Giken Ltd. (6289) AI Stock Analysis

• Market Cap: ¥53.55B
• Dividend Yield: 2.76%
• Average Volume (3M): 84.76K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.89
• Revenue Growth: -10.66%
• EPS Growth: -38.53%
• Country: JP
• Employees: 698
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 37.34
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 81.1
• Revenue Forecast (FY): ¥27.50B

• Rating: 73 Outperform
• Price Target: ¥2,383.00 ▲(22.27% Upside)
• Action: Upgraded Date: 12/11/25
• Date: Action: Upgraded 12/11/25

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

Balance Sheet Strength

A low debt-to-equity ratio and high equity ratio provide durable financial flexibility, lowering default and refinancing risk. This capital structure supports sustained R&D, capex for machinery, and strategic investments through cycles, protecting long-term solvency and optionality.

Margin Sustainability & Efficiency

Improving gross margins and steady EBIT/EBITDA margins signal structural cost advantages and disciplined pricing. Sustained operating efficiency enhances free cash flow potential and resilience to input cost swings, supporting persistent profitability over multiple quarters.

Operating Cash Generation

Consistent positive operating cash flow implies the core business converts sales into cash reliably, funding working capital and recurring needs. This underpins self-funding capacity for maintenance capex and dividends, reducing dependence on external financing.

Negative Factors

Free Cash Flow Volatility

Intermittent negative free cash flow undermines long-term financial predictability; recurring volatility can constrain capital allocation, limit strategic investments, and force reliance on financing in weaker periods, increasing execution risk across planning horizons.

Modest Revenue Growth

Low single-digit top-line growth suggests limited organic expansion or market saturation in core segments. Over time this can cap absolute profit growth and make it harder to scale fixed-cost coverage, requiring M&A or new products to materially lift long-term returns.

Cyclicality of End Market

Exposure to agricultural machinery makes revenue and capex highly cyclical and tied to farm incomes and commodity cycles. Structural cyclicality increases earnings and cash-flow variability, complicating long-term planning and pressuring margins during prolonged downturns.

Giken Ltd. Business Overview & Revenue Model

Company Description

Giken 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 Money

null

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	Aug 2025	Aug 2024	Aug 2023	Aug 2022	Aug 2021
Income Statement
Total Revenue	26.34B	29.48B	29.27B	30.38B	27.62B
Gross Profit	10.13B	10.87B	10.71B	11.72B	10.62B
EBITDA	3.25B	4.36B	3.46B	6.81B	6.51B
Net Income	1.49B	2.44B	846.00M	3.23B	3.07B
Balance Sheet
Total Assets	47.95B	48.22B	51.48B	54.79B	51.72B
Cash, Cash Equivalents and Short-Term Investments	8.59B	10.18B	9.92B	12.82B	10.59B
Total Debt	1.19B	362.00M	832.00M	1.44B	1.43B
Total Liabilities	7.66B	7.78B	11.94B	13.53B	12.17B
Stockholders Equity	40.28B	40.45B	39.54B	40.74B	39.11B
Cash Flow
Free Cash Flow	-425.00M	1.90B	258.00M	4.05B	5.69B
Operating Cash Flow	1.38B	3.14B	2.04B	5.92B	7.77B
Investing Cash Flow	-1.14B	55.00M	-156.00M	-4.22B	-5.34B
Financing Cash Flow	-953.00M	-2.50B	-1.98B	-1.94B	-2.20B

Giken Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1949.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Negative. The current price of 1949 is below the 20-day moving average (MA) of 2230.72, below the 50-day MA of 2158.42, and above the 200-day MA of 1703.49, indicating a neutral trend. The MACD of -32.83 indicates Positive momentum. The RSI at 40.07 is Neutral, neither overbought nor oversold. The STOCH value of 28.27 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6301	75 Outperform	¥5.73T	12.01	―	4.06%	0.40%	8.40%
6289	73 Outperform	¥53.55B	12.52	―	2.76%	-10.66%	-38.53%
6432	73 Outperform	¥297.56B	12.67	―	2.99%	0.31%	-11.04%
6395	70 Outperform	¥158.34B	7.33	9.45%	2.86%	10.49%	-5.19%
6345	70 Outperform	¥86.64B	15.03	―	4.79%	1.68%	18.85%
6305	67 Neutral	¥1.16T	13.34	9.16%	3.98%	-2.72%	29.43%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Giken Ltd. Corporate Events

Giken Posts Strong Q1 Rebound and Confirms Earnings, Dividend Outlook for FY2026

Giken Ltd. reported a sharp rebound in earnings for the three months ended November 30, 2025, with net sales rising 36.7% year on year to ¥7.56 billion and profit attributable to owners of parent surging 167.0% to ¥978 million, lifting quarterly earnings per share to ¥37.34. Despite a slight dip in total assets and equity compared with the end of the previous fiscal year, the company retained a robust equity ratio of 84.0% and maintained its full-year forecast for the period ending August 31, 2026, projecting 5.6% growth in net sales to ¥27.8 billion and a 47.9% jump in profit attributable to owners of parent to ¥2.2 billion; the dividend outlook remains unchanged at a total of ¥54 per share for the current fiscal year, indicating confidence in cash generation and shareholder returns.

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 Earns CDP “B” Rating for Climate Change Efforts and Low-Carbon Construction Technologies

Giken Ltd. announced that the Giken Group received a “B” score in the CDP Climate Change assessment, reflecting recognition of its concrete measures to manage climate-related risks and opportunities and its effective disclosure of environmental data. The company sees this rating as validation of its efforts to cut CO₂ emissions through innovative construction methods and decarbonization technologies, and it plans to continue collaborating with stakeholders to strengthen its climate strategy and enhance its role in addressing global social and environmental challenges.

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 Treasury Share Disposal for Restricted Stock Remuneration

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

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

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.