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Tachikawa Corporation (7989) AI Stock Analysis

JP:7989

Tachikawa Corporation

(TSE/TYO:7989)

Select Model
Rating:64Neutral
Price Target:JPY 2,723.00â–²(5.75% Upside)
Action:downgraded
Date:10/30/26

The overall score of 64 reflects a company with strong fundamentals offset by weak near-term market momentum. The primary strength is Tachikawa's exceptional financial health, marked by a debt-free balance sheet and high profitability, which supports a very attractive 3.93% dividend yield. However, the stock is under significant technical pressure, trading below key moving averages with bearish momentum indicators, which presents a headwind. The reasonable P/E ratio adds to the value case, but the current downtrend is the most significant factor weighing on the score.

Positive Factors
Solid profitabilityHealthy gross, operating, and net margins show that Tachikawa converts its interior-products revenue into consistent operating profits. This profitability provides resilience through normal demand fluctuations and supports ongoing investment, dividends, and product development without relying on aggressive financial leverage.
Negative Factors
Weak free-cash-flow conversionThe sharp decline in free cash flow and coverage of only about two-thirds of net income indicate that reported profits are not consistently translating into distributable cash. Persistent conversion volatility can constrain reinvestment, dividends, and other capital-allocation choices despite positive operating cash flow.

Tachikawa Corporation (7989) vs. iShares MSCI Japan ETF (EWJ)

-10%0%10%20%30%40%50%JP:7989+40.39%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 51.76B
Dividend Yield
3.88%
Average Volume (3M)
41.76K
Price to Earnings (P/E)
15.8
Beta (1Y)
0.55
Revenue Growth
4.41%
EPS Growth
1.84%
Country
Japan
Employees
1,264
Sector
General
Sector Strength
55
Industry
Furnishings, Fixtures & Appliances

Tachikawa Corporation Business Overview & Revenue Model

Company Description

Tachikawa Corporation, along with its subsidiary, primarily operates in Japan, focusing on the design, production, marketing, sales, and installation of a wide range of window treatments and room partitions. Their product offerings, which cater to re...

How the Company Makes Money

Tachikawa Corporation makes money primarily by selling interior products—especially window coverings—into the construction, housing, and renovation value chain. Revenue is generated through (1) product sales of window covering solutions (e.g., blinds...

Tachikawa Corporation Financial Statement Overview

Summary

Tachikawa demonstrates high profitability with consistent 40%+ gross margins and a healthy 7.5% net margin. The balance sheet is a fortress with virtually zero debt and substantial equity, providing exceptional financial stability. Cash flow is fundamentally strong but volatile, with free cash flow declining 40% TTM due to higher capex, tempering the overall financial picture.

Income Statement

72Positive

Balance Sheet

88Very Positive

Cash Flow

65Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue44.39B42.62B41.41B41.31B41.30B41.24B
Gross Profit17.57B17.36B17.11B16.87B16.93B17.89B
EBITDA5.42B5.60B5.51B5.55B4.99B5.38B
Net Income3.27B3.24B2.80B2.71B2.52B2.87B
Balance Sheet
Total Assets67.88B67.74B64.81B63.89B63.18B61.22B
Cash, Cash Equivalents and Short-Term Investments15.98B17.68B15.54B15.46B16.13B18.08B
Total Debt735.27M178.71M138.00M114.85M125.98M164.68M
Total Liabilities10.07B11.38B11.82B13.45B14.54B14.05B
Stockholders Equity57.81B56.35B52.99B46.02B43.87B42.55B
Cash Flow
Free Cash Flow1.89B3.71B565.20M1.40B-390.73M154.97M
Operating Cash Flow4.74B4.52B1.64B4.31B2.14B2.13B
Investing Cash Flow-3.45B-3.29B-1.31B-2.93B-3.04B-2.01B
Financing Cash Flow-2.08B-1.10B-786.48M-1.98B-1.06B-679.00M

Tachikawa Corporation Technical Analysis

Technical Analysis SentimentNegative
Last Price2575.00

Price Trends

50DMA2651.70Negative
100DMA2586.50Negative
200DMA2470.12Positive

Market Momentum

MACD-17.43Positive
RSI41.09Neutral
STOCH33.50Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7989, the sentiment is Negative. The current price of 2575.00 is below the 20-day moving average (MA) of 2611.80, below the 50-day MA of 2651.70, and above the 200-day MA of 2470.12, indicating a neutral trend. The MACD of -17.43 indicates Positive momentum. The RSI at 41.09 is Neutral, neither overbought nor oversold. The STOCH value of 33.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7989.

Tachikawa Corporation Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:7989 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:8130JP:813082OutperformJPY 185.10B11.25―4.87%3.91%28.69%
JP:7981JP:798172OutperformJPY 188.94B13.17―4.24%1.75%7.95%
JP:7955JP:795568NeutralJPY 31.48B8.32―3.76%4.93%90.43%
JP:7840JP:784067NeutralJPY 43.54B14.49―3.25%3.77%8.09%
JP:7989JP:798964NeutralJPY 54.32B15.83―3.88%4.41%1.84%
JP:7972JP:797262NeutralJPY 125.22B11.50―3.17%10.72%11.90%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

0%20%40%60%JP:7989JP:7840JP:7955JP:7972JP:7981JP:8130Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:7989 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7989Tachikawa Corporation2575.00766.5842.39%
JP:7840France Bed Holdings Co., Ltd.1260.00-18.44-1.44%
JP:7955Cleanup Corporation877.00141.7719.28%
JP:7972Itoki Corporation2366.00115.905.15%
JP:7981Takara Standard Co., Ltd3020.00633.6826.55%
JP:8130Sangetsu Corporation3180.00309.9510.80%

Tachikawa Corporation Corporate Events

Tachikawa Posts Higher Nine-Month Earnings and Hikes Dividend Payout Forecast

Oct 29, 2026

Tachikawa Corporation reported higher consolidated net sales of ¥32.8 billion for the nine months ended September 30, 2026, up 5.7% year on year, with operating profit rising 9.1% to ¥3.45 billion and profit attributable to owners of parent...

Tachikawa Corp Boosts Profits and Dividends on Solid First-Half Results

Aug 4, 2026

Tachikawa Corporation reported consolidated net sales of ¥22,095 million for the six months ended June 30, 2026, up 6.4% year on year, with operating profit rising 21.5% to ¥2,544 million and profit attributable to owners of parent inching...

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