Giken Ltd. (6289) AI Stock Analysis

• Market Cap: ¥40.90B
• Dividend Yield: 2.89%
• Average Volume (3M): 66.88K
• Price to Earnings (P/E): 59.7
• Beta (1Y): 0.82
• Revenue Growth: -17.98%
• EPS Growth: -76.38%
• Country: JP
• Employees: 698
• Sector: Industrials
• Sector Strength: 84
• Industry: Agricultural - Machinery
• EPS (TTM): -17.82
• Shares Outstanding: 28,194,729
• 10 Day Avg. Volume: 57,870
• 30 Day Avg. Volume: 66,883
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,528.00
• Price Target Upside: 4.80% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 62 Neutral
• Price Target: ¥1,513.00 ▲(3.77% Upside)

Giken Ltd.'s overall stock score reflects a balanced financial performance and a solid dividend yield, but is tempered by a high P/E ratio suggesting potential overvaluation. The neutral technical indicators add little directional bias. Sustaining revenue growth and addressing valuation concerns are key areas to watch for future performance.

Giken Ltd. Business Overview & Revenue Model

Company Description

Giken 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 Money

Giken 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. shows a balanced financial performance. The company demonstrates strengths in cash flow and a solid balance sheet with low leverage. Profitability metrics are decent, but revenue growth is an area for improvement. The company's financial health is supported by strong equity and efficient cash management, though sustaining revenue growth will be critical for future success.

Income Statement

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

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

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.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	29.48B	29.27B	30.38B	27.62B	24.64B
Gross Profit	10.87B	10.71B	11.72B	10.62B	9.18B
EBITDA	4.36B	4.81B	6.58B	5.95B	4.24B
Net Income	2.44B	846.00M	3.23B	3.07B	1.40B
Balance Sheet
Total Assets	48.13B	51.39B	54.69B	51.67B	49.71B
Cash, Cash Equivalents and Short-Term Investments	10.18B	9.92B	12.82B	10.59B	6.88B
Total Debt	299.00M	767.00M	1.27B	1.26B	1.58B
Total Liabilities	7.68B	11.85B	13.44B	12.12B	11.30B
Stockholders Equity	40.45B	39.54B	40.74B	39.11B	38.05B
Cash Flow
Free Cash Flow	1.90B	258.00M	4.05B	5.69B	-10.00M
Operating Cash Flow	3.14B	2.04B	5.92B	7.77B	3.26B
Investing Cash Flow	55.00M	-156.00M	-4.22B	-5.34B	-1.89B
Financing Cash Flow	-2.50B	-1.98B	-1.94B	-2.20B	-953.00M

Giken Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1458.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 1458 is above the 20-day moving average (MA) of 1420.95, above the 50-day MA of 1428.42, and below the 200-day MA of 1516.50, indicating a neutral trend. The MACD of 10.91 indicates Negative momentum. The RSI at 54.99 is Neutral, neither overbought nor oversold. The STOCH value of 67.27 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
6306	78 Outperform	¥29.82B	14.92		4.17%	11.49%	52.70%
7226	76 Outperform	¥100.41B	17.77		5.91%	9.70%	66.02%
6358	73 Outperform	¥18.28B	12.42		4.90%	-15.65%	-41.32%
6294	72 Outperform	¥15.80B	10.75		3.79%	-1.89%	-21.95%
Sector *	64 Neutral	$10.64B	16.02	5.48%	2.12%	2.70%	-24.91%
6289	62 Neutral	¥40.90B	59.65		2.89%	-17.98%	-76.38%
6390	49 Neutral	¥16.49B	―		5.17%	-7.94%	-242.38%

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.