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Giken Ltd. (JP:6289)
:6289
Japanese Market

Giken Ltd. (6289) AI Stock Analysis

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JP:6289

Giken Ltd.

(6289)

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Outperform 73 (OpenAI - 4o)
Rating:73Outperform
Price Target:
¥2,179.00
▲(11.80% 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. (6289) vs. iShares MSCI Japan ETF (EWJ)

Giken Ltd. Business Overview & Revenue Model

Company DescriptionGiken Ltd. engages in the manufacture and sale of construction machinery. It offers hydraulic pile jacking machines; clamp cranes; pile and unit runners; and auxiliary equipment, including piler stages, piler jets, jet locks and jet nozzles, hoses, jet pipes, pile lasers, pile rollers, hose rollers, auger head replacement attachments, casing scrapers, reaction stands, module boxes, and spreader beams. In addition, the company develops automated parking facilities. Giken Ltd. was formerly known as Giken Seisakusho Co., Ltd. and changed its name to Giken Ltd. in December 2013. The company was founded in 1967 and is headquartered in Kochi, Japan.
How the Company Makes MoneyGiken 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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue26.34B26.34B29.48B29.27B30.38B27.62B
Gross Profit10.13B10.13B10.87B10.71B11.72B10.62B
EBITDA3.69B3.92B4.36B3.46B6.81B6.51B
Net Income1.49B1.49B2.44B846.00M3.23B3.07B
Balance Sheet
Total Assets47.84B47.84B48.13B51.39B54.69B51.67B
Cash, Cash Equivalents and Short-Term Investments8.59B8.59B10.18B9.92B12.82B10.59B
Total Debt1.02B1.02B299.00M767.00M1.27B1.26B
Total Liabilities7.55B7.55B7.68B11.85B13.44B12.12B
Stockholders Equity40.28B40.28B40.45B39.54B40.74B39.11B
Cash Flow
Free Cash Flow0.00-425.00M1.90B258.00M4.05B5.69B
Operating Cash Flow0.001.38B3.14B2.04B5.92B7.77B
Investing Cash Flow0.00-1.14B55.00M-156.00M-4.22B-5.34B
Financing Cash Flow0.00-953.00M-2.50B-1.98B-1.94B-2.20B

Giken Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1949.00
Price Trends
50DMA
1831.50
Positive
100DMA
1660.06
Positive
200DMA
1525.00
Positive
Market Momentum
MACD
49.97
Negative
RSI
67.37
Neutral
STOCH
84.48
Negative
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 1949 is above the 20-day moving average (MA) of 1942.45, above the 50-day MA of 1831.50, and above the 200-day MA of 1525.00, indicating a bullish trend. The MACD of 49.97 indicates Negative momentum. The RSI at 67.37 is Neutral, neither overbought nor oversold. The STOCH value of 84.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6289.

Giken Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
¥19.23B12.133.29%-1.36%5.14%
74
Outperform
¥31.12B17.204.26%-4.23%-1.63%
73
Outperform
¥53.40B25.442.76%-10.66%-38.53%
70
Outperform
¥18.95B32.825.14%-13.63%-74.53%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
57
Neutral
¥121.04B98.485.07%13.71%-77.02%
43
Neutral
¥16.05B-6.045.40%-2.22%18.80%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6289
Giken Ltd.
2,024.00
589.78
41.12%
JP:6294
Okada Aiyon Corporation
2,401.00
619.49
34.77%
JP:6306
Nikko Co., Ltd.
814.00
144.42
21.57%
JP:6358
Sakai Heavy Industries, Ltd.
2,170.00
36.86
1.73%
JP:6390
KATO WORKS CO., LTD.
1,370.00
124.84
10.03%
JP:7226
Kyokuto Kaihatsu Kogyo Co., Ltd.
3,250.00
980.54
43.21%

Giken Ltd. Corporate Events

Giken Completes Treasury Share Disposal for Restricted Stock Remuneration
Dec 26, 2025

Giken Ltd. has completed payment procedures for the disposal of 27,528 treasury shares as restricted stock remuneration, following a board resolution passed on November 27, 2025. The shares, disposed of at 1,711 yen per share for a total value of 47,100,408 yen, were allotted to internal directors, operating officers, and directors and officers of its subsidiaries, reinforcing the group-wide incentive structure and aligning management and key personnel interests more closely with shareholder value.

The most recent analyst rating on (JP:6289) stock is a Buy with a Yen2179.00 price target. To see the full list of analyst forecasts on Giken Ltd. stock, see the JP:6289 Stock Forecast page.

