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Takashima & Co., Ltd. (JP:8007)
:8007
Japanese Market

Takashima & Co., Ltd. (8007) AI Stock Analysis

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JP:8007

Takashima & Co., Ltd.

(8007)

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Outperform 77 (OpenAI - 5.2)
Rating:77Outperform
Price Target:
¥1,042.00
▲(20.60% Upside)
Action:ReiteratedDate:08/02/25
The overall stock score of 77 reflects strong technical momentum and solid financial performance, tempered by valuation concerns and cash flow volatility. The stock's bullish technical indicators and consistent revenue growth bolster its attractiveness, while liquidity risks and moderate valuation metrics suggest a need for cautious optimism.
Positive Factors
Revenue Trend
Multi-year revenue expansion to ¥94.5bn demonstrates sustained demand and successful market penetration in construction materials. This durable top-line growth supports capacity utilization, long-term supplier relationships, and provides a foundation for margin recovery and reinvestment over the next several quarters.
Balance Sheet Strength
A moderate debt-to-equity ratio (~0.51) and near-40% equity backing indicate manageable leverage and financial flexibility. This balance sheet footing supports capital spending, weathering cyclical downturns, and negotiating supplier/contractor terms without forcing equity raises in the medium term.
Improving Profitability
Rising net margin and stable operating margins reflect improving cost control and operating efficiency. Sustained margin improvement, even if modest, suggests the company can convert revenue growth into lasting profit gains and strengthen cash generation potential once working capital normalizes.
Negative Factors
Cash Flow Volatility
A swing to negative operating cash flow and materially negative free cash flow creates persistent liquidity pressure. Over several quarters this can constrain capital expenditures, dividend coverage, and require financing or working capital measures, undermining operational stability if not corrected.
Declining Return on Equity
A sharp ROE decline signals reduced effectiveness in converting equity into profits. If sustained, lower ROE may reflect margin pressure, higher equity base, or capital inefficiencies and could limit shareholder returns and re-rating potential absent a clear operational improvement plan.
Gross Margin Compression
Compression of gross margin points to cost or pricing pressures in core construction materials. Persistent input cost inflation or pricing weakness would erode operating leverage, making it harder to sustain profitability gains and requiring management actions to protect long-term margins.

Takashima & Co., Ltd. (8007) vs. iShares MSCI Japan ETF (EWJ)

Takashima & Co., Ltd. Business Overview & Revenue Model

Company DescriptionTakashima & Co., Ltd. operates as a trading company in Japan. The company offers building materials, including construction materials, civil engineering piles, housing materials, and interior related needs, and energy and insulation solutions. It also provides industrial materials, which include resins; interior and exterior materials for railway vehicles; textile materials, fiber and apparel products; tent warehouses; automotive related parts; home center products; and wood racks; LED lighting products; and EV chargers and other environmental products. In addition, the company offers LCD and acoustic parts; and diodes, transistors, capacitors, relays, transformers, choke coils, opto devices, and mechanical parts. Further, it provides contract manufacturing services. The company was formerly known as Takashimaya Kogyou Co., Ltd. and changed its name to Takashima & Co., Ltd. in 1949. Takashima & Co., Ltd. was incorporated in 1915 and is based in Tokyo, Japan.
How the Company Makes MoneyTakashima & Co., Ltd. generates revenue primarily through its trading activities, which involve buying products from manufacturers and selling them to customers domestically and internationally. Key revenue streams include sales from textiles, chemicals, and machinery, alongside commissions earned from facilitating trade deals. The company also engages in strategic partnerships with various manufacturers and suppliers, enhancing its product offerings and market reach. Additionally, Takashima's involvement in logistics and supply chain management services contributes to its earnings by optimizing distribution channels and reducing costs for its clients.

