Giken Ltd. (6289) AI Stock Analysis

• Market Cap: ¥38.97B
• Dividend Yield: 3.1%
• Average Volume (3M): 62.35K
• Price to Earnings (P/E): 25.0
• Beta (1Y): 0.83
• Revenue Growth: -13.72%
• EPS Growth: 13.42%
• Country: JP
• Employees: 698
• Sector: Industrials
• Sector Strength: 90
• Industry: Agricultural - Machinery
• EPS (TTM): 20.99
• Shares Outstanding: 28,194,729
• 10 Day Avg. Volume: 51,740
• 30 Day Avg. Volume: 62,353
• PEG Ratio: -1.17
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Giken Ltd. has a solid financial foundation with strong cash flow and minimal leverage, which supports its overall stability. However, the high P/E ratio suggests potential overvaluation, and revenue growth needs attention for future success. Technical indicators are neutral, providing no strong trend direction. Overall, the stock shows moderate potential with some risks.

Giken Ltd. Business Overview & Revenue Model

Company Description

Giken Ltd. (6289) is a Japanese company specializing in the design and manufacture of construction machinery and equipment. The company is renowned for its innovative, environmentally-friendly technologies, particularly in the area of pile driving and extraction systems. Its products are widely used in urban development projects and infrastructure construction, emphasizing minimal environmental disruption.

How the Company Makes Money

Giken Ltd. generates revenue primarily through the sale and rental of its construction machinery and equipment. Key revenue streams include direct sales of pile driving machines, leasing services, and maintenance contracts. The company also engages in significant research and development efforts to continuously innovate and improve its technology, which enhances its competitive edge. Strategic partnerships with construction firms and governments for large-scale infrastructure projects also contribute significantly to its earnings.

Giken Ltd. Financial Statement Overview

Summary

Giken Ltd. demonstrates a balanced financial performance with strengths in cash flow and a solid balance sheet marked by low leverage. While profitability metrics are decent, revenue growth is an area for improvement. The company’s financial health is supported by strong equity and efficient cash management, but sustaining revenue growth will be critical for future success.

Income Statement

Giken Ltd.'s income statement shows a moderate performance. The gross profit margin of 36.8% indicates strong production efficiency, while the net profit margin of 8.3% suggests decent profitability. However, revenue growth has been volatile, with a slight increase of 0.7% from the previous year, which could be a concern for sustained growth. EBIT and EBITDA margins are robust at 11.3% and 14.8% respectively, reflecting effective cost management.

Balance Sheet

The balance sheet of Giken Ltd. is strong with a low debt-to-equity ratio of 0.007, indicating minimal leverage and financial risk. The return on equity (ROE) stands at 6.0%, which is moderate, suggesting efficient use of equity to generate profits. The equity ratio of 84.0% highlights a solid equity base, enhancing financial stability.

Cash Flow

Cash flow analysis reveals a positive outlook for Giken Ltd. The operating cash flow to net income ratio of 1.29 indicates healthy cash generation relative to net income. Free cash flow to net income ratio is 0.78, suggesting strong free cash flow. Though the free cash flow growth rate is negative at -26.4%, the overall cash flow remains robust, supporting operational flexibility.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
27.59B	29.48B	29.27B	30.38B	27.62B	24.64B
	Gross Profit
10.16B	10.87B	10.71B	11.72B	10.62B	9.18B
	EBIT
2.77B	3.33B	2.98B	4.61B	4.00B	2.50B
	EBITDA
3.74B	4.36B	4.81B	6.58B	5.95B	4.24B
	Net Income Common Stockholders
1.93B	2.44B	846.00M	3.23B	3.07B	1.40B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.76B	10.18B	9.92B	12.82B	10.59B	6.88B
	Total Assets
50.88B	48.13B	51.39B	54.69B	51.67B	49.71B
	Total Debt
47.00M	299.00M	767.00M	1.27B	1.26B	1.58B
	Net Debt
-6.10B	-9.88B	-9.15B	-11.55B	-9.33B	-5.30B
	Total Liabilities
10.65B	7.68B	11.85B	13.44B	12.12B	11.30B
	Stockholders Equity
40.23B	40.45B	39.54B	40.74B	39.11B	38.05B
Cash Flow		Free Cash Flow
0.00	1.90B	258.00M	4.05B	5.69B	-10.00M
	Operating Cash Flow
0.00	3.14B	2.04B	5.92B	7.77B	3.26B
	Investing Cash Flow
0.00	55.00M	-156.00M	-4.22B	-5.34B	-1.89B
	Financing Cash Flow
0.00	-2.50B	-1.98B	-1.94B	-2.20B	-953.00M

