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Giken Ltd. (JP:6289)
:6289
Japanese Market
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Giken Ltd. (6289) AI Stock Analysis

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JP

Giken Ltd.

(6289)

Rating:64Neutral
Price Target:
¥1,514.00
▲(9.31%Upside)
The overall stock score for Giken Ltd. is 64, reflecting a balanced but cautious outlook. The financial performance is strong with a solid balance sheet and cash flow, though revenue growth remains a challenge. Technical indicators suggest a neutral to slightly bearish trend. The valuation indicates potential overvaluation, but the dividend yield offers some investor appeal.

Giken Ltd. (6289) vs. iShares MSCI Japan ETF (EWJ)

Giken Ltd. Business Overview & Revenue Model

Company DescriptionGiken Ltd. (6289) is a company specializing in the development and manufacturing of innovative construction machinery and equipment. The company is known for its advanced piling solutions and technologies that focus on minimizing environmental impact and enhancing safety and efficiency in construction projects. Giken Ltd. serves a wide range of sectors including civil engineering, public infrastructure, and commercial construction.
How the Company Makes MoneyGiken Ltd. generates revenue through the sale and leasing of its proprietary construction machinery and equipment. A significant portion of its income comes from its Silent Piler technology, which is used for environmentally friendly piling solutions. The company also earns money through service contracts and maintenance agreements for its machinery. Giken Ltd. partners with construction firms and governmental bodies to implement its technologies in large-scale infrastructure projects, which contributes to its earnings. Additionally, the company may engage in research and development partnerships to innovate and expand its product offerings.

Giken Ltd. Financial Statement Overview

Summary
Giken Ltd. exhibits a balanced financial performance with a strong cash flow and a solid balance sheet, marked by low leverage and a high equity ratio. While profitability metrics are decent, revenue growth remains a concern, needing improvement for sustained success.
Income Statement
65
Positive
Giken Ltd.'s income statement shows a moderate performance. The gross profit margin of 36.8% indicates strong production efficiency, while the net profit margin of 8.3% suggests decent profitability. However, revenue growth has been volatile, with a slight increase of 0.7% from the previous year, which could be a concern for sustained growth. EBIT and EBITDA margins are robust at 11.3% and 14.8% respectively, reflecting effective cost management.
Balance Sheet
72
Positive
The balance sheet of Giken Ltd. is strong with a low debt-to-equity ratio of 0.007, indicating minimal leverage and financial risk. The return on equity (ROE) stands at 6.0%, which is moderate, suggesting efficient use of equity to generate profits. The equity ratio of 84.0% highlights a solid equity base, enhancing financial stability.
Cash Flow
78
Positive
Cash flow analysis reveals a positive outlook for Giken Ltd. The operating cash flow to net income ratio of 1.29 indicates healthy cash generation relative to net income. Free cash flow to net income ratio is 0.78, suggesting strong free cash flow. Though the free cash flow growth rate is negative at -26.4%, the overall cash flow remains robust, supporting operational flexibility.
BreakdownTTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue27.59B29.48B29.27B30.38B27.62B24.64B
Gross Profit10.16B10.87B10.71B11.72B10.62B9.18B
EBITDA3.74B4.36B4.81B6.58B5.95B4.24B
Net Income1.93B2.44B846.00M3.23B3.07B1.40B
Balance Sheet
Total Assets47.37B48.13B51.39B54.69B51.67B49.71B
Cash, Cash Equivalents and Short-Term Investments8.56B10.18B9.92B12.82B10.59B6.88B
Total Debt265.00M299.00M767.00M1.27B1.26B1.58B
Total Liabilities7.36B7.68B11.85B13.44B12.12B11.30B
Stockholders Equity40.01B40.45B39.54B40.74B39.11B38.05B
Cash Flow
Free Cash Flow0.001.90B258.00M4.05B5.69B-10.00M
Operating Cash Flow0.003.14B2.04B5.92B7.77B3.26B
Investing Cash Flow0.0055.00M-156.00M-4.22B-5.34B-1.89B
Financing Cash Flow0.00-2.50B-1.98B-1.94B-2.20B-953.00M

Giken Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1385.00
Price Trends
50DMA
1427.34
Negative
100DMA
1428.36
Negative
200DMA
1553.68
Negative
Market Momentum
MACD
-9.21
Positive
RSI
41.49
Neutral
STOCH
29.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6289, the sentiment is Negative. The current price of 1385 is below the 20-day moving average (MA) of 1428.00, below the 50-day MA of 1427.34, and below the 200-day MA of 1553.68, indicating a bearish trend. The MACD of -9.21 indicates Positive momentum. The RSI at 41.49 is Neutral, neither overbought nor oversold. The STOCH value of 29.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6289.