Takashima & Co., Ltd. Financial Statement Overview

Summary
Takashima & Co., Ltd. exhibits strong revenue growth and improving profitability margins, indicating a positive trajectory in the construction materials industry. The balance sheet remains stable with manageable leverage, though the drop in ROE suggests efficiency challenges. Cash flow fluctuations, particularly the recent negative operating cash flow, highlight potential liquidity risks that need addressing. Overall, the company's financial health is solid, but attention should be given to cash flow management.
Income Statement
78
Positive
Takashima & Co., Ltd. shows a strong revenue growth trajectory, increasing from 74.05 billion yen in 2022 to 94.50 billion yen in 2025, representing a consistent growth trend. However, the gross profit margin slightly decreased to 12.46% in 2025 from 13.63% in 2024. Despite this, net profit margins have improved from 1.43% in 2023 to 1.66% in 2025, indicating enhanced profitability. EBIT and EBITDA margins also reflect stability and improvement over the years, showcasing operational efficiency.
Balance Sheet
75
Positive
The balance sheet reveals a moderate debt-to-equity ratio of 0.51 in 2025, indicating manageable leverage. Stockholders' equity has increased, supporting a healthy equity ratio of 39.84%. ROE declined to 6.54% in 2025 from 20.49% in 2024, reflecting a dip in efficiency in generating returns from equity. The company's balance sheet remains robust with good equity backing despite fluctuating debt levels.
Cash Flow
65
Positive
The cash flow statement highlights volatility, with operating cash flow turning negative in 2025 at -2.74 billion yen from a positive 6.06 billion yen in 2024. Free cash flow also declined significantly to -3.17 billion yen in 2025. The free cash flow to net income ratio indicates tight cash conversion, posing potential liquidity concerns. While the company has shown strong free cash flow generation in previous years, the recent downturn requires attention.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue91.88B94.50B90.12B79.68B74.05B80.63B
Gross Profit12.84B11.78B12.29B9.43B8.33B7.84B
EBITDA4.30B4.14B8.74B2.33B2.24B1.94B
Net Income1.77B1.57B4.83B1.58B1.30B1.00B
Balance Sheet
Total Assets63.56B60.04B60.41B53.06B45.18B42.12B
Cash, Cash Equivalents and Short-Term Investments9.72B9.08B12.37B7.79B7.30B5.88B
Total Debt14.86B12.09B6.93B6.93B4.29B1.48B
Total Liabilities40.36B36.12B36.83B33.52B26.70B24.67B
Stockholders Equity23.20B23.92B23.58B19.54B18.48B17.45B
Cash Flow
Free Cash Flow-711.00M-3.17B5.28B-22.00M-1.06B2.49B
Operating Cash Flow-621.50M-2.74B6.06B700.00M-389.00M3.56B
Investing Cash Flow-364.00M-1.28B2.52B-1.45B-654.00M-98.00M
Financing Cash Flow-816.00M419.00M-4.13B1.06B2.31B-1.95B

Takashima & Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price864.00
Price Trends
50DMA
896.80
Positive
100DMA
863.08
Positive
200DMA
811.83
Positive
Market Momentum
MACD
8.22
Positive
RSI
61.48
Neutral
STOCH
55.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8007, the sentiment is Positive. The current price of 864 is below the 20-day moving average (MA) of 921.55, below the 50-day MA of 896.80, and above the 200-day MA of 811.83, indicating a bullish trend. The MACD of 8.22 indicates Positive momentum. The RSI at 61.48 is Neutral, neither overbought nor oversold. The STOCH value of 55.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8007.

Takashima & Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥3.98B12.012.00%-3.03%-14.50%
77
Outperform
¥31.53B18.435.33%-1.45%-60.63%
75
Outperform
¥27.76B8.403.52%6.15%17.51%
73
Outperform
¥29.55B15.655.04%-2.29%-41.92%
68
Neutral
¥13.34B10.153.42%8.37%8.13%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
58
Neutral
¥2.93B18.611.59%-4.01%-41.29%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8007
Takashima & Co., Ltd.
918.00
305.07
49.77%
JP:5287
Ito Yogyo Co., Ltd.
1,331.00
711.42
114.82%
JP:5356
Mino Ceramic Co., Ltd.
1,301.00
492.80
60.98%
JP:5357
Yotai Refractories Co., Ltd.
1,996.00
374.11
23.07%
JP:5363
TYK Corporation
628.00
194.68
44.93%
JP:5386
Tsuruya Co., Ltd.
383.00
18.92
5.20%

Takashima & Co., Ltd. Corporate Events

Takashima Completes ¥99.9 Million Share Buyback on TSE
Feb 26, 2026

Takashima & Co., Ltd. has completed a share repurchase program authorized by its board on February 12, 2026, as part of capital policy measures allowed under Japan’s Companies Act. The company bought back 108,200 common shares via market purchases on the Tokyo Stock Exchange between February 13 and 25, at a total cost of ¥99,912,300, effectively reaching the upper limit of the approved ¥100 million buyback budget and signaling a focus on shareholder returns.

