Tachikawa Corporation (7989) AI Stock Analysis

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Tachikawa Corporation

(TSE/TYO:7989)

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Rating:66Neutral

Price Target:JPY 2,749.00▲(8.79% Upside)

Action:downgraded

Date:10/30/26

The score is driven primarily by solid financial stability and profitability supported by a very strong balance sheet, partially offset by weaker and inconsistent free cash flow. Technical indicators are currently bearish and weigh on the score, while reasonable valuation and a ~3.9% dividend provide support.

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)

Market Cap: JPY 52.20B
Dividend Yield: 3.96%
Average Volume (3M): 40.94K
Price to Earnings (P/E): 16.0
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

Financials are stable overall: strong profitability (TTM gross margin ~40%, operating margin ~10%, net margin ~7.5%) and an excellent, low-leverage balance sheet. The main drag is weaker and less consistent cash generation, with TTM free cash flow down ~40% vs 2025 and only ~two-thirds of net income.

Income Statement

72Positive

Balance Sheet

90Very Positive

Cash Flow

58Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	44.39B	42.62B	41.41B	41.31B	41.30B	41.24B
Gross Profit	17.57B	17.36B	17.11B	16.87B	16.93B	17.89B
EBITDA	5.42B	5.60B	5.51B	5.55B	4.99B	5.38B
Net Income	3.27B	3.24B	2.80B	2.71B	2.52B	2.87B
Balance Sheet
Total Assets	67.88B	67.74B	64.81B	63.89B	63.18B	61.22B
Cash, Cash Equivalents and Short-Term Investments	15.98B	17.68B	15.54B	15.46B	16.13B	18.08B
Total Debt	735.27M	178.71M	138.00M	114.85M	125.98M	164.68M
Total Liabilities	10.07B	11.38B	11.82B	13.45B	14.54B	14.05B
Stockholders Equity	57.81B	56.35B	52.99B	46.02B	43.87B	42.55B
Cash Flow
Free Cash Flow	1.89B	3.71B	565.20M	1.40B	-390.73M	154.97M
Operating Cash Flow	4.74B	4.52B	1.64B	4.31B	2.14B	2.13B
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 Price2527.00

Price Trends

50DMA2647.08Negative

100DMA2589.49Negative

200DMA2476.33Positive

Market Momentum

MACD-24.08Positive

RSI34.47Neutral

STOCH47.07Neutral

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 2527.00 is below the 20-day moving average (MA) of 2604.90, below the 50-day MA of 2647.08, and above the 200-day MA of 2476.33, indicating a neutral trend. The MACD of -24.08 indicates Positive momentum. The RSI at 34.47 is Neutral, neither overbought nor oversold. The STOCH value of 47.07 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
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:8130	82Outperform	JPY 183.35B	11.51	―	4.91%	3.91%	28.69%
JP:7981	72Outperform	JPY 190.50B	13.87	―	4.16%	1.75%	7.95%
JP:7955	68Neutral	JPY 31.58B	8.46	―	3.79%	4.93%	90.43%
JP:7840	67Neutral	JPY 43.58B	14.80	―	3.27%	3.77%	8.09%
JP:7989	66Neutral	JPY 53.88B	15.98	―	3.96%	4.41%	1.84%
JP:7972	62Neutral	JPY 126.01B	12.03	―	3.15%	9.72%	12.77%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:7989 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7989	Tachikawa Corporation	2527.00	663.17	35.58%
JP:7840	France Bed Holdings Co., Ltd.	1252.00	-27.41	-2.14%
JP:7955	Cleanup Corporation	870.00	117.38	15.60%
JP:7972	Itoki Corporation	2313.00	22.99	1.00%
JP:7981	Takara Standard Co., Ltd	3080.00	635.26	25.98%
JP:8130	Sangetsu Corporation	3155.00	280.20	9.75%

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

Tachikawa Corporation AI Stock Analysis