TANSEISHA Co., Ltd. (9743) AI Stock Analysis

• Market Cap: ¥71.18B
• Dividend Yield: 4.15%
• Average Volume (3M): 321.15K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.69
• Revenue Growth: 26.43%
• EPS Growth: 67.00%
• Country: JP
• Employees: 1,484
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 14.68
• Shares Outstanding: 48,424,072
• 10 Day Avg. Volume: 222,000
• 30 Day Avg. Volume: 321,146
• PEG Ratio: 0.22
• Price to Book (P/B): 1.92
• Price to Sales (P/S): 0.67
• P/FCF Ratio: 21.01
• 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): 118.5
• Revenue Forecast (FY): ¥105.00B

• Rating: 73 Outperform
• Price Target: ¥1,716.00 ▲(8.81% Upside)
• Action: Reiterated Date: 03/19/26
• Date: Action: Reiterated 03/19/26

Overall score is driven primarily by strong financial performance (accelerating growth, improved margins, and a very conservative balance sheet) and supported by reasonable valuation with a high dividend yield. These positives are partially offset by weak near-term technical momentum (negative MACD and sub-50 RSI with the price below key short-term moving averages).

Positive Factors

Accelerating Revenue Growth

Sustained, accelerating top-line growth into 2026 indicates increasing demand for fit-out and renovation projects and better sales execution. Over 2–6 months this supports backlog replenishment, scale benefits on project margins and improved negotiating leverage with clients and suppliers.

Margin Recovery and Expansion

Material margin expansion reflects better project execution, pricing and operating leverage rather than a one-off. If sustained, higher operating margins increase free cash generation and resilience to project cost swings, improving the company's ability to reinvest and pay steady dividends.

Very Conservative Balance Sheet

Extremely low leverage reduces refinancing and solvency risk and gives flexibility to bid on larger or longer projects. Over the medium term this supports capital allocation choices, dividend stability and the ability to absorb industry cyclical downturns without material distress.

Negative Factors

Operating Cash Conversion Weakness

Operating cash conversion has been uneven, driven by working-capital timing and project payment terms. Even with strong FCF relative to earnings later, inconsistent OCF raises risk that growth or dividends will need short-term financing during slow receipts or concentrated project timings.

Historical Profitability Volatility

Past swings in revenue and profit show sensitivity to project timing and execution. This structural variability makes forward earnings visibility limited, complicates capacity planning and could lead to margin reversals if project mix or retail capex weakens in the medium term.

Year-to-Year Debt Movement

Although absolute leverage is low, fluctuating debt suggests occasional reliance on short-term borrowing for project financing or working capital. Repeated swings increase operational financing complexity and can raise liquidity risk if market credit conditions tighten.

TANSEISHA Co., Ltd. Business Overview & Revenue Model

Company Description

Tanseisha Co., Ltd. engages in the research, planning, design, layout, production, construction, and operation of commercial, public, hospitality, cultural, and business and event spaces in Japan and internationally. The company's research and planning services comprise consulting, research and analysis, planning, coordination, branding, and project management; and design and layout services include design concept, basic layout, and execution design, as well as the proposal for creative media spaces. Its production and construction services comprise design supervision, and production and construction and technical direction for multimedia spaces; and operation services include operational planning and maintenance, and promotional planning, as well as assessment, inspection, and effectiveness measurement. Tanseisha Co., Ltd. was founded in 1946 and is headquartered in Tokyo, Japan.

How the Company Makes Money

TANSEISHA generates revenue through multiple key streams, primarily from the sale of its precision instruments and electronic components. The company partners with various industries, supplying essential components that are integral to their operations, thus establishing significant contracts that provide a steady income. Additionally, TANSEISHA may engage in research and development collaborations with technology firms, leading to the creation of proprietary products that can be patented and monetized. The company's focus on high-quality manufacturing and innovation allows it to command premium pricing for its products, contributing to its overall profitability.

TANSEISHA Co., Ltd. Financial Statement Overview

Summary

Strong and accelerating revenue growth with a material recovery in profitability and margin expansion. Balance sheet strength is a major plus with minimal leverage and improved ROE. Main risk is cash-flow volatility and weaker operating cash conversion in recent years despite solid free cash flow relative to earnings.

Income Statement

Revenue growth is strong and accelerating into 2026 (annual revenue up ~32% after +13% in 2025 and +26% in 2024), while profitability has improved materially versus the weak 2023 year. Margins expanded meaningfully (net margin ~5.6% and operating margin ~7.8% in 2026 vs ~0.7% and ~1.0% in 2023), signaling better execution and operating leverage. The main weakness is a history of volatility (declines in 2021–2022 and a sharp profitability dip in 2023), which suggests results can swing with project timing/conditions.

Balance Sheet

The balance sheet is very conservative with minimal leverage (debt-to-equity ~0.01 in 2026), giving strong financial flexibility and low refinancing risk. Returns to shareholders improved substantially (return on equity ~15.9% in 2026 vs ~11.6% in 2025 and ~1.6% in 2023), consistent with the earnings rebound. A watch item is that debt levels have moved around year-to-year (very low in 2024, higher in 2025, then lower again in 2026), though still small relative to equity.

