESOP Trust, aims to align the interests of eligible personnel with the company’s long-term vision and enhance corporate value. The disposal is structured to have minimal impact on the stock market, with a dilution rate of 0.04%, and the shares will not be immediately released into the market.

Takasago Thermal Engineering Introduces Stock Compensation for Overseas Staff

Takasago Thermal Engineering Co., Ltd. has announced the introduction of a stock compensation system for officers and employees of its overseas subsidiaries. This initiative, part of the company’s Long-Term Vision 2040, aims to enhance participation in management and motivate employees to contribute to corporate value. The system will use an ESOP Trust to deliver company shares and cash to eligible personnel upon retirement, aligning their interests with the company’s long-term goals.

Takasago Thermal Engineering Reports Strong Q1 Financial Results and Announces Share Split

Takasago Thermal Engineering Co., Ltd. reported a significant increase in its consolidated financial results for the three months ended June 30, 2025, with net sales rising by 33.8% and operating profit surging by 433.1% compared to the previous year. The company has announced a share split effective October 1, 2025, which will impact its dividend forecasts for the fiscal year ending March 31, 2026, reflecting its strategic efforts to enhance shareholder value.

Takasago Thermal Engineering Announces Share Split and Dividend Revisions

Takasago Thermal Engineering Co., Ltd. has announced a series of strategic financial changes, including a share split, amendments to its Articles of Incorporation, and revisions to its dividend forecasts for the fiscal year ending March 31, 2026. These moves are aimed at increasing share liquidity, attracting more investors, and adjusting dividends to reflect the share split, potentially enhancing the company’s market position and shareholder value.