TAKEDA iP HOLDINGS CO. LTD. (7875) AI Stock Analysis

• Market Cap: ¥8.63B
• Dividend Yield: 3.13%
• Average Volume (3M): 3.88K
• Price to Earnings (P/E): 6.2
• Beta (1Y): 0.69
• Revenue Growth: 9.10%
• EPS Growth: 76.73%
• Country: JP
• Employees: 928
• Sector: Communication Services
• Sector Strength: 94
• Industry: Publishing
• EPS (TTM): 18.20
• Shares Outstanding: 8,781,000
• 10 Day Avg. Volume: 2,880
• 30 Day Avg. Volume: 3,883
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ―

TAKEDA iP HOLDINGS CO. LTD. scores a 71.25, reflecting its solid financial performance and attractive valuation. The company's low leverage and strong equity position are significant strengths, supporting future growth potential. However, technical analysis suggests a bearish trend, and challenges in maintaining revenue growth and enhancing free cash flow could pose risks. The lack of recent earnings call and corporate events data means these areas were not factored into the score.

Positive Factors

Strong Balance Sheet

The company's low leverage and strong equity position provide a solid foundation for future growth, reducing financial risk and enhancing stability.

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and competitive positioning.

Efficient Income Generation

The favorable conversion of income to cash suggests effective operational management, ensuring liquidity and the ability to reinvest in growth opportunities.

Negative Factors

Declining Free Cash Flow

A decline in free cash flow indicates reduced cash available for expansion or debt reduction, potentially limiting strategic flexibility and growth prospects.

Revenue Volatility

Volatile revenue growth can signal market challenges or inconsistent demand, which may impact long-term planning and financial performance stability.

Moderate Profit Margins

Moderate profit margins suggest limited pricing power or cost pressures, which could constrain profitability and affect competitive positioning over time.

TAKEDA iP HOLDINGS CO. LTD. Business Overview & Revenue Model

Company Description

TAKEDA iP HOLDINGS CO. LTD. (7875) is a Japanese company primarily engaged in the development, manufacturing, and sale of industrial products, with a focus on materials and equipment used in various sectors such as automotive, electronics, and construction. The company is known for its innovative solutions and high-quality products that cater to the needs of a diverse range of industries.

How the Company Makes Money

TAKEDA iP HOLDINGS CO. LTD. generates revenue through the sale of its industrial products, which include a wide array of materials and equipment. The company's revenue streams are primarily driven by sales contracts with businesses in the automotive, electronics, and construction industries, where there is a consistent demand for its specialized products. Additionally, TAKEDA iP HOLDINGS CO. LTD. may engage in strategic partnerships and collaborations that enhance its market reach and product offerings, further contributing to its earnings. The company's focus on innovation and quality helps maintain a competitive edge, attracting a loyal customer base and sustaining revenue growth.

TAKEDA iP HOLDINGS CO. LTD. Financial Statement Overview

Summary

TAKEDA iP HOLDINGS CO. LTD. demonstrates strong financial stability with a well-managed balance sheet (debt-to-equity ratio of 0.19 and equity ratio of 54.8%) and efficient income generation. However, challenges include maintaining revenue growth and enhancing free cash flow, which shows a significant decline. Overall, the company's low leverage and strong equity position provide a solid foundation for future growth, though attention to cash flow management is necessary.

Income Statement

The income statement shows a slight decline in revenue for the recent year, with total revenue decreasing from the previous period. However, the company maintained a strong gross profit margin at approximately 20.7% and a net profit margin of 2.7%, indicating efficient cost management. EBIT and EBITDA margins are at 2.6% and 6.0% respectively, which are moderate but stable. The revenue growth rate shows some volatility, reflecting potential challenges in market conditions.

Balance Sheet

The balance sheet reflects a solid equity position with a debt-to-equity ratio of 0.19, indicating low leverage. Return on Equity (ROE) is healthy at 4.9%, suggesting effective use of equity to generate profits. The equity ratio stands at 54.8%, highlighting a strong capital structure with more than half of the assets financed by equity.

Cash Flow

Cash flow analysis reveals a significant decline in operating cash flow, although free cash flow remains positive. Free cash flow growth rate is negative, indicating a decrease in cash available for expansion or debt reduction. The operating cash flow to net income ratio is 1.47, which is favorable and suggests good conversion of income to cash. Nevertheless, the free cash flow to net income ratio at 0.12 indicates limited free cash flow relative to net income.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	31.67B	32.94B	30.60B	31.11B	35.65B
Gross Profit	6.57B	6.66B	6.40B	5.90B	6.36B
EBITDA	1.90B	1.79B	1.73B	398.00M	1.38B
Net Income	851.00M	840.00M	758.00M	-1.34B	382.00M
Balance Sheet
Total Assets	31.49B	29.89B	28.97B	29.61B	30.96B
Cash, Cash Equivalents and Short-Term Investments	6.32B	6.20B	5.69B	4.93B	40.00M
Total Debt	3.28B	3.24B	3.73B	4.88B	3.70B
Total Liabilities	14.10B	14.07B	14.04B	15.56B	15.73B
Stockholders Equity	17.26B	15.70B	14.80B	13.92B	15.10B
Cash Flow
Free Cash Flow	101.00M	1.26B	762.00M	-1.21B	-83.00M
Operating Cash Flow	1.25B	2.23B	1.61B	68.00M	727.00M
Investing Cash Flow	-627.00M	-772.00M	651.00M	-1.25B	-856.00M
Financing Cash Flow	-600.00M	-900.00M	-1.64B	672.00M	-244.00M

TAKEDA iP HOLDINGS CO. LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1054.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7875, the sentiment is Positive. The current price of 1054 is above the 20-day moving average (MA) of 1040.35, above the 50-day MA of 1020.02, and above the 200-day MA of 939.34, indicating a bullish trend. The MACD of 9.40 indicates Negative momentum. The RSI at 70.88 is Negative, neither overbought nor oversold. The STOCH value of 77.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7875.

TAKEDA iP HOLDINGS CO. LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2408	79 Outperform	¥4.77B	20.00		5.45%	4.93%	-28.92%
9478	79 Outperform	¥5.56B	11.86		0.99%	-1.63%	-11.41%
7875	71 Outperform	¥8.63B	6.18		3.13%	9.10%	76.73%
9475	69 Neutral	¥7.69B	93.07		1.18%	-2.63%	-96.18%
Sector *	60 Neutral	$47.13B	4.38	-11.40%	4.21%	1.87%	-42.87%
9479	55 Neutral		―		―	-0.55%	89.02%
3641	52 Neutral	¥7.62B	―		1.13%	-8.78%	-191.76%