Giken Affirms Independence Despite Major Stake Held by Chairman’s Affiliated Firm
Dec 25, 2025

Giken Ltd. has disclosed that Yugen Kaisha Kitamura Kosan, a company founded by its Executive Chairman Akio Kitamura, holds 26.47% of its voting rights and is therefore classified as an “other affiliated company.” Kitamura Kosan operates independently in real estate leasing and exhibition hall management, has no business transactions with Giken, and the company emphasizes that there is no interference in its management decisions, underscoring that its operational and governance independence remains intact despite the significant shareholding relationship.

The most recent analyst rating on (JP:6289) stock is a Buy with a Yen2179.00 price target. To see the full list of analyst forecasts on Giken Ltd. stock, see the JP:6289 Stock Forecast page.

Giken Launches New Digital Shareholder Benefit Program to Reward Long-Term Investors
Dec 23, 2025

Giken Ltd. has approved the launch of a new shareholder benefit program, the “GIKEN Premium Yutai-Club,” aimed at returning value to investors and making its shares more attractive, while also building a shareholder database to support stronger, ongoing PR and IR communication. Starting in 2026, shareholders holding at least 300 shares at the end of February and August will receive semiannual points, which can be redeemed via a dedicated website for a wide range of products or converted into a common shareholder benefit coin, with carryover rules designed to reward stable, long-term holdings and support the company’s broader push toward digital transformation in shareholder management.

The most recent analyst rating on (JP:6289) stock is a Buy with a Yen2179.00 price target. To see the full list of analyst forecasts on Giken Ltd. stock, see the JP:6289 Stock Forecast page.

Giken Completes ¥2 Billion Share Buyback Under Board-Approved Program
Dec 19, 2025

Giken Ltd. has completed a share repurchase program authorized by its board, acquiring 570,000 common shares on the Tokyo Stock Exchange between December 1 and December 18, 2025, at a total cost of approximately ¥1.10 billion. This forms part of a broader buyback framework approved in October 2025 that allowed purchases of up to 1.38 million shares or ¥2.0 billion through May 31, 2026; under that authorization the company has now cumulatively bought 1,108,400 shares for about ¥2.0 billion, effectively reaching the upper monetary limit and signaling an active capital allocation policy that may support earnings per share and shareholder value.

The most recent analyst rating on (JP:6289) stock is a Buy with a Yen2179.00 price target. To see the full list of analyst forecasts on Giken Ltd. stock, see the JP:6289 Stock Forecast page.

Giken Ltd. Reports Progress on Share Buyback Initiative
Dec 1, 2025

Giken Ltd. announced the status of its share buyback program, revealing the acquisition of 276,000 common shares at a total cost of 460,332,689 yen during November 2025. This move is part of a broader plan approved by the Board of Directors to acquire up to 1,380,000 shares by May 2026, aiming to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:6289) stock is a Hold with a Yen1437.00 price target. To see the full list of analyst forecasts on Giken Ltd. stock, see the JP:6289 Stock Forecast page.

Giken Ltd. Announces Management Restructuring to Enhance Global Strategy
Nov 27, 2025

Giken Ltd. announced changes in its management structure following the election of eight directors at the 44th Ordinary General Meeting of Shareholders. These changes include new appointments and role adjustments among directors and executive officers, aiming to strengthen their global strategy and enhance their operational efficiency. The restructuring is expected to bolster Giken’s industry positioning and support its ongoing commitment to innovation and sustainability.

The most recent analyst rating on (JP:6289) stock is a Hold with a Yen1437.00 price target. To see the full list of analyst forecasts on Giken Ltd. stock, see the JP:6289 Stock Forecast page.

Giken Ltd. Announces Disposal of Treasury Shares for Stock Remuneration
Nov 27, 2025

Giken Ltd. has announced a resolution to dispose of its treasury shares as part of a restricted stock remuneration plan aimed at incentivizing directors and officers to enhance corporate value and align with shareholder interests. This move involves the disposal of 27,528 shares at a total value of 47,100,408 yen, with the shares being allocated to various directors and officers of the company and its subsidiaries, under conditions that include transfer restrictions to ensure long-term commitment.

The most recent analyst rating on (JP:6289) stock is a Hold with a Yen1437.00 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 Plan
Nov 4, 2025

Giken Ltd. has announced the acquisition of 262,400 of its own common shares through market purchases on the Tokyo Stock Exchange, costing 444,262,800 yen. This move is part of a broader plan approved by the Board of Directors to acquire up to 1,380,000 shares by May 2026, potentially impacting the company’s stock value and shareholder equity.

