Taiheiyo Cement (5233) AI Stock Analysis

• Market Cap: ¥388.03B
• Dividend Yield: 2.32%
• Average Volume (3M): 625.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.97
• Revenue Growth: -2.26%
• EPS Growth: -10.86%
• Country: JP
• Employees: 12,540
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): -60.22
• Shares Outstanding: 118,191,580
• 10 Day Avg. Volume: 658,710
• 30 Day Avg. Volume: 625,966
• PEG Ratio: 0.22
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.50
• P/FCF Ratio: 13.37
• 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: ¥4,702.00
• Price Target Upside: 17.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 209.52
• Revenue Forecast (FY): ¥896.01B

• Rating: 67 Neutral
• Price Target: ¥3,615.00 ▼(-9.58% Downside)
• Action: Downgraded Date: 11/12/25
• Date: Action: Downgraded 11/12/25

The overall stock score of 67 reflects Taiheiyo Cement's solid financial performance and attractive valuation. However, the technical analysis indicates bearish momentum, which tempers the overall score. The lack of recent earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Integrated value-chain and diversified revenue streams

Taiheiyo's integrated business model spans cement, ready-mix concrete, logistics and recycling services. This vertical integration smooths margin volatility, creates internal demand capture, and diversifies revenue exposures across construction and environmental services over the medium term.

Moderate leverage and solid equity base

A debt-to-equity around 0.64 and an equity ratio above 45% indicate financial flexibility and resilience to cyclical construction downturns. Combined with an ROE near 9%, the balance sheet supports capital spending, maintenance of operations, and weathering demand variability without excessive refinancing risk.

Efficient cash generation from operations

Operating cash flow generation well above net income and year-over-year FCF growth show strong cash conversion from core operations. This provides enduring capacity to fund maintenance capex, recycling initiatives and logistics investment, supporting long-term operational stability.

Negative Factors

Recent revenue softness / inconsistent growth

Recent negative revenue growth highlights sensitivity to near-term construction demand and project timing. Persistent or recurring soft patches can compress utilization and pricing power over months, undermining sustainable topline expansion absent stronger construction trends or market share gains.

Modest net margins exposed to input cost swings

Net margin around 6.4% and mid-teens EBITDA leave limited buffer against rising energy, fuel or logistics costs—major inputs for cement kilns. Margin compression from cost inflation or lower selling prices can materially reduce earnings durability over the medium term.

Limited free cash after capex

A FCF-to-net-income ratio below 1.0 shows a sizable portion of operating profit absorbed by capex and working capital. This constrains discretionary spending, slows balance-sheet strengthening, or limits scope for higher dividends and growth investments during prolonged sector weakness.

Taiheiyo Cement Business Overview & Revenue Model

Company Description

Taiheiyo Cement Corporation engages in the cement, mineral resources, environmental, and construction materials businesses in Japan and internationally. The company's Cement segment offers ordinary Portland cement, specialty cement, soil stabilizers, and ready-mixed concrete. Its Mineral Resources segment sells limestone aggregate products comprising course and fine aggregate used in ready-mixed concrete, and aggregate used in concrete products and civil engineering; sandstone and andesite as aggregate materials; quicklime, slaked lime, filler, silica, and silica powder; and hollow ceramics, sepiolite, wollastonite, and kaolin, as well as recycles surplus construction soil. The company's Environmental segment recycles used tires, waste plastics, paper sludge, waste casting sand, other industrial waste, surplus soil from water purification, sewage sludge, dredging sludge, and other wastes discarded from municipalities, as well as engages in the CFC treatment and building waste treatment plants; develops and commercializes environmental recycling technologies, including ash washing system and applied kiln system; supplies flue gas desulfurization materials, such as calcium carbonate to coal-fired power plants; and sells slag powder and other inorganic materials, coal, heavy oil, and other fuels, as well as chemicals and gypsum. Its Construction Materials segment produces precast concrete products; promenades, interlocking blocks, and concrete housing products; acoustic panels used to reduce construction noise; and fireproof covering materials used in tunnels. The company's Other Businesses segment leases land for office buildings, commercial stores, leisure facilities, distribution warehouses, and other structures, as well as develops land for residential housing; and engages in the data processing, transportation and warehouse, engineering, chemical products, and sports businesses. Taiheiyo Cement Corporation was incorporated in 1881 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Taiheiyo Cement primarily makes money by producing and selling cement and cement-related building materials to customers in the construction and infrastructure markets. Its main revenue stream comes from domestic and overseas sales of cement and clinker (semi-finished cement material) and from related construction materials such as ready-mixed concrete and aggregates, where offered through its group companies and operations. The company also generates revenue from logistics and distribution activities that support delivery of heavy materials (e.g., marine and land transport and terminal operations where applicable), typically monetized through internal efficiency and, when provided externally, service fees. In addition, Taiheiyo Cement earns income from environmental and recycling businesses tied to the cement kiln process, such as accepting, processing, or recycling industrial byproducts and waste materials as alternative raw materials or fuels (commonly structured as treatment/processing fees and related service revenues). Profitability across these streams is influenced by construction demand, selling prices for cement and related materials, energy and fuel costs (a major input for kiln operations), and the company’s ability to optimize production and distribution across regions. Specific material partnerships or customer concentration details are null.

