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

• Market Cap: ¥2.49B
• Dividend Yield: 1.3%
• 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): 303.41
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥4,332.00 ▲(15.67% Upside)

Takachiho Co., Ltd. receives a solid overall stock score of 73, driven primarily by its strong financial performance and attractive valuation. The company's profitability turnaround and robust cash flow generation are significant strengths. While technical analysis shows mixed signals, the stock's low P/E ratio and reasonable dividend yield enhance its investment appeal. The absence of earnings call and corporate events data does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling the company to invest in growth opportunities and manage debt effectively.

Balance Sheet Health

A solid balance sheet with manageable debt levels ensures financial stability and reduces risk, supporting sustainable growth.

Negative Factors

Operational Efficiency

Decreasing EBIT margin indicates potential inefficiencies that could impact profitability if not addressed, requiring focus on cost management.

Debt Management

Inconsistent debt levels can strain financial resources and limit strategic flexibility, necessitating careful debt management strategies.

Earnings Growth

Negative EPS growth reflects challenges in profitability, which may hinder investor confidence and affect future investment in the business.

Takachiho Co., Ltd. Business Overview & Revenue Model

Company Description

Takachiho Co., Ltd. (8225) is a Japanese company primarily engaged in the trading and manufacturing of industrial machinery and equipment. The company operates in various sectors, including the supply of electronic components, precision machinery, and logistics services. Takachiho is known for its commitment to innovation and quality, providing a diverse range of products that cater to both domestic and international markets.

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

Takachiho Co., Ltd. demonstrates strong financial performance with improvements across income, balance sheet, and cash flow metrics. The company has turned around its profitability and continues to grow its revenue. The balance sheet reflects a stable financial structure with manageable debt levels. Cash flow generation remains robust, supporting operational and strategic initiatives. However, there is room for improvement in operational efficiency and debt management.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Negative
• Last Price: 3745.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 3745 is below the 20-day moving average (MA) of 3872.25, below the 50-day MA of 3838.30, and above the 200-day MA of 3518.52, indicating a neutral trend. The MACD of -33.17 indicates Positive momentum. The RSI at 43.60 is Neutral, neither overbought nor oversold. The STOCH value of 29.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8225.

Takachiho Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3192	73 Outperform	¥1.63B	3.12	―	―	0.06%	―
8225	73 Outperform	¥2.49B	7.06	―	1.30%	14.90%	-8.27%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3138	58 Neutral	¥3.46B	58.90	―	1.47%	2.88%	-69.65%
7640	52 Neutral	¥2.59B	-3.47	―	―	-4.21%	43.38%
3185	50 Neutral	¥4.33B	-13.55	―	―	-11.07%	27.85%
9978	48 Neutral	¥2.02B	-13.01	―	―	-3.14%	-462.00%