Tachikawa Corp. (7989) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

AGC, Inc. (Japan)

Cleanup Corp.

Toso Co. Ltd.

TOLI Corp.

Tachikawa Corp.

Suminoe Textile Co. Ltd.

BRUNO, Inc.

Maruhachi Holdings Co., Ltd.

Paramount Bed Holdings Co., Ltd.

Nippon Sheet Glass Co., Ltd.

Janis Ltd.

Why is Tachikawa Corp. ?

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Net Sales has grown by an annual rate of -0.24% and Operating profit at -1.13% over the last 5 years

Flat results in Jun 25

INTEREST(HY) At JPY 0.43 MM has Grown at 21,450%
INVENTORY TURNOVER RATIO(HY) Lowest at 3.02%
OPERATING PROFIT(Q) Lowest at JPY 1,053.15 MM

With ROE of 5.93%, it has a very attractive valuation with a 0.66 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 42.45%, its profits have risen by 16.7% ; the PEG ratio of the company is 1.4
At the current price, the company has a high dividend yield of 0.1

Market Beating Performance

The stock has generated a return of 42.45% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Tachikawa Corp. should be less than 10%
Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Furniture, Home Furnishing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Tachikawa Corp. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Tachikawa Corp.

42.45%

1.90

21.66%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.24%

EBIT Growth (5y)

-1.13%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.28

Sales to Capital Employed (avg)

0.86

Tax Ratio

30.22%

Dividend Payout Ratio

30.95%

Pledged Shares

Institutional Holding

ROCE (avg)

14.72%

ROE (avg)

6.45%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.66

EV to EBIT

4.66

EV to EBITDA

3.67

EV to Capital Employed

0.52

EV to Sales

0.48

PEG Ratio

1.36

Dividend Yield

0.06%

ROCE (Latest)

11.25%

ROE (Latest)

5.93%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Bullish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 3,192.78 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 59.83%

RAW MATERIAL COST(Y)

Fallen by 0.57% (YoY

NET PROFIT(9M)

Higher at JPY 2,982.2 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 2.83%

DIVIDEND PER SHARE(HY)

Highest at JPY 2.83

-11What is not working for the Company

INTEREST(HY)

At JPY 0.43 MM has Grown at 21,450%

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.02%

OPERATING PROFIT(Q)

Lowest at JPY 1,053.15 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.27 %

Here's what is working for Tachikawa Corp.

Operating Cash Flow

Highest at JPY 3,192.78 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Debtors Turnover Ratio

Highest at 2.83%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at JPY 2.83

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Net Profit

Higher at JPY 2,982.2 MM

than preceding 12 month period ended Jun 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (JPY MM)

Dividend Payout Ratio

Highest at 59.83%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 0.57% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Tachikawa Corp.

Interest

At JPY 0.43 MM has Grown at 21,450%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY 1,053.15 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 10.27 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 3.02%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio