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Taiheiyo Cement Corporation (JP:5233)
:5233

Taiheiyo Cement (5233) AI Stock Analysis

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Taiheiyo Cement

(OTC:5233)

Rating:68Neutral
Price Target:
¥3,991.00
▲( 7.95% Upside)
The overall stock score is primarily supported by solid financial performance and a favorable valuation. The financial health of the company is robust with steady revenue growth and profitability. The technical analysis, however, indicates bearish momentum, which is a concern. The valuation suggests potential undervaluation, offering a compelling case for investment.

Taiheiyo Cement (5233) vs. iShares MSCI Japan ETF (EWJ)

Taiheiyo Cement Business Overview & Revenue Model

Company DescriptionTaiheiyo Cement Corporation (5233) is a leading Japanese company in the cement industry, engaged in the production and sale of cement, ready-mixed concrete, and other construction-related products. The company operates globally, with a presence in various international markets, providing a comprehensive range of cement and related materials that cater to the needs of the construction industry. Taiheiyo Cement is known for its commitment to innovation and sustainability in building materials, ensuring high-quality products that meet diverse structural and environmental requirements.
How the Company Makes MoneyTaiheiyo Cement makes money primarily through the production and sale of cement and ready-mixed concrete, which are fundamental materials for construction projects worldwide. The company operates a vertically integrated business model, controlling various stages of production from raw material extraction to finished product delivery. Key revenue streams include domestic and international sales of cement products, with a significant portion of earnings coming from large infrastructure and construction projects. Additionally, Taiheiyo Cement engages in partnerships and collaborations with construction firms and government entities, leveraging these relationships to secure long-term supply contracts. The company also invests in research and development to enhance product quality and sustainability, which helps maintain its competitive edge in the global market.

Taiheiyo Cement Financial Statement Overview

Summary
Taiheiyo Cement shows strong revenue growth and profitability metrics, particularly in EBIT and EBITDA margins, indicating operational efficiency. However, balance sheet stability is challenged by increasing liabilities, and cash flow management needs improvement, as evidenced by fluctuating free cash flow and recent liquidity concerns. Strategic focus on debt management and consistent cash flow generation would enhance financial health.
Income Statement
75
Positive
The company's revenue has shown a consistent upward trajectory over the years, with a notable revenue growth rate of 2.45% in the TTM. The gross profit margin (23.92% TTM) and net profit margin (7.36% TTM) indicate a stable profitability framework. However, the net profit margin has room for improvement. The EBIT margin (8.68% TTM) and EBITDA margin (14.73% TTM) are solid, suggesting efficient operations.
Balance Sheet
65
Positive
The debt-to-equity ratio stands at 0.64 TTM, which is manageable, but the company should monitor its debt levels. The return on equity (ROE) at 11.12% TTM shows effective use of equity, and the equity ratio is 43.23% TTM, indicating a healthy equity position. However, the increase in total liabilities over time suggests a need for strategic financial planning.
Cash Flow
50
Neutral
The company has struggled with consistent free cash flow generation, as indicated by the free cash flow growth rate, which has fluctuated, resulting in a current negative free cash flow in the TTM. The operating cash flow to net income ratio is unavailable due to zero operating cash flow in the TTM, indicating potential liquidity management issues. Historical free cash flow to net income ratios have been inconsistent.
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
907.97B886.27B809.54B708.20B863.90B884.35B
Gross Profit
217.18B192.21B141.22B175.38B191.27B195.03B
EBIT
78.81B56.47B4.46B46.70B63.61B61.01B
EBITDA
133.71B127.97B50.85B102.77B116.35B109.96B
Net Income Common Stockholders
66.87B43.27B-33.21B28.97B46.80B39.15B
Balance SheetCash, Cash Equivalents and Short-Term Investments
91.92B80.10B79.84B60.27B73.07B51.64B
Total Assets
1.39T1.34T1.27T1.10T1.04T1.03T
Total Debt
387.60B395.27B430.00B284.07B262.45B284.11B
Net Debt
295.67B315.17B350.16B223.80B189.38B232.47B
Total Liabilities
756.17B741.87B740.01B558.21B537.41B559.68B
Stockholders Equity
601.31B563.21B494.95B510.62B470.92B436.68B
Cash FlowFree Cash Flow
0.0053.18B-64.26B3.42B51.58B24.28B
Operating Cash Flow
0.00140.54B-268.00M71.19B110.40B90.90B
Investing Cash Flow
0.00-82.14B-93.34B-83.92B-47.81B-65.53B
Financing Cash Flow
0.00-59.48B112.08B-3.74B-43.95B-29.44B

Taiheiyo Cement Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3697.00
Price Trends
50DMA
3813.90
Negative
100DMA
3800.87
Negative
200DMA
3600.92
Positive
Market Momentum
MACD
-49.27
Positive
RSI
45.47
Neutral
STOCH
43.34
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5233, the sentiment is Neutral. The current price of 3697 is below the 20-day moving average (MA) of 3759.10, below the 50-day MA of 3813.90, and above the 200-day MA of 3600.92, indicating a neutral trend. The MACD of -49.27 indicates Positive momentum. The RSI at 45.47 is Neutral, neither overbought nor oversold. The STOCH value of 43.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5233.

