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TADANO Ltd. (JP:6395)
:6395
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TADANO (6395) AI Stock Analysis

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JP:6395

TADANO

(6395)

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Neutral 61 (OpenAI - 4o)
Rating:61Neutral
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 (6395) vs. iShares MSCI Japan ETF (EWJ)

TADANO Business Overview & Revenue Model

Company DescriptionTadano 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 MoneyTADANO 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
75
Positive
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
70
Positive
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
60
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue291.50B280.27B257.24B205.66B186.10B
Gross Profit84.52B73.62B64.22B46.33B35.15B
EBITDA24.79B24.36B16.14B11.44B1.88B
Net Income6.64B7.77B2.95B13.10B-12.99B
Balance Sheet
Total Assets403.42B365.24B356.69B344.72B323.92B
Cash, Cash Equivalents and Short-Term Investments93.13B94.34B98.16B118.40B103.11B
Total Debt122.47B91.31B98.33B98.17B94.59B
Total Liabilities214.53B183.89B188.92B184.41B178.52B
Stockholders Equity188.79B181.03B167.23B159.11B144.05B
Cash Flow
Free Cash Flow-7.69B7.01B-24.21B14.74B16.59B
Operating Cash Flow26.00M10.12B-20.42B17.33B20.45B
Investing Cash Flow-25.11B-3.98B4.52B-7.08B-3.73B
Financing Cash Flow21.62B-13.25B-5.05B-471.00M29.04B

TADANO Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1115.00
Price Trends
50DMA
1062.96
Positive
100DMA
1033.46
Positive
200DMA
1036.80
Positive
Market Momentum
MACD
4.94
Negative
RSI
62.92
Neutral
STOCH
79.12
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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥87.80B17.324.78%0.91%7.69%
76
Outperform
¥288.02B10.493.36%0.31%-11.04%
70
Outperform
$998.61B14.668.52%3.89%-4.59%-21.22%
68
Neutral
¥18.20B21.234.99%-16.47%-68.62%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
61
Neutral
€134.06B23.333.22%2.78%9.20%-40.76%
49
Neutral
¥16.46B5.02%-1.28%-287.74%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6395
TADANO
1,115.00
204.17
22.42%
JP:6305
Hitachi Construction Machinery Co
4,832.00
1,569.21
48.09%
JP:6345
Aichi Corporation
1,356.00
160.10
13.39%
JP:6358
Sakai Heavy Industries, Ltd.
2,116.00
-142.05
-6.29%
JP:6390
KATO WORKS CO., LTD.
1,394.00
234.38
20.21%
JP:6432
Takeuchi Mfg.Co., Ltd.
5,950.00
1,461.32
32.56%

TADANO Corporate Events

Japan Activation Capital to Acquire Significant Stake in Tadano Ltd.
Jul 7, 2025

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
Jul 1, 2025

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
Jul 1, 2025

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
May 16, 2025

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
May 9, 2025

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.

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: Oct 16, 2025