Giken Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1417.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6289, the sentiment is Negative. The current price of 1417 is below the 20-day moving average (MA) of 1439.25, below the 50-day MA of 1430.02, and below the 200-day MA of 1606.09, indicating a bearish trend. The MACD of 1.96 indicates Positive momentum. The RSI at 47.76 is Neutral, neither overbought nor oversold. The STOCH value of 18.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6289.

Giken Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6301	80 Outperform	¥4.00T	9.16		4.38%	5.97%	13.78%
6305	75 Outperform	$922.06B	11.33	9.99%	3.89%	-2.46%	-12.73%
6349	71 Outperform	¥69.97B	10.02	6.22%	4.77%	11.07%	53.83%
6289	66 Neutral	¥38.97B	25.03		3.10%	-13.72%	13.42%
Sector *	64 Neutral	$4.42B	11.99	5.16%	249.23%	4.02%	-11.68%
6326	63 Neutral	$1.92T	9.75	8.29%	2.83%	-2.02%	-16.84%
6310	46 Neutral	¥23.08B	―		2.94%	1.56%	-720.36%

Giken Ltd. Corporate Events

Giken Ltd. Announces Strategic Leadership Changes and New Department Launch

Giken Ltd. announced changes in the responsibilities of its directors and operating officers, effective May 1, 2025, to better align with its strategic goals. The establishment of a new BX Promotion Department is a key move to enhance productivity and competitiveness through digital innovation, aiming to secure talent and promote innovation.

Giken Ltd. Reports Decline in Financial Performance but Announces Commemorative Dividend

Giken Ltd. reported a significant decline in its financial performance for the six months ended February 28, 2025, with net sales dropping by 23.9% and profit attributable to owners of the parent decreasing by 49.8% compared to the previous year. Despite the downturn, the company announced a revised dividend forecast, including a commemorative dividend to mark the 50th anniversary of its SILENT PILER™ technology, indicating a commitment to rewarding shareholders and maintaining investor confidence.

Giken Ltd. Announces Commemorative Dividend for SILENT PILER’s 50th Anniversary

Giken Ltd. has announced a revision to its dividend forecast for the fiscal year ending August 31, 2025, in celebration of the 50th anniversary of its SILENT PILER product. The company will issue a commemorative dividend of 10 yen per share, resulting in a total annual dividend of 54 yen per share, reflecting its appreciation for shareholder support and marking a significant milestone in its history.

Giken Ltd. Announces Share Buyback to Enhance Shareholder Value

Giken Ltd. has announced a decision by its Board of Directors to acquire up to 450,000 of its own shares, which represents 1.68% of its total issued shares, excluding treasury shares. This move, set to occur between April 11 and July 31, 2025, aims to improve capital efficiency and enhance shareholder returns, potentially strengthening the company’s market position and providing value to its stakeholders.

Giken Ltd. Revises Financial Forecasts Amid Market Challenges

Giken Ltd. has revised its financial forecasts for the fiscal year ending August 31, 2025, due to challenges such as increased raw material costs and labor shortages impacting domestic market conditions. Despite these setbacks, Giken is actively working on new projects and expects the positive effects of its strategic initiatives to materialize in the next fiscal year. The company remains committed to its Mid-Term Management Plan 2027, aiming to enhance corporate value through strategic restructuring and global market expansion.