Taikisha (1979) AI Stock Analysis

• Market Cap: ¥228.27B
• Dividend Yield: 2.45%
• Average Volume (3M): 130.93K
• Price to Earnings (P/E): 17.3
• Beta (1Y): 0.77
• Revenue Growth: 5.14%
• EPS Growth: -10.92%
• Country: JP
• Employees: 5,031
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 72.53
• Shares Outstanding: 67,164,020
• 10 Day Avg. Volume: 132,630
• 30 Day Avg. Volume: 130,930
• PEG Ratio: -0.48
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.54
• P/FCF Ratio: -5.91
• 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: ¥3,512.13
• Price Target Upside: 1.65% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥3,972.00 ▲(14.96% Upside)

Taikisha's overall stock score is driven by strong technical indicators and a reasonable valuation, despite financial performance challenges. The stock's bullish momentum and attractive dividend yield are significant strengths, while financial concerns require attention.

Positive Factors

Balance-sheet Strength

Taikisha's very low leverage and a strong equity ratio provide durable financial resilience for capital-intensive EPC work. This reduces refinancing and interest-rate risk, supports bidding on large projects, and preserves balance-sheet flexibility to fund capex, working capital, and strategic initiatives over coming quarters.

Business Model Mix

Combining engineering/construction projects with recurring after-sales, maintenance and retrofit work yields a more predictable, annuity-like revenue component. Installed-base services driven by uptime, regulatory and efficiency needs improve revenue stickiness and create higher-margin follow-on opportunities over time.

Gross Margin Stability

A stable gross margin near 15.6% indicates consistent project-level profitability from procurement and execution capabilities. That durability at the gross-profit level gives management room to restore operating margins and absorb short-term cost pressures while maintaining competitive bids on large contracts.

Negative Factors

Cash Flow Pressure

Negative operating and free cash flow are structural concerns for an EPC company that requires working capital to fund projects. Persistent cash outflows can force reliance on external financing, constrain bidding capacity, limit reinvestment in service offerings, and pressure dividend sustainability over the medium term.

Revenue Volatility

Volatile top-line performance and a recent 5.9% revenue decline weaken backlog visibility and capacity planning for long-duration projects. Inconsistent revenue increases execution and supplier risks, making margin recovery and steady utilization harder to achieve without more reliable order intake.

Earnings & ROE Weakness

Declining net margins and reduced ROE signal weaker returns on invested capital and slower retained-earnings growth. Over time this limits the company's ability to self-fund growth, maintain dividends, or pursue strategic investments unless operational efficiencies or higher-margin contract wins restore profitability.

Taikisha Business Overview & Revenue Model

Company Description

Taikisha Ltd. designs, manages, and constructs HVAC systems and automobile paint plants and sells related equipment in Japan and internationally. The company operates through two segment, Green Technology System Division and Paint Finishing System Division. It designs and constructs HVAC systems for office buildings, schools, hospitals, hotels, museums, airport terminals, commercial facilities, and research laboratories. The company engages in the design, construction, and administration of HVAC, freezing, and fumatorium facilities; cleanrooms and peripheral equipment; plumbing and sanitary facilities; fire and disaster protection systems; HVAC facilities in communities and cogeneration facilities; paint finishing plants for automobile manufacturers; treatment systems for emissions and waste; and electric and instrumentation facilities. It is also involved in the design, implementation, and administration of construction works; and manufacture, process, sale, and import/export of peripheral equipment. The company was founded in 1913 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Taikisha generates revenue primarily through the provision of engineering and construction services related to HVAC systems and environmental controls. Key revenue streams include project contracts for the installation of these systems in new buildings and renovations, which often involve large-scale, long-term contracts with corporate clients and government entities. Additionally, the company earns income from maintenance contracts that ensure ongoing support and servicing of installed systems. Strategic partnerships with manufacturers of HVAC equipment and technology further enhance its service offerings, enabling Taikisha to provide comprehensive solutions that meet the specific needs of its clients. The company's focus on sustainability and energy efficiency also positions it well to capitalize on increasing demand for environmentally friendly construction solutions.

Taikisha Financial Statement Overview

Summary

Taikisha's financial performance is stable with a strong equity base and low leverage. However, challenges such as declining revenue growth, reduced profitability margins, and negative cash flow impact the overall financial health.

