TADANO (6395) AI Stock Analysis

• Market Cap: €134.06B
• Dividend Yield: 2.78%
• Average Volume (3M): 382.92K
• Price to Earnings (P/E): 23.3
• Beta (1Y): 1.12
• Revenue Growth: 9.20%
• EPS Growth: -40.76%
• Country: JP
• Employees: 4,916
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 4.72
• Shares Outstanding: 129,500,350
• 10 Day Avg. Volume: 341,870
• 30 Day Avg. Volume: 382,920
• PEG Ratio: -1.50
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.50
• P/FCF Ratio: -18.96
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: ¥1,113.00 ▼(-0.18% Downside)

TADANO's overall score reflects stable financial performance with growth in revenue and operating margins, but challenges in profitability and cash flow management. The technical analysis indicates potential short-term weakness, and the stock appears overvalued based on its P/E ratio. The dividend yield offers some support but is not enough to offset valuation concerns.

TADANO Business Overview & Revenue Model

Company Description

Tadano Ltd., together with its subsidiaries, develops, produces, distributes, and services lifting equipment worldwide. The company offers all-terrain, rough terrain, truck, telescopic boom crawler, lattice boom crawler, and loader cranes; aerial work platforms; special purpose vehicles; and used equipment. It also provides components, such as hydraulic cylinders; and repair and maintenance services. The company was formerly known as Tadano Iron Works Co., Ltd. and changed its name to Tadano Ltd. in 1989. Tadano Ltd. was founded in 1919 and is headquartered in Takamatsu, Japan.

How the Company Makes Money

TADANO generates revenue primarily through the sale of its crane products, which include mobile cranes, truck-mounted cranes, and rough-terrain cranes. The company also earns money through after-sales services, including maintenance, repairs, and spare parts sales, which contribute significantly to its revenue. Furthermore, TADANO has formed strategic partnerships and collaborations with other companies in the construction and heavy equipment sectors, enhancing its market reach and product offerings. The demand for TADANO's products is driven by global infrastructure development and construction projects, which are critical factors influencing the company's earnings.

TADANO Financial Statement Overview

Summary

TADANO shows revenue growth and improved operating margins, but faces challenges with declining net profit margin and ROE. The balance sheet is strong with moderate leverage, yet cash flow management needs improvement due to negative free cash flow.

Income Statement

TADANO shows a positive revenue growth trajectory, with a 4% increase in 2024 compared to 2023. Gross profit margin improved to 29% in 2024 from 26% in 2023, indicating better cost management. However, net profit margin decreased to 2.28% in 2024 from 2.77% in 2023, reflecting challenges in converting revenue into profit. The EBIT margin improved slightly to 8.16% in 2024 from 6.55% in 2023. Overall, TADANO exhibits stability with room for profitability improvement.

Balance Sheet

TADANO maintains a healthy balance sheet with a debt-to-equity ratio of 0.65 in 2024, showing moderate leverage. The equity ratio remains strong at 46.79%, indicating a solid financial foundation. Return on equity decreased to 3.52% in 2024 from 4.29% in 2023, suggesting a slight decline in efficiency in generating returns from equity.

Cash Flow

TADANO's cash flow position shows potential concerns with a negative free cash flow in 2024, reversing from a positive in 2023. The operating cash flow to net income ratio dropped significantly, indicating challenges in translating earnings into cash. The negative free cash flow to net income ratio in 2024 highlights a need for better cash management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	291.50B	280.27B	257.24B	205.66B	186.10B
Gross Profit	84.52B	73.62B	64.22B	46.33B	35.15B
EBITDA	24.79B	24.36B	16.14B	11.44B	1.88B
Net Income	6.64B	7.77B	2.95B	13.10B	-12.99B
Balance Sheet
Total Assets	403.42B	365.24B	356.69B	344.72B	323.92B
Cash, Cash Equivalents and Short-Term Investments	93.13B	94.34B	98.16B	118.40B	103.11B
Total Debt	122.47B	91.31B	98.33B	98.17B	94.59B
Total Liabilities	214.53B	183.89B	188.92B	184.41B	178.52B
Stockholders Equity	188.79B	181.03B	167.23B	159.11B	144.05B
Cash Flow
Free Cash Flow	-7.69B	7.01B	-24.21B	14.74B	16.59B
Operating Cash Flow	26.00M	10.12B	-20.42B	17.33B	20.45B
Investing Cash Flow	-25.11B	-3.98B	4.52B	-7.08B	-3.73B
Financing Cash Flow	21.62B	-13.25B	-5.05B	-471.00M	29.04B

