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TADANO Ltd. (JP:6395)
:6395

TADANO (6395) AI Stock Analysis

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JP:6395

TADANO

(6395)

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Outperform 70 (OpenAI - 5.2)
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Outperform 70 (OpenAI - 5.2)
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Outperform 70 (OpenAI - 5.2)
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Outperform 70 (OpenAI - 5.2)
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Outperform 70 (OpenAI - 5.2)
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Outperform 70 (OpenAI - 5.2)
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Outperform 70 (OpenAI - 5.2)
,
Outperform 70 (OpenAI - 5.2)
,
Outperform 70 (OpenAI - 5.2)
,
Outperform 70 (OpenAI - 5.2)
,
Outperform 70 (OpenAI - 5.2)
Rating:70Outperform
Price Target:
¥1,374.00
▲(28.05% Upside)
Action:UpgradedDate:02/18/26
The score is driven by strong technical momentum and attractive valuation (low P/E plus a solid dividend). These positives are tempered by the most significant risk: weak cash conversion and recently negative operating/free cash flow alongside rising leverage.
Positive Factors
Sustained revenue growth & profit recovery
Multi-year revenue expansion and a shift from prior losses to consistent positive earnings indicate durable demand for Tadano's lifting equipment and improving operational execution. This supports scalable margins and long-term cash generation potential if underlying demand remains.
Recurring after‑sales revenue stream
A significant after‑sales and service business provides recurring revenue, higher lifetime customer value, and resilience versus new‑equipment cycles. Durable parts and service demand smooths cash flows and strengthens dealer/service network competitive advantages over time.
Growing asset & equity base supporting scale
Expansion of the asset and equity base reflects reinvestment to expand manufacturing and service capacity. A larger installed base and capital footprint supports order fulfilment, spare parts sales and service penetration, reinforcing long‑term market position in lifting equipment.
Negative Factors
Weak cash generation
Negative operating and free cash flow in recent years signals cash conversion issues despite reported profits. Persistent weak cash generation can constrain investment, increase reliance on external financing, and raise the risk that earnings quality and dividend/sustainability are impaired over the medium term.
Rising leverage
An increasing debt-to-equity ratio reduces financial flexibility and raises interest and refinancing risk, especially if cash flow remains weak. Higher leverage makes the company more vulnerable to demand downturns and could limit strategic investments or shareholder returns over the next several quarters.
Modest and pressured margins
Relatively low net margins and a recent decline in operating profitability suggest cost, pricing, or mix pressure. Persistent margin compression would limit free cash flow recovery and the company's ability to fund growth or reduce leverage, weakening long‑term return on capital.

TADANO (6395) vs. iShares MSCI Japan ETF (EWJ)

TADANO Business Overview & Revenue Model

Company DescriptionTadano Ltd., together with its subsidiaries, develops, produces, distributes, and services lifting equipment worldwide. The company offers all-terrain, rough terrain, truck, telescopic boom crawler, lattice boom crawler, and loader cranes; aerial work platforms; special purpose vehicles; and used equipment. It also provides components, such as hydraulic cylinders; and repair and maintenance services. The company was formerly known as Tadano Iron Works Co., Ltd. and changed its name to Tadano Ltd. in 1989. Tadano Ltd. was founded in 1919 and is headquartered in Takamatsu, Japan.
How the Company Makes MoneyTADANO primarily generates revenue by selling lifting equipment—most notably mobile cranes (e.g., truck-mounted cranes and rough-terrain cranes) and related lifting products—to customers such as construction contractors, rental companies, and industrial operators. In addition to new equipment sales, the company earns ongoing revenue from after-sales activities, including spare parts sales, maintenance/repair services, inspections, and other lifecycle support that keeps installed equipment operating and compliant. Revenue is also supported by its distribution and service network (including dealers and service partners) that facilitates equipment sales in regional markets and helps drive recurring parts/service demand over the equipment’s operating life. Any further segmentation (e.g., specific business unit revenue splits, named partnerships, or contribution by geography) is null.