Income Statement

Taikisha's income statement shows a mixed performance. While the gross profit margin remained steady at around 15.6%, the net profit margin decreased from 5.3% to 4.0% in the most recent year, indicating challenges in maintaining net profitability. Revenue growth was volatile, with a notable decline of 5.9% in the latest year after a previous increase. The EBIT margin also slightly declined, reflecting pressure on operating performance.

Balance Sheet

The balance sheet demonstrates financial stability with a low debt-to-equity ratio of 0.09, highlighting low leverage risk. Return on Equity (ROE) decreased to 7.4%, suggesting reduced profitability relative to equity. The equity ratio remains strong at 55.2%, indicating a solid equity base and financial strength.

Cash Flow

Cash flow analysis reveals challenges, with a significant decline in operating cash flow to negative levels, impacting the free cash flow, which also turned negative. This raises concerns about cash generation capabilities. However, the free cash flow to net income ratio is weak, further indicating cash flow pressures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	287.18B	276.21B	293.56B	214.79B	209.26B	202.55B
Gross Profit	45.44B	43.14B	43.31B	33.07B	31.61B	34.03B
EBITDA	22.15B	21.67B	25.20B	15.17B	15.21B	15.36B
Net Income	11.43B	11.03B	15.60B	7.92B	7.25B	8.28B
Balance Sheet
Total Assets	257.43B	268.45B	266.49B	237.10B	228.16B	228.85B
Cash, Cash Equivalents and Short-Term Investments	51.61B	47.56B	64.46B	46.99B	52.09B	54.06B
Total Debt	19.97B	13.32B	3.89B	3.04B	21.14B	11.36B
Total Liabilities	104.76B	111.96B	114.93B	105.11B	97.37B	102.55B
Stockholders Equity	144.47B	148.05B	144.03B	125.79B	124.69B	121.03B
Cash Flow
Free Cash Flow	0.00	-25.17B	16.85B	2.63B	-10.86B	-1.30B
Operating Cash Flow	0.00	-21.22B	20.74B	4.81B	-8.54B	973.00M
Investing Cash Flow	0.00	-4.98B	2.15B	-1.75B	-1.07B	-6.91B
Financing Cash Flow	0.00	1.91B	-5.54B	-9.82B	6.00B	-1.44B

Taikisha Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3455.00
• 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:1979, the sentiment is Neutral. The current price of 3455 is below the 20-day moving average (MA) of 3491.00, above the 50-day MA of 3346.50, and above the 200-day MA of 2842.01, indicating a neutral trend. The MACD of 40.55 indicates Positive momentum. The RSI at 51.71 is Neutral, neither overbought nor oversold. The STOCH value of 26.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1979.

Taikisha Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1969	79 Outperform	¥620.27B	14.89	―	2.13%	15.98%	82.99%
6458	79 Outperform	¥105.70B	14.47	―	3.65%	8.96%	-0.82%
1979	76 Outperform	¥228.27B	17.34	8.53%	2.45%	5.14%	-10.92%
5929	72 Outperform	¥738.28B	12.85	18.61%	2.94%	2.90%	36.64%
5332	67 Neutral	¥772.40B	163.56	0.83%	2.36%	-0.03%	-89.02%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5938	50 Neutral	¥509.53B	53.50	1.44%	4.80%	0.68%	―

Taikisha Corporate Events

Taikisha Ltd. Revises Earnings Forecasts Upward for Fiscal Year 2026

Taikisha Ltd. has revised its earnings forecasts for the fiscal year ending March 31, 2026, expecting an increase in sales and profitability due to improved project performance in Japan. The revision indicates a positive outlook for the company’s financial health, potentially enhancing its market position and benefiting stakeholders through increased earnings.

The most recent analyst rating on (JP:1979) stock is a Buy with a Yen3166.00 price target. To see the full list of analyst forecasts on Taikisha stock, see the JP:1979 Stock Forecast page.

Taikisha Ltd. Reports Strong Q2 Financial Performance and Upward Earnings Forecast

Taikisha Ltd. reported a significant increase in its financial performance for the second quarter of the fiscal year ending March 31, 2026, with a 13.8% rise in sales and a notable 66.9% increase in operating income compared to the previous year. The company has revised its earnings forecast upwards, indicating a positive outlook for the full fiscal year, which suggests strengthened market positioning and potential benefits for stakeholders.

The most recent analyst rating on (JP:1979) stock is a Buy with a Yen3166.00 price target. To see the full list of analyst forecasts on Taikisha stock, see the JP:1979 Stock Forecast page.