Takadakiko Co., Ltd. (5923) AI Stock Analysis

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Takadakiko Co., Ltd.

(TSE/TYO:5923)

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Rating:60.4Neutral

Price Target:JPY 1,199.00▲(14.41% Upside)

Action:reiterated

Date:08/17/26

The overall score reflects a balance between a solid, low-leverage balance sheet that provides a financial cushion and an attractive dividend yield on one hand, and materially weakened operating performance with revenue declines, margin compression, and current losses on the other; technicals are broadly neutral with mild positive momentum but price sitting near major moving averages and at the lower end of its recent range, suggesting limited near-term conviction in either direction.

Positive Factors

Conservative balance sheet with lower leverageA materially larger equity base versus reduced debt provides durable financial flexibility: the company can better absorb weak earnings, support working capital and selective investments, and has lower near-term refinancing risk. This capital structure reduces insolvency risk over months and supports strategic optionality while earnings recover.

Negative Factors

Deteriorating profitability and sharp revenue declineA swing to operating and net losses with a ~22% revenue drop indicates weakening core project economics and lower market demand. Persistent losses erode equity, limit internal funding for growth or capex, and raise the risk that dividends or investments must be cut. Recovery of sustainable margins is required to restore long-term viability.

Takadakiko Co., Ltd. (5923) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 6.11B
Dividend Yield: 4.77%
Average Volume (3M): 5,403
Price to Earnings (P/E): -7.8
Beta (1Y): 0.34
Revenue Growth: -26.49%
EPS Growth: -509.27%
Country: Japan
Employees: 292
Sector: Industrials
Sector Strength: 63
Industry: Engineering & Construction

Takadakiko Co., Ltd. Business Overview & Revenue Model

Company Description

Based in Japan, TAKADAKIKO (Steel Construction) CO., LTD. operates within the construction industry. Its primary activities encompass the engineering, fabrication, and erection of steel infrastructure, such as road and railway bridges, structural ste...

Takadakiko Co., Ltd. Financial Statement Overview

Summary

Financial performance is mixed: the income statement is weak with a sharp revenue decline, negative operating profit, and losses, while the balance sheet is a clear strength with low leverage and strong equity, and cash flow shows a recent rebound but a history of volatility and unsustainable working-capital driven improvements.

Income Statement

32Negative

Balance Sheet

76Positive

Cash Flow

41Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	18.98B	14.31B	18.46B	19.70B	15.98B	15.67B
Gross Profit	2.47B	1.29B	1.90B	2.88B	1.75B	2.01B
EBITDA	1.27B	-62.30M	550.53M	1.66B	638.27M	1.01B
Net Income	751.51M	-535.29M	343.69M	898.12M	340.63M	747.73M
Balance Sheet
Total Assets	27.24B	28.87B	31.31B	30.23B	27.51B	24.77B
Cash, Cash Equivalents and Short-Term Investments	2.91B	2.49B	2.39B	2.14B	2.89B	3.67B
Total Debt	3.80B	3.90B	6.40B	4.60B	4.90B	2.00B
Total Liabilities	7.11B	7.94B	10.83B	9.32B	8.43B	5.73B
Stockholders Equity	20.14B	20.93B	20.48B	20.91B	19.08B	19.04B
Cash Flow
Free Cash Flow	0	3.27B	-1.06B	-382.67M	-3.24B	567.15M
Operating Cash Flow	0	3.59B	-547.36M	-66.24M	-2.13B	1.43B
Investing Cash Flow	0	-701.63M	-393.73M	-174.49M	-1.12B	-825.32M
Financing Cash Flow	0	-2.79B	1.09B	-503.67M	2.47B	-644.35M

Takadakiko Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price1048.00

Price Trends

50DMA1148.97Negative

100DMA1131.11Negative

200DMA1155.38Negative

Market Momentum

MACD-26.97Positive

RSI17.75Positive

STOCH4.29Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5923, the sentiment is Negative. The current price of 1048.00 is below the 20-day moving average (MA) of 1126.80, below the 50-day MA of 1148.97, and below the 200-day MA of 1155.38, indicating a bearish trend. The MACD of -26.97 indicates Positive momentum. The RSI at 17.75 is Positive, neither overbought nor oversold. The STOCH value of 4.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5923.

Takadakiko Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

JP:5923 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4642	67Neutral	JPY 7.40B	12.91	―	2.57%	24.04%	13.29%
JP:1905	66Neutral	JPY 8.98B	16.30	―	4.66%	2.16%	-24.61%
JP:1718	64Neutral	JPY 7.11B	5.57	―	16.53%	9.59%	-7.35%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
JP:5923	60Neutral	JPY 7.05B	-7.78	―	4.77%	-26.49%	-509.27%
JP:3423	59Neutral	JPY 7.53B	-23.48	―	5.16%	5.64%	-207.00%
JP:5915	59Neutral	JPY 9.67B	16.64	―	3.33%	-2.66%	-52.75%

* Industrials Sector Average

Performance Comparison

JP:5923 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:5923	Takadakiko Co., Ltd.	1048.00	10.81	1.04%
JP:1718	MIKIKOGYO CO., LTD.	2118.00	-481.16	-18.51%
JP:1905	Tenox Corporation	1406.00	169.69	13.73%
JP:3423	S E Corporation	252.00	1.39	0.56%
JP:4642	Original Engineering Consultants Co., Ltd.	1353.00	-142.47	-9.53%
JP:5915	Komaihaltec Inc.	2100.00	276.03	15.13%

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

Takadakiko Co., Ltd. AI Stock Analysis