Takigami Steel Construction Co., Ltd. (5918) AI Stock Analysis

• Market Cap: ¥15.87B
• Dividend Yield: 1.39%
• Average Volume (3M): 470.00
• Price to Earnings (P/E): 6.9
• Beta (1Y): 0.27
• Revenue Growth: 2.98%
• EPS Growth: 11.88%
• Country: JP
• Employees: 454
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 259.66
• Shares Outstanding: 2,697,600
• 10 Day Avg. Volume: 530
• 30 Day Avg. Volume: 470
• PEG Ratio: -1.00
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.67
• P/FCF Ratio: 8.18
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥8,635.00 ▲(15.13% Upside)
• Action: Upgraded Date: 10/10/25
• Date: Action: Upgraded 10/10/25

The overall stock score of 70 reflects strong technical momentum and a solid financial position, tempered by high valuation concerns and inconsistent cash flow. The company's ability to maintain growth while addressing profitability and cash flow issues will be crucial for future performance.

Positive Factors

Strong Balance Sheet

A strong balance sheet with a high equity ratio indicates financial stability, providing the company with resilience against economic fluctuations and the ability to invest in growth opportunities.

Revenue Growth

Consistent revenue growth over several years suggests a robust demand for the company's services, supporting its market position and potential for future expansion.

Low Debt Levels

Maintaining a low debt-to-equity ratio enhances financial flexibility, reducing risk and enabling the company to pursue strategic initiatives without over-reliance on debt.

Negative Factors

Declining Profit Margins

Declining profit margins indicate challenges in cost management, which can erode profitability and affect the company's ability to reinvest in its business and sustain competitive advantages.

Inconsistent Cash Flow

Inconsistent cash flow can hinder the company's ability to fund operations and growth initiatives, potentially leading to increased reliance on external financing and affecting long-term financial health.

Declining Stockholders' Equity

A decline in stockholders' equity could indicate financial strain or poor earnings retention, potentially affecting investor confidence and the company's ability to raise capital in the future.

Takigami Steel Construction Co., Ltd. Business Overview & Revenue Model

Company Description

The Takigami Steel Construction Co., Ltd. designs, manufactures, and constructs bridges, steel frames, steel towers, and other steel structures primarily in Japan. It also engages in construction work, as well as repair and reinforcement work. The Takigami Steel Construction Co., Ltd. was founded in 1895 and is headquartered in Handa, Japan.

How the Company Makes Money

Takigami Steel Construction Co., Ltd. generates revenue primarily through the execution of construction contracts, where they design, fabricate, and install steel structures for various projects. Key revenue streams include contracts for commercial and industrial buildings, infrastructure development, and specialized steel fabrication services. The company may also earn income from maintenance and repair services for existing structures. Significant partnerships with construction firms, architects, and engineering companies enhance their project portfolio and provide access to larger projects, contributing to stable earnings. Additionally, the focus on sustainable practices and innovative technologies may attract government contracts and private sector partnerships, further bolstering their revenue potential.

Takigami Steel Construction Co., Ltd. Financial Statement Overview

Summary

Takigami Steel Construction Co., Ltd. demonstrates strong revenue growth and a robust balance sheet, characterized by a low debt-to-equity ratio and high equity ratio. Nevertheless, declining profitability margins and inconsistent cash flow performance highlight areas of concern. The company needs to address its cost management strategies and stabilize its cash flow to enhance financial health and sustain growth in the competitive engineering and construction industry.

Income Statement

The company has shown steady revenue growth from 2020 to 2025, with a notable increase in total revenue over the last few years. However, despite the revenue growth, there is a concerning trend of declining gross profit margins, particularly from 2024 to 2025. The net profit margin has also decreased significantly in 2025 compared to previous years, indicating challenges in cost management and profitability.

Balance Sheet

The balance sheet reflects a strong equity position with a high equity ratio, indicating financial stability. The debt-to-equity ratio remains low, suggesting prudent financial leverage. However, a decline in stockholders' equity from 2024 to 2025 may pose a concern if it continues, but overall, the company maintains a solid balance sheet.

Cash Flow

The company has experienced volatility in its free cash flow, with negative free cash flow in several years. Although there was a positive free cash flow in 2025, the overall cash flow from operations has been inconsistent, and the operating cash flow to net income ratio has shown significant fluctuations. This inconsistency may impact the company's ability to sustain operations without relying on external financing.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	23.27B	23.84B	23.33B	18.62B	14.68B	16.18B
Gross Profit	2.00B	1.74B	2.65B	2.24B	1.39B	2.54B
EBITDA	1.28B	1.16B	2.02B	2.08B	841.00M	1.82B
Net Income	397.00M	200.00M	986.00M	1.02B	138.00M	932.00M
Balance Sheet
Total Assets	63.27B	64.18B	58.52B	50.42B	48.81B	43.80B
Cash, Cash Equivalents and Short-Term Investments	6.55B	6.87B	3.20B	8.29B	11.72B	10.43B
Total Debt	3.58B	4.71B	800.00M	867.00M	759.00M	91.00M
Total Liabilities	19.67B	20.91B	13.94B	12.13B	11.71B	7.62B
Stockholders Equity	43.60B	43.27B	44.58B	38.29B	37.10B	36.18B
Cash Flow
Free Cash Flow	0.00	1.95B	-6.22B	-3.74B	497.00M	-1.79B
Operating Cash Flow	0.00	3.62B	-4.38B	-1.82B	1.75B	-1.00B
Investing Cash Flow	0.00	-2.46B	-388.00M	-292.00M	-1.44B	-638.00M
Financing Cash Flow	0.00	2.57B	-304.00M	-325.00M	442.00M	-234.00M

Takigami Steel Construction Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7500.00
• 50DMA: Positive
• 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:5918, the sentiment is Positive. The current price of 7500 is above the 20-day moving average (MA) of 7247.00, above the 50-day MA of 7235.00, and above the 200-day MA of 7114.22, indicating a bullish trend. The MACD of -3.43 indicates Positive momentum. The RSI at 50.97 is Neutral, neither overbought nor oversold. The STOCH value of 30.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5918.

Takigami Steel Construction Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1867	82 Outperform	¥19.63B	5.93	―	3.03%	4.18%	1.38%
5911	79 Outperform	¥117.81B	10.36	―	3.81%	0.82%	30.84%
1770	76 Outperform	¥16.36B	10.00	―	3.71%	-21.52%	-35.65%
5918	70 Outperform	¥15.87B	6.90	―	1.39%	2.98%	11.88%
1914	67 Neutral	¥15.36B	4.49	―	3.68%	5.82%	-22.14%
1850	66 Neutral	¥14.99B	9.58	―	1.01%	17.09%	43.01%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%