Takigami Steel Construction Co., Ltd. (5918) AI Stock Analysis

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Takigami Steel Construction Co., Ltd.

(TSE/TYO:5918)

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Rating:78Outperform

Price Target:JPY 8,778.00▲(13.85% Upside)

Action:upgraded

Date:08/19/26

The overall score is driven primarily by the company’s very strong, low-debt balance sheet and attractive low P/E valuation, which together provide resilience and potential value upside, supported by a clear upward price trend and positive momentum indicators. This is tempered by the history of cyclical profitability and volatile cash generation, which introduce meaningful variability in earnings and cash flow despite the otherwise conservative financial profile.

Positive Factors

Conservative Balance SheetLow debt relative to equity gives Takigami financial resilience during cyclical construction demand and project delays. The expanding equity base also provides a durable cushion for working-capital needs and future investment.

Negative Factors

Volatile Cash GenerationRepeated negative cash flow suggests that project timing, receivables and working-capital requirements can materially separate accounting profits from cash generation. This reduces financial predictability and may constrain reinvestment during weaker periods.

Takigami Steel Construction Co., Ltd. (5918) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 16.12B
Dividend Yield: 1.56%
Average Volume (3M): 744
Price to Earnings (P/E): 6.7
Beta (1Y): 0.34
Revenue Growth: 11.22%
EPS Growth: 499.52%
Country: Japan
Employees: 488
Sector: General
Sector Strength: 55
Industry: Engineering & Construction

Takigami Steel Construction Co., Ltd. Business Overview & Revenue Model

Company Description

The Takigami Steel Construction Co., Ltd. primarily operates in Japan, focusing on the conceptualization, manufacturing, and installation of various steel structures, including bridges, structural steel frameworks, and communication towers. Beyond th...

How the Company Makes Money

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Takigami Steel Construction Co., Ltd. Financial Statement Overview

Summary

The score reflects a very strong, low-leverage balance sheet and growing assets and equity, offset by only moderate, cyclical profitability and a volatile cash flow history where operating and free cash flows have swung sharply year to year.

Income Statement

68Positive

Balance Sheet

85Very Positive

Cash Flow

52Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	25.88B	23.43B	23.84B	23.33B	18.62B	14.68B
Gross Profit	4.38B	2.58B	1.74B	2.65B	2.24B	1.39B
EBITDA	3.05B	1.32B	467.00M	1.24B	977.00M	430.00M
Net Income	2.36B	953.00M	200.00M	986.00M	1.02B	138.00M
Balance Sheet
Total Assets	74.05B	72.94B	64.18B	58.52B	50.72B	49.04B
Cash, Cash Equivalents and Short-Term Investments	9.10B	7.02B	6.87B	3.20B	8.29B	11.72B
Total Debt	1.57B	4.20B	4.70B	830.00M	807.00M	740.00M
Total Liabilities	21.33B	22.66B	20.91B	13.94B	12.43B	11.93B
Stockholders Equity	52.72B	50.27B	43.27B	44.58B	38.29B	37.10B
Cash Flow
Free Cash Flow	0	918.00M	1.95B	-5.68B	-3.32B	866.00M
Operating Cash Flow	0	1.02B	4.27B	-3.85B	-1.40B	2.12B
Investing Cash Flow	0	2.00M	-3.14B	-928.00M	-714.00M	-1.81B
Financing Cash Flow	0	-838.00M	2.59B	-300.00M	-321.00M	444.00M

Takigami Steel Construction Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price7710.00

Price Trends

50DMA7747.11Negative

100DMA7480.11Positive

200DMA7283.33Positive

Market Momentum

MACD-34.06Negative

RSI56.19Neutral

STOCH89.68Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5918, the sentiment is Positive. The current price of 7710.00 is above the 20-day moving average (MA) of 7614.50, below the 50-day MA of 7747.11, and above the 200-day MA of 7283.33, indicating a neutral trend. The MACD of -34.06 indicates Negative momentum. The RSI at 56.19 is Neutral, neither overbought nor oversold. The STOCH value of 89.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5918.

Takigami Steel Construction Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:5918 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:1770	84Outperform	JPY 18.12B	7.57	―	4.02%	19.68%	82.97%
JP:1867	79Outperform	JPY 17.68B	6.91	―	4.40%	16.39%	10.98%
JP:5911	78Outperform	JPY 110.04B	14.12	―	4.39%	3.56%	-34.16%
JP:5918	78Outperform	JPY 16.88B	6.74	―	1.56%	11.22%	499.52%
JP:1850	72Outperform	JPY 11.15B	5.45	―	2.02%	-14.45%	1.74%
JP:1914	57Neutral	JPY 18.48B	7.92	―	3.43%	-7.50%	122.97%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:5918 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:5918	Takigami Steel Construction Co., Ltd.	7710.00	-33.14	-0.43%
JP:1770	Fujita Engineering Co., Ltd.	1967.00	369.98	23.17%
JP:1850	Nankai Tatsumura Construction Co., Ltd.	397.00	-214.62	-35.09%
JP:1867	UEKI CORPORATION	2727.00	187.95	7.40%
JP:1914	Japan Foundation Engineering Co., Ltd.	875.00	241.40	38.10%
JP:5911	Yokogawa Bridge Holdings Corp.	2848.00	124.34	4.57%

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 21, 2026

Takigami Steel Construction Co., Ltd. AI Stock Analysis