TADANO Financial Statement Overview

Summary
Income statement trends are solid (strong multi-year revenue growth and a clear move from losses to profits), but overall financial quality is held back by weak cash generation (negative operating and free cash flow in 2024–2025) and rising leverage (debt-to-equity increasing into 2025).
Income Statement
72
Positive
Revenue has expanded strongly over the last several years, with growth accelerating in 2025 (annual revenue growth ~11%) on top of prior gains. Profitability has also improved versus earlier years, moving from losses (2021) to solid positive earnings (2023–2025). That said, margins are still relatively modest for an industrial manufacturer (2025 net margin ~5%), and operating profitability was stronger in 2024 than 2025 (lower operating margin in 2025), suggesting some cost or pricing pressure despite higher sales.
Balance Sheet
63
Positive
The balance sheet shows a moderate leverage profile: debt is below equity, but debt-to-equity has risen over time (roughly 0.50 in 2023 to ~0.73 in 2025), which increases financial risk if the cycle turns. Equity and asset base have grown alongside the business, and returns on equity were positive in recent years (where provided), but not consistently strong, indicating the company is profitable yet not highly efficient with shareholder capital.
Cash Flow
34
Negative
Cash generation is the key weak point. Operating cash flow has been volatile and recently negative (2025 operating cash flow below zero, following near-breakeven in 2024), while free cash flow is also negative in 2024–2025. This creates a notable quality-of-earnings concern given that reported net income is positive, and it may imply working-capital strain and/or elevated investment needs that are pressuring cash conversion.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Mar 2022
Income Statement
Total Revenue314.91B349.48B291.50B280.27B257.24B205.66B
Gross Profit86.30B93.19B84.52B73.62B64.22B46.33B
EBITDA29.88B28.51B24.79B24.36B16.14B22.44B
Net Income5.75B18.30B6.64B7.77B2.95B13.10B
Balance Sheet
Total Assets451.45B458.53B403.42B365.24B356.69B344.72B
Cash, Cash Equivalents and Short-Term Investments117.75B81.84B93.13B94.34B98.16B118.40B
Total Debt164.71B146.02B122.47B91.31B98.33B98.17B
Total Liabilities263.18B252.58B214.52B183.89B188.92B184.41B
Stockholders Equity186.49B205.86B188.79B181.03B167.23B159.11B
Cash Flow
Free Cash Flow0.00-12.72B-7.69B7.01B-24.21B14.74B
Operating Cash Flow0.00-2.41B26.00M10.12B-20.42B17.33B
Investing Cash Flow0.00-649.00M-25.11B-3.98B4.52B-7.08B
Financing Cash Flow0.00-2.11B21.62B-13.25B-5.05B-471.00M

TADANO Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1073.00
Price Trends
50DMA
1280.40
Negative
100DMA
1164.94
Positive
200DMA
1094.00
Positive
Market Momentum
MACD
-8.36
Positive
RSI
42.53
Neutral
STOCH
27.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6395, the sentiment is Neutral. The current price of 1073 is below the 20-day moving average (MA) of 1351.95, below the 50-day MA of 1280.40, and below the 200-day MA of 1094.00, indicating a neutral trend. The MACD of -8.36 indicates Positive momentum. The RSI at 42.53 is Neutral, neither overbought nor oversold. The STOCH value of 27.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6395.

TADANO Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥5.73T12.014.06%0.40%8.40%
70
Outperform
¥158.34B7.339.45%2.86%10.49%-5.19%
70
Outperform
¥86.64B15.034.79%1.68%18.85%
67
Neutral
¥1.16T13.349.16%3.98%-2.72%29.43%
67
Neutral
¥112.47B13.755.07%13.71%-77.02%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
51
Neutral
¥17.46B0.515.40%-2.22%18.80%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6395
TADANO
1,249.00
139.63
12.59%
JP:6305
Hitachi Construction Machinery Co
5,432.00
1,399.52
34.71%
JP:6301
Komatsu Ltd.
6,344.00
1,953.39
44.49%
JP:6345
Aichi Corporation
1,342.00
115.63
9.43%
JP:6390
KATO WORKS CO., LTD.
1,490.00
208.72
16.29%
JP:7226
Kyokuto Kaihatsu Kogyo Co., Ltd.
3,020.00
646.79
27.25%

TADANO Corporate Events

Tadano Reshapes Executive Lineup to Bolster Strategy, Global Growth and Cost Control
Mar 13, 2026

Tadano has announced a series of officer appointments and internal reassignments effective April 1, 2026, signaling a continued emphasis on strategic planning, global expansion and financial discipline. Three new officers will lead the Corporate Strategy Division, Global Business Promotion Division and the Cost Management and ROIC Promotion Office, while two existing executives will see their responsibilities adjusted, including leadership of the Customer Support Division and continued oversight of compliance and sales administration, reflecting ongoing efforts to optimize governance and operational structure.

