Takachiho Co., Ltd. (8225) AI Stock Analysis

• Market Cap: ¥2.50B
• Dividend Yield: 1.29%
• Average Volume (3M): 683.00
• Price to Earnings (P/E): 7.1
• Beta (1Y): 0.51
• Revenue Growth: 14.90%
• EPS Growth: -8.27%
• Country: JP
• Employees: 198
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 85.39
• Shares Outstanding: 727,500
• 10 Day Avg. Volume: 700
• 30 Day Avg. Volume: 683
• PEG Ratio: -0.22
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.22
• P/FCF Ratio: 5.88
• 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: 76 Outperform
• Price Target: ¥4,322.00 ▲(16.81% Upside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is driven primarily by improving financial performance (profitability turnaround, solid revenue growth, and strong cash flow conversion) alongside manageable leverage. Technicals add support with price trading above key moving averages and neutral-to-positive momentum. Valuation further boosts the outlook due to the low P/E, while the dividend yield is supportive but not a major driver.

Positive Factors

Profitability Turnaround

Takachiho's shift from a loss to a positive net margin (3.6%) with 6.5% top-line growth indicates a durable operational recovery. This structural improvement supports sustained cash flow, reinvestment capacity and stronger stakeholder confidence across business cycles.

Strong Cash Generation

Robust free cash flow growth (15.8%) and conversion metrics (OCF/net income 1.22, FCF/net income 1.05) show high cash conversion quality. That durability enables capex funding, deleveraging or shareholder returns without relying on external financing.

Conservative Capital Structure

Manageable leverage (D/E 0.43) and a >50% equity ratio provide financial flexibility for investment or downturns. An improving ROE (13.7%) signals efficient equity use, supporting sustainable growth and lower refinancing pressure over the medium term.

Negative Factors

Compressed Operating Margins

Declining EBIT and modest EBITDA margins suggest structural pressure on operating efficiency or pricing power. If persistent, lower operating margins will constrain free cash flow expansion and limit resources for R&D, service investments, or margin recovery initiatives.

Earnings Volatility

Negative EPS growth despite revenue gains points to volatility in profitability or one-off impacts. Persistent EPS declines can undermine reinvestment, dividend sustainability and investor confidence, and may indicate earnings quality issues requiring management focus.

Debt Level Fluctuations

Reported swings in total debt introduce refinancing and funding-timing risk. Inconsistency in debt management can limit strategic flexibility, increase interest exposure in tightening markets, and complicate capital allocation during downturns or growth opportunities.

Takachiho Co., Ltd. Business Overview & Revenue Model

Company Description

Takachiho Co.,Ltd. engages in the manufacture, wholesale, and retail of tourism souvenirs in Japan. The company manufactures confectionery products; leases real estate properties; and operates public baths and restaurants. It also offers sweets, fishing gears, and outdoor goods through retail stores. In addition, the company is involved in the insurance agency business. Takachiho Co.,Ltd. was incorporated in 1949 and is headquartered in Nagano, Japan.

How the Company Makes Money

Takachiho Co., Ltd. generates revenue through multiple streams, primarily by selling industrial machinery and electronic components to various industries, including manufacturing, automotive, and electronics. The company's revenue model is based on direct sales, distribution partnerships, and long-term contracts with key clients. Additionally, Takachiho may benefit from service agreements and maintenance contracts, which provide a recurring revenue stream. Strategic partnerships with other technology and manufacturing firms enhance its market reach and product offerings. The company’s ability to adapt to market demands and provide customized solutions further strengthens its earning potential.

Takachiho Co., Ltd. Financial Statement Overview

Summary

Financials are solid overall, supported by improved profitability (net margin up to 3.6% from a loss in 2022) and healthy revenue growth (6.5% from 2024 to 2025). Cash generation is strong (FCF growth 15.8% and operating cash flow to net income of 1.22), while leverage looks manageable (debt-to-equity 0.43) with a stable equity base (equity ratio 52.6%). Offsetting factors include some pressure on operating efficiency (EBIT margin down to 5.1% and EBITDA margin 6.2%) and noted fluctuations in total debt.

