Taikisha (1979) AI Stock Analysis

• Market Cap: $245.18B
• Dividend Yield: 2.45%
• Average Volume (3M): 130.93K
• Price to Earnings (P/E): 18.0
• Beta (1Y): 0.76
• Revenue Growth: 5.14%
• EPS Growth: -10.92%
• Country: JP
• Employees: 5,031
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 57.36
• Shares Outstanding: 63,464,020
• 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: 0.83
• Enterprise Value/Revenue: 0.71
• Enterprise Value/Gross Profit: 4.49
• Enterprise Value/Ebitda: 9.21
• 1Y Price Target: $3,723.32
• Price Target Upside: -1.50% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 238.9
• Revenue Forecast (FY): $287.93B

• Rating: 76 Outperform
• Price Target: ¥4,435.00 ▲(17.33% Upside)
• Action: Reiterated Date: 11/13/25
• Date: Action: Reiterated 11/13/25

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

Low leverage

Very low leverage and a strong equity ratio provide durable financial flexibility for Taikisha’s capital-intensive, long-duration EPC contracts. This reduces bankruptcy risk, supports competitive bidding, and allows funding of working capital or investments without immediate reliance on external debt.

Stable gross margins

A steady gross margin around 15.6% indicates resilient project-level economics across cycles. For an engineering and installation business this suggests consistent procurement and execution capabilities, supporting margin sustainability even when net margins face pressure from SG&A or financing costs.

End-to-end model & recurring services

Integrated EPC delivery combined with recurring after-sales contracts creates stickiness and cross-sell opportunities. Recurring maintenance and retrofit work smooths revenue through capital cycles, enhances lifetime customer value, and supports predictable service revenues beyond one-off project recognition.

Negative Factors

Negative cash generation

Negative operating and free cash flow weakens the company’s ability to fund contract working capital and peak project spending internally. Persistent cash deficits can force higher-cost financing, constrain bid capacity for new projects, and raise execution risk on long-duration contracts.

Declining profitability & revenue volatility

A falling net margin and recent revenue decline point to pressure on pricing, mix, or cost control. For a contract-heavy business this increases earnings unpredictability, limits internal reinvestment, and elevates the risk that project overruns will materially reduce returns over several quarters.

Lower ROE

A reduced ROE suggests the company is generating lower returns from shareholders’ capital, reflecting margin pressure or underutilized assets. Over time this can make it harder to justify equity deployment for growth and may constrain the company’s ability to attract capital for expansion or large project financing.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: 3780.00
• 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 Positive. The current price of 3780 is above the 20-day moving average (MA) of 3711.00, above the 50-day MA of 3538.80, and above the 200-day MA of 2974.68, indicating a bullish trend. The MACD of 71.13 indicates Positive momentum. The RSI at 59.28 is Neutral, neither overbought nor oversold. The STOCH value of 51.24 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
6745	79 Outperform	¥159.90B	18.98	―	2.03%	6.69%	29.94%
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%
6367	66 Neutral	¥5.83T	21.33	9.46%	1.52%	1.60%	5.80%
5930	66 Neutral	¥144.69B	11.40	12.89%	3.40%	2.98%	41.11%
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%	―

Taikisha Corporate Events

Taikisha to Retire 3.7 Million Shares in Capital Efficiency Push

Taikisha Ltd. said its board has approved the retirement of 3.7 million common shares, representing 5.51% of its issued shares, under Article 178 of the Companies Act. The move, scheduled for February 27, 2026, will reduce total shares outstanding to 63,464,018 and leave an estimated 464,419 treasury shares, tightening the share float and potentially enhancing capital efficiency and shareholder value.

By shrinking the share count, Taikisha is signaling a disciplined approach to capital allocation at a time when many Japanese listed companies are under pressure to improve returns and governance. The retirement may strengthen earnings per share metrics and could support the company’s equity valuation, affecting existing shareholders more than day-to-day operations.

The most recent analyst rating on (JP:1979) stock is a Hold with a Yen3922.00 price target. To see the full list of analyst forecasts on Taikisha stock, see the JP:1979 Stock Forecast page.

Taikisha to Dispose of Treasury Shares for Expanded Board Benefit Trust

Taikisha will dispose of 124,700 treasury shares through a third-party allotment tied to its Board Benefit Trust, effectively allocating shares to five executive directors and 17 corporate officers as performance-linked stock compensation. The shares, worth about ¥443 million at ¥3,553 each and representing roughly 0.19% of shares outstanding, are intended to cover benefits for three fiscal years through March 2028, and the company deems the resulting dilution reasonable in light of its ongoing incentive plan.

The additional trust contribution and disposal of treasury shares are structured via Custody Bank of Japan as re-trustee under an existing trust with Mizuho Trust & Banking, ensuring shares are held and administered for future grants under established stock benefit rules. By reinforcing its stock-based compensation scheme for senior management, Taikisha aims to strengthen the link between executive rewards, corporate performance, and shareholder interests while utilizing existing treasury shares rather than issuing new equity.

The most recent analyst rating on (JP:1979) stock is a Hold with a Yen3922.00 price target. To see the full list of analyst forecasts on Taikisha stock, see the JP:1979 Stock Forecast page.

Taikisha Lifts Earnings and Full-Year Outlook on Strong Nine-Month Results

Taikisha reported strong results for the nine months ended Dec. 31, 2025, with sales rising 9.5% year on year to ¥202.2 billion and operating income surging 54.4% to ¥15.3 billion, lifting profit attributable to owners of the parent by 35.5% to ¥11.1 billion. Improved profitability also drove comprehensive income up more than twofold, while total assets increased to ¥281.8 billion and shareholders’ equity edged higher, though the equity ratio dipped slightly to 54.2% amid balance sheet expansion.

The company kept its dividend forecast for the year to March 2026 unchanged at a post-split total of ¥94 per share, following a two-for-one stock split implemented in April 2025 that also affects per-share profit metrics and historical comparisons. Taikisha raised its full-year earnings outlook, now projecting a 3.8% rise in sales to ¥286.7 billion and a 30.6% jump in profit attributable to owners of the parent to ¥14.4 billion, signaling confidence in sustained demand and reinforcing its earnings recovery after the prior year’s downturn.

The most recent analyst rating on (JP:1979) stock is a Hold with a Yen3922.00 price target. To see the full list of analyst forecasts on Taikisha stock, see the JP:1979 Stock Forecast page.

Taikisha Lifts Full-Year Profit Outlook on Stronger Project Margins and Securities Gains

Taikisha has revised its consolidated earnings forecast for the year ending March 31, 2026, keeping sales unchanged but raising projections for operating income, ordinary income and profit attributable to owners of parent, reflecting stronger project profitability in Japan and abroad and gains on the sale of investment securities. The company also lifted its non-consolidated outlook, citing higher dividend income and securities gains, and the revisions signal improved earnings momentum despite a loss related to the closure of an overseas subsidiary’s factory, implying a firmer profit base for shareholders.

The upgraded forecasts indicate that Taikisha expects ordinary income and net profit to outpace earlier guidance, underlining operational improvements across its project portfolio. While the impact of increased dividend income is limited at the consolidated level because it comes from subsidiaries, the overall upgrade suggests enhanced financial resilience and potentially stronger returns for investors in the current fiscal year.

The most recent analyst rating on (JP:1979) stock is a Hold with a Yen3922.00 price target. To see the full list of analyst forecasts on Taikisha stock, see the JP:1979 Stock Forecast page.