The newly created and redefined roles point to Tadano’s intent to strengthen its global business promotion capabilities and sharpen focus on profitability metrics such as ROIC, as well as to reinforce post‑sales support and compliance. These changes suggest a tightening of management alignment around growth, cost control and customer service, with potential implications for more efficient international operations and improved stakeholder confidence in the company’s governance and strategic execution.

The most recent analyst rating on (JP:6395) stock is a Buy with a Yen1529.00 price target. To see the full list of analyst forecasts on TADANO stock, see the JP:6395 Stock Forecast page.

Tadano Sets FY 2026 Outlook and Moves to Revitalize European Operations
Feb 26, 2026

Tadano outlined its FY 2025 financial results and issued a forecast for FY 2026, signaling its expectations for the year ahead while highlighting performance across its core crane product lines. The briefing underscores management’s focus on stabilizing operations and providing visibility for investors amid changing market conditions.

The company also detailed initiatives to revitalize its European operations, an area that has been under strategic review. Recent acquisitions, including Tadano Utilities, Manitex International, and Tadano Infrastructure Solutions, are positioned as key levers to strengthen its product portfolio and competitiveness in Europe and other international markets.

The most recent analyst rating on (JP:6395) stock is a Buy with a Yen1529.00 price target. To see the full list of analyst forecasts on TADANO stock, see the JP:6395 Stock Forecast page.

Tadano Seeks Shareholder Approval to Raise Audit Board Compensation Limits
Feb 20, 2026

Tadano Ltd. plans to seek shareholder approval to revise the compensation framework for its Audit and Supervisory Board Members at its upcoming 78th Ordinary General Shareholders’ Meeting in March 2026. The proposed change would raise the annual aggregate compensation cap from 100 million yen to 110 million yen, and the limit for outside Audit and Supervisory Board Members from 40 million yen to 50 million yen, citing higher market-level officer pay and expanded governance-related responsibilities for these roles, which could strengthen oversight and align the company with evolving corporate governance standards in Japan.

The most recent analyst rating on (JP:6395) stock is a Buy with a Yen1529.00 price target. To see the full list of analyst forecasts on TADANO stock, see the JP:6395 Stock Forecast page.

Tadano Doubles Annual Dividend as Earnings Improve, Lifts Year-End Payout to 26 Yen
Feb 10, 2026

Tadano has revised its dividend plan for the fiscal year ended December 31, 2025, deciding to raise the year-end dividend from a previously forecast 18 yen to 26 yen per share, with the total payout climbing to 3,312 million yen from 1,653 million yen a year earlier. The move, subject to approval at the March 27, 2026 shareholders’ meeting, reflects stronger full-year results and aligns with the company’s stated policy of stable dividends targeting a 30% payout ratio, underscoring management’s confidence in its financial position and commitment to shareholder returns.

The annual dividend for the current fiscal year will rise to 44 yen per share, up from 23 yen in the prior year, indicating a significant enhancement in shareholder remuneration despite a lower payout ratio versus the previous period. This step suggests Tadano is leveraging improved earnings to reward investors while retaining sufficient earnings for future strategic investments, which may support its competitive positioning in the global crane and lifting equipment market.

The most recent analyst rating on (JP:6395) stock is a Hold with a Yen1264.00 price target. To see the full list of analyst forecasts on TADANO stock, see the JP:6395 Stock Forecast page.

Tadano Posts FY2025 Results and Highlights Acquisition-Led Expansion
Feb 10, 2026

Tadano released its consolidated financial results for fiscal year 2025, covering the period from January 1 to December 31, 2025, and outlined how it measures market demand and share, excluding certain regional crane production. The company also highlighted its recent acquisition-driven expansion, including Tadano Utilities in 2024, Manitex International in early 2025, and Tadano Infrastructure Solutions in mid-2025, underscoring a strategy to broaden its product portfolio and strengthen its position in specialized infrastructure and lifting markets.