Income Statement

Takachiho Co., Ltd. has shown significant improvement in its income statement metrics over the past years. The gross profit margin for the latest year is approximately 27.6%, indicating a strong ability to convert revenue into gross profit. The net profit margin has improved to 3.6% from a negative margin in 2022, showcasing a turnaround in profitability. Revenue growth rate from 2024 to 2025 is 6.5%, reflecting a healthy upward trend. However, the EBIT margin has slightly decreased to 5.1%, and the EBITDA margin stands at 6.2%, suggesting room for operational efficiency improvements.

Balance Sheet

The balance sheet of Takachiho Co., Ltd. indicates a solid financial position with a debt-to-equity ratio of 0.43, reflecting a manageable level of leverage. The return on equity (ROE) has improved to 13.7%, indicating effective use of equity to generate profits. The equity ratio is 52.6%, suggesting a stable capital structure with a significant portion of assets funded by equity. However, the company has experienced fluctuations in total debt levels over the years, which could pose potential risks if not managed carefully.

Cash Flow

The cash flow statement shows a robust free cash flow growth rate of 15.8% from 2024 to 2025, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is 1.22, indicating that operating cash flows are well-aligned with reported net income. Additionally, the free cash flow to net income ratio is 1.05, suggesting efficient conversion of net income into free cash flow. Despite these strengths, the company should continue to monitor its capital expenditures to maintain healthy cash flow levels.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	9.04B	8.54B	8.02B	7.33B	5.25B	4.65B
Gross Profit	2.59B	2.39B	2.24B	2.08B	1.43B	1.12B
EBITDA	601.34M	526.38M	521.80M	481.64M	15.01M	-565.80M
Net Income	364.45M	308.64M	423.26M	460.26M	-154.00M	-940.13M
Balance Sheet
Total Assets	4.86B	4.29B	4.26B	4.17B	3.65B	3.89B
Cash, Cash Equivalents and Short-Term Investments	1.01B	929.65M	834.67M	913.52M	744.59M	744.29M
Total Debt	1.21B	974.31M	1.30B	1.67B	1.85B	1.96B
Total Liabilities	2.48B	2.03B	2.44B	2.79B	2.74B	2.82B
Stockholders Equity	2.37B	2.25B	1.82B	1.37B	910.20M	1.07B
Cash Flow
Free Cash Flow	0.00	324.13M	280.03M	353.27M	-31.26M	-373.22M
Operating Cash Flow	0.00	376.79M	333.43M	392.09M	-11.45M	-210.37M
Investing Cash Flow	0.00	-62.91M	-36.11M	-45.00M	122.92M	-150.87M
Financing Cash Flow	0.00	-218.91M	-365.16M	-178.16M	-111.17M	539.92M

Takachiho Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3700.00
• 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:8225, the sentiment is Positive. The current price of 3700 is below the 20-day moving average (MA) of 3848.25, below the 50-day MA of 3765.40, and below the 200-day MA of 3801.75, indicating a bullish trend. The MACD of 40.58 indicates Positive momentum. The RSI at 52.20 is Neutral, neither overbought nor oversold. The STOCH value of 41.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8225.

Takachiho Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8225	76 Outperform	¥2.50B	7.07	―	1.29%	14.90%	-8.27%
3138	63 Neutral	¥3.33B	44.02	―	1.63%	2.88%	-69.65%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3192	56 Neutral	¥2.00B	4.76	―	―	0.06%	―
7640	50 Neutral	¥3.17B	-4.29	―	―	-5.87%	-2.90%
3185	48 Neutral	¥4.52B	-14.85	―	―	-11.07%	27.85%
9978	44 Neutral	¥2.19B	-14.34	―	―	-3.14%	-462.00%