Takara Standard Co., Ltd (7981) AI Stock Analysis

• Market Cap: ¥195.04B
• Dividend Yield: 3.41%
• Average Volume (3M): 84.81K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.60
• Revenue Growth: 6.17%
• EPS Growth: 61.39%
• Country: JP
• Employees: 6,616
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 88.90
• Shares Outstanding: 67,252,990
• 10 Day Avg. Volume: 80,030
• 30 Day Avg. Volume: 84,806
• PEG Ratio: 0.57
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.49
• P/FCF Ratio: 8.71
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥3,258.00 ▲(11.73% Upside)

The score is driven primarily by strong financial performance: rapid TTM growth, improved profitability, and a very conservative balance sheet. This is tempered by volatility in cash-flow quality and only mixed technical momentum, while valuation is supportive due to a moderate P/E and solid dividend yield.

Positive Factors

Revenue & margin rebound

A sharp TTM revenue re-acceleration alongside materially higher gross and operating margins signals strengthening product demand and improved pricing or mix. Over the next 2–6 months this supports sustainable cash flow generation, higher retained earnings for reinvestment, and stronger operating leverage if volumes persist.

Conservative balance sheet

Extremely low leverage and a sizable equity cushion give the company durable financial resilience. This structural strength preserves flexibility for capital spending, dividend continuity, acquisitions or downturn absorption without reliance on market financing, improving long-term strategic optionality.

Positive free cash flow

Consistent positive free cash flow in recent periods provides an enduring internal funding source for maintenance capex, dividends and incremental product investment. Sustained FCF supports shareholder returns and reduces dependence on external capital, a durable advantage for multi-year strategy execution.

Negative Factors

Cash-flow volatility

Historic swings—negative operating cash flow in FY2024 and free cash flow roughly half of net income TTM—indicate working-capital or investment timing risks. Such volatility undermines predictability of funding for capex and dividends and increases reliance on management timing to preserve liquidity over coming quarters.

Margin cyclicality

Profitability has moved materially across recent years, implying margins are sensitive to cost, mix or demand swings. The current rebound may not be durable if input costs rise or demand softens, making medium-term earnings and ROE growth less predictable for investors relying on stable margin expansion.

Concentration in Japan housing demand

Revenue and order flow are structurally linked to domestic housing starts and remodeling cycles. This concentration exposes the company to demographic shifts, policy changes and local economic cyclicality, limiting geographic diversification and making top-line durability sensitive to domestic construction trends.

Takara Standard Co., Ltd Business Overview & Revenue Model

Company Description

Takara Standard Co.,Ltd. manufactures and sells enameled products. The company offers enameled system kitchens, wood system kitchens, enamel system baths, enameled washstands, sink units, heating appliances, hot water heaters, enameled wall covering materials, and other home appliances and equipment. It primarily sells its products through a network of 166 showrooms in Japan. The company was formerly known as Nippon Enamel Co., Ltd. and changed its name to Takara Standard Co.,Ltd. in 1971. Takara Standard Co.,Ltd. was incorporated in 1912 and is headquartered in Osaka, Japan.

How the Company Makes Money

Takara Standard generates revenue through the sale of its core products, which include modular kitchen systems, bathroom fixtures, and home improvement products. The company operates a multi-channel distribution strategy that includes direct sales to consumers, partnerships with home improvement retailers, and collaborations with construction firms for large-scale projects. Key revenue streams include sales from retail outlets, online sales, and custom solutions for residential and commercial clients. Additionally, Takara Standard benefits from brand recognition and a reputation for quality, which helps maintain customer loyalty and drives repeat business. Partnerships with real estate developers and contractors also contribute significantly to its earnings, as these collaborations often lead to bulk orders and long-term supply agreements.

Takara Standard Co., Ltd Financial Statement Overview

Summary

Strong TTM revenue re-acceleration (47.3%) with a meaningful margin rebound (gross ~35.4%, operating ~8.4%, net ~5.9%). Balance sheet is a major strength with very low leverage (debt-to-equity ~0.02) and a sizable equity cushion. The main offset is cash-flow volatility and mixed cash conversion (TTM FCF about half of net income; FY2024 saw negative operating cash flow and deeply negative free cash flow).

Income Statement

TTM (Trailing-Twelve-Months) shows a sharp re-acceleration in revenue growth (47.3%) alongside improved profitability: gross margin ~35.4%, operating margin ~8.4%, and net margin ~5.9% (all higher than the most recent annual period). Over the last several years, revenue has generally trended up, but margins have been somewhat cyclical (stronger in FY2022, softer in FY2023–FY2024, then rebounding meaningfully in TTM). Key watch-out is sustainability: the current step-up in growth and margins looks strong versus history and could normalize if demand or costs revert.

