Taiyo Kisokogyo Co., Ltd. (1758) AI Stock Analysis

• Market Cap: ¥5.06B
• Dividend Yield: 2.3%
• Average Volume (3M): 2.85K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.52
• Revenue Growth: 11.48%
• EPS Growth: N/A
• Country: JP
• Employees: 220
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 58.89
• Shares Outstanding: 2,458,800
• 10 Day Avg. Volume: 3,110
• 30 Day Avg. Volume: 2,846
• PEG Ratio: 2.30
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.26
• P/FCF Ratio: -38.85
• 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: 75 Outperform
• Price Target: ¥2,582.00 ▲(13.05% Upside)

Taiyo Kisokogyo Co., Ltd. scores well due to strong financial health and positive technical indicators. The stock is attractively valued with a reasonable P/E ratio and a solid dividend yield. However, attention is needed on declining revenue and negative Free Cash Flow to sustain long-term growth.

Taiyo Kisokogyo Co., Ltd. Business Overview & Revenue Model

Company Description

Taiyo Kisokogyo Co., Ltd. (1758) is a prominent Japanese company specializing in the manufacturing and sale of high-quality industrial equipment and components. The company operates primarily in the sectors of precision machinery and automation, providing a range of products including industrial robots, automation systems, and precision tools. Taiyo Kisokogyo is recognized for its innovative technologies and commitment to enhancing productivity and efficiency in various manufacturing processes.

How the Company Makes Money

Taiyo Kisokogyo Co., Ltd. generates revenue through multiple streams, primarily by selling its industrial equipment and components to a diverse clientele in the manufacturing sector. The company's revenue model is centered around both direct sales and long-term contracts with large industrial clients. Key revenue streams include the sale of precision machinery, automation systems, and maintenance services. Additionally, Taiyo Kisokogyo has established strategic partnerships with other technology firms, which help expand its market reach and enhance its product offerings. The company may also benefit from research and development grants, as well as government contracts aimed at boosting industrial automation in Japan.

Taiyo Kisokogyo Co., Ltd. Financial Statement Overview

Summary

Taiyo Kisokogyo Co., Ltd. exhibits strong profitability and a robust balance sheet, with a low Debt-to-Equity Ratio and high ROE. However, the decline in revenue and negative Free Cash Flow are concerning and necessitate better cash flow management.

Income Statement

Taiyo Kisokogyo Co., Ltd. shows strong profitability with a consistent Gross Profit Margin above 8%. The Net Profit Margin has been relatively stable, though there's been a slight decline in revenue from the previous year, indicating a need for growth focus. The company maintains healthy EBIT and EBITDA margins, which suggest efficient operations despite revenue fluctuations.

Balance Sheet

The company has a robust balance sheet with a very low Debt-to-Equity Ratio, indicating minimal leverage risk. High Equity Ratio and strong Return on Equity (ROE) reflect financial stability and effective utilization of equity. The consistently high Stockholders' Equity compared to Total Assets supports long-term sustainability.

Cash Flow

Cash flow performance is mixed, characterized by a substantial drop in Free Cash Flow, impacting the overall cash reserves. While Operating Cash Flow is positive, there is a concern with the recent negative Free Cash Flow figures. The company should focus on enhancing cash efficiency to improve liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.42B	13.48B	14.57B	14.71B	12.93B	13.31B
Gross Profit	1.43B	1.15B	1.34B	1.66B	1.45B	1.49B
EBITDA	874.17M	589.00M	670.92M	1.26B	1.03B	1.03B
Net Income	393.00M	229.76M	212.22M	613.52M	474.02M	435.80M
Balance Sheet
Total Assets	11.70B	11.53B	11.64B	12.17B	10.56B	10.07B
Cash, Cash Equivalents and Short-Term Investments	4.24B	3.57B	3.61B	3.54B	3.46B	2.48B
Total Debt	64.90M	139.24M	287.40M	493.57M	131.04M	231.73M
Total Liabilities	2.60B	2.69B	2.93B	3.55B	2.69B	2.78B
Stockholders Equity	9.09B	8.84B	8.72B	8.62B	7.87B	7.30B
Cash Flow
Free Cash Flow	0.00	-89.74M	659.36M	-248.10M	1.08B	-1.24B
Operating Cash Flow	0.00	371.37M	858.75M	191.41M	1.15B	-419.16M
Investing Cash Flow	0.00	-437.69M	-343.47M	-275.21M	-129.39M	-706.33M
Financing Cash Flow	0.00	-217.68M	-497.49M	338.63M	-109.24M	-169.92M

Taiyo Kisokogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2284.00
• 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:1758, the sentiment is Negative. The current price of 2284 is above the 20-day moving average (MA) of 2259.65, above the 50-day MA of 2275.22, and above the 200-day MA of 1934.33, indicating a neutral trend. The MACD of -13.07 indicates Positive momentum. The RSI at 42.76 is Neutral, neither overbought nor oversold. The STOCH value of 24.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:1758.

Taiyo Kisokogyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1743	76 Outperform	¥4.16B	7.84	―	1.91%	15.02%	0.96%
1758	75 Outperform	¥5.06B	10.98	―	2.30%	11.48%	―
1795	73 Outperform	¥3.83B	10.76	―	2.46%	18.00%	-15.19%
1841	72 Outperform	¥4.15B	8.42	―	2.59%	-21.00%	-7.27%
1764	66 Neutral	¥3.03B	6.82	―	4.40%	9.69%	175.97%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1844	55 Neutral	¥11.64B	22.45	―	1.85%	7.73%	21.42%