Cash Flow

Free cash flow quality is generally solid relative to profits (free cash flow is ~92% of net income in 2026 and ~90% in 2025), indicating earnings are translating into cash over time. However, cash generation has been volatile: operating cash flow was negative in 2022 and the portion of profits backed by operating cash flow remains modest in 2025–2026 (operating cash flow is ~5% of net income in 2025 and ~23% in 2026), which can raise questions about working-capital swings or project cash timing. Free cash flow rebounded strongly in 2026 after a sharp decline in 2025.

Breakdown	TTM	Jan 2025	Jan 2025	Jan 2024	Jan 2023	Jan 2022
Income Statement
Total Revenue	106.88B	107.22B	91.86B	81.20B	64.22B	62.71B
Gross Profit	21.13B	21.41B	17.06B	14.52B	10.71B	11.58B
EBITDA	9.03B	8.55B	5.33B	4.05B	785.85M	2.20B
Net Income	6.22B	5.99B	3.88B	2.77B	459.76M	1.43B
Balance Sheet
Total Assets	54.50B	55.73B	54.20B	50.65B	41.86B	45.24B
Cash, Cash Equivalents and Short-Term Investments	20.28B	17.59B	17.51B	18.10B	17.14B	16.46B
Total Debt	546.00M	415.00M	696.43M	14.56M	213.95M	372.76M
Total Liabilities	18.54B	18.06B	20.82B	19.03B	12.44B	16.19B
Stockholders Equity	35.96B	37.66B	33.37B	31.63B	29.41B	29.06B
Cash Flow
Free Cash Flow	0.00	3.44B	915.52M	2.71B	1.70B	-1.07B
Operating Cash Flow	0.00	3.74B	1.02B	2.78B	1.81B	-994.46M
Investing Cash Flow	0.00	-194.00M	944.99M	-379.43M	-1.08B	823.44M
Financing Cash Flow	0.00	-3.16B	-1.46B	-1.47B	-1.36B	-1.45B

TANSEISHA Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1577.00
• 50DMA: Negative
• 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:9743, the sentiment is Negative. The current price of 1577 is above the 20-day moving average (MA) of 1545.70, above the 50-day MA of 1556.11, and above the 200-day MA of 1387.52, indicating a neutral trend. The MACD of -12.44 indicates Positive momentum. The RSI at 45.08 is Neutral, neither overbought nor oversold. The STOCH value of 33.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9743.

TANSEISHA Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9307	78 Outperform	¥16.30B	15.74	―	1.49%	1.23%	0.12%
9743	73 Outperform	¥71.18B	12.05	―	4.15%	26.43%	67.00%
9324	66 Neutral	¥68.24B	12.14	―	2.18%	12.03%	30.12%
9319	65 Neutral	¥35.52B	18.51	―	2.59%	4.02%	18.12%
9322	65 Neutral	¥21.50B	30.65	―	1.13%	3.37%	9.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9313	56 Neutral	¥6.04B	56.51	―	2.29%	0.08%	105.25%

TANSEISHA Co., Ltd. Corporate Events

TANSEISHA Outlines FY2026 Results and Medium-Term Growth Strategy

TANSEISHA Co., Ltd. released its financial results for the fiscal year ended January 31, 2026, outlining consolidated performance and segment-based business trends. The disclosure also highlights a performance plan for the fiscal year ending January 31, 2027, along with progress updates on the company’s medium-term management plan covering fiscal 2025 to 2027.

The company further presented its future outlook and growth strategy, indicating how it intends to enhance profitability and strengthen its market position over the remaining term of the plan. In addition, TANSEISHA detailed its approach to return on equity and dividend policy, providing stakeholders with guidance on capital efficiency and shareholder returns.

The most recent analyst rating on (JP:9743) stock is a Hold with a Yen1460.00 price target. To see the full list of analyst forecasts on TANSEISHA Co., Ltd. stock, see the JP:9743 Stock Forecast page.

Tanseisha Delivers Profit Surge, Lifts Dividend but Signals Flat Year Ahead

Tanseisha reported strong results for the fiscal year ended January 31, 2026, with net sales rising 16.7% to ¥107.2 billion and operating profit jumping 62.4% to ¥8.36 billion, lifting profit attributable to owners of the parent by 54.7% to ¥5.99 billion. Improved profitability boosted ROE to 16.9% and strengthened the balance sheet, with total assets at ¥55.7 billion, equity ratio at 67.6% and cash and cash equivalents at ¥17.6 billion.

Reflecting the earnings surge, the company sharply increased its annual dividend from ¥45 to ¥72 per share for FY2025, and it plans a further rise to ¥80 per share, including a commemorative component, in the fiscal year ending January 2027. However, its forecast for FY2026 points to flat sales around ¥107 billion and modest declines in profit and EPS, suggesting a more cautious outlook after this year’s strong performance even as shareholder returns remain a priority.

The most recent analyst rating on (JP:9743) stock is a Hold with a Yen1460.00 price target. To see the full list of analyst forecasts on TANSEISHA Co., Ltd. stock, see the JP:9743 Stock Forecast page.