The most recent analyst rating on (JP:6289) stock is a Hold with a Yen1437.00 price target. To see the full list of analyst forecasts on Giken Ltd. stock, see the JP:6289 Stock Forecast page.

Giken Ltd. Announces Leadership Restructuring to Enhance Management
Oct 23, 2025

Giken Ltd. announced significant changes in its leadership structure, with Akio Kitamura transitioning from Honorary Chairman to Executive Chairman, and Shinnosuke Moribe stepping down from his role as Executive Chairman to become a Senior Corporate Adviser. These changes, aimed at enhancing the company’s management structure and corporate value, will be finalized at the upcoming General Meeting of Shareholders on November 27, 2025. The reshuffle reflects Giken’s strategy to leverage its founder’s expertise while strengthening its management foundation, potentially impacting its operational efficiency and market positioning.

The most recent analyst rating on (JP:6289) stock is a Hold with a Yen1437.00 price target. To see the full list of analyst forecasts on Giken Ltd. stock, see the JP:6289 Stock Forecast page.

Giken Ltd. Evaluates and Plans Enhancements for Board Effectiveness
Oct 23, 2025

Giken Ltd. has conducted an evaluation of its Board of Directors’ effectiveness for the fiscal year ending August 2025. The assessment revealed that the board is functioning effectively, although there are areas for improvement such as increasing diversity, enhancing executive compensation discussions, and providing timely materials for board meetings. The company has already taken steps to address previous concerns by appointing a new outside director with legal expertise and improving information provision systems. Future initiatives include exploring the appointment of directors with specialized expertise and enhancing corporate governance to sustain corporate value.

The most recent analyst rating on (JP:6289) stock is a Hold with a Yen1437.00 price target. To see the full list of analyst forecasts on Giken Ltd. stock, see the JP:6289 Stock Forecast page.

Giken Ltd. Reports Decline in 2025 Financial Results, Announces Share Repurchase
Oct 10, 2025

Giken Ltd. reported its consolidated financial results for the fiscal year ending August 31, 2025, showing a decline in net sales and profits compared to the previous year. The company experienced a 10.7% decrease in net sales and a significant drop in profit attributable to owners of the parent by 39%. Despite these challenges, Giken Ltd. announced a plan to repurchase its own shares, which is expected to impact future dividend payout ratios and profit per share. The company forecasts a recovery in the upcoming fiscal year with a 5.6% increase in net sales and a 47.9% rise in profit attributable to owners of the parent.

The most recent analyst rating on (JP:6289) stock is a Hold with a Yen1437.00 price target. To see the full list of analyst forecasts on Giken Ltd. stock, see the JP:6289 Stock Forecast page.

Giken Ltd. Revises Mid-Term Management Plan Amid Market Changes
Oct 10, 2025

Giken Ltd. has revised its Mid-Term Management Plan targets for the fiscal year ending August 2027 due to changes in the business environment. The company anticipates growth in overseas markets driven by increasing demand for its technologies, while domestic challenges include declining construction volumes and a shortage of skilled workers. As a result, Giken has adjusted its net sales and operating profit targets to reflect these conditions, maintaining flexibility in its projections.

The most recent analyst rating on (JP:6289) stock is a Hold with a Yen1437.00 price target. To see the full list of analyst forecasts on Giken Ltd. stock, see the JP:6289 Stock Forecast page.

Giken Ltd. Revises Dividend Policy to Enhance Shareholder Returns
Oct 10, 2025

Giken Ltd. announced a change in its dividend policy, introducing a dividend on equity ratio (DOE) of 3.5% as a minimum indicator to ensure stable dividends. This move reflects the company’s dedication to balancing profit distribution with long-term business development, impacting shareholder returns positively.

The most recent analyst rating on (JP:6289) stock is a Hold with a Yen1437.00 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 and Cancellation Plan
Oct 10, 2025

Giken Ltd. has announced a strategic decision to acquire and subsequently cancel a portion of its own shares, as resolved by its Board of Directors. This move aims to enhance shareholder value by improving capital efficiency and increasing shareholder returns, with the acquisition involving up to 1,380,000 common shares and a total acquisition cost of up to 2,000 million yen.

The most recent analyst rating on (JP:6289) stock is a Hold with a Yen1437.00 price target. To see the full list of analyst forecasts on Giken Ltd. stock, see the JP:6289 Stock Forecast page.

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: Dec 11, 2025