The repurchased shares represent a portion of the up to 150,000 shares, or about 0.44% of issued shares excluding treasury stock, that the board had authorized for acquisition. Completion of the program may enhance capital efficiency and earnings per share, and underscores management’s confidence in the company’s valuation, with potential implications for existing shareholders through improved equity value and a tighter share float.

The most recent analyst rating on (JP:8007) stock is a Hold with a Yen993.00 price target. To see the full list of analyst forecasts on Takashima & Co., Ltd. stock, see the JP:8007 Stock Forecast page.

Takashima Books ¥175 Million Gain From Policy Shareholding Sale
Feb 18, 2026

Takashima & Co., Ltd. has completed the sale of a portion of its investment securities, specifically one listed security, as part of its ongoing effort to reduce policy shareholdings in line with Japan’s Corporate Governance Code and improve asset efficiency. The transaction, carried out between February 13 and 17, 2026, generated a profit of ¥175 million, which will be booked as extraordinary income for the fiscal year ending March 31, 2026, with the impact already reflected in the company’s revised full-year earnings forecast announced earlier in February.

By monetizing policy shareholdings, Takashima is aligning itself with broader governance reforms in Japan that encourage companies to optimize capital allocation and enhance shareholder value. The move signals a continued shift toward more disciplined portfolio management and may improve returns on equity, while giving investors clearer visibility into the earnings contribution of non-core financial assets.

The most recent analyst rating on (JP:8007) stock is a Hold with a Yen966.00 price target. To see the full list of analyst forecasts on Takashima & Co., Ltd. stock, see the JP:8007 Stock Forecast page.

Takashima & Co. Launches Modest Share Buyback to Boost Capital Efficiency
Feb 12, 2026

Takashima & Co., Ltd. has approved a share repurchase program under Japan’s Companies Act, authorizing the buyback of up to 150,000 shares, or about 0.44% of its issued shares excluding treasury stock, for a maximum total of ¥100 million. The buyback, to be executed through market purchases on the Tokyo Stock Exchange between February 13 and 27, 2026, is aimed at enhancing shareholder returns, improving capital efficiency, and providing flexibility in the company’s capital policy in response to evolving business conditions.

The program will modestly increase the company’s existing treasury stock holdings, which stood at 198,250 shares as of December 31, 2025, against 34,179,734 shares outstanding excluding treasury shares. While limited in scale, the initiative signals management’s focus on capital allocation discipline and may support the share price, offering incremental benefits to shareholders and reinforcing the firm’s stance on proactive financial management.

The most recent analyst rating on (JP:8007) stock is a Hold with a Yen985.00 price target. To see the full list of analyst forecasts on Takashima & Co., Ltd. stock, see the JP:8007 Stock Forecast page.

Takashima to Boost Asset Efficiency With Sale of Policy Shareholdings
Feb 12, 2026

Takashima & Co., Ltd., a Prime Market-listed Japanese trading company, has resolved to sell part of its holdings of listed investment securities as part of an effort to improve asset efficiency and reduce policy shareholdings in line with Japan’s Corporate Governance Code. The planned transaction is expected to generate an estimated gain of ¥180 million, which will be booked as extraordinary income in the fiscal year ending March 31, 2026, with the impact already incorporated into the company’s revised consolidated earnings forecast for that period.

By unwinding a portion of its policy shareholdings, Takashima is aligning with broader governance reforms in Japan that encourage companies to optimize capital allocation and enhance returns on equity. The move signals continued attention to balance sheet efficiency and may be viewed positively by investors focused on corporate governance, though the company does not anticipate a change to its latest full-year outlook given that the effect has already been reflected in its guidance.

The most recent analyst rating on (JP:8007) stock is a Hold with a Yen985.00 price target. To see the full list of analyst forecasts on Takashima & Co., Ltd. stock, see the JP:8007 Stock Forecast page.

