Tachikawa Corporation (7989) AI Stock Analysis

• Market Cap: ¥41.10B
• Dividend Yield: 2.52%
• Average Volume (3M): 44.91K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.43
• Revenue Growth: 2.47%
• EPS Growth: 6.88%
• Country: JP
• Employees: 1,315
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 31.05
• Shares Outstanding: 22,402,958
• 10 Day Avg. Volume: 71,830
• 30 Day Avg. Volume: 44,910
• PEG Ratio: 2.40
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 45.04
• 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: 80 Outperform
• Price Target: ¥2,206.00 ▲(18.41% Upside)

Tachikawa Corporation's strong financial performance, characterized by stable revenue growth and a robust balance sheet, is the primary driver of its high score. The technical analysis supports a positive outlook with bullish momentum, while the valuation indicates the stock is reasonably priced with an attractive dividend yield. The absence of earnings call data and corporate events does not impact the overall score.

Positive Factors

Strong Balance Sheet

A strong balance sheet with minimal debt enhances financial stability and provides the company with flexibility to invest in growth opportunities.

Revenue Stability

Stable revenue growth indicates resilience in the company's business model and its ability to maintain market position despite economic fluctuations.

High Gross Profit Margin

A high gross profit margin reflects efficient cost management and strong pricing power, supporting long-term profitability.

Negative Factors

Declining Free Cash Flow

A significant decline in free cash flow can limit the company's ability to fund new projects, pay dividends, or reduce debt, impacting financial flexibility.

Rising Operating Expenses

Increasing operating expenses can erode profit margins and reduce overall profitability, posing a challenge to maintaining efficient operations.

Cash Flow Management Challenges

Challenges in cash flow management can hinder the company's ability to invest in growth and manage financial obligations effectively.

Tachikawa Corporation Business Overview & Revenue Model

Company Description

Tachikawa Corporation (7989) is a Japanese company primarily engaged in the manufacturing and distribution of a wide range of products, including precision instruments, automotive components, and electronic devices. The company operates in various sectors, with a focus on providing innovative solutions and high-quality products that cater to diverse markets such as automotive, electronics, and industrial machinery.

How the Company Makes Money

Tachikawa Corporation generates revenue through several key streams, including the sale of precision instruments and automotive parts to original equipment manufacturers (OEMs) and aftermarket suppliers. The company also benefits from long-term contracts with major automotive manufacturers, which provide a stable revenue base. Additionally, Tachikawa's partnerships with technology firms enhance its product offerings in the electronic device sector, contributing to increased sales. The company's emphasis on research and development allows it to innovate and stay competitive, further driving its revenue growth.

Tachikawa Corporation Financial Statement Overview

Summary

Tachikawa Corporation presents a strong financial profile with stable revenue growth and efficient operations. The balance sheet is exceptionally robust, with minimal leverage and a substantial equity base. However, cash flow management, particularly free cash flow, presents some challenges that need to be addressed to enhance financial flexibility.

Income Statement

Tachikawa Corporation shows stable and consistent revenue with a slight growth of 0.25% from 2023 to 2024. The company maintains a strong gross profit margin of approximately 41.3% and a healthy net profit margin of 6.8%. The EBIT margin is also robust at 10.5%, indicating efficient operations. However, the EBITDA margin slightly declined, suggesting rising operating expenses.

Balance Sheet

The company exhibits a strong balance sheet with a very low debt-to-equity ratio of 0.0026, indicating negligible reliance on debt. The return on equity is solid at 5.3%, reflecting good profitability relative to shareholder equity. The equity ratio is high at 82.9%, showcasing a strong capital base and financial stability.

Cash Flow

Tachikawa Corporation's free cash flow decreased significantly by 59.6% from 2023 to 2024, indicating a potential area of concern. However, the operating cash flow to net income ratio is satisfactory at 0.59, showing that earnings are well supported by cash flow. The free cash flow to net income ratio is 0.20, which suggests room for improvement in cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	42.51B	41.41B	41.31B	41.30B	41.24B	39.98B
Gross Profit	17.72B	17.11B	16.87B	16.93B	17.89B	17.68B
EBITDA	5.92B	5.51B	5.55B	4.99B	5.38B	5.30B
Net Income	3.19B	2.80B	2.71B	2.52B	2.87B	2.90B
Balance Sheet
Total Assets	64.62B	63.84B	63.14B	62.59B	60.69B	57.78B
Cash, Cash Equivalents and Short-Term Investments	16.84B	15.54B	15.46B	16.13B	18.08B	18.52B
Total Debt	198.81M	138.00M	114.85M	125.98M	164.68M	192.30M
Total Liabilities	10.04B	10.85B	12.70B	13.95B	13.51B	13.35B
Stockholders Equity	54.58B	52.99B	46.02B	43.87B	42.55B	39.96B
Cash Flow
Free Cash Flow	2.96B	565.20M	1.40B	-390.73M	154.97M	4.04B
Operating Cash Flow	3.93B	1.64B	4.31B	2.14B	2.13B	5.17B
Investing Cash Flow	-3.41B	-1.31B	-2.93B	-3.04B	-2.01B	-1.12B
Financing Cash Flow	-1.10B	-786.48M	-1.98B	-1.06B	-679.00M	-653.07M

Tachikawa Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1863.00
• 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:7989, the sentiment is Positive. The current price of 1863 is below the 20-day moving average (MA) of 1958.25, below the 50-day MA of 1938.22, and above the 200-day MA of 1711.98, indicating a neutral trend. The MACD of 2.40 indicates Positive momentum. The RSI at 51.08 is Neutral, neither overbought nor oversold. The STOCH value of 28.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7989.

Tachikawa Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7989	80 Outperform	¥41.10B	12.20	―	2.52%	2.47%	6.88%
7955	78 Outperform	¥32.28B	12.79	―	3.56%	3.03%	160.39%
7898	66 Neutral	¥8.47B	3.54	―	2.65%	1.11%	―
7972	65 Neutral	¥132.31B	13.62	―	2.20%	7.63%	29.07%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6612	51 Neutral	¥5.93B	-10.62	―	―	-23.54%	-14.54%
7822	46 Neutral	¥9.99B	31.61	―	4.41%	2.78%	-88.37%

Tachikawa Corporation Corporate Events

Tachikawa Corporation Revises Financial and Dividend Forecasts Upward

Tachikawa Corporation has revised its full-year consolidated financial forecasts and year-end dividend forecast for the fiscal year ending December 31, 2025. The company expects strong performance in net sales, operating profit, and ordinary profit, driven by successful sales of its main products. As a result, the profit attributable to owners of the parent is projected to exceed previous plans, prompting an upward revision of financial forecasts. Additionally, Tachikawa has increased its year-end dividend forecast to 50 yen per share, reflecting a commitment to shareholder returns and a strategy to achieve a total payout ratio of 50%.