Giken Ltd. (6289) AI Stock Analysis

• Market Cap: ¥50.94B
• Dividend Yield: 2.76%
• Average Volume (3M): 84.76K
• Price to Earnings (P/E): 34.7
• Beta (1Y): 0.80
• Revenue Growth: -10.66%
• EPS Growth: -38.53%
• Country: JP
• Employees: 698
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 38.88
• Shares Outstanding: 27,074,728
• 10 Day Avg. Volume: 167,100
• 30 Day Avg. Volume: 84,760
• PEG Ratio: -0.67
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 1.47
• P/FCF Ratio: -91.31
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥2,179.00 ▲(12.84% Upside)

Giken Ltd. scores well due to strong financial performance and bullish technical indicators. The robust balance sheet and stable profitability are significant strengths. However, the high P/E ratio suggests valuation concerns, and inconsistent free cash flow could pose future liquidity risks.

Positive Factors

Business Model Strength

Giken's focus on innovative construction technologies like the Silent Piler provides a competitive edge in infrastructure development, ensuring sustainable revenue streams.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability, allowing Giken to invest in growth opportunities and withstand economic downturns.

Partnerships and Contracts

Long-term partnerships and contracts with key stakeholders ensure a steady flow of projects, supporting consistent revenue and market presence.

Negative Factors

Revenue Growth Decline

A decline in revenue growth indicates potential challenges in market demand or competitive pressures, which could impact future earnings.

Inconsistent Free Cash Flow

Fluctuations in free cash flow may hinder Giken's ability to fund operations and growth initiatives, affecting long-term financial health.

Earnings Decline

A significant drop in EPS growth suggests profitability challenges, which could deter investor confidence and limit reinvestment capacity.

Giken Ltd. Business Overview & Revenue Model

Company Description

Giken Ltd. (6289) is a Japan-based company specializing in construction and civil engineering technologies. The company operates primarily in the sectors of infrastructure development and environmental engineering, offering innovative solutions such as the Silent Piler and various ground improvement technologies. Giken's core products and services are aimed at enhancing construction efficiency, minimizing environmental impact, and ensuring sustainable development in urban areas.

How the Company Makes Money

Giken Ltd. generates revenue through the sale of its specialized construction equipment and technology solutions, particularly its Silent Piler, which is used for piling and foundation work with minimal noise and vibration. The company also earns income from providing maintenance services and technical support for its equipment. Additionally, Giken engages in partnerships with construction firms and government agencies, which allows it to secure contracts for large-scale infrastructure projects. These partnerships are crucial as they often lead to repeat business and long-term contracts, contributing significantly to the company's earnings.

Giken Ltd. Financial Statement Overview

Summary

Giken Ltd. demonstrates strong financial health with consistent revenue growth and stable profitability. The balance sheet is robust with low leverage and high equity ratios. However, challenges in maintaining consistent free cash flow could impact future liquidity.

Income Statement

Giken Ltd. has shown a consistent revenue growth trend with a notable increase in gross profit margins over the years. The EBIT and EBITDA margins indicate stable operational efficiency, although there was a slight decline in net profit margin in the most recent year. Overall, the income statement reflects a healthy growth trajectory with strong profitability metrics.

Balance Sheet

The balance sheet of Giken Ltd. is robust, characterized by a low debt-to-equity ratio, indicating minimal leverage and financial risk. The return on equity has been stable, reflecting efficient use of shareholders' funds. The equity ratio is strong, showcasing a solid capital structure with a high proportion of equity financing.

Cash Flow

Giken Ltd. has experienced fluctuations in free cash flow, with a recent negative free cash flow indicating potential cash management challenges. However, the operating cash flow remains positive, and the operating cash flow to net income ratio suggests adequate cash generation relative to earnings. The company should focus on improving free cash flow consistency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	26.34B	26.34B	29.48B	29.27B	30.38B	27.62B
Gross Profit	10.13B	10.13B	10.87B	10.71B	11.72B	10.62B
EBITDA	3.69B	3.92B	4.36B	3.46B	6.81B	6.51B
Net Income	1.49B	1.49B	2.44B	846.00M	3.23B	3.07B
Balance Sheet
Total Assets	47.84B	47.84B	48.13B	51.39B	54.69B	51.67B
Cash, Cash Equivalents and Short-Term Investments	8.59B	8.59B	10.18B	9.92B	12.82B	10.59B
Total Debt	1.02B	1.02B	299.00M	767.00M	1.27B	1.26B
Total Liabilities	7.55B	7.55B	7.68B	11.85B	13.44B	12.12B
Stockholders Equity	40.28B	40.28B	40.45B	39.54B	40.74B	39.11B
Cash Flow
Free Cash Flow	0.00	-425.00M	1.90B	258.00M	4.05B	5.69B
Operating Cash Flow	0.00	1.38B	3.14B	2.04B	5.92B	7.77B
Investing Cash Flow	0.00	-1.14B	55.00M	-156.00M	-4.22B	-5.34B
Financing Cash Flow	0.00	-953.00M	-2.50B	-1.98B	-1.94B	-2.20B

Giken Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1931.00
• 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:6289, the sentiment is Positive. The current price of 1931 is above the 20-day moving average (MA) of 1817.85, above the 50-day MA of 1679.76, and above the 200-day MA of 1476.56, indicating a bullish trend. The MACD of 80.97 indicates Negative momentum. The RSI at 66.28 is Neutral, neither overbought nor oversold. The STOCH value of 57.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6289.

Giken Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6294	74 Outperform	¥16.95B	10.69	―	3.50%	-1.36%	5.14%
6306	74 Outperform	¥29.13B	16.10	―	4.46%	-4.23%	-1.63%
6289	73 Outperform	¥50.94B	34.66	―	2.76%	-10.66%	-38.53%
6358	70 Outperform	¥18.12B	31.37	―	5.09%	-13.63%	-74.53%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7226	57 Neutral	¥106.29B	86.48	―	5.36%	13.71%	-77.02%
6390	43 Neutral	¥15.04B	-5.66	―	5.45%	-2.22%	18.80%

Giken Ltd. Corporate Events

Giken Ltd. Reports Financial Decline Amidst Strategic Dividend Announcement

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

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

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

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

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

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.