Tachikawa Corporation (7989) AI Stock Analysis

• Market Cap: ¥55.38B
• Dividend Yield: 2.52%
• Average Volume (3M): 44.91K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.57
• 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): 43.82
• Shares Outstanding: 22,402,958
• 10 Day Avg. Volume: 71,830
• 30 Day Avg. Volume: 44,910
• PEG Ratio: 1.45
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.93
• P/FCF Ratio: 10.69
• 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: 77 Outperform
• Price Target: ¥2,876.00 ▲(54.37% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by strong financial quality (very low leverage and solid profitability with improved 2025 performance). Technicals support the uptrend, but overbought readings raise near-term risk. Valuation is broadly reasonable with a moderate P/E and a decent dividend yield.

Positive Factors

Exceptionally conservative balance sheet

Extremely low leverage provides durable financial flexibility and resilience to downturns, enabling the company to fund working capital, capex, or dividends without reliance on external debt. This structural strength reduces insolvency risk and supports long-term strategic options.

Improved free cash flow in 2025

A substantial FCF rebound that covers most of net income improves internal funding capacity and shareholder optionality. Sustained higher FCF increases ability to invest in product development, maintain payout policy, and absorb cyclical revenue swings if consistency persists.

Stable margins with a 2025 growth step-up

Consistently healthy gross and operating margins indicate durable unit economics and pricing or cost advantages in manufacturing/distribution. The 2025 revenue and net margin step-up suggests improved product mix or demand, supporting sustainable profitability if maintained.

Negative Factors

Uneven operating cash flow and conversion

Large year-to-year swings in operating cash flow signal earnings quality and working-capital volatility risks. Irregular cash conversion complicates forecasting, can constrain reinvestment during weak years, and raises the chance that strong single-year metrics are not repeatable.

2025 growth surge lacks multi-year confirmation

A single-year revenue acceleration after several years of stagnation may reflect timing, one-off orders, or temporary market factors. Without multi-year traction, durable topline expansion is uncertain, leaving future margin and cash flow gains exposed to reversion risk.

Exposure to cyclical housing and commercial construction trends

Core end markets are inherently cyclical; downturns in housing or commercial construction can quickly reduce order volumes and pressure margins. Even with a strong balance sheet, sustained demand weakness would materially affect revenue and utilization over the medium term.

Tachikawa Corporation Business Overview & Revenue Model

Company Description

Tachikawa Corporation, together with its subsidiary, designs, manufactures, markets, sells, and installs various window covering products and room partitions primarily in Japan. The company offers vertical blinds, roller blinds, roman shades, pleated shades, curtain rails, and other window coverings and interior finishing products for residential and office buildings, as well as public facilities. It is also involved in the manufacture and sale of parking systems, geared motors, motorized panel louvers, and movable partitions. The company was formerly known as Tachikawa Manufacturing Co., Ltd. and changed its name to Tachikawa Corporation in October 1947. The company was founded in 1938 and is headquartered in Tokyo, Japan.

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

Fundamentals are strong overall: profitability is solid with improving margins and a sharp 2025 growth step-up, and the balance sheet is exceptionally conservative with extremely low leverage. The main offset is uneven cash-flow conversion (including a negative FCF year and large swings in operating cash flow), which adds volatility risk.

Income Statement

Profitability is solid and fairly steady: gross margin has held around ~41% in recent years, while operating margin sits near ~10% and improved versus 2022. 2025 shows a clear step-up in growth with revenue up ~25.8% and net margin rising to ~7.6% (from ~6.8% in 2024). The key drawback is that revenue growth was essentially flat from 2022–2024, suggesting the 2025 surge may be less proven as a multi-year trend.

Balance Sheet

The balance sheet is exceptionally conservative, with extremely low leverage (debt-to-equity roughly ~0.25%–0.48% across the period) and a steady expansion in equity and assets. Returns on equity are moderate and stable (~5%–7%), which is healthy given the low leverage, but not high enough to be considered standout for the sector.

Cash Flow

Cash generation is positive overall but somewhat uneven year-to-year. Free cash flow rebounded strongly in 2025 to ~3.7B (and covers ~82% of net income), following weaker conversion in 2024 and negative free cash flow in 2022. Operating cash flow has also swung materially (from ~2.1B in 2021 to ~4.3B in 2023, down to ~1.6B in 2024, then up to ~4.5B in 2025), which adds volatility risk despite the recent improvement.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	42.62B	41.41B	41.31B	41.30B	41.24B
Gross Profit	17.36B	17.11B	16.87B	16.93B	17.89B
EBITDA	5.60B	5.51B	5.55B	4.99B	5.38B
Net Income	3.24B	2.80B	2.71B	2.52B	2.87B
Balance Sheet
Total Assets	67.74B	63.84B	63.14B	62.59B	60.69B
Cash, Cash Equivalents and Short-Term Investments	17.68B	15.54B	15.46B	16.13B	18.08B
Total Debt	178.71M	138.00M	114.85M	125.98M	164.68M
Total Liabilities	11.38B	10.85B	12.70B	13.95B	13.51B
Stockholders Equity	56.35B	52.99B	46.02B	43.87B	42.55B
Cash Flow
Free Cash Flow	3.71B	565.20M	1.40B	-390.73M	154.97M
Operating Cash Flow	4.52B	1.64B	4.31B	2.14B	2.13B
Investing Cash Flow	-3.29B	-1.31B	-2.93B	-3.04B	-2.01B
Financing Cash Flow	-1.10B	-786.48M	-1.98B	-1.06B	-679.00M