Balance Sheet

The balance sheet is conservatively positioned with very low leverage (TTM debt-to-equity ~0.02 and total debt of ~¥4.3B against equity of ~¥191.3B). Equity is sizable relative to assets (¥191.3B equity vs. ¥278.4B assets), providing a meaningful cushion. Profitability on equity is improving (TTM ~7.6% vs. ~5.7% in FY2025 and ~5.1% in FY2024), but returns are still moderate rather than best-in-class.

Cash Flow

Cash generation is positive in the most recent periods (TTM operating cash flow ~¥26.3B and free cash flow ~¥13.0B; FY2025 free cash flow ~¥13.7B), and reported free-cash-flow growth is strong. However, cash conversion is mixed: free cash flow is only about half of net income in TTM (~0.49), and there was a notable weak year in FY2024 with negative operating cash flow and deeply negative free cash flow, indicating potential working-capital or investment swings that can pressure cash outcomes.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	251.75B	243.38B	234.74B	227.42B	211.59B	192.17B
Gross Profit	89.20B	84.51B	79.59B	76.03B	76.13B	70.47B
EBITDA	28.80B	23.41B	21.08B	18.99B	22.27B	17.01B
Net Income	14.75B	11.09B	9.50B	8.42B	10.90B	7.59B
Balance Sheet
Total Assets	278.42B	276.91B	268.68B	279.88B	276.84B	258.65B
Cash, Cash Equivalents and Short-Term Investments	54.93B	68.06B	59.66B	80.38B	88.61B	74.72B
Total Debt	4.34B	6.75B	7.65B	8.10B	9.70B	9.70B
Total Liabilities	87.08B	82.40B	81.28B	98.36B	95.42B	83.34B
Stockholders Equity	191.34B	194.51B	187.40B	181.51B	181.41B	175.31B
Cash Flow
Free Cash Flow	13.02B	13.71B	-14.61B	-1.64B	12.52B	3.18B
Operating Cash Flow	26.32B	23.36B	-1.31B	6.60B	19.68B	7.95B
Investing Cash Flow	-10.36B	-8.46B	-11.67B	-5.39B	-3.09B	-5.38B
Financing Cash Flow	-19.48B	-6.51B	-7.73B	-9.45B	-2.71B	-2.49B

Takara Standard Co., Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2916.00
• 50DMA: Positive
• 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:7981, the sentiment is Positive. The current price of 2916 is below the 20-day moving average (MA) of 3007.15, below the 50-day MA of 2916.04, and above the 200-day MA of 2543.01, indicating a bullish trend. The MACD of 20.09 indicates Positive momentum. The RSI at 57.14 is Neutral, neither overbought nor oversold. The STOCH value of 38.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7981.

Takara Standard Co., Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7955	78 Outperform	¥32.61B	9.96	―	3.56%	3.03%	160.39%
7887	76 Outperform	¥9.59B	6.50	―	1.66%	8.56%	2690.35%
8130	76 Outperform	¥185.39B	13.48	―	4.91%	6.35%	14.05%
7981	72 Outperform	¥195.04B	13.10	―	3.41%	6.17%	61.39%
7898	66 Neutral	¥9.15B	3.83	―	2.65%	1.11%	―
7972	65 Neutral	¥139.51B	14.36	―	2.20%	7.63%	29.07%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Takara Standard Co., Ltd Corporate Events

Takara Standard Highlights Q3 FYE3/2026 Performance and Market Position in Housing Equipment

Takara Standard Co., Ltd., a leading Japanese housing equipment maker specializing in high-grade enamel-based kitchens, bathrooms and washstands, reported its consolidated results for the nine months and third quarter of the fiscal year ending March 2026, building on prior-year net sales of ¥243.3 billion and an operating profit of ¥15.6 billion as of FYE3/2025. The disclosure underscores the company’s solid positioning in the domestic housing equipment market—holding top share in kitchens and significant shares in washstands and bathrooms—while it continues to serve core renovation and new-construction demand, including detached and multi-family housing, and to expand through diverse sales channels and selected overseas and non-housing markets, reinforcing its role as a key supplier to Japan’s residential and construction ecosystem.

The most recent analyst rating on (JP:7981) stock is a Buy with a Yen3617.00 price target. To see the full list of analyst forecasts on Takara Standard Co., Ltd stock, see the JP:7981 Stock Forecast page.

