Takadakiko Co., Ltd. (5923) AI Stock Analysis

• Market Cap: ¥8.72B
• Dividend Yield: 4.38%
• Average Volume (3M): 5.89K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.43
• Revenue Growth: -16.09%
• EPS Growth: -163.96%
• Country: JP
• Employees: 292
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -27.60
• Shares Outstanding: 6,712,758
• 10 Day Avg. Volume: 3,820
• 30 Day Avg. Volume: 5,893
• PEG Ratio: -0.29
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 0.33
• P/FCF Ratio: -5.82
• 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: 71 Outperform
• Price Target: ¥1,465.00 ▲(26.18% Upside)
• Action: N/A Date: 07/28/25
• Date: Action: N/A 07/28/25

The overall stock score of 71 reflects a balance between strong technical analysis and fair valuation, offset by financial performance challenges. The positive technical indicators and attractive dividend yield are significant strengths, while the company's profitability and cash flow issues present risks that need addressing.

Positive Factors

Low Leverage / Strong Equity

A low debt-to-equity ratio and a robust equity ratio provide structural financial resilience. Over a 2-6 month horizon this reduces interest burden, preserves borrowing capacity, and gives flexibility to fund projects or absorb shocks without forced asset sales or distressed financing.

Attractive Dividend Yield

A sustained ~4.5% dividend yield supports durable shareholder income and enforces capital allocation discipline. This encourages management to prioritize cash generation and conservative payouts, which can stabilize investor returns and reduce pressure for risky growth initiatives over time.

Low Market Volatility (Beta)

A beta near 0.43 indicates lower systematic volatility relative to the market, implying steadier revenue and earnings expectations. This structural stability lowers refinancing and covenant stress risks and appeals to long-horizon, risk-conscious investors seeking predictable cash flow profiles.

Negative Factors

Revenue Decline

A roughly 17% revenue decline signals weakened demand, lost contracts, or market share erosion. Sustained top-line contraction reduces scale benefits, pressures margins, and constrains reinvestment capacity; recovery without new markets or product wins could take multiple quarters.

Negative Free Cash Flow

Negative free cash flow and poor conversion of earnings into cash materially limit the firm's ability to fund capex, pay dividends, or reduce debt organically. Prolonged cash deficits increase reliance on external financing, raising long-term financing risk and strategic constraint.

Margin Compression

Marked declines in gross and net margins point to cost pressure or weakened pricing power. Margin compression reduces earnings resilience and cash generation per revenue dollar, making it harder to sustain dividends or reinvest without structural cost controls or improved pricing.

Takadakiko Co., Ltd. Business Overview & Revenue Model

Company Description

TAKADAKIKO (Steel Construction) CO., LTD. engages in the construction business in Japan. The company designs, produces, and installs steel bridges, such as road and railway bridges, steel frames, and school gymnasiums. It is also involved in the building construction; and installation of steel bridge upper works, floor plates, pavement works, signs, and protective fences. The company was founded in 1921 and is headquartered in Osaka, Japan.

How the Company Makes Money

Takadakiko Co., Ltd. Financial Statement Overview

Summary

Takadakiko Co., Ltd. faces challenges in maintaining profitability and cash flow, as evidenced by declining margins and negative cash flow metrics. However, the company maintains a strong equity position with low leverage, providing some financial stability. Continued focus on cost management and cash flow generation will be crucial for future performance.

Income Statement

The company has experienced fluctuating revenue growth, with a decline in the most recent year. Gross profit margin has decreased from 14.6% to 10.3% over the past year, indicating potential cost management issues. Net profit margin also decreased from 4.6% to 1.9%, reflecting reduced profitability. EBIT and EBITDA margins have similarly declined, suggesting operational challenges.

Balance Sheet

The balance sheet shows a strong equity position with a debt-to-equity ratio of 0.31, indicating low leverage. The equity ratio is robust at 65.8%, reflecting financial stability. However, the decline in stockholders' equity over the past year is a concern, potentially affecting future financial flexibility.

Cash Flow

Cash flow analysis reveals negative free cash flow growth, with free cash flow turning negative in the latest year. The operating cash flow to net income ratio is negative, indicating cash flow challenges. The free cash flow to net income ratio is also negative, suggesting difficulties in generating cash from operations.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	18.98B	18.46B	19.70B	15.98B	15.67B	15.22B
Gross Profit	2.47B	1.90B	2.88B	1.76B	2.03B	2.13B
EBITDA	1.37B	837.47M	1.63B	704.02M	1.05B	910.99M
Net Income	751.51M	343.69M	898.12M	340.63M	747.73M	489.75M
Balance Sheet
Total Assets	27.24B	31.13B	30.23B	27.28B	24.55B	26.65B
Cash, Cash Equivalents and Short-Term Investments	2.91B	2.39B	2.14B	2.89B	3.67B	3.81B
Total Debt	3.80B	6.40B	4.60B	4.90B	2.00B	2.20B
Total Liabilities	7.11B	10.65B	9.32B	8.20B	5.51B	7.82B
Stockholders Equity	20.14B	20.48B	20.91B	19.08B	19.04B	18.83B
Cash Flow
Free Cash Flow	621.07M	-1.06B	-388.48M	-3.25B	551.43M	-2.13B
Operating Cash Flow	621.07M	-547.36M	-66.24M	-2.13B	1.43B	-1.83B
Investing Cash Flow	0.00	-393.73M	-174.49M	-1.12B	-825.32M	-192.41M
Financing Cash Flow	0.00	1.09B	-503.67M	2.47B	-644.35M	200.94M

Takadakiko Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1161.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5923, the sentiment is Positive. The current price of 1161 is below the 20-day moving average (MA) of 1313.55, below the 50-day MA of 1251.92, and above the 200-day MA of 1140.35, indicating a bullish trend. The MACD of 20.66 indicates Positive momentum. The RSI at 73.48 is Negative, neither overbought nor oversold. The STOCH value of 58.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5923.

Takadakiko Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1905	77 Outperform	¥9.32B	4.52	―	4.09%	-8.48%	54.87%
5915	72 Outperform	¥9.40B	-81.16	―	3.74%	-29.79%	278.17%
5923	71 Outperform	¥8.72B	-10.52	―	4.38%	-16.09%	-163.96%
4642	70 Outperform	¥7.90B	16.79	―	2.03%	16.10%	-10.63%
3423	69 Neutral	¥8.73B	17.68	―	4.94%	-4.23%	-64.20%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1718	60 Neutral	¥8.79B	5.99	―	2.87%	19.10%	78.61%