Takashima Cuts Full-Year Earnings Outlook but Maintains Dividend Plan
Feb 12, 2026

Takashima & Co., Ltd. has revised its full-year consolidated forecast for the fiscal year ending March 31, 2026, cutting projected net sales from ¥110 billion to ¥92 billion and trimming expected profit attributable to owners of parent from ¥1.9 billion to ¥1.6 billion. The company will keep its annual dividend forecast unchanged, even as the new outlook implies a decline in basic earnings per share to ¥46.84, only slightly above the previous year’s level.

Management cited sluggish non-housing foundation work in the Construction Supply Segment, portfolio-driven project withdrawals in Industrial Materials and weak assembly-related sales in Electronic Devices as key drags on revenue. While improved plant utilization in Industrial Materials is supporting earnings, profits are still seen undershooting prior guidance due to lower sales in Electronic Devices and higher upfront operating expenses to expand the Construction Supply business, signaling near-term margin pressure as the company invests for growth.

The most recent analyst rating on (JP:8007) stock is a Hold with a Yen985.00 price target. To see the full list of analyst forecasts on Takashima & Co., Ltd. stock, see the JP:8007 Stock Forecast page.

Takashima Lifts Profit Despite Lower Sales, Trims Equity Ratio and Confirms Modest FY Outlook
Feb 12, 2026

Takashima reported nine-month fiscal 2026 consolidated results showing net sales down 3.4% to ¥68.7 billion, but profit attributable to owners of parent rose 18.6% to ¥1.15 billion as ordinary profit improved 15.1%. Earnings per share increased to ¥33.67, aided by improved profitability despite weaker top-line performance and the effects of an October 2025 two-for-one stock split.

The company’s equity ratio declined to 35.6% as total assets expanded to ¥65.2 billion, while net assets edged down versus the March 2025 year-end, and the interim dividend was lifted to ¥45 per share on a pre-split basis. Takashima reaffirmed its full-year guidance framework while revising its earnings forecast separately, now targeting ¥92 billion in sales and modest profit growth, underscoring stable operations but signaling a cautious outlook amid a softer revenue environment.

The most recent analyst rating on (JP:8007) stock is a Hold with a Yen985.00 price target. To see the full list of analyst forecasts on Takashima & Co., Ltd. stock, see the JP:8007 Stock Forecast page.

Takashima Reshapes Business Integration Division and Revamps Executive Lineup
Feb 12, 2026

Takashima & Co., Ltd. has approved a reorganization of its Business Integration Division, reducing its supervisory departments from four to three as of April 1, 2026. The restructure centers on establishing a core Value Creation Development and Integration Strategy function to coordinate cross-organizational strategy and more tightly integrate the company’s three main business divisions.

The company also announced changes to its management lineup, including the appointment of two new executive officers and role adjustments for senior managing executive officers overseeing the construction supply and electronic devices divisions. These moves signal a push to strengthen group-wide synergies, clarify strategic oversight, and streamline leadership responsibilities ahead of the June 2026 shareholders’ meeting where director appointments will be finalized.

The most recent analyst rating on (JP:8007) stock is a Hold with a Yen985.00 price target. To see the full list of analyst forecasts on Takashima & Co., Ltd. stock, see the JP:8007 Stock Forecast page.

Takashima & Co. Reshapes Top Management, Elevates Yamamoto to President
Feb 12, 2026

Takashima & Co., Ltd. has announced a leadership reshuffle, with current President and Chief Executive Officer Koichi Takashima moving to the role of Chairperson and Representative Director. Akira Yamamoto, now Director and Senior Managing Executive Officer overseeing the Construction Supply Division, will be promoted to President and Representative Director and Chief Operating Officer.

The management changes, to be formally approved at the June 23, 2026 shareholders’ meeting and subsequent board session, aim to reinforce the company’s management structure. Yamamoto’s appointment reflects his long tenure and deep experience in construction supply operations, signaling a focus on operational strength and continuity in the firm’s core business lines, which may support more stable governance and execution for stakeholders.

The most recent analyst rating on (JP:8007) stock is a Hold with a Yen985.00 price target. To see the full list of analyst forecasts on Takashima & Co., Ltd. stock, see the JP:8007 Stock Forecast page.

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: Aug 02, 2025