Takara Standard Lifts Full-Year Earnings Forecast on Strong Housing-Related Demand

Takara Standard has raised its full-year consolidated earnings forecasts for the fiscal year ending March 31, 2026, citing stronger-than-expected performance in both new housing construction and the recovering remodeling market. The company now projects net sales of ¥251.0 billion and profit attributable to owners of parent of ¥13.6 billion, modestly above its November guidance and marking year-on-year growth in revenue and profitability. Management attributes the improved outlook to higher sales, ongoing rationalization and cost-cutting initiatives, and gains from the sale of non-operating assets such as policy-held stocks, underscoring a firmer earnings base and suggesting a more favorable operating environment for its core housing-related businesses.

The most recent analyst rating on (JP:7981) stock is a Buy with a Yen3617.00 price target. To see the full list of analyst forecasts on Takara Standard Co., Ltd stock, see the JP:7981 Stock Forecast page.

Takara Standard Lifts Full-Year Outlook as Nine-Month Profit Surges 40%

Takara Standard reported solid growth for the nine months ended 31 December 2025, with net sales up 4.5% year on year to ¥192.7 billion and profit attributable to owners of parent jumping 40.4% to ¥12.7 billion, reflecting stronger profitability and cost control. The company’s equity ratio remained high at 68.7% despite a slight dip in net assets, and it maintained a shareholder‑friendly stance by confirming a full‑year dividend forecast of ¥100 per share, up from ¥78 in the previous fiscal year. Takara also revised its full‑year earnings outlook upward, now projecting a 22.6% increase in full‑year profit to ¥13.6 billion on modest sales growth, signaling confidence in continued earnings improvement, while a change in consolidation scope due to the exclusion of Takara Logistics Service Co., Ltd. slightly reshapes the group structure but does not alter the positive earnings trajectory.

The most recent analyst rating on (JP:7981) stock is a Buy with a Yen3617.00 price target. To see the full list of analyst forecasts on Takara Standard Co., Ltd stock, see the JP:7981 Stock Forecast page.

Takara Standard Nears Ceiling of ¥11 Billion Share Buyback Program

Takara Standard has reported that it did not purchase any of its own shares in the period from January 1 to January 31, 2026, despite having an ongoing board-approved share buyback program authorized in May 2025. Under that authorization, the company may repurchase up to 6 million shares, or 8.92% of its issued shares (excluding treasury stock), for a maximum of ¥11 billion by February 20, 2026, and as of January 31, 2026 it has already acquired 3,894,700 shares at a total cost of about ¥10.15 billion. The latest disclosure indicates that the company is nearing both the share and monetary ceilings of the buyback program, a development that may affect its capital structure, share liquidity, and shareholder returns as the authorization period approaches its end.

The most recent analyst rating on (JP:7981) stock is a Buy with a Yen3617.00 price target. To see the full list of analyst forecasts on Takara Standard Co., Ltd stock, see the JP:7981 Stock Forecast page.

Takara Standard Nears Completion of ¥11 Billion Share Buyback Program

Takara Standard Co., Ltd. has reported on the progress of its ongoing share buyback program authorized by its board in May 2025, under which it is allowed to repurchase up to 6 million shares or ¥11 billion of its common stock through open-market transactions on the Tokyo Stock Exchange, including ToSTNeT-3, through February 20, 2026. Between December 1 and December 31, 2025, the company repurchased 868,000 shares for approximately ¥2.4 billion, bringing cumulative buybacks under this authorization to 3,894,700 shares at a total cost of about ¥10.15 billion as of December 31, 2025, signaling an active capital-return policy and potentially supporting its share price and shareholder value ahead of the program’s scheduled end date.

The most recent analyst rating on (JP:7981) stock is a Buy with a Yen3207.00 price target. To see the full list of analyst forecasts on Takara Standard Co., Ltd stock, see the JP:7981 Stock Forecast page.

Takara Standard Executes Treasury Share Repurchase

Takara Standard Co., Ltd. announced the completion of a treasury share purchase as part of its Medium Term Management Plan 2026. The company acquired 868,000 shares at a cost of ¥2,404,360,000 through the Tokyo Stock Exchange’s ToSTNeT-3 system. This move aligns with their new shareholder return policy and aims to achieve an 8% ROE, reflecting their commitment to financial soundness and sustainable growth.

The most recent analyst rating on (JP:7981) stock is a Buy with a Yen3134.00 price target. To see the full list of analyst forecasts on Takara Standard Co., Ltd stock, see the JP:7981 Stock Forecast page.

