Taiheiyo Cement (5233) AI Stock Analysis

• Market Cap: $412.74B
• Dividend Yield: 2.07%
• Average Volume (3M): 404.68K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 0.94
• Revenue Growth: 1.13%
• EPS Growth: 34.72%
• Country: JP
• Employees: 12,540
• Sector: Basic Materials
• Sector Strength: 65
• Industry: Construction Materials
• EPS (TTM): 47.00
• Shares Outstanding: 118,191,580
• 10 Day Avg. Volume: 642,450
• 30 Day Avg. Volume: 404,683
• PEG Ratio: 0.53
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: $5,012.81
• Price Target Upside: 35.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 68 Neutral
• 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 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 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

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

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

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
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
907.97B	886.27B	809.54B	708.20B	863.90B	884.35B
	Gross Profit
217.18B	192.21B	141.22B	175.38B	191.27B	195.03B
	EBIT
78.81B	56.47B	4.46B	46.70B	63.61B	61.01B
	EBITDA
133.71B	127.97B	50.85B	102.77B	116.35B	109.96B
	Net Income Common Stockholders
66.87B	43.27B	-33.21B	28.97B	46.80B	39.15B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
91.92B	80.10B	79.84B	60.27B	73.07B	51.64B
	Total Assets
1.39T	1.34T	1.27T	1.10T	1.04T	1.03T
	Total Debt
387.60B	395.27B	430.00B	284.07B	262.45B	284.11B
	Net Debt
295.67B	315.17B	350.16B	223.80B	189.38B	232.47B
	Total Liabilities
756.17B	741.87B	740.01B	558.21B	537.41B	559.68B
	Stockholders Equity
601.31B	563.21B	494.95B	510.62B	470.92B	436.68B
Cash Flow		Free Cash Flow
0.00	53.18B	-64.26B	3.42B	51.58B	24.28B
	Operating Cash Flow
0.00	140.54B	-268.00M	71.19B	110.40B	90.90B
	Investing Cash Flow
0.00	-82.14B	-93.34B	-83.92B	-47.81B	-65.53B
	Financing Cash Flow
0.00	-59.48B	112.08B	-3.74B	-43.95B	-29.44B

Taiheiyo Cement Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3697.00
• 50DMA: Negative
• 100DMA: Negative
• 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: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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5233	68 Neutral	$412.74B	7.28	9.42%	2.07%	1.13%	34.72%
Sector *	50 Neutral	$2.00B	-1.13	-21.16%	3.71%	2.15%	-30.95%
SUCEF		$866.39M	14.71	4.61%	3.04%	―	―
5285	80 Outperform	¥15.88B	7.36		3.98%	12.80%	51.13%
5288	78 Outperform	¥35.12B	14.97		4.90%	-2.28%	-38.60%
5268	61 Neutral	¥7.59B	18.43		2.98%	2.12%	21.90%
5269	42 Neutral	¥16.72B	98.19		4.44%	-1.86%	-134.14%

Taiheiyo Cement Corporate Events

Taiheiyo Cement Proposes Year-End Dividend of 40 Yen per Share

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

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

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

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

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

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.