Taikisha (1979) AI Stock Analysis

• Market Cap: ¥217.35B
• Dividend Yield: 2.5%
• Average Volume (3M): 115.57K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.75
• 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: 104,910
• 30 Day Avg. Volume: 115,573
• 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: ¥3,199.38
• Price Target Upside: 0.45% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 217.33
• Revenue Forecast (FY): ¥286.23B

• Rating: 76 Outperform
• Price Target: ¥3,571.00 ▲(12.12% 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

Strong Equity Base

A strong equity base provides financial stability and resilience, enabling the company to withstand economic fluctuations and invest in growth opportunities.

Low Leverage Risk

Low leverage risk ensures financial flexibility and reduces the burden of debt servicing, allowing the company to allocate resources towards strategic initiatives.

Sustainability Focus

A focus on sustainability aligns with global trends towards green construction, enhancing long-term demand and competitive positioning in the industry.

Negative Factors

Declining Revenue Growth

Declining revenue growth indicates potential challenges in market expansion and customer acquisition, which could impact future profitability and market share.

Reduced Profitability Margins

Reduced profitability margins suggest pressure on cost management and pricing power, which may affect the company's ability to generate sustainable profits.

Negative Cash Flow

Negative cash flow poses challenges for funding operations and investments, potentially limiting growth and increasing reliance on external financing.

Taikisha Business Overview & Revenue Model

Company Description

Taikisha (1979) is a global leader in the field of advanced engineering and construction, specializing in the design and implementation of HVAC (heating, ventilation, and air conditioning) systems, as well as environmental control systems. The company operates across various sectors, including commercial buildings, industrial facilities, and infrastructure projects, providing cutting-edge solutions that enhance energy efficiency and sustainability. With a strong commitment to innovation, Taikisha also offers maintenance services and technical support to ensure optimal performance of its systems.

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 shows a stable financial foundation with strong equity and low leverage. However, recent declines in revenue growth and profitability margins, coupled with cash flow challenges, suggest areas of concern that require strategic focus to enhance financial health and operational efficiency.

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: Positive
• Last Price: 3185.00
• 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:1979, the sentiment is Positive. The current price of 3185 is above the 20-day moving average (MA) of 3173.25, above the 50-day MA of 3045.98, and above the 200-day MA of 2633.11, indicating a bullish trend. The MACD of 49.34 indicates Negative momentum. The RSI at 65.04 is Neutral, neither overbought nor oversold. The STOCH value of 77.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥608.61B	14.61	―	2.03%	15.98%	82.99%
6458	79 Outperform	¥97.37B	12.16	―	3.65%	8.96%	-0.82%
1979	76 Outperform	¥217.35B	16.51	8.53%	2.50%	5.14%	-10.92%
5929	68 Neutral	¥855.77B	14.49	18.61%	2.98%	2.90%	36.64%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5332	62 Neutral	$623.83B	160.31	0.83%	2.31%	-0.03%	-89.02%
5938	49 Neutral	$496.45B	53.42	1.44%	4.83%	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.

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.

Taikisha Completes Treasury Share Acquisition

Taikisha Ltd. has completed the acquisition of 87,600 treasury shares, valued at 250,056,000 yen, as part of a resolution made by its Board of Directors in May 2025. This acquisition is part of a broader plan to acquire up to 2,900,000 shares, with the company having already acquired a cumulative total of 1,857,600 shares, indicating a strategic move to enhance shareholder value.

Taikisha Ltd. Acquires 300,000 Treasury Shares

Taikisha Ltd. announced the acquisition of 300,000 treasury shares, valued at 880,217,500 yen, between September 1 and September 30, 2025, through the Tokyo Stock Exchange. This move is part of a broader strategy to acquire up to 2,900,000 shares by the end of 2025, reflecting the company’s efforts to optimize its capital structure and potentially enhance shareholder value.