Tachikawa Corporation (7989) AI Stock Analysis

• Market Cap: ¥39.60B
• Dividend Yield: 2.61%
• Average Volume (3M): 17.78K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.45
• Revenue Growth: 2.31%
• EPS Growth: 2.20%
• Country: JP
• Employees: 1,315
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 33.43
• Shares Outstanding: 22,402,958
• 10 Day Avg. Volume: 14,540
• 30 Day Avg. Volume: 17,776
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,932.00
• Price Target Upside: 3.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥1,932.00 ▲(3.70% Upside)

Tachikawa Corporation's strong financial performance and attractive valuation are the primary drivers of its stock score. However, caution is warranted due to overbought technical indicators that suggest a potential short-term correction.

Tachikawa Corporation Business Overview & Revenue Model

Company Description

Tachikawa Corporation (7989) is a Japanese company primarily engaged in the manufacturing and distribution of a wide range of products, including precision instruments, automotive components, and electronic devices. The company operates in various sectors, with a focus on providing innovative solutions and high-quality products that cater to diverse markets such as automotive, electronics, and industrial machinery.

How the Company Makes Money

Tachikawa Corporation generates revenue through several key streams, including the sale of precision instruments and automotive parts to original equipment manufacturers (OEMs) and aftermarket suppliers. The company also benefits from long-term contracts with major automotive manufacturers, which provide a stable revenue base. Additionally, Tachikawa's partnerships with technology firms enhance its product offerings in the electronic device sector, contributing to increased sales. The company's emphasis on research and development allows it to innovate and stay competitive, further driving its revenue growth.

Tachikawa Corporation Financial Statement Overview

Summary

Tachikawa Corporation displays a strong financial performance with stable revenue growth and efficient operations. The balance sheet is robust with minimal leverage and a strong equity base, though cash flow management, particularly free cash flow, requires attention.

Income Statement

Tachikawa Corporation shows stable and consistent revenue with a slight growth of 0.25% from 2023 to 2024. The company maintains a strong gross profit margin of approximately 41.3% and a healthy net profit margin of 6.8%. The EBIT margin is also robust at 10.5%, indicating efficient operations. However, the EBITDA margin slightly declined, suggesting rising operating expenses.

Balance Sheet

The company exhibits a strong balance sheet with a very low debt-to-equity ratio of 0.0026, indicating negligible reliance on debt. The return on equity is solid at 5.3%, reflecting good profitability relative to shareholder equity. The equity ratio is high at 82.9%, showcasing a strong capital base and financial stability.

Cash Flow

Tachikawa Corporation's free cash flow decreased significantly by 59.6% from 2023 to 2024, indicating a potential area of concern. However, the operating cash flow to net income ratio is satisfactory at 0.59, showing that earnings are well supported by cash flow. The free cash flow to net income ratio is 0.20, which suggests room for improvement in cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	42.01B	41.41B	41.31B	41.30B	41.24B	39.98B
Gross Profit	17.40B	17.11B	16.87B	16.93B	17.89B	17.68B
EBITDA	5.70B	5.51B	5.55B	4.99B	5.38B	5.30B
Net Income	3.00B	2.80B	2.71B	2.52B	2.87B	2.90B
Balance Sheet
Total Assets	64.33B	63.84B	63.14B	62.59B	60.69B	57.78B
Cash, Cash Equivalents and Short-Term Investments	17.08B	15.54B	15.46B	16.13B	18.08B	18.52B
Total Debt	178.13M	138.00M	114.85M	125.98M	164.68M	192.30M
Total Liabilities	10.33B	10.85B	12.70B	13.95B	13.51B	13.35B
Stockholders Equity	53.99B	52.99B	46.02B	43.87B	42.55B	39.96B
Cash Flow
Free Cash Flow	2.41B	565.20M	1.40B	-390.73M	154.97M	4.04B
Operating Cash Flow	3.19B	1.64B	4.31B	2.14B	2.13B	5.17B
Investing Cash Flow	-74.36M	-1.31B	-2.93B	-3.04B	-2.01B	-1.12B
Financing Cash Flow	-970.82M	-786.48M	-1.98B	-1.06B	-679.00M	-653.07M

Tachikawa Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1863.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7989, the sentiment is Neutral. The current price of 1863 is below the 20-day moving average (MA) of 1918.85, below the 50-day MA of 1871.12, and above the 200-day MA of 1587.82, indicating a neutral trend. The MACD of -1.14 indicates Positive momentum. The RSI at 43.81 is Neutral, neither overbought nor oversold. The STOCH value of 24.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7989.

Tachikawa Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7955	75 Outperform	¥28.44B	13.94	―	4.06%	2.12%	56.08%
7989	73 Outperform	¥39.60B	12.36	―	2.61%	2.31%	2.20%
7972	69 Neutral	¥128.45B	13.20	―	2.27%	5.75%	39.17%
7898	68 Neutral	¥7.90B	3.85	―	2.84%	0.90%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6612	51 Neutral	¥7.06B	119.08	―	―	-16.75%	45.18%
7822	45 Neutral	¥10.16B	363.01	―	4.42%	0.89%	-99.30%

Tachikawa Corporation Corporate Events

Tachikawa Corporation Revises Financial Forecasts and Dividends Upward for 2025

Tachikawa Corporation has revised its full-year financial forecasts for 2025, following better-than-expected results in the first half of the year. The company reported a significant increase in profit attributable to owners of the parent due to higher extraordinary income and lower income taxes. Consequently, the company has also increased its interim and year-end dividend forecasts, reflecting its strong financial performance and commitment to shareholder returns.

Tachikawa Corporation Reports Increased Sales and Revises Financial Forecasts for 2025

Tachikawa Corporation reported a 3% increase in net sales for the first half of 2025, reaching ¥20,771 million, despite a decline in operating and ordinary profits. The company revised its full-year financial forecasts and dividend payments, indicating a positive outlook with expected growth in profit attributable to owners of the parent by 10.6% for the year.

Tachikawa Corporation Reports Strong Financial Results for Parent Company

Tachikawa Corporation announced the finalized financial results for its unlisted parent company, Tachikawa Kousan Ltd., for the fiscal year ending March 2025. The results show a strong financial position with a net profit of 139,022 thousand yen, indicating a stable and profitable investment business. This financial performance may positively influence Tachikawa Corporation’s market positioning and stakeholder confidence.

Tachikawa Corporation Reports Q1 2025 Financial Results

Tachikawa Corporation reported a slight increase in net sales by 2.3% for the first quarter of 2025, compared to the same period in 2024. Despite the increase in sales, the company experienced a decline in operating and ordinary profits by 3.3% and 4.1% respectively, although profit attributable to owners of the parent rose by 12.8%. The company forecasts a moderate growth in net sales and profits for the full fiscal year ending December 31, 2025, with a planned increase in annual dividends per share.