Takara Standard Co., Ltd (7981) AI Stock Analysis

• Market Cap: ¥164.80B
• Dividend Yield: 3.05%
• Average Volume (3M): 84.81K
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.58
• Revenue Growth: 5.38%
• EPS Growth: 27.34%
• Country: JP
• Employees: 6,616
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 46.01
• Shares Outstanding: 67,252,990
• 10 Day Avg. Volume: 80,030
• 30 Day Avg. Volume: 84,806
• PEG Ratio: 0.57
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.49
• P/FCF Ratio: 8.71
• 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: 68 Neutral
• Price Target: ¥2,750.00 ▲(11.79% Upside)

Takara Standard Co., Ltd demonstrates a strong financial position with solid profitability and a robust balance sheet. However, technical indicators suggest potential bearish momentum, and the decline in free cash flow growth is a concern. The stock is fairly valued with an attractive dividend yield, making it a balanced investment option.

Takara Standard Co., Ltd Business Overview & Revenue Model

Company Description

Takara Standard Co., Ltd (7981) is a Japanese company primarily engaged in the manufacturing and sale of home improvement products, particularly in the fields of kitchen and bathroom fixtures. Founded in 1912, the company has expanded its offerings to include a range of products designed to enhance living spaces, focusing on innovation, quality, and functionality. Takara Standard operates in various sectors, including residential and commercial markets, providing products such as modular kitchens, bathroom units, and various home improvement solutions.

How the Company Makes Money

Takara Standard generates revenue through the sale of its core products, which include modular kitchen systems, bathroom fixtures, and home improvement products. The company operates a multi-channel distribution strategy that includes direct sales to consumers, partnerships with home improvement retailers, and collaborations with construction firms for large-scale projects. Key revenue streams include sales from retail outlets, online sales, and custom solutions for residential and commercial clients. Additionally, Takara Standard benefits from brand recognition and a reputation for quality, which helps maintain customer loyalty and drives repeat business. Partnerships with real estate developers and contractors also contribute significantly to its earnings, as these collaborations often lead to bulk orders and long-term supply agreements.

Takara Standard Co., Ltd Financial Statement Overview

Summary

Takara Standard Co., Ltd presents a strong financial position with consistent revenue growth and solid profitability margins. The balance sheet is robust with low leverage, enhancing financial stability. However, the decline in free cash flow growth poses a potential risk that needs monitoring.

Income Statement

Takara Standard Co., Ltd has demonstrated consistent revenue growth, with a TTM revenue growth rate of 1.67%. The company maintains a healthy gross profit margin of 34.72% and a net profit margin of 4.56%, indicating solid profitability. However, the EBIT margin of 6.31% suggests room for improvement in operational efficiency.

Balance Sheet

The company exhibits a strong balance sheet with a low debt-to-equity ratio of 0.035, indicating low leverage and financial stability. The return on equity (ROE) is 5.80%, reflecting moderate profitability from shareholders' equity. The equity ratio of 69.10% highlights a robust capital structure.

Cash Flow

The cash flow statement shows a decline in free cash flow growth by 10.65% in the TTM period, which could be a concern. However, the operating cash flow to net income ratio of 0.37 suggests adequate cash generation relative to net income. The free cash flow to net income ratio of 0.59 indicates reasonable cash flow coverage.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	247.45B	243.38B	234.74B	227.42B	211.59B	192.17B
Gross Profit	86.17B	84.51B	79.59B	76.03B	76.13B	70.47B
EBITDA	24.34B	23.41B	21.08B	18.99B	22.27B	17.01B
Net Income	12.10B	11.09B	9.50B	8.42B	10.90B	7.59B
Balance Sheet
Total Assets	278.57B	276.91B	268.68B	279.88B	276.84B	258.65B
Cash, Cash Equivalents and Short-Term Investments	65.23B	68.06B	59.66B	80.38B	88.61B	74.72B
Total Debt	6.40B	6.75B	7.65B	8.10B	9.70B	9.70B
Total Liabilities	86.04B	82.40B	81.28B	98.36B	95.42B	83.34B
Stockholders Equity	192.53B	194.51B	187.40B	181.51B	181.41B	175.31B
Cash Flow
Free Cash Flow	12.24B	13.71B	-14.61B	-1.64B	12.52B	3.18B
Operating Cash Flow	22.77B	23.36B	-1.31B	6.60B	19.68B	7.95B
Investing Cash Flow	-9.37B	-8.46B	-11.67B	-5.39B	-3.09B	-5.38B
Financing Cash Flow	-10.02B	-6.51B	-7.73B	-9.45B	-2.71B	-2.49B

Takara Standard Co., Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2460.00
• 50DMA: Negative
• 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:7981, the sentiment is Negative. The current price of 2460 is below the 20-day moving average (MA) of 2520.45, below the 50-day MA of 2573.40, and above the 200-day MA of 2145.28, indicating a neutral trend. The MACD of -9.16 indicates Negative momentum. The RSI at 45.45 is Neutral, neither overbought nor oversold. The STOCH value of 72.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7981.

