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

• Market Cap: ¥7.47B
• Dividend Yield: 4.54%
• Average Volume (3M): 5.89K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.41
• Revenue Growth: -16.09%
• EPS Growth: -163.96%
• Country: JP
• Employees: 292
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -85.02
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥1,228.00 ▲(9.84% Upside)

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

Strong Equity Position

A strong equity position with low leverage enhances financial stability, providing a solid foundation for long-term growth and resilience against economic fluctuations.

Industry Expertise

Expertise in metal construction materials positions Takadakiko well within its industry, supporting sustained demand and potential for strategic partnerships.

Client Relationships

Strong client and supplier relationships contribute to consistent revenue streams and market stability, enhancing long-term business prospects.

Negative Factors

Declining Profit Margins

Decreasing profit margins suggest challenges in cost management, which could impact profitability and require strategic adjustments to maintain financial health.

Negative Cash Flow

Negative cash flow growth indicates difficulties in generating cash from operations, potentially limiting the company's ability to invest in growth and manage debt.

Revenue Decline

Declining revenue growth can signal weakening market position or demand, necessitating strategic initiatives to reverse the trend and sustain long-term viability.

Takadakiko Co., Ltd. Business Overview & Revenue Model

Company Description

Takadakiko Co., Ltd. (5923) is a Japan-based company primarily engaged in the manufacturing and sale of precision instruments and components. The company operates in sectors such as industrial machinery and equipment, focusing on products that cater to various industries including automotive, aerospace, and electronics. Its core offerings include high-precision measuring instruments, industrial robots, and automation solutions, aimed at enhancing productivity and efficiency in manufacturing processes.

How the Company Makes Money

Takadakiko Co., Ltd. generates revenue through multiple streams, primarily from the sale of its precision instruments and automation solutions. The company sells its products directly to manufacturers and industrial clients, as well as through distributors and partners. Key revenue streams include product sales, maintenance services, and repair offerings. Additionally, Takadakiko may engage in strategic partnerships with other firms to co-develop technology or products, which can lead to shared revenue opportunities. The company's earnings are further bolstered by its focus on innovation and R&D, allowing it to stay competitive in a rapidly evolving market.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: 1118.00
• 50DMA: Negative
• 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:5923, the sentiment is Positive. The current price of 1118 is above the 20-day moving average (MA) of 1100.25, below the 50-day MA of 1137.94, and above the 200-day MA of 1061.07, indicating a neutral trend. The MACD of -12.07 indicates Negative momentum. The RSI at 52.15 is Neutral, neither overbought nor oversold. The STOCH value of 70.83 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
1966	77 Outperform	¥12.52B	6.22	―	4.11%	5.33%	-27.53%
1762	73 Outperform	¥103.65B	16.55	―	2.46%	7.22%	21.92%
5915	72 Outperform	¥8.98B	5.62	―	3.72%	-29.79%	278.17%
5923	71 Outperform	¥7.47B	-19.41	―	4.54%	-16.09%	-163.96%
5918	70 Outperform	¥16.31B	27.24	―	1.32%	2.98%	11.88%
1879	67 Neutral	¥113.12B	8.29	―	3.02%	-3.99%	13.29%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%