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

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JP:7981

Takara Standard Co., Ltd

(TSE/TYO:7981)

Select Model
Rating:71Outperform
Price Target:JPY 3,282.00â–²(7.61% Upside)
Action:reiterated
Date:10/30/26

The stock's overall score is driven by a strong fundamental foundation and attractive valuation, which are partially offset by weak technical momentum. The company's fortress-like balance sheet and high dividend yield are the most significant positive factors, providing a margin of safety and income. The primary risk is the negative price trend and bearish technical indicators, which suggest the market is currently out of favor with the stock despite its solid financials and low valuation.

Positive Factors
Revenue Growth and ProfitabilityStrong top-line growth combined with positive gross, operating, and net margins indicates meaningful demand and an established ability to convert sales into profit. If sustained, this earnings base can support reinvestment and strengthen the company’s position across housing-equipment markets.
Negative Factors
Weak Cash ConversionFree cash flow is positive, but its decline and low conversion relative to reported earnings indicate that accounting profit is not currently translating efficiently into discretionary cash. Persistent weakness could constrain reinvestment, returns to shareholders, or the flexibility to absorb operating volatility.

Takara Standard Co., Ltd (7981) vs. iShares MSCI Japan ETF (EWJ)

-5%0%5%10%15%20%25%30%35%JP:7981+24.27%EWJ+16.06%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 192.32B
Dividend Yield
4.20%
Average Volume (3M)
111.61K
Price to Earnings (P/E)
13.3
Beta (1Y)
0.46
Revenue Growth
1.75%
EPS Growth
7.96%
Country
Japan
Employees
6,505
Sector
General
Sector Strength
55
Industry
Furnishings, Fixtures & Appliances

Takara Standard Co., Ltd Business Overview & Revenue Model

Company Description

Takara Standard Co., Ltd. specializes in the production and distribution of enamel-based goods for the home. Its extensive product catalog includes enameled system kitchens, wood system kitchens, enamel system baths, enameled vanity units, and enamel...

How the Company Makes Money

Takara Standard makes money primarily by designing, manufacturing, and selling housing equipment and related interior products for homes—most notably system kitchens and bathroom-related units—through Japan’s housing and renovation supply chain. Its...

Takara Standard Co., Ltd Financial Statement Overview

Summary

Overall financial health is solid, anchored by an exceptional balance sheet (Score: 92) with minimal debt and growing equity. The income statement shows strong, accelerating revenue growth and expanding margins (Score: 78). These strengths are partially offset by a mixed cash flow profile (Score: 65), where robust operating cash generation is overshadowed by volatile free cash flow due to a recent surge in capital expenditures.

Income Statement

78Positive

Balance Sheet

92Very Positive

Cash Flow

65Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue254.94B252.76B243.38B234.74B227.42B211.59B
Gross Profit91.09B90.13B84.51B79.59B76.03B76.13B
EBITDA27.07B28.87B23.41B21.08B18.99B22.27B
Net Income14.54B15.07B11.09B9.50B8.42B10.90B
Balance Sheet
Total Assets275.57B285.15B276.91B268.68B279.88B276.84B
Cash, Cash Equivalents and Short-Term Investments57.33B61.41B68.06B59.66B80.38B88.61B
Total Debt4.34B4.34B6.75B7.65B8.10B9.70B
Total Liabilities76.17B88.83B82.40B81.28B98.36B95.42B
Stockholders Equity199.40B196.32B194.51B187.40B181.52B181.41B
Cash Flow
Free Cash Flow8.63B10.42B13.71B-14.61B-1.64B12.52B
Operating Cash Flow35.27B25.41B23.36B-1.31B6.60B19.68B
Investing Cash Flow-25.94B-12.54B-8.46B-11.67B-5.39B-3.09B
Financing Cash Flow-13.74B-19.52B-6.51B-7.73B-9.45B-2.71B

Takara Standard Co., Ltd Technical Analysis

Technical Analysis SentimentPositive
Last Price3050.00

Price Trends

50DMA3033.44Positive
100DMA3024.54Positive
200DMA2927.04Positive

Market Momentum

MACD12.57Negative
RSI51.17Neutral
STOCH37.51Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7981, the sentiment is Positive. The current price of 3050.00 is above the 20-day moving average (MA) of 3033.55, above the 50-day MA of 3033.44, and above the 200-day MA of 2927.04, indicating a bullish trend. The MACD of 12.57 indicates Negative momentum. The RSI at 51.17 is Neutral, neither overbought nor oversold. The STOCH value of 37.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7981.

