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

• Market Cap: ¥2.38B
• Dividend Yield: 1.35%
• Average Volume (3M): 1.57K
• Price to Earnings (P/E): 6.7
• Beta (1Y): 0.51
• Revenue Growth: 12.28%
• EPS Growth: -13.20%
• Country: JP
• Employees: 198
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 218.79
• Shares Outstanding: 727,500
• 10 Day Avg. Volume: 780
• 30 Day Avg. Volume: 1,570
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥4,259.00
• Price Target Upside: 14.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥4,127.00 ▲(10.50% Upside)

Takachiho Co., Ltd. has a solid overall stock score driven by strong financial performance and attractive valuation. The company's profitability turnaround and robust cash flow generation are significant strengths. However, technical analysis indicates short-term bearish momentum, which slightly offsets the positive valuation outlook. The absence of earnings call data and corporate events does not impact the score.

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 predominantly through the wholesale distribution of home improvement and construction materials. The company sources products from various manufacturers and suppliers and distributes them to retailers, contractors, and other businesses in the construction industry. Key revenue streams include sales of hardware, tools, building materials, and home fixtures. The company may also engage in strategic partnerships with manufacturers to distribute exclusive or high-demand products, enhancing its product offerings and market reach. Additionally, Takachiho Co., Ltd. may benefit from economies of scale and strong relationships with suppliers and buyers, contributing to its profitability.

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 revenue. The balance sheet reflects a stable financial structure with manageable debt, and cash flow generation is robust. Operational efficiency and debt management have room for improvement.

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	8.54B	8.54B	8.02B	7.33B	5.25B	4.65B
Gross Profit	2.39B	2.36B	2.24B	2.08B	1.43B	1.12B
EBITDA	526.38M	526.38M	521.80M	481.64M	15.01M	-565.80M
Net Income	308.21M	308.64M	423.26M	460.26M	-154.00M	-940.13M
Balance Sheet
Total Assets	4.29B	4.29B	4.26B	4.17B	3.65B	3.89B
Cash, Cash Equivalents and Short-Term Investments	929.65M	929.65M	834.67M	913.52M	744.59M	744.29M
Total Debt	974.31M	974.31M	1.30B	1.67B	1.85B	1.96B
Total Liabilities	2.03B	2.03B	2.44B	2.79B	2.74B	2.82B
Stockholders Equity	2.25B	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: 3735.00
• 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 3735 is below the 20-day moving average (MA) of 3791.75, below the 50-day MA of 3785.90, and above the 200-day MA of 3229.88, indicating a neutral trend. The MACD of -22.87 indicates Positive momentum. The RSI at 42.72 is Neutral, neither overbought nor oversold. The STOCH value of 35.00 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
3138	77 Outperform	3.19B	51.65	7.17%	1.58%	1.26%	-74.85%
8225	71 Outperform	¥2.38B	6.74		1.35%	12.28%	-13.20%
3192	71 Outperform	1.91B	3.26	5.58%	―	0.31%	0.00%
7640	59 Neutral	3.61B	-4.70	-45.02%	―	-4.21%	43.38%
3185	51 Neutral	3.75B	-10.97	53.95%	―	-3.81%	39.21%
9978	47 Neutral	2.45B	-97.24	3.27%	―	-3.19%	-123.83%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%