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

• Market Cap: ¥15.77B
• Dividend Yield: 1.36%
• Average Volume (3M): 483.00
• Price to Earnings (P/E): 37.7
• Beta (1Y): 0.20
• Revenue Growth: -1.13%
• EPS Growth: -39.36%
• Country: JP
• Employees: 454
• Sector: Industrials
• Sector Strength: 79
• Industry: Engineering & Construction
• EPS (TTM): 170.46
• Shares Outstanding: 2,697,600
• 10 Day Avg. Volume: 870
• 30 Day Avg. Volume: 483
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥7,391.00
• Price Target Upside: 4.69% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: ¥7,391.00 ▲(4.69% Upside)

The overall stock score of 66.1 reflects strong revenue growth and a solid balance sheet, which are offset by declining profitability margins and inconsistent cash flow. Technical analysis indicates mixed momentum, with the stock nearing overbought levels. The valuation suggests the stock is overvalued, with a high P/E ratio and modest dividend yield. These factors combined present a cautious outlook for potential investors.

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

Company Description

Takigami Steel Construction Co., Ltd. (5918) is a Japanese company specializing in steel construction services. The company operates in various sectors, providing structural steel fabrication, engineering, and construction services. Its core products and services include the design, manufacturing, and installation of steel structures, which are utilized in a range of industries such as commercial, industrial, and infrastructure development projects.

How the Company Makes Money

Takigami Steel Construction Co., Ltd. generates revenue primarily through its steel construction services, which encompass the design, fabrication, and installation of steel structures. The company's key revenue streams include contracts for large-scale infrastructure projects, commercial and industrial building developments, and partnerships with construction firms and government entities. These projects often involve long-term contracts, providing a steady flow of income. Additionally, the company may engage in joint ventures or collaborations with other construction and engineering firms to expand its market reach and enhance its service offerings, contributing positively to its earnings.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.84B	23.33B	18.62B	14.68B	16.18B
Gross Profit	1.74B	2.65B	2.24B	1.39B	2.54B
EBITDA	1.16B	2.02B	2.08B	841.00M	1.82B
Net Income	200.00M	986.00M	1.02B	138.00M	932.00M
Balance Sheet
Total Assets	64.18B	58.52B	50.42B	48.81B	43.80B
Cash, Cash Equivalents and Short-Term Investments	6.87B	3.20B	8.29B	11.72B	10.43B
Total Debt	4.71B	718.00M	777.00M	730.00M	62.00M
Total Liabilities	20.91B	13.94B	12.13B	11.71B	7.62B
Stockholders Equity	43.27B	44.58B	38.29B	37.10B	36.18B
Cash Flow
Free Cash Flow	1.95B	-6.22B	-3.74B	497.00M	-1.79B
Operating Cash Flow	4.27B	-4.38B	-1.82B	1.75B	-1.00B
Investing Cash Flow	-2.46B	-388.00M	-292.00M	-1.44B	-638.00M
Financing Cash Flow	2.57B	-304.00M	-325.00M	442.00M	-234.00M

Takigami Steel Construction Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7060.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 7060 is above the 20-day moving average (MA) of 6818.00, above the 50-day MA of 6716.80, and above the 200-day MA of 7004.66, indicating a bullish trend. The MACD of 161.08 indicates Negative momentum. The RSI at 60.75 is Neutral, neither overbought nor oversold. The STOCH value of 68.16 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
1860	75 Outperform	¥308.54B	12.07		2.81%	16.62%	42.69%
1890	75 Outperform	¥163.90B	18.35		5.05%	0.57%	26.93%
1820	71 Outperform	¥202.60B	12.69		4.30%	-8.97%	9.14%
1720	69 Neutral	¥115.05B	14.28		3.41%	11.42%	26.72%
1762	69 Neutral	¥101.34B	16.18		2.49%	6.90%	-25.24%
5918	66 Neutral	¥15.77B	37.71		1.36%	-1.13%	-39.36%
Sector *	64 Neutral	$10.96B	16.35	8.89%	1.96%	2.68%	-15.17%