Taisei Oncho (1904) AI Stock Analysis

Taisei Oncho

(TSE/TYO:1904)

Select Model

Rating:81Outperform

Price Target:JPY 1,450.00▲(16.65% Upside)

Action:reiterated

Date:09/30/26

The score is led by strong financial resilience and profitability improvement (near debt-free balance sheet and expanding margins). Valuation further boosts the profile with a low P/E and very high dividend yield. Technicals are neutral overall, with stable trend signals but weak short-term momentum indicated by a very low stochastic reading.

Positive Factors

Debt-free balance sheetA zero-debt balance sheet gives Taisei Oncho substantial financial flexibility in a cyclical construction-related business. Growing equity further strengthens its capacity to absorb project variability, fund operations, and pursue opportunities without depending heavily on external financing.

Negative Factors

Uneven revenue trajectoryAn inconsistent top-line trend makes future earnings growth less predictable and may limit operating leverage. The recent revenue decline suggests that margin gains are not being reinforced by dependable expansion in the business base, which could constrain compounding over coming quarters.

Taisei Oncho (1904) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 33.56B
Dividend Yield: 15.37%
Average Volume (3M): 40.03K
Price to Earnings (P/E): 8.9
Beta (1Y): 0.52
Revenue Growth: -3.42%
EPS Growth: 50.13%
Country: Japan
Employees: 783
Sector: General
Sector Strength: 55
Industry: Engineering & Construction

Taisei Oncho Business Overview & Revenue Model

Company Description

Taisei Oncho Co., Ltd. is engaged in the engineering and installation of essential building systems across Japan, encompassing climate control (air conditioning), plumbing (water supply/drainage and sanitary facilities), and electrical infrastructure...

Taisei Oncho Financial Statement Overview

Summary

Strong overall fundamentals supported by a very conservative balance sheet (zero debt in 2026, steadily rising equity) and meaningful multi-year margin expansion (net margin ~2.0% to ~5.8%, EBIT margin ~2.7% to ~6.4%). The score is tempered by uneven revenue growth (including a slight decline in 2026) and volatile cash flow conversion, despite a strong 2026 rebound in free cash flow.

Income Statement

74Positive

Balance Sheet

92Very Positive

Cash Flow

66Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	61.72B	61.72B	62.50B	61.06B	46.46B	49.15B
Gross Profit	10.80B	10.80B	8.99B	8.22B	6.53B	5.69B
EBITDA	4.85B	4.67B	3.64B	3.50B	2.10B	1.62B
Net Income	3.55B	3.55B	2.49B	1.96B	1.47B	974.26M
Balance Sheet
Total Assets	51.89B	51.89B	46.41B	45.77B	41.18B	40.23B
Cash, Cash Equivalents and Short-Term Investments	18.98B	18.98B	12.84B	11.18B	11.84B	12.37B
Total Debt	0	0	2.74B	14.01M	31.30M	53.07M
Total Liabilities	21.16B	21.16B	18.78B	20.06B	15.92B	15.53B
Stockholders Equity	30.73B	30.73B	27.63B	25.71B	25.26B	24.70B
Cash Flow
Free Cash Flow	0	9.53B	87.92M	2.85B	488.34M	-606.59M
Operating Cash Flow	0	9.72B	560.79M	3.01B	719.55M	-533.45M
Investing Cash Flow	0	-548.34M	-113.91M	-767.73M	-241.43M	42.69M
Financing Cash Flow	0	-3.41B	1.14B	-3.22B	-1.38B	-878.34M

Taisei Oncho Technical Analysis

Technical Analysis SentimentNeutral

Last Price1243.00

Price Trends

50DMA1246.58Negative

100DMA1242.07Positive

200DMA1237.94Positive

Market Momentum

MACD0.25Negative

RSI50.16Neutral

STOCH70.00Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1904, the sentiment is Neutral. The current price of 1243.00 is above the 20-day moving average (MA) of 1235.75, below the 50-day MA of 1246.58, and above the 200-day MA of 1237.94, indicating a neutral trend. The MACD of 0.25 indicates Negative momentum. The RSI at 50.16 is Neutral, neither overbought nor oversold. The STOCH value of 70.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1904.

Taisei Oncho Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:1904 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:1904	81Outperform	JPY 33.56B	8.92	11.65%	15.37%	-3.42%	50.13%
JP:5288	75Outperform	JPY 54.96B	6.77	―	4.55%	11.13%	105.93%
JP:5268	70Outperform	JPY 10.43B	16.76	―	1.77%	7.46%	72.19%
JP:5232	65Neutral	JPY 169.20B	14.19	6.18%	6.80%	4.79%	25.74%
JP:5233	63Neutral	JPY 477.39B	17.66	4.09%	2.57%	1.17%	-45.49%
JP:5269	59Neutral	JPY 19.30B	21.06	―	2.63%	0.13%	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:1904 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:1904	Taisei Oncho Co., Ltd.	1243.00	242.43	24.23%
JP:5232	Sumitomo Osaka Cement Co	1764.00	517.53	41.52%
JP:5233	Taiheiyo Cement Corporation	4281.00	242.68	6.01%
JP:5268	Asahi Concrete Works Co., Ltd.	799.00	-17.63	-2.16%
JP:5269	Nippon Concrete Industries Co., Ltd.	342.00	22.50	7.04%
JP:5288	ASIA PILE HOLDINGS Corporation	1449.00	273.87	23.31%

Taisei Oncho Corporate Events

Taisei Oncho Maintains Outlook as Quarterly Profit Declines but Equity Base Strengthens

Aug 6, 2026

Taisei Oncho reported consolidated net sales of ¥14.28 billion for the quarter ended June 30, 2026, down 1.9% year on year, with operating profit falling 10.9% to ¥553 million and profit attributable to owners declining 19.4% to ¥364 m...

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: Sep 30, 2026

Taisei Oncho AI Stock Analysis