Taiheiyo Cement Financial Statement Overview

Summary

Taiheiyo Cement demonstrates solid financial performance with steady revenue growth and profitability improvements. The balance sheet reflects moderate leverage and sound financial health, while cash flow generation is stable, though there is room for improvement in liquidity.

Income Statement

The company's revenue has shown a steady growth trajectory, with a revenue growth rate of 1.13% from 2024 to 2025. The gross profit margin for the latest year is 24.22%, indicating solid profitability. The net profit margin improved to 6.41% in 2025, reflecting enhanced cost control and operational efficiency. The EBIT and EBITDA margins of 8.68% and 15.60% respectively suggest robust core operational performance despite industry pressures.

Balance Sheet

The balance sheet shows a stable financial structure with a debt-to-equity ratio of 0.64, indicating moderate leverage. Return on equity is at 8.95%, reflecting decent profitability relative to shareholder equity. The equity ratio stands at 45.07%, showing a healthy balance between equity and total assets, which provides financial stability.

Cash Flow

The cash flow analysis reveals a positive free cash flow growth from the previous year, although it's relatively modest. The operating cash flow to net income ratio is strong at 2.05, indicating efficient cash generation relative to profits. The free cash flow to net income ratio of 0.58 signifies the company's ability to generate cash after capital expenditures, though improvement is needed to enhance liquidity.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	898.63B	896.29B	886.27B	809.54B	708.20B	863.90B
Gross Profit	218.18B	217.09B	192.21B	141.22B	175.38B	191.27B
EBITDA	133.00B	139.84B	127.97B	50.84B	101.08B	121.34B
Net Income	50.72B	57.43B	43.27B	-33.21B	28.97B	46.80B
Balance Sheet
Total Assets	1.41T	1.42T	1.34T	1.27T	1.10T	1.04T
Cash, Cash Equivalents and Short-Term Investments	74.01B	74.99B	80.10B	79.84B	60.27B	73.07B
Total Debt	406.26B	410.83B	405.61B	430.00B	284.07B	262.45B
Total Liabilities	754.73B	747.57B	741.86B	740.00B	558.20B	537.40B
Stockholders Equity	625.69B	641.67B	563.21B	494.96B	510.62B	470.92B
Cash Flow
Free Cash Flow	0.00	33.31B	53.18B	-64.26B	3.42B	51.58B
Operating Cash Flow	0.00	117.87B	140.54B	-268.00M	71.19B	110.40B
Investing Cash Flow	0.00	-106.53B	-82.14B	-93.34B	-83.92B	-47.81B
Financing Cash Flow	0.00	-20.61B	-59.48B	112.08B	-3.74B	-43.95B

Taiheiyo Cement Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3998.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5233, the sentiment is Negative. The current price of 3998 is below the 20-day moving average (MA) of 4078.20, below the 50-day MA of 4255.76, and above the 200-day MA of 3918.60, indicating a bearish trend. The MACD of -212.62 indicates Positive momentum. The RSI at 26.83 is Positive, neither overbought nor oversold. The STOCH value of 11.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5233.

