TADANO (6395) AI Stock Analysis

• Market Cap: €123.20B
• Dividend Yield: 2.37%
• Average Volume (3M): 235.50K
• Price to Earnings (P/E): 14.8
• Beta (1Y): 1.18
• Revenue Growth: 11.41%
• EPS Growth: -6.80%
• Country: JP
• Employees: 4,916
• Sector: Industrials
• Sector Strength: 91
• Industry: Agricultural - Machinery
• EPS (TTM): 29.20
• Shares Outstanding: 129,500,350
• 10 Day Avg. Volume: 235,120
• 30 Day Avg. Volume: 235,503
• PEG Ratio: 0.58
• Price to Book (P/B): 0.66
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: ¥1,039.00 ▲(6.92%Upside)

TADANO's overall stock score reflects a stable but slightly challenging financial performance, with specific concerns in cash flow management. The technical analysis indicates bearish momentum, which could pose short-term challenges. Valuation metrics suggest the stock is fairly valued, offering a reasonable entry point for investors seeking moderate income through dividends.

TADANO Business Overview & Revenue Model

Company Description

TADANO Ltd. (6395) is a Japanese company that specializes in the manufacturing and distribution of construction cranes and other heavy lifting equipment. Established in 1948, TADANO operates within the industrial sector and is renowned for its innovation in mobile cranes, hydraulic cranes, and aerial work platforms. The company serves a global clientele, offering products that are essential for construction, infrastructure development, and various industrial applications.

How the Company Makes Money

TADANO generates revenue primarily through the sale and leasing of its construction machinery and equipment, including mobile cranes, all-terrain cranes, and truck loader cranes. The company's revenue streams include direct sales to construction firms, rental services, and after-sales services such as maintenance and parts supply. TADANO also engages in strategic partnerships and alliances that enhance its market presence and distribution network globally. Key factors contributing to its earnings include its strong brand reputation, consistent investment in research and development to innovate and improve product offerings, and its ability to adapt to the changing demands of the construction industry.

TADANO Financial Statement Overview

Summary

TADANO is experiencing growth in revenue and improvements in operating margins. However, profitability metrics such as net margin and ROE have declined. The balance sheet remains robust with moderate leverage, while cash flow management requires attention due to negative free cash flow. Overall, TADANO is stable but should focus on enhancing cash generation and profitability.

Income Statement

TADANO shows a positive revenue growth trajectory, with a 4% increase in 2024 compared to 2023. Gross profit margin improved to 29% in 2024 from 26% in 2023, indicating better cost management. However, net profit margin decreased to 2.28% in 2024 from 2.77% in 2023, reflecting challenges in converting revenue into profit. The EBIT margin improved slightly to 8.16% in 2024 from 6.55% in 2023. Overall, TADANO exhibits stability with room for profitability improvement.

Balance Sheet

TADANO maintains a healthy balance sheet with a debt-to-equity ratio of 0.65 in 2024, showing moderate leverage. The equity ratio remains strong at 46.79%, indicating a solid financial foundation. Return on equity decreased to 3.52% in 2024 from 4.29% in 2023, suggesting a slight decline in efficiency in generating returns from equity.

Cash Flow

TADANO's cash flow position shows potential concerns with a negative free cash flow in 2024, reversing from a positive in 2023. The operating cash flow to net income ratio dropped significantly, indicating challenges in translating earnings into cash. The negative free cash flow to net income ratio in 2024 highlights a need for better cash management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Mar 2022	Mar 2021
Income Statement		Total Revenue
291.50B	280.27B	257.24B	205.66B	186.10B
	Gross Profit
84.52B	73.62B	64.22B	46.33B	35.15B
	EBIT
23.78B	18.35B	9.59B	5.25B	-4.20B
	EBITDA
24.79B	24.36B	16.14B	11.44B	1.88B
	Net Income Common Stockholders
6.64B	7.77B	2.95B	13.10B	-12.99B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
93.13B	94.34B	98.16B	118.40B	103.11B
	Total Assets
403.42B	365.24B	356.69B	344.72B	323.92B
	Total Debt
122.47B	91.31B	98.33B	98.17B	94.59B
	Net Debt
29.35B	-2.81B	345.00M	-20.22B	-8.52B
	Total Liabilities
214.53B	183.89B	188.92B	184.41B	178.52B
	Stockholders Equity
188.79B	181.03B	167.23B	159.11B	144.05B
Cash Flow		Free Cash Flow
-7.69B	7.01B	-24.21B	14.74B	16.59B
	Operating Cash Flow
26.00M	10.12B	-20.42B	17.33B	20.45B
	Investing Cash Flow
-25.11B	-3.98B	4.52B	-7.08B	-3.73B
	Financing Cash Flow
21.62B	-13.25B	-5.05B	-471.00M	29.04B

TADANO Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 971.80
• 50DMA: Negative
• 100DMA: Negative
• 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:6395, the sentiment is Negative. The current price of 971.8 is above the 20-day moving average (MA) of 971.75, below the 50-day MA of 977.82, and below the 200-day MA of 1035.24, indicating a neutral trend. The MACD of -2.36 indicates Negative momentum. The RSI at 48.58 is Neutral, neither overbought nor oversold. The STOCH value of 52.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6395.

TADANO Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6345	82 Outperform	¥101.11B	16.36		3.96%	11.63%	20.80%
6305	75 Outperform	$944.60B	11.60	9.99%	3.75%	-2.46%	-12.73%
6358	72 Outperform	¥17.11B	11.69		5.23%	-15.65%	-41.34%
Sector *	66 Neutral	$4.51B	12.29	5.40%	248.53%	4.14%	-12.41%
6395	64 Neutral	€123.20B	14.80	4.46%	2.37%	11.41%	-6.80%
6390	51 Neutral	¥15.44B	―		5.31%	-7.94%	-242.37%

TADANO Corporate Events

Tadano Completes Treasury Stock Disposal for Compensation

Tadano Ltd. has completed the payment for the disposal of treasury stock intended for restricted stock compensation, as resolved in their April 18, 2025 board meeting. This disposal involves 257,951 common shares at a price of 937.8 yen per share, totaling approximately 241.9 million yen, and is aimed at compensating directors and officers, excluding outside directors.

Tadano Ltd. Reports Q1 2025 Financial Results with Increased Sales and Dividend Forecast

Tadano Ltd. reported its consolidated financial results for the first quarter ending March 31, 2025, showing a significant increase in net sales by 28.9% compared to the previous year, reaching ¥80,495 million. Despite the rise in sales, the company experienced a decline in operating and ordinary profits, with operating profit down by 4.1% and ordinary profit by 11.0%. The profit attributable to owners of the parent, however, saw a substantial increase of 83.8%. The company also announced a forecasted annual dividend increase for the fiscal year ending December 31, 2025, from ¥23.00 to ¥36.00 per share, indicating a positive outlook for shareholders.

Tadano Ltd. Implements Restricted Stock Compensation Plan

Tadano Ltd. has announced its decision to dispose of treasury stock as part of a restricted stock compensation plan aimed at incentivizing directors and executive officers to enhance the company’s long-term corporate value. The plan, which was revised to increase performance linkage, involves the allocation of 257,951 shares to eligible directors and officers, aligning their interests with those of shareholders and supporting sustainable growth.