Tanabe Engineering Corporation (1828) AI Stock Analysis

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Tanabe Engineering Corporation

(TSE/TYO:1828)

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Rating:78Outperform

Price Target:JPY 2,718.00▲(17.87% Upside)

Action:reiterated

Date:08/17/26

Tanabe Engineering achieves a solid overall score, heavily supported by its highly attractive valuation and strong balance sheet. While technical momentum remains constrained and cash flow exhibits cyclical volatility, the stock's low P/E ratio, strong dividend yield, and expanding margins make it a compelling value investment.

Positive Factors

Multi-year revenue growthThe multi-year revenue expansion indicates sustained demand for the company’s industrial EPC, engineering and facility-support capabilities. A larger revenue base can improve resource utilization and provide a stronger platform for recurring maintenance and renovation work.

Negative Factors

Volatile cash generationUneven cash conversion is a structural risk for an EPC contractor because billing, procurement and project completion can create working-capital swings. This may weaken liquidity predictability even when reported earnings remain positive.

Tanabe Engineering Corporation (1828) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 24.21B
Dividend Yield: 4.34%
Average Volume (3M): 12.61K
Price to Earnings (P/E): 6.8
Beta (1Y): 0.66
Revenue Growth: 6.05%
EPS Growth: 27.08%
Country: Japan
Employees: 1,044
Sector: Industrials
Sector Strength: 63
Industry: Engineering & Construction

Tanabe Engineering Corporation Business Overview & Revenue Model

Company Description

Established in 1969 and headquartered in Joetsu, Japan, Tanabe Engineering Corporation operates primarily within Japan, focusing on the construction of industrial plants and the production of specialized machinery. The company provides extensive plan...

How the Company Makes Money

Tanabe Engineering Corporation primarily makes money by executing contracted industrial engineering and construction projects and recognizing revenue as those projects are delivered. Key revenue streams include: (1) EPC/industrial construction contra...

Tanabe Engineering Corporation Financial Statement Overview

Summary

Tanabe Engineering exhibits strong financial health driven by a pristine, low-leverage balance sheet and exceptional margin expansion. While top-line revenue growth is modest and cash flows show typical industry volatility, overall profitability and equity accumulation remain robust.

Income Statement

82Very Positive

Balance Sheet

90Very Positive

Cash Flow

65Positive

Financial statement breakdown
Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	53.70B	52.37B	50.83B	51.84B	42.94B	38.12B
Gross Profit	10.53B	9.80B	8.41B	6.99B	6.92B	6.36B
EBITDA	5.75B	5.59B	4.59B	3.36B	3.37B	3.23B
Net Income	3.58B	3.45B	2.59B	1.90B	1.66B	1.75B
Balance Sheet
Total Assets	45.66B	47.20B	46.07B	46.33B	37.66B	33.47B
Cash, Cash Equivalents and Short-Term Investments	6.63B	10.60B	10.85B	3.29B	6.17B	4.53B
Total Debt	908.00M	1.05B	1.43B	5.09B	1.36B	2.03B
Total Liabilities	17.04B	19.20B	21.08B	23.70B	16.70B	15.65B
Stockholders Equity	28.61B	27.98B	24.98B	22.63B	20.97B	17.82B
Cash Flow
Free Cash Flow	0	1.22B	11.57B	-5.87B	1.21B	208.61M
Operating Cash Flow	0	1.94B	12.93B	-4.74B	1.83B	1.63B
Investing Cash Flow	0	-875.48M	-1.28B	-1.08B	-647.69M	-1.13B
Financing Cash Flow	0	-1.35B	-4.17B	2.89B	-196.40M	367.94M

Tanabe Engineering Corporation Technical Analysis

Technical Analysis SentimentNeutral

Last Price2306.00

Price Trends

50DMA2368.98Negative

100DMA2364.47Negative

200DMA2442.29Negative

Market Momentum

MACD-20.07Negative

RSI49.05Neutral

STOCH80.36Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1828, the sentiment is Neutral. The current price of 2306.00 is above the 20-day moving average (MA) of 2305.90, below the 50-day MA of 2368.98, and below the 200-day MA of 2442.29, indicating a neutral trend. The MACD of -20.07 indicates Negative momentum. The RSI at 49.05 is Neutral, neither overbought nor oversold. The STOCH value of 80.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1828.

Tanabe Engineering Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

JP:1828 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:9768	78Outperform	JPY 25.31B	9.41	―	3.33%	4.52%	33.33%
JP:1828	78Outperform	JPY 24.68B	6.77	―	4.34%	6.05%	27.08%
JP:1960	75Outperform	JPY 28.16B	8.24	―	3.54%	-0.81%	34.55%
JP:2311	73Outperform	JPY 6.92B	19.13	―	4.64%	8.46%	-32.59%
JP:9621	73Outperform	JPY 103.72B	14.03	―	2.05%	8.63%	25.25%
JP:4642	67Neutral	JPY 7.36B	12.91	―	2.59%	24.04%	13.29%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

* Industrials Sector Average

Performance Comparison

JP:1828 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:1828	Tanabe Engineering Corporation	2306.00	-51.03	-2.16%
JP:1960	Sanyo Engineering & Construction Inc.	1837.00	439.12	31.41%
JP:2311	EPCO Co.,Ltd.	776.00	14.56	1.91%
JP:4642	Original Engineering Consultants Co., Ltd.	1353.00	-110.22	-7.53%
JP:9621	CTI Engineering Co., Ltd.	3665.00	725.12	24.66%
JP:9768	Idea Consultants,inc.	3545.00	-80.07	-2.21%

Tanabe Engineering Corporation Corporate Events

Tanabe Engineering Posts Strong Q1 but Guides Lower Full-Year Earnings

Aug 12, 2026

Tanabe Engineering Corporation reported solid results for the three months ended June 30, 2026, with net sales rising 10% year on year to ¥12.8 billion and operating profit climbing 34.8% to ¥1.1 billion, driving a 33.2% increase in profit attributab...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 17, 2026

Tanabe Engineering Corporation AI Stock Analysis