Taiheiyo Cement Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5288	80 Outperform	¥54.32B	7.15	―	3.25%	9.50%	77.72%
5233	67 Neutral	¥388.03B	-16.12	7.93%	2.32%	-2.26%	-10.86%
5900	64 Neutral	¥4.74B	56.66	―	2.05%	―	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5232	61 Neutral	¥121.66B	45.55	6.98%	3.13%	-2.13%	37.10%
4044	55 Neutral	¥97.88B	5.97	―	4.87%	-4.44%	-47.54%
5269	49 Neutral	¥18.18B	743.26	―	3.24%	-3.73%	-143.19%

Taiheiyo Cement Corporate Events

Taiheiyo Cement Cuts Size of Employee Share Incentive Allotment After Promotion Period

Taiheiyo Cement has completed payment procedures for a disposal of treasury shares used as restricted stock incentives for its Employee Stock Ownership Association. Following the promotion period and confirmation of participating members, the number of shares allotted was reduced from 179,130 to 129,360, cutting the total disposal amount from ¥731.6 million to ¥528.3 million.

The shares, priced at ¥4,084 each, were allotted via third-party placement to the employee ownership scheme, reinforcing employee shareholding while modestly adjusting the scale from the original plan. The company expects the financial impact on results for the fiscal year ending March 2026 to be minimal, indicating that the transaction is primarily aimed at capital and incentive structure rather than near-term earnings.

The most recent analyst rating on (JP:5233) stock is a Hold with a Yen4758.00 price target. To see the full list of analyst forecasts on Taiheiyo Cement stock, see the JP:5233 Stock Forecast page.

Taiheiyo Cement Names Fukami as New Representative Director to Bolster Global Strategy

Taiheiyo Cement has announced a change in its top management, appointing Shinji Fukami as Vice President and Representative Director, effective April 1, 2026, as part of efforts to strengthen its management structure. Fukami, a Kyoto University engineering graduate who joined predecessor firm Onoda Cement in 1986, has built his career across international and environmental businesses and currently oversees the Global Business Division, signaling continued emphasis on overseas expansion and environmental initiatives within the company’s leadership.

The most recent analyst rating on (JP:5233) stock is a Hold with a Yen5042.00 price target. To see the full list of analyst forecasts on Taiheiyo Cement stock, see the JP:5233 Stock Forecast page.

Taiheiyo Cement to Exit Chinese Subsidiary Jiangnan-Onoda via Equity Transfer

Taiheiyo Cement has agreed to transfer its entire 88.51% equity interest in Jiangnan-Onoda Cement Co., Ltd., a consolidated subsidiary in Nanjing, Jiangsu Province, to Nanjing Yida Zongheng Building Materials, resulting in Jiangnan-Onoda’s exclusion from the group. The subsidiary had already halted cement manufacturing and sales in 2023, and Taiheiyo plans to reinvest proceeds from the sale into future projects and regions, marking a continued withdrawal from its Chinese cement operations and a reallocation of capital aimed at strengthening overall corporate value.

Jiangnan-Onoda, established in 1993 with capital of about USD 134 million, has seen shrinking assets and volatile earnings, recording no net sales and recurring losses in recent fiscal years. The divestment underscores Taiheiyo Cement’s strategic reshaping of its overseas portfolio, which may reduce its exposure to a challenging Chinese market while potentially improving returns for shareholders if redeployed funds generate higher growth elsewhere.

The most recent analyst rating on (JP:5233) stock is a Hold with a Yen5042.00 price target. To see the full list of analyst forecasts on Taiheiyo Cement stock, see the JP:5233 Stock Forecast page.

