Taiheiyo Kouhatsu Incorporated (8835) AI Stock Analysis

• Market Cap: ¥6.99B
• Dividend Yield: 4.84%
• Average Volume (3M): 19.84K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.45
• Revenue Growth: 14.94%
• EPS Growth: 2.87%
• Country: JP
• Employees: 672
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): N/A
• Shares Outstanding: 7,783,448
• 10 Day Avg. Volume: 13,070
• 30 Day Avg. Volume: 19,836
• PEG Ratio: -0.36
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 0.13
• P/FCF Ratio: -55.98
• 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: 68 Neutral
• Price Target: ¥982.00 ▲(28.37% Upside)

The stock's overall score is driven by stable financial performance with some profitability concerns, a positive technical trend, and attractive valuation metrics. The lack of earnings call data and corporate events does not impact the score.

Positive Factors

Consistent Revenue Growth

Sustained top-line growth over multiple years indicates the company is steadily expanding demand or market share. This durable revenue base supports reinvestment, strategic initiatives and absorption of cyclical dips, improving the outlook for medium-term earnings stability.

Stable Equity Base

A stable equity base provides a financial buffer against downturns and underpins borrowing capacity for strategic projects. Over a multi-month horizon this resilience supports funding flexibility, potential M&A or capex, and reduces the likelihood of forced deleveraging.

Lower Market Volatility (Low Beta)

A low beta suggests the company's equity historically exhibits lower sensitivity to market swings, consistent with a more defensive or diversified business mix. This structural lower volatility can support steadier cash flows and planning certainty for operational decisions over months.

Negative Factors

Profit Margin Compression

Declining gross and net margins point to sustained cost pressures, pricing weaknes or worsening product mix. Margin erosion reduces long-term profitability, limits internal funding for growth or dividends, and can impair competitiveness if not reversed through efficiency or price actions.

Significant Total Debt

Elevated debt relative to equity increases fixed interest obligations and refinancing exposure, constraining strategic flexibility. Over a medium-term horizon this leverage can hamper capex, reduce ability to navigate downturns, and magnify earnings volatility from rate changes.

Inconsistent Free Cash Flow

Negative and inconsistent free cash flow undermines the firm's ability to sustainably fund dividends, repay debt, or self-finance growth. Reliance on external financing raises cost and execution risk, making capital allocation and long-term investment plans more uncertain.

Taiheiyo Kouhatsu Incorporated Business Overview & Revenue Model

Company Description

Taiheiyo Kouhatsu Incorporated (8835) is a prominent Japanese company primarily involved in the mining and manufacturing sectors. The company focuses on the extraction of minerals, including limestone and other industrial materials, which are essential for various construction and manufacturing processes. Additionally, Taiheiyo Kouhatsu has diversified its operations into related fields, offering services that support the construction industry, such as engineering and consulting.

How the Company Makes Money

Taiheiyo Kouhatsu generates revenue primarily through the sale of mined minerals and industrial materials. The company capitalizes on the demand for limestone and other aggregates in the construction sector, which are critical for infrastructure projects, cement production, and other manufacturing applications. Key revenue streams include direct sales to construction firms, partnerships with manufacturers, and long-term contracts with government agencies for public works projects. The company also benefits from economies of scale in its mining operations and strategic collaborations that enhance its market reach and operational efficiency.

Taiheiyo Kouhatsu Incorporated Financial Statement Overview

Summary

Taiheiyo Kouhatsu Incorporated exhibits stable revenue growth with some profitability pressures. While the balance sheet remains relatively strong, high leverage poses potential risks. Cash flow inconsistencies highlight the need for improved capital management.

Income Statement

The company has shown consistent revenue growth over the past years from 2021 to 2025. However, the gross profit margin decreased from 2021 to 2025, and net profit margin also saw a decline, indicating pressure on profitability. Despite a slight recovery in revenue, EBIT and EBITDA margins have compressed, affecting overall profitability.

Balance Sheet

The balance sheet reflects a stable equity base with a moderate debt-to-equity ratio. However, total debt remains significant compared to equity, suggesting potential leverage risk. The equity ratio shows a stable contribution of equity to total assets.

Cash Flow

Cash flow analysis highlights inconsistent free cash flow generation, with recent years showing negative free cash flow. Operating cash flow to net income ratio indicates adequate cash generation relative to net income, but overall free cash flow remains a concern. The company needs to improve its capital expenditure efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.92B	42.08B	41.10B	51.02B	32.85B	27.82B
Gross Profit	4.50B	4.37B	4.79B	4.86B	3.96B	3.85B
EBITDA	1.92B	1.79B	2.00B	2.22B	1.38B	1.52B
Net Income	453.00M	382.00M	626.00M	694.00M	367.00M	446.00M
Balance Sheet
Total Assets	47.06B	47.74B	44.85B	45.69B	44.65B	43.67B
Cash, Cash Equivalents and Short-Term Investments	6.32B	5.32B	5.19B	5.89B	5.72B	6.30B
Total Debt	16.68B	18.01B	17.19B	17.23B	18.33B	17.37B
Total Liabilities	31.14B	31.64B	28.64B	29.90B	29.51B	28.60B
Stockholders Equity	15.49B	15.66B	15.78B	15.31B	14.68B	14.58B
Cash Flow
Free Cash Flow	0.00	-97.00M	-185.00M	1.68B	-1.87B	-1.20B
Operating Cash Flow	0.00	906.00M	503.00M	2.33B	398.00M	711.00M
Investing Cash Flow	0.00	-1.03B	-741.00M	-613.00M	-1.60B	-1.52B
Financing Cash Flow	0.00	235.00M	-472.00M	-1.56B	622.00M	627.00M

Taiheiyo Kouhatsu Incorporated Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 765.00
• 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:8835, the sentiment is Positive. The current price of 765 is below the 20-day moving average (MA) of 891.35, below the 50-day MA of 842.28, and above the 200-day MA of 758.67, indicating a bullish trend. The MACD of 18.83 indicates Positive momentum. The RSI at 66.71 is Neutral, neither overbought nor oversold. The STOCH value of 42.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8835.

Taiheiyo Kouhatsu Incorporated Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3004	75 Outperform	¥10.66B	5.87	―	3.84%	5.86%	44.77%
3232	74 Outperform	¥54.62B	9.24	―	2.97%	-2.75%	-3.17%
7130	72 Outperform	¥76.69B	10.02	―	2.78%	17.27%	-16.85%
8835	68 Neutral	¥6.99B	13.00	―	4.84%	14.94%	2.87%
2734	67 Neutral	¥69.95B	12.02	―	2.91%	5.82%	21.40%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7119	58 Neutral	¥14.85B	18.67	―	2.71%	2.13%	135.50%