Giken Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥95.75B16.95
6.46%9.70%66.02%
73
Outperform
¥27.60B13.81
4.71%11.49%52.70%
73
Outperform
¥17.63B12.04
5.96%-15.65%-41.32%
68
Neutral
¥15.13B10.30
3.92%-1.89%-21.95%
65
Neutral
$10.85B15.475.22%1.89%3.09%-26.84%
64
Neutral
¥38.09B55.56
3.18%-17.98%-76.38%
49
Neutral
¥15.75B
5.21%-7.94%-242.38%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6289
Giken Ltd.
1,385.00
-467.30
-25.23%
JP:6294
Okada Aiyon Corporation
1,889.00
-431.69
-18.60%
JP:6306
Nikko Co., Ltd.
722.00
-26.15
-3.50%
JP:6358
Sakai Heavy Industries, Ltd.
2,029.00
-856.40
-29.68%
JP:6390
KATO WORKS CO., LTD.
1,344.00
128.18
10.54%
JP:7226
Kyokuto Kaihatsu Kogyo Co., Ltd.
2,571.00
101.90
4.13%

Giken Ltd. Corporate Events

Giken Ltd. Reports Financial Decline Amidst Strategic Dividend Announcement
Jul 10, 2025

Giken Ltd. reported a significant decline in its financial performance for the nine months ending May 31, 2025, with net sales dropping by 21.3% and profit attributable to owners decreasing by 79.7% compared to the previous year. Despite the downturn, the company announced a commemorative dividend in celebration of the 50th anniversary of its SILENT PILERTM, indicating a focus on shareholder value and long-term brand strength.

The most recent analyst rating on (JP:6289) stock is a Hold with a Yen2200.00 price target. To see the full list of analyst forecasts on Giken Ltd. stock, see the JP:6289 Stock Forecast page.

Giken Ltd. Completes Share Repurchase
Jul 4, 2025

Giken Ltd. has completed the acquisition of its own shares, purchasing a total of 30,900 common shares for approximately 44.28 million yen between July 1 and July 3, 2025. This move is part of a broader share repurchase strategy approved by the Board of Directors in April 2025, aimed at acquiring up to 450,000 shares to enhance shareholder value.

The most recent analyst rating on (JP:6289) stock is a Hold with a Yen2200.00 price target. To see the full list of analyst forecasts on Giken Ltd. stock, see the JP:6289 Stock Forecast page.

Giken Ltd. Records Extraordinary Losses, Revises Financial Forecast
Jul 2, 2025

Giken Ltd. announced the recording of extraordinary losses due to a settlement with its former subsidiary, J Steel Group Pty Limited, which impacted its financial results forecast for the fiscal year ending August 31, 2025. Despite the financial setback, Giken Ltd. remains committed to its global expansion strategy and assures stakeholders that the settlement will not affect future business performance, with dividends remaining unchanged.

The most recent analyst rating on (JP:6289) stock is a Hold with a Yen2200.00 price target. To see the full list of analyst forecasts on Giken Ltd. stock, see the JP:6289 Stock Forecast page.

Giken Ltd. Announces Share Buyback Progress
Jul 1, 2025

Giken Ltd. has announced the acquisition of its own shares, purchasing 162,200 common shares at a total cost of 234,384,292 yen through market purchases on the Tokyo Stock Exchange. This move is part of a broader plan approved by the Board of Directors to acquire up to 450,000 shares, aiming to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:6289) stock is a Hold with a Yen2200.00 price target. To see the full list of analyst forecasts on Giken Ltd. stock, see the JP:6289 Stock Forecast page.

Giken Ltd. Reports Financial Results of Associate Kitamura Kosan
Jun 16, 2025

Giken Ltd. announced the finalized financial results of its associate, Kitamura Kosan Ltd., which is involved in real estate lending and exhibition hall operations. The financial statements reveal a substantial asset base, but also significant liabilities, indicating a complex financial position. This announcement may impact Giken’s strategic decisions regarding its investment in Kitamura Kosan and could have implications for stakeholders concerning the associate’s financial health.

The most recent analyst rating on (JP:6289) stock is a Hold with a Yen2200.00 price target. To see the full list of analyst forecasts on Giken Ltd. stock, see the JP:6289 Stock Forecast page.

Giken Ltd. Announces Share Buyback Progress
Jun 2, 2025

Giken Ltd. announced the acquisition of 108,300 of its own shares, amounting to 154,674,794 yen, through market purchases on the Tokyo Stock Exchange during May 2025. This acquisition is part of a broader plan approved by the Board of Directors to buy back up to 450,000 shares by July 31, 2025, reflecting the company’s strategy to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:6289) stock is a Hold with a Yen2200.00 price target. To see the full list of analyst forecasts on Giken Ltd. stock, see the JP:6289 Stock Forecast page.

Giken Ltd. Announces Strategic Leadership Changes and New Department Launch
Apr 22, 2025

Giken Ltd. announced changes in the responsibilities of its directors and operating officers, effective May 1, 2025, to better align with its strategic goals. The establishment of a new BX Promotion Department is a key move to enhance productivity and competitiveness through digital innovation, aiming to secure talent and promote innovation.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 04, 2025