Takara Standard Co., Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8130	―	¥174.62B	13.89	―	5.08%	6.13%	-0.28%
7955	―	¥28.22B	14.04	―	3.99%	2.12%	56.08%
7887	―	¥7.15B	13.36	―	2.02%	7.48%	10.02%
7981	―	¥164.80B	13.88	―	3.05%	5.38%	27.34%
7972	―	¥128.93B	13.25	―	2.30%	5.75%	39.17%
7898	―	¥8.02B	3.96	―	2.76%	0.90%	―
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Takara Standard Co., Ltd Corporate Events

Takara Standard Updates on Treasury Share Purchase Progress

Takara Standard Co., Ltd. announced the status of its treasury share purchase, initially resolved at a Board meeting in May 2025. Despite plans to purchase up to 6 million shares, only 2,160,200 shares were bought by the end of September, costing approximately ¥5.53 billion. This strategic move aims to enhance shareholder value, though the purchase progress indicates a slower acquisition pace than anticipated.

The most recent analyst rating on (JP:7981) stock is a Buy with a Yen2938.00 price target. To see the full list of analyst forecasts on Takara Standard Co., Ltd stock, see the JP:7981 Stock Forecast page.

Takara Standard Announces Treasury Share Purchase Update

Takara Standard Co., Ltd. announced the status of its treasury share purchase, which was resolved at a Board of Directors meeting on May 8, 2025. During the purchase period from August 1 to August 31, 2025, the company acquired 1,383,300 shares at a total cost of ¥3,719,693,700 through open market purchases on the Tokyo Stock Exchange. This move is part of a broader plan to purchase up to 6,000,000 shares, representing 8.92% of the total issued shares, with a maximum allocation of ¥11,000 million, aimed at optimizing capital structure and enhancing shareholder value.

The most recent analyst rating on (JP:7981) stock is a Buy with a Yen2938.00 price target. To see the full list of analyst forecasts on Takara Standard Co., Ltd stock, see the JP:7981 Stock Forecast page.

Takara Standard Executes Treasury Share Purchase to Boost Shareholder Returns

Takara Standard Co., Ltd. has executed a purchase of 1,383,300 treasury shares at a cost of ¥3,719,693,700 as part of its strategy to enhance shareholder returns and maintain financial soundness. This move is in line with their Medium Term Management Plan 2026, which aims to develop sustainable growth infrastructure and achieve an 8% return on equity.

Takara Standard Announces Treasury Share Buyback Plan

Takara Standard Co., Ltd. has announced its decision to purchase 1,580,000 of its own shares through the ToSTNeT-3 system of the Tokyo Stock Exchange at a set price, as part of a broader plan to buy back up to 6,000,000 shares. This move is part of the company’s strategy to enhance shareholder value and optimize its capital structure, potentially impacting its stock market performance and investor relations.

Takara Standard Co., Ltd. Reports Strong Financial Results for Q1 2025

Takara Standard Co., Ltd. reported its financial results for the three months ended June 30, 2025, with consolidated net sales of 243.3 billion yen and an operating margin of 15.6 billion yen. The company employs 6,560 people and continues to focus on expanding its presence in both domestic and overseas markets, leveraging its strong position in the housing equipment sector.

Takara Standard Reports Strong Q1 Financial Results

Takara Standard Co., Ltd. reported a significant improvement in its financial performance for the three months ended June 30, 2025, with a 7.1% increase in net sales and a 48.7% rise in profit attributable to owners of the parent compared to the same period last year. The company’s strong financial results reflect its solid market positioning and operational efficiency, with expectations of continued growth as indicated by its earnings forecasts for the fiscal year ending March 31, 2026.

Takara Standard Announces Treasury Share Purchase Status

Takara Standard Co., Ltd. has announced the status of its treasury share purchase, which was resolved at a Board of Directors meeting on May 8, 2025. As of July 31, 2025, the company has purchased 776,900 shares at a total cost of ¥1,813,860,300, which is part of a larger plan to purchase up to 6,000,000 shares by February 20, 2026. This move is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.