Tachikawa Corporation (7989) AI Stock Analysis

• Market Cap: ¥31.71B
• Dividend Yield: 3.06%
• Average Volume (3M): 24.86K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.48
• Revenue Growth: 0.25%
• EPS Growth: 4.01%
• Country: JP
• Employees: 1,315
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 42.11
• Shares Outstanding: 22,402,958
• 10 Day Avg. Volume: 21,240
• 30 Day Avg. Volume: 24,856
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: N/A
• Number of Analyst Covering: 0

Tachikawa Corporation's strong financial performance, highlighted by a robust balance sheet and efficient operations, significantly contributes to its favorable stock score. The attractive valuation, with a low P/E ratio and solid dividend yield, further enhances the appeal. However, mixed technical signals and challenges in free cash flow management slightly temper the overall score.

Tachikawa Corporation Business Overview & Revenue Model

Company Description

Tachikawa Corporation, listed under the ticker 7989, is a Japanese company primarily engaged in the manufacture and distribution of interior products. The company specializes in window-related products such as blinds, curtains, and partitions, as well as related accessories. With a strong focus on quality and innovation, Tachikawa Corporation caters to both residential and commercial markets, offering solutions that enhance space aesthetics and functionality.

How the Company Makes Money

Tachikawa Corporation generates revenue through the sale of its window-related products, including blinds, curtains, and partitions. The company operates through a well-established distribution network that serves both domestic and international markets. Key revenue streams include direct sales to consumers, partnerships with retailers, and contracts with businesses and institutions for large-scale installations. The company also benefits from its focus on product innovation and quality, which helps maintain a strong market position and customer loyalty. Additionally, Tachikawa Corporation may engage in collaborations or partnerships with other companies to expand its product offerings or enter new markets, further contributing to its revenue.

Tachikawa Corporation Financial Statement Overview

Summary

Tachikawa Corporation presents a strong financial profile with stable revenue growth and efficient operations. The balance sheet is exceptionally robust, with minimal leverage and a substantial equity base. However, cash flow management, particularly free cash flow, presents some challenges that need to be addressed to enhance financial flexibility.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
41.41B	41.31B	41.30B	41.24B	39.98B
	Gross Profit
17.11B	16.87B	16.93B	17.89B	17.68B
	EBIT
4.36B	4.05B	3.82B	4.56B	4.54B
	EBITDA
5.52B	5.55B	4.99B	5.38B	5.30B
	Net Income Common Stockholders
2.80B	2.71B	2.52B	2.87B	2.90B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
15.54B	15.46B	16.13B	18.08B	18.52B
	Total Assets
63.84B	63.14B	62.59B	60.69B	57.78B
	Total Debt
138.00M	114.85M	125.98M	164.68M	192.30M
	Net Debt
-14.84B	-15.35B	-16.00B	-17.91B	-18.33B
	Total Liabilities
10.85B	12.70B	13.95B	13.51B	13.35B
	Stockholders Equity
52.99B	46.02B	43.87B	42.55B	39.96B
Cash Flow		Free Cash Flow
565.20M	1.40B	-390.73M	154.97M	4.04B
	Operating Cash Flow
1.64B	4.31B	2.14B	2.13B	5.17B
	Investing Cash Flow
-1.31B	-2.93B	-3.04B	-2.01B	-1.12B
	Financing Cash Flow
-786.48M	-1.98B	-1.06B	-679.00M	-653.07M

Tachikawa Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1503.00
• 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:7989, the sentiment is Positive. The current price of 1503 is above the 20-day moving average (MA) of 1455.70, above the 50-day MA of 1464.96, and above the 200-day MA of 1356.15, indicating a bullish trend. The MACD of 19.38 indicates Negative momentum. The RSI at 62.51 is Neutral, neither overbought nor oversold. The STOCH value of 64.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7989.

Tachikawa Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7989	80 Outperform	¥31.71B	10.11		3.06%	0.25%	4.01%
5930	75 Outperform	€138.04B	13.44	10.58%	3.18%	4.91%	5.68%
5947	74 Outperform	$464.94B	14.39	8.24%	2.33%	7.37%	48.51%
5943	62 Neutral	$76.58B	18.44	3.43%	3.66%	0.16%	402.60%
Sector *	61 Neutral	$6.58B	11.81	3.06%	3.99%	2.54%	-21.54%
5938	58 Neutral	$470.01B	234.86	0.35%	5.20%	1.45%	―
5959	48 Neutral	¥37.68B	―		3.51%	-9.34%	87.01%

Tachikawa Corporation Corporate Events

Tachikawa Corporation Affirms Independence Amid Leadership Change at Major Shareholder

Tachikawa Corporation has announced that Tachikawa Kousan Ltd., an associated company and its largest shareholder with a 20.5% voting rights stake, has undergone a leadership change with Ms. Mimi Uehara replacing Mr. Koui Tachikawa as President and Representative Director. Despite this association, Tachikawa Corporation maintains its operational independence, as there are no business transactions or restrictions imposed by Tachikawa Kousan Ltd., ensuring the company’s autonomy in its business activities.

Tachikawa Corporation Revises Dividend Forecasts for 2025

Tachikawa Corporation has announced a revision to its dividend forecasts for the fiscal year ending December 31, 2025, increasing the year-end dividend by 4 yen per share to 55 yen. This adjustment is part of the company’s strategy to achieve a 50% total payout ratio and reflects its ongoing efforts to maintain and boost dividends in alignment with its business performance targets.

Tachikawa Corporation Reports Stable Growth and Increased Dividends

Tachikawa Corporation’s fiscal year 2024 financial results show marginal growth in net sales and profitability, with net sales increasing by 0.2% and operating profit by 7.8%. The company has increased its dividend payouts and forecasts further growth in sales and profits for the fiscal year 2025, indicating a stable financial position and a positive outlook for stakeholders.