TADANO Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1115.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6395, the sentiment is Positive. The current price of 1115 is above the 20-day moving average (MA) of 1056.37, above the 50-day MA of 1062.96, and above the 200-day MA of 1036.80, indicating a bullish trend. The MACD of 4.94 indicates Negative momentum. The RSI at 62.92 is Neutral, neither overbought nor oversold. The STOCH value of 79.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6395.

TADANO Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6345	80 Outperform	¥87.80B	17.32	―	4.78%	0.91%	7.69%
6432	76 Outperform	¥288.02B	10.49	―	3.36%	0.31%	-11.04%
6305	70 Outperform	$998.61B	14.66	8.52%	3.89%	-4.59%	-21.22%
6358	68 Neutral	¥18.20B	21.23	―	4.99%	-16.47%	-68.62%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6395	61 Neutral	€134.06B	23.33	3.22%	2.78%	9.20%	-40.76%
6390	49 Neutral	¥16.46B	―	―	5.02%	-1.28%	-287.74%

TADANO Corporate Events

Japan Activation Capital to Acquire Significant Stake in Tadano Ltd.

Japan Activation Capital, Inc. has announced its decision to acquire 14 million shares of Tadano Ltd., representing an 11.02% voting rights ratio. This acquisition is significant as it qualifies as a ‘buy-up of shares as an act equivalent to a tender offer’ under Japanese financial regulations, potentially impacting Tadano’s market position and shareholder dynamics.

Tadano Announces Executive Officer Changes

Tadano Ltd. announced changes in its executive officer positions, effective July 1, 2025. Toshiaki Ujiie will continue as President and CEO of both Tadano Ltd. and Tadano Infrastructure Solutions Ltd., while Tatsuya Kijima will assume a new role in the Corporate Division’s New Business Preparation Office. These changes are part of Tadano’s strategic efforts to enhance its infrastructure business division.

Tadano Expands Product Line with Acquisition of IHI Transport Machinery’s Business

Tadano Ltd. has acquired the transportation system business of IHI Transport Machinery Co., Ltd., forming a new subsidiary named Tadano Infrastructure Solutions Ltd. This acquisition aligns with Tadano’s strategic plan to expand its product offerings and enter new markets, particularly in the field of lifting equipment. The newly acquired business includes a range of cranes and bulk handling systems, with a stable customer base in Japan and potential for global expansion, especially in the offshore wind power sector.

Tadano Completes Treasury Stock Disposal for Compensation

Tadano Ltd. has completed the payment for the disposal of treasury stock intended for restricted stock compensation, as resolved in their April 18, 2025 board meeting. This disposal involves 257,951 common shares at a price of 937.8 yen per share, totaling approximately 241.9 million yen, and is aimed at compensating directors and officers, excluding outside directors.

Tadano Ltd. Reports Q1 2025 Financial Results with Increased Sales and Dividend Forecast

Tadano Ltd. reported its consolidated financial results for the first quarter ending March 31, 2025, showing a significant increase in net sales by 28.9% compared to the previous year, reaching ¥80,495 million. Despite the rise in sales, the company experienced a decline in operating and ordinary profits, with operating profit down by 4.1% and ordinary profit by 11.0%. The profit attributable to owners of the parent, however, saw a substantial increase of 83.8%. The company also announced a forecasted annual dividend increase for the fiscal year ending December 31, 2025, from ¥23.00 to ¥36.00 per share, indicating a positive outlook for shareholders.