Taihei Dengyo Kaisha, Ltd. (1968) AI Stock Analysis

Taihei Dengyo Kaisha, Ltd.

(TSE/TYO:1968)

Select Model

Rating:65Neutral

Price Target:JPY 2,565.00▲(5.90% Upside)

Action:downgraded

Date:08/17/26

Taihei Dengyo Kaisha receives a moderate score driven by sharply contrasting factors. Its strongest assets are a near debt-free balance sheet, robust profit margins, and an appealing valuation featuring an 11.48 P/E ratio and a 2.93% dividend yield. However, the overall score is heavily penalized by a fundamental disconnect in cash conversion, highlighted by a persistent inability to generate positive free cash flow over the last three years. This fundamental risk is compounded by bearish technical indicators, as the stock is currently stuck in a downtrend below all major moving averages.

Positive Factors

Revenue and Earnings ReboundThe FY2026 rebound shows the business can regain growth after softer periods, while concurrent earnings expansion indicates operating leverage and continued demand for its engineering and construction services.

Negative Factors

Weak Cash ConversionPersistent negative operating and free cash flow despite reported profits indicates working-capital or project-timing pressure, creating liquidity and execution risks that could constrain reinvestment and shareholder returns.

Taihei Dengyo Kaisha, Ltd. (1968) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 152.84B
Dividend Yield: 2.89%
Average Volume (3M): 143.48K
Price to Earnings (P/E): 11.7
Beta (1Y): 0.98
Revenue Growth: 18.80%
EPS Growth: 47.26%
Country: Japan
Employees: 1,878
Sector: Industrials
Sector Strength: 63
Industry: Engineering & Construction

Taihei Dengyo Kaisha, Ltd. Business Overview & Revenue Model

Company Description

Taihei Dengyo Kaisha, Ltd., founded in Tokyo, Japan, in 1947, is an international engineering and construction firm specializing in the comprehensive development, construction, and maintenance of diverse plant facilities. The company's expertise span...

How the Company Makes Money

null

Taihei Dengyo Kaisha, Ltd. Financial Statement Overview

Summary

Strong profitability and a fortress balance sheet with minimal leverage are severely weighed down by three consecutive years of negative operating and free cash flow.

Income Statement

85Very Positive

Balance Sheet

90Very Positive

Cash Flow

35Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	125.16B	141.66B	125.67B	129.36B	125.77B	126.91B
Gross Profit	22.50B	25.57B	23.34B	19.84B	24.48B	19.23B
EBITDA	14.62B	19.26B	16.34B	13.65B	17.34B	14.39B
Net Income	8.63B	11.90B	9.75B	8.40B	10.62B	8.41B
Balance Sheet
Total Assets	152.05B	175.37B	155.08B	153.02B	147.04B	131.74B
Cash, Cash Equivalents and Short-Term Investments	43.74B	35.42B	42.61B	42.17B	48.94B	19.65B
Total Debt	14.19B	15.24B	14.11B	14.99B	15.59B	15.04B
Total Liabilities	37.73B	47.42B	40.01B	52.43B	57.50B	51.31B
Stockholders Equity	113.00B	126.42B	113.66B	99.23B	88.22B	79.17B
Cash Flow
Free Cash Flow	0	-6.82B	-3.31B	-5.48B	31.33B	-7.82B
Operating Cash Flow	0	-5.93B	-2.54B	-4.65B	32.33B	513.00M
Investing Cash Flow	0	746.00M	51.00M	-895.00M	-1.45B	-8.68B
Financing Cash Flow	0	-1.87B	2.63B	-1.67B	-1.60B	-3.75B

Taihei Dengyo Kaisha, Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price2422.00

Price Trends

50DMA2468.28Negative

100DMA2494.83Negative

200DMA2595.82Negative

Market Momentum

MACD-6.94Negative

RSI46.27Neutral

STOCH58.61Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1968, the sentiment is Negative. The current price of 2422.00 is below the 20-day moving average (MA) of 2429.65, below the 50-day MA of 2468.28, and below the 200-day MA of 2595.82, indicating a bearish trend. The MACD of -6.94 indicates Negative momentum. The RSI at 46.27 is Neutral, neither overbought nor oversold. The STOCH value of 58.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:1968.

Taihei Dengyo Kaisha, Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

JP:1968 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:1982	82Outperform	JPY 134.62B	14.94	―	2.34%	1.67%	44.79%
JP:1952	80Outperform	JPY 140.56B	10.07	―	4.40%	11.40%	26.49%
JP:1965	78Outperform	JPY 126.01B	10.21	―	6.36%	13.64%	49.43%
JP:1950	70Outperform	JPY 221.24B	11.48	―	3.33%	9.62%	32.79%
JP:1979	69Neutral	JPY 225.19B	15.43	9.29%	3.33%	-1.29%	32.72%
JP:1968	65Neutral	JPY 154.65B	11.65	―	2.89%	18.80%	47.26%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

* Industrials Sector Average

Performance Comparison

JP:1968 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:1968	Taihei Dengyo Kaisha, Ltd.	2422.00	307.76	14.56%
JP:1979	Taikisha	3605.00	652.42	22.10%
JP:1950	Nippon Densetsu Kogyo Co., Ltd.	3720.00	904.74	32.14%
JP:1952	Shin Nippon Air Technologies Co., Ltd.	2953.00	-13.79	-0.46%
JP:1965	Techno Ryowa Ltd.	2014.00	180.44	9.84%
JP:1982	Hibiya Engineering,Ltd.	3145.00	951.52	43.38%

Taihei Dengyo Kaisha, Ltd. Corporate Events

Taihei Dengyo Delivers Profit Surge in Q1 and Confirms Higher Dividend Outlook

Aug 6, 2026

Taihei Dengyo Kaisha posted a strong start to the fiscal year, with net sales for the three months ended June 30, 2026 rising 23.8% to ¥36.6 billion and operating profit more than doubling, driven by improved project performance and expanded con...

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

Taihei Dengyo Kaisha, Ltd. AI Stock Analysis