Taiheiyo Cement Peers Comparison

Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥15.47B7.17
3.97%12.80%51.13%
78
Outperform
¥34.66B14.77
4.95%-2.28%-38.60%
68
Neutral
$412.74B7.289.42%2.07%1.13%34.72%
64
Neutral
¥123.45B13.774.61%3.04%-1.36%-39.16%
61
Neutral
¥7.56B18.37
2.96%2.12%21.90%
50
Neutral
$2.00B-1.13-21.16%3.71%2.15%-30.95%
42
Neutral
¥16.38B98.19
4.45%-1.86%-134.14%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5233
Taiheiyo Cement
3,697.00
-171.41
-4.43%
JP:5268
Asahi Concrete Works Co., Ltd.
571.00
-147.02
-20.48%
JP:5269
Nippon Concrete Industries Co., Ltd.
293.00
-59.08
-16.78%
JP:5285
YAMAX Corp.
1,499.00
135.89
9.97%
JP:5288
ASIA PILE HOLDINGS Corporation
922.00
-21.88
-2.32%
JP:5232
Sumitomo Osaka Cement Co
3,754.00
-22.78
-0.60%

Taiheiyo Cement Corporate Events

Taiheiyo Cement Proposes Year-End Dividend of 40 Yen per Share
May 20, 2025

Taiheiyo Cement Corporation announced a proposal for dividends of surplus, with a record date of March 31, 2025, to be presented at the upcoming General Meeting of Stockholders. The company plans to pay a year-end dividend of 40.00 yen per share, resulting in an annual dividend of 80.00 yen per share, reflecting its policy of maintaining stable dividends while considering the business environment and performance.

The most recent analyst rating on (JP:5233) stock is a Buy with a Yen4700.00 price target. To see the full list of analyst forecasts on Taiheiyo Cement stock, see the JP:5233 Stock Forecast page.

Taiheiyo Cement’s Strategic Focus on Environmentally Efficient Solutions
May 13, 2025

Taiheiyo Cement’s mission is to enhance its competitive position and deliver value to stakeholders by focusing on environmentally efficient solutions for infrastructure development. The company’s strategic initiatives aim to strengthen its market position and contribute positively to social infrastructure.

The most recent analyst rating on (JP:5233) stock is a Buy with a Yen4700.00 price target. To see the full list of analyst forecasts on Taiheiyo Cement stock, see the JP:5233 Stock Forecast page.

Taiheiyo Cement Reports Strong Financial Performance for FY 2025
May 13, 2025

Taiheiyo Cement Corporation reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a 1.1% increase in net sales to 896,295 million yen and a notable rise in operating profit by 37.7% to 77,750 million yen. The company also announced a dividend increase, reflecting its strong financial performance and commitment to shareholder returns. The exclusion of Dalian Onoda Cement Co., Ltd. from its consolidation scope and changes in accounting policies were highlighted, indicating strategic adjustments in its operations.

The most recent analyst rating on (JP:5233) stock is a Buy with a Yen4700.00 price target. To see the full list of analyst forecasts on Taiheiyo Cement stock, see the JP:5233 Stock Forecast page.

Taiheiyo Cement Concludes Share Repurchase Program
Mar 26, 2025

Taiheiyo Cement Corporation has concluded its share repurchase program, initially approved by its Board of Directors in October 2024. The company repurchased a total of 4,166,600 shares, amounting to approximately ¥14.999 billion, through the Tokyo Stock Exchange. This strategic move is likely aimed at optimizing capital structure and enhancing shareholder value.

Taiheiyo Cement Updates on Share Repurchase Progress
Mar 4, 2025

Taiheiyo Cement Corporation announced the status of its share repurchase program, which was approved by its Board of Directors in October 2024. As of February 28, 2025, the company repurchased 429,800 shares for approximately ¥1.7 billion through the Tokyo Stock Exchange. This move is part of a larger plan to repurchase up to 6 million shares, reflecting the company’s strategy to enhance shareholder value and optimize its capital structure.

Taiheiyo Cement Expands Stake in Toyo Wharf & Warehouse
Feb 28, 2025

Taiheiyo Cement Corporation, through its subsidiaries Mitsui Wharf Co., Ltd. and DC Co., Ltd., has announced the acquisition of shares in Toyo Wharf & Warehouse Co., Ltd. This acquisition, involving a significant percentage of voting rights, is classified as an act equivalent to a tender offer under Japanese financial regulations, potentially impacting the company’s strategic positioning in the logistics and warehousing sector.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.