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Tachikawa Corporation (JP:7989)
:7989
Japanese Market

Tachikawa Corporation (7989) AI Stock Analysis

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JP:7989

Tachikawa Corporation

(7989)

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Outperform 77 (OpenAI - 5.2)
Rating:77Outperform
Price Target:
¥2,876.00
▲(54.37% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors

Tachikawa Corporation (7989) vs. iShares MSCI Japan ETF (EWJ)

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, plea...
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 co...

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
78
Positive
Balance Sheet
92
Very Positive
Cash Flow
64
Positive
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue42.62B41.41B41.31B41.30B41.24B
Gross Profit17.36B17.11B16.87B16.93B17.89B
EBITDA5.60B5.51B5.55B4.99B5.38B
Net Income3.24B2.80B2.71B2.52B2.87B
Balance Sheet
Total Assets67.74B64.81B63.89B63.18B61.22B
Cash, Cash Equivalents and Short-Term Investments17.68B15.54B15.46B16.13B18.08B
Total Debt178.71M138.00M114.85M125.98M164.68M
Total Liabilities11.38B11.82B13.45B14.54B14.05B
Stockholders Equity56.35B52.99B46.02B43.87B42.55B
Cash Flow
Free Cash Flow3.71B565.20M1.40B-390.73M154.97M
Operating Cash Flow4.52B1.64B4.31B2.14B2.13B
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 Price1863.00
Price Trends
50DMA
2409.02
Positive
100DMA
2166.66
Positive
200DMA
1958.91
Positive
Market Momentum
MACD
31.62
Positive
RSI
58.86
Neutral
STOCH
66.97
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 2554.40, below the 50-day MA of 2409.02, and below the 200-day MA of 1958.91, indicating a bullish trend. The MACD of 31.62 indicates Positive momentum. The RSI at 58.86 is Neutral, neither overbought nor oversold. The STOCH value of 66.97 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥54.64B12.252.52%2.47%6.88%
76
Outperform
¥178.41B11.814.91%6.35%14.05%
75
Outperform
¥46.34B13.602.97%0.89%-14.25%
75
Outperform
¥34.13B3.813.56%3.03%160.39%
72
Outperform
¥178.11B8.203.41%6.17%61.39%
67
Neutral
¥178.09B12.832.20%7.63%29.07%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7989
Tachikawa Corporation
2,590.00
1,283.01
98.17%
JP:7840
France Bed Holdings Co., Ltd.
1,341.00
177.85
15.29%
JP:7955
Cleanup Corporation
951.00
357.24
60.17%
JP:7972
Itoki Corporation
3,365.00
1,937.27
135.69%
JP:7981
Takara Standard Co., Ltd
2,847.00
1,230.01
76.07%
JP:8130
Sangetsu Corporation
3,065.00
426.04
16.14%

Tachikawa Corporation Corporate Events

Tachikawa revamps capital strategy to lift ROE and push PBR above 1x by 2028
Feb 10, 2026
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 fo...
Tachikawa Launches Vision 2028 Plan to Drive Growth and “Comfortable Living”
Feb 10, 2026
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. ...
Tachikawa Lifts FY2025 Profit and Cash Flow, Plans Sharp Dividend Hike for 2026
Feb 10, 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 climb...
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