The most recent analyst rating on (JP:6395) stock is a Hold with a Yen1264.00 price target. To see the full list of analyst forecasts on TADANO stock, see the JP:6395 Stock Forecast page.

Tadano Lifts Earnings and Dividend as Sales Surge, Eyes Further Growth in 2026
Feb 10, 2026

Tadano reported consolidated net sales of ¥349.5 billion for the fiscal year ended December 31, 2025, up 19.9% year on year, while operating profit fell 22% to ¥18.6 billion and ordinary profit dropped 28.4% to ¥15.1 billion. Despite weaker margins, profit attributable to owners of the parent surged 175.5% to ¥18.3 billion, lifting basic earnings per share to ¥144.78 and supporting a sharp increase in annual dividends to ¥44 per share from ¥23.

Total assets rose to ¥458.5 billion and equity climbed to ¥205.9 billion, though the equity-to-asset ratio eased to 44.9%, reflecting business expansion and balance sheet growth. The group added four companies to its consolidation scope, including Tadano Infrastructure Solutions and Italy-based PM Oil & Steel S.p.A. and U.S.-based Manitex units, and it forecasts further top-line growth to ¥400 billion and a recovery in operating profit to ¥25 billion in fiscal 2026, signaling continued strategic expansion in global lifting solutions.

The most recent analyst rating on (JP:6395) stock is a Hold with a Yen1264.00 price target. To see the full list of analyst forecasts on TADANO stock, see the JP:6395 Stock Forecast page.

Tadano Reshapes European Leadership and Technical Management with Senior Executive Changes
Jan 16, 2026

Tadano Ltd. has announced senior leadership changes affecting its European operations and technical management, promoting Noriaki Yashiro to Director and Senior Managing Executive Officer with responsibility for European operations, global HR and ICT, and continued leadership of key European subsidiaries. At the same time, Global Chief Technical Officer Hiroyuki Goda will transition to the role of Senior Managing Executive Officer overseeing European operations and technical functions at the group’s European units, before retiring from his director position after the March 27, 2026 shareholders’ meeting, signaling a planned succession in the company’s European leadership and technology governance structure.

The most recent analyst rating on (JP:6395) stock is a Hold with a Yen1022.00 price target. To see the full list of analyst forecasts on TADANO stock, see the JP:6395 Stock Forecast page.

Tadano Refreshes Board with New Outside Directors from Komatsu and Finance Sector
Jan 16, 2026

Tadano Ltd. has announced planned changes to its board of directors effective March 27, 2026, following the company’s Ordinary General Shareholders’ Meeting. The company intends to appoint Komatsu Ltd. chairman Hiroyuki Ogawa and investment and corporate finance specialist Shotaro Akita as new outside directors, bringing deep experience in global manufacturing, production management, and capital markets to Tadano’s governance. At the same time, Director and Managing Executive Officer Hiroyuki Goda and Outside Director Tatsuro Ishizuka will retire from the board, marking a generational and strategic refresh of the leadership structure that is likely aimed at strengthening oversight, international competitiveness, and shareholder-oriented governance.

The most recent analyst rating on (JP:6395) stock is a Hold with a Yen1022.00 price target. To see the full list of analyst forecasts on TADANO stock, see the JP:6395 Stock Forecast page.

Tadano to Absorb Engineering Subsidiary in Streamlining Merger
Jan 16, 2026

Tadano Ltd. has approved a simplified absorption-type merger of its wholly owned subsidiary Tadano Engineering Ltd., effective April 1, 2026, with Tadano as the surviving entity and the engineering unit to be dissolved. The move consolidates engineering management and design functions—covering truck loader cranes, aerial work platforms, and hydraulic gantry systems—into the parent company to streamline operations and enhance collaboration with affiliated engineering companies in India and the Philippines, with Tadano stating that the impact on consolidated earnings will be immaterial and no changes will occur to its name, capital, or core business profile.

The most recent analyst rating on (JP:6395) stock is a Hold with a Yen1022.00 price target. To see the full list of analyst forecasts on TADANO stock, see the JP:6395 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: Feb 18, 2026