Takara Standard Co., Ltd Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:7981 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:8130JP:813082OutperformJPY 184.23B11.41―4.81%3.50%19.85%
JP:5947JP:594773OutperformJPY 497.63B14.567.88%2.86%6.30%4.01%
JP:6484JP:648473OutperformJPY 17.01B8.25―3.81%3.54%-23.15%
JP:7981JP:798171OutperformJPY 190.81B13.30―4.20%1.75%7.96%
JP:7955JP:795568NeutralJPY 30.90B8.03―3.84%5.18%56.14%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:7898JP:789851NeutralJPY 7.85B-3.08―2.80%4.00%-208.45%

* General Sector Average

Performance Comparison

0%10%20%30%JP:7981JP:5947JP:6484JP:7898JP:7955JP:8130Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:7981 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7981Takara Standard Co., Ltd3050.00595.6924.27%
JP:5947Rinnai Corporation3601.00-36.13-0.99%
JP:6484KVK Corporation2098.00-113.91-5.15%
JP:7898Wood One Co., Ltd.856.00-11.11-1.28%
JP:7955Cleanup Corporation859.0080.3010.31%
JP:8130Sangetsu Corporation3225.00312.1210.72%

Takara Standard Co., Ltd Corporate Events

Takara Standard Balances Record Sales With Margin Pressure and Robust Shareholder Returns

Oct 29, 2026

Takara Standard Co., Ltd. reported record net sales of 125.3 billion yen for the first half of the fiscal year ending March 2027, up 1.8% year on year, driven by strong demand in new detached housing and remodeling markets. However, operating profit...

Takara Standard Posts Slight Sales Gain but Lower Profits, Keeps Guidance and Dividend Plan Intact

Oct 29, 2026

Takara Standard reported a small 1.8% rise in net sales to ¥125.3 billion for the six months ended September 30, 2026, but profits declined as costs weighed on margins and accounting policy changes took effect. Operating profit fell 7.2% to ¥8.1 bill...

Takara Standard to Acquire Sigma Consulting in Step Deal to Drive Digital Remodeling Push

Oct 9, 2026

Takara Standard Co., Ltd. has resolved to acquire all shares of Sigma Consulting Co., Ltd. through a staged transaction, initially purchasing 70.18% by October 2026 and reaching full ownership by July 2031 to make it a wholly owned subsidiary. The bo...

Takara Standard Updates Progress on Ongoing Share Buyback Program

Oct 1, 2026

Takara Standard Co., Ltd. has disclosed the latest status of its ongoing share buyback program authorized by the board on April 30, 2026, conducted under provisions of the Companies Act. The company purchased 128,600 shares of its common stock for ¥3...

Takara Standard to Absorb FRP Subsidiary in Streamlining Merger

Sep 30, 2026

Takara Standard Co., Ltd. has approved an absorption-type merger of its wholly owned manufacturing subsidiary, Takara Kako Co., Ltd., to take effect on April 1, 2027, with Takara Standard as the surviving entity and Takara Kako to be dissolved. The m...

Takara Standard Advances Shareholder Returns with Ongoing Share Buyback Program

Sep 14, 2026

Takara Standard has executed a share buyback under its Medium Term Management Plan 2026, purchasing 128,600 shares of its common stock for approximately ¥394 million via the Tokyo Stock Exchange’s ToSTNeT-3 system on September 14, 2026. The move alig...

Takara Standard to Repurchase Shares Under Expanded Buyback Program

Sep 11, 2026

Takara Standard has decided to repurchase 142,000 shares of its common stock as treasury shares via the Tokyo Stock Exchange’s ToSTNeT-3 off-auction system. The transaction will be executed at the closing price of ¥3,065 on September 11, 2026, with t...

Takara Standard Reports Progress on Ongoing Share Buyback Program

Sep 1, 2026

Takara Standard Co., Ltd. has disclosed the latest progress of its ongoing share buyback program authorized by its board in late April 2026 under provisions of the Companies Act. The company repurchased 46,700 shares of its common stock for approxima...

Takara Standard Reports Progress on Share Buyback Program

Aug 3, 2026

Takara Standard Co., Ltd. has reported progress on its ongoing share buyback program authorized by its board on April 30, 2026 under Japan’s Companies Act. During the period from July 1 to July 31, 2026, the company repurchased 19,900 shares of its c...

Takara Standard Adjusts Product Line as Housing Equipment Sales Remain Strong

Jul 30, 2026

Takara Standard Co., Ltd., a long-established Japanese housing equipment specialist, reported net sales of 252.7 billion yen and an operating margin of 19.0 billion yen for the fiscal year ended March 2026, supported by a workforce of 6,505 employees...

Takara Standard Profit Slips on Margin Pressure as Sales Edge Higher

Jul 30, 2026

Takara Standard reported consolidated net sales of ¥62.5 billion for the quarter ended June 30, 2026, a 1.8% year-on-year increase, while operating profit declined 14.2% to ¥3.6 billion and profit attributable to owners of parent fell 15.4% to ¥2.6 b...

Takara Standard Cuts Earnings Outlook on Rising Material Costs and Construction Delays

Jul 30, 2026

Takara Standard has revised downward its consolidated earnings forecasts for the second quarter of the fiscal year ending March 31, 2027, citing a rapid rise in material prices driven by escalating tensions in the Middle East and delays in constructi...

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 30, 2026