Tachikawa Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1863.00
• 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:7989, the sentiment is Positive. The current price of 1863 is below the 20-day moving average (MA) of 2338.05, below the 50-day MA of 2104.12, and above the 200-day MA of 1829.01, indicating a bullish trend. The MACD of 151.72 indicates Negative momentum. The RSI at 78.66 is Negative, neither overbought nor oversold. The STOCH value of 51.66 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	77 Outperform	¥55.38B	16.29	―	2.52%	2.47%	6.88%
7955	75 Outperform	¥38.40B	12.06	―	3.56%	3.03%	160.39%
7972	69 Neutral	¥191.06B	18.98	―	2.20%	7.63%	29.07%
7898	66 Neutral	¥10.09B	4.26	―	2.65%	1.11%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7822	46 Neutral	¥11.45B	25.72	―	4.41%	2.78%	-88.37%
6612	45 Neutral	¥5.47B	-3.42	―	―	-23.54%	-14.54%

Tachikawa Corporation Corporate Events

Tachikawa revamps capital strategy to lift ROE and push PBR above 1x by 2028

Tachikawa Corporation has updated its capital-efficiency strategy after determining that return on equity for fiscal 2025, at 5.9%, still fails to exceed its roughly 5.5–6.0% cost of capital, a shortfall linked to lower financial leverage following the 2024 acquisition of a listed subsidiary and a persistently sub-1x price-to-book ratio. The board has approved new measures to strengthen core interior and exterior product operations, improve asset efficiency, expand business domains via M&A and alliances, enhance shareholder returns and investor relations, and pursue medium-term targets including ROE of 7% by fiscal 2028, a PBR above 1x during its “Tachikawa Vision 2028” plan and moderate top-line and profit growth driven by higher-margin, energy-saving and technology-enhanced product offerings.

To support these goals, Tachikawa plans to accelerate sales of dimmable fabric and electric products, bolster partition offerings, push into exterior fittings to capture rising energy-saving demand and deepen collaborations across its group and with external partners to unlock synergies. Management views asset reduction and capital optimization as key levers for improving ROE, while clearer disclosure of growth strategies and stronger shareholder returns are expected to lift investor expectations and potentially rerate the stock, which has already seen a higher PER and rising share price but still trades below book value.

The most recent analyst rating on (JP:7989) stock is a Buy with a Yen2306.00 price target. To see the full list of analyst forecasts on Tachikawa Corporation stock, see the JP:7989 Stock Forecast page.

Tachikawa Launches Vision 2028 Plan to Drive Growth and “Comfortable Living”

Tachikawa Corporation has unveiled its new medium-term management plan, “TACHIKAWA Vision 2028—Creating Comfortable Living—,” covering fiscal years 2026 to 2028 as it moves from a foundation-laying phase to a growth stage. The strategy follows a prior plan that, despite weaker sales from a downturn in housing starts, delivered record profits through value-added products and price revisions.

Under the new plan, the company will prioritize manufacturing and market creation, growth investments, and social contributions to enhance corporate value toward its 2030 vision. Key initiatives include expanding dimmable and other fabric products, advancing electric and IoT-enabled offerings, targeting non-residential and rental markets, and responding to rising energy-saving demand with exterior fittings.

Tachikawa will also invest in digital sales promotion, leverage a new Shinjuku showroom to reach more consumers, and pursue alliances and M&A to broaden its business domains. On the production side, it plans a new fabric production building, smart factory initiatives, and consolidation of logistics at a new Sapporo plant, alongside DX and human capital investments aimed at efficiency, employee engagement, and sustainability-driven social contributions.

The most recent analyst rating on (JP:7989) stock is a Buy with a Yen2306.00 price target. To see the full list of analyst forecasts on Tachikawa Corporation stock, see the JP:7989 Stock Forecast page.

Tachikawa Lifts FY2025 Profit and Cash Flow, Plans Sharp Dividend Hike for 2026

Tachikawa Corporation reported consolidated net sales of ¥42.6 billion for the fiscal year ended December 31, 2025, up 2.9% year on year, with operating profit rising 1.2% to ¥4.4 billion and profit attributable to owners of parent climbing 15.6% to ¥3.2 billion. The company’s equity-to-asset ratio remained high at 83.2%, and operating cash flow more than doubled, underscoring solid financial health and operational stability.

The board significantly increased annual dividends to ¥70 per share for 2025 from ¥46 a year earlier, and it plans a further hike to ¥120 per share in 2026, indicating a stronger focus on shareholder returns. For the fiscal year ending December 31, 2026, Tachikawa forecasts modest growth in sales and profits, with full-year net sales projected at ¥43.5 billion and profit attributable to owners of parent at ¥3.28 billion, suggesting continued but measured expansion amid a stable operating environment.

The most recent analyst rating on (JP:7989) stock is a Buy with a Yen2306.00 price target. To see the full list of analyst forecasts on Tachikawa Corporation stock, see the JP:7989 Stock Forecast page.