Buy Or Sell Opportunity • Jul 06
Now 21% undervalued Over the last 90 days, the stock has risen 42% to €26.40. The fair value is estimated to be €33.27, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.8% over the last 3 years. Earnings per share has grown by 9.7%. For the next 3 years, revenue is forecast to grow by 4.5% per annum. Earnings are also forecast to grow by 6.4% per annum over the same time period. Valuation Update With 7 Day Price Move • May 23
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to €22.80, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 13x in the Construction industry in Europe. Total returns to shareholders of 107% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at €13.71 per share. Board Change • May 20
Less than half of directors are independent There are 7 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 7 new directors. 3 experienced directors. 2 highly experienced directors. 3 independent directors (5 non-independent directors). Independent Outside Director Hirokazu Hikosaka is the most experienced director on the board, commencing their role in 2017. Independent Outside Director Hiramasa Nakata was the last independent director to join the board, commencing their role in 2025. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Announcement • May 15
Taikisha Ltd., Annual General Meeting, Jun 24, 2026 Taikisha Ltd., Annual General Meeting, Jun 24, 2026. Announcement • May 16
Taikisha Ltd. (TSE:1979) announces an Equity Buyback for 2,900,000 shares, representing 4.45% for ¥5,000 million. Taikisha Ltd. (TSE:1979) announces a share repurchase program. Under the program, the company will repurchase up to 2,900,000 common shares, representing 4.45% of its share capital (excluding treasury shares), for ¥5,000 million. The company will repurchase its shares in order to enhance shareholder returns and to increase capital efficiency as well as to enable the company to implement a flexible capital strategy in response to changes in the business environment.. The share repurchase program will run until December 31, 2025. As of April 30, 2025, the company had 67,164,108 shares outstanding (excluding treasury shares) and 2,012,480 shares in treasury. Announcement • May 15
Taikisha Ltd., Annual General Meeting, Jun 26, 2025 Taikisha Ltd., Annual General Meeting, Jun 26, 2025. Announcement • Feb 28
Taikisha Ltd. to Report Fiscal Year 2025 Results on May 15, 2025 Taikisha Ltd. announced that they will report fiscal year 2025 results on May 15, 2025 Announcement • Feb 10
Taikisha Ltd. Revises Consolidated and Non-Consolidated Earnings Guidance for the Full Year of Fiscal Year Ending March 31, 2025 Taikisha Ltd. provided consolidated and non-consolidated earnings guidance for the full year of fiscal year ending March 31, 2025. For the full year, on consolidated basis, the company expects sales of JPY 269,000 million compared to previous guidance of JPY 258,000 million, operating income of JPY 15,700 million compared to previous guidance of JPY 14,000 million, profit attributable to owners of parent of JPY 12,300 million compared to previous guidance of JPY 10,200 million and basic earnings per share of JPY 377.63 compared to previous guidance of JPY 310.76 per share.
For the full year, on non-consolidated basis, the company expects sales of JPY 144,300 million compared to previous guidance of JPY 137,300 million, profit of JPY 11,400 million compared to previous guidance of JPY 7,900 million and basic earnings per share of JPY 