Taiheiyo Cement Takes Philippine Impairment Hit, Slashes Profit Forecasts

Taiheiyo Cement has booked a ¥24.4 billion impairment loss on plant and machinery at its Philippine subsidiary, Taiheiyo Cement Philippines, Inc., after reassessing its business plan amid higher interest rates and sluggish post-pandemic demand in the local cement market. The company also recorded a ¥37.8 billion loss on valuation of shares in the same unit on a non-consolidated basis, though this latter charge is eliminated at the consolidated level.

Following these charges, Taiheiyo Cement cut its consolidated full-year profit attributable to owners forecast from ¥45 billion to ¥17 billion, even as ordinary profit guidance was slightly raised on foreign exchange gains and sales projections were maintained. On a non-consolidated basis, the company slashed its profit forecast from ¥40 billion to ¥1 billion and trimmed net sales expectations, signaling a sharp hit to parent-company earnings while keeping its dividend outlook unchanged.

The most recent analyst rating on (JP:5233) stock is a Hold with a Yen4773.00 price target. To see the full list of analyst forecasts on Taiheiyo Cement stock, see the JP:5233 Stock Forecast page.

Taiheiyo Cement Highlights Mission of Sustainable Infrastructure Support

Taiheiyo Cement, a major Japanese cement and building materials producer founded in 1881 and based in Tokyo, oversees a broad group structure with thousands of employees and hundreds of subsidiaries and affiliates. Its scale and integrated operations underline its role as a core supplier to infrastructure and construction markets in Japan and abroad.

In reference materials for the nine months ended December 31, 2025, the group reiterates its mission to support social infrastructure by offering environmentally efficient solutions that enhance competitiveness and create stakeholder value. This strategic emphasis on sustainability and infrastructure-oriented offerings suggests continued alignment with decarbonization trends and long-term infrastructure investment, which are likely to shape its operational focus and market positioning.

The most recent analyst rating on (JP:5233) stock is a Hold with a Yen4773.00 price target. To see the full list of analyst forecasts on Taiheiyo Cement stock, see the JP:5233 Stock Forecast page.

Taiheiyo Cement Profit Slumps Despite Stable Sales; Full‑Year Outlook Cut

Taiheiyo Cement posted nine‑month consolidated net sales of ¥671.3 billion, down 1.6% year on year, with operating profit falling 8.0% to ¥59.1 billion and ordinary profit down 7.6% to ¥60.2 billion. Profit attributable to owners of the parent plunged 66.1% to ¥17.8 billion, while total assets rose to ¥1.45 trillion and the capital adequacy ratio slipped to 43.8%.

The company kept its dividend forecast unchanged, having already paid a ¥50 per‑share interim dividend and projecting a full‑year payout of ¥100 per share. For the fiscal year ending March 2026, it now forecasts modest 1.1% net sales growth to ¥906 billion but expects double‑digit declines in operating and ordinary profit and a roughly 70% drop in full‑year net income, underscoring earnings pressure despite stable top‑line trends.

The most recent analyst rating on (JP:5233) stock is a Hold with a Yen4773.00 price target. To see the full list of analyst forecasts on Taiheiyo Cement stock, see the JP:5233 Stock Forecast page.

Taiheiyo Cement Delays Closing of CalPortland’s Acquisition of Vulcan Ready-Mix Assets to First Half of 2026

Taiheiyo Cement has announced a change in the expected closing schedule for its U.S. subsidiary CalPortland Company’s planned acquisition of ready-mixed concrete business assets in California from Vulcan Materials Company. CalPortland received a “Second Request” for additional information from the U.S. Department of Justice under the Hart-Scott-Rodino Antitrust Improvements Act, a standard part of antitrust review for transactions of this type, which has delayed the expected closing from December 2025 to sometime in the first half of 2026. The company emphasized that completion of the deal remains subject to the expiration or termination of the HSR waiting period and other closing conditions, and it intends to fully cooperate with regulators to complete the transaction as promptly as possible, underscoring the strategic importance of this acquisition for its U.S. ready-mixed concrete operations.

The most recent analyst rating on (JP:5233) stock is a Hold with a Yen4111.00 price target. To see the full list of analyst forecasts on Taiheiyo Cement stock, see the JP:5233 Stock Forecast page.