Takara Standard Updates on Treasury Share Purchase Progress

Takara Standard Co., Ltd. announced the status of its treasury share purchase, which was resolved at a Board of Directors meeting in May 2025. The company purchased 866,500 shares for ¥2,212,174,500 between November 1 and November 30, 2025, as part of a broader plan to buy back up to 6,000,000 shares by February 2026. This move is part of the company’s strategy to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:7981) stock is a Buy with a Yen3134.00 price target. To see the full list of analyst forecasts on Takara Standard Co., Ltd stock, see the JP:7981 Stock Forecast page.

Takara Standard to Repurchase Treasury Shares via ToSTNeT-3

Takara Standard Co., Ltd. announced its decision to purchase treasury shares through the ToSTNeT-3 system of the Tokyo Stock Exchange. The purchase involves acquiring 955,000 common stock shares at a closing price of ¥2,770, with the transaction set for December 1, 2025. This move is part of a broader strategy to buy back up to 6,000,000 shares by February 2026, potentially impacting the company’s stock value and shareholder returns.

The most recent analyst rating on (JP:7981) stock is a Buy with a Yen3134.00 price target. To see the full list of analyst forecasts on Takara Standard Co., Ltd stock, see the JP:7981 Stock Forecast page.

Takara Standard Announces Treasury Share Purchase and Change in Major Shareholder

Takara Standard Co., Ltd. has completed a significant purchase of treasury shares, which is part of its Medium Term Management Plan 2026 aimed at enhancing shareholder returns and supporting sustainable growth. This transaction has resulted in a change in the company’s largest shareholder, with Takara Belmont Asset Management Co., Ltd. now falling under the category of a major shareholder due to the treasury shares having no voting rights.

The most recent analyst rating on (JP:7981) stock is a Hold with a Yen2750.00 price target. To see the full list of analyst forecasts on Takara Standard Co., Ltd stock, see the JP:7981 Stock Forecast page.

Takara Standard Announces Treasury Share Buyback Plan

Takara Standard Co., Ltd. has announced a decision to purchase its treasury shares through the Tokyo Stock Exchange’s ToSTNeT-3 system. The purchase involves 935,000 shares at a closing price of ¥2,553, with the transaction set for November 10, 2025. This move is part of a broader plan approved by the Board of Directors to buy back up to 6,000,000 shares by February 2026, reflecting the company’s strategy to optimize its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (JP:7981) stock is a Hold with a Yen2750.00 price target. To see the full list of analyst forecasts on Takara Standard Co., Ltd stock, see the JP:7981 Stock Forecast page.

Takara Standard Announces Q2 and H1 Financial Results for FYE3/2026

Takara Standard Co., Ltd. has announced its Q2 and H1 financial results for the fiscal year ending March 2026. The company reported consolidated net sales of ¥243.3 billion and an operating margin of ¥15.6 billion for the fiscal year ending March 2025. The announcement highlights the company’s strong market presence in the kitchen, bathroom, and washstand segments, with significant shares in these markets. The results reflect Takara Standard’s continued focus on the housing equipment sector, leveraging its proprietary materials and established market channels.

The most recent analyst rating on (JP:7981) stock is a Hold with a Yen2750.00 price target. To see the full list of analyst forecasts on Takara Standard Co., Ltd stock, see the JP:7981 Stock Forecast page.

Takara Standard Revises Earnings Forecast Upward for FY 2026

Takara Standard Co., Ltd. has revised its full-year consolidated earnings forecast for the fiscal year ending March 31, 2026, showing an upward adjustment in net sales and profits. This revision is attributed to strong sales in the new housing construction market and improved gross profit through expanded sales of optional items and cost-cutting efforts.

The most recent analyst rating on (JP:7981) stock is a Hold with a Yen2750.00 price target. To see the full list of analyst forecasts on Takara Standard Co., Ltd stock, see the JP:7981 Stock Forecast page.

Takara Standard Reports Strong Half-Year Financial Results and Raises Earnings Forecast

Takara Standard Co., Ltd. reported a strong financial performance for the six months ending September 30, 2025, with net sales increasing by 6.2% and a substantial rise in operating profit by 46.3% compared to the previous year. The company has revised its full-year earnings forecast upwards, reflecting confidence in continued growth, and announced a significant increase in dividends, indicating a positive outlook for shareholders.

The most recent analyst rating on (JP:7981) stock is a Hold with a Yen2750.00 price target. To see the full list of analyst forecasts on Takara Standard Co., Ltd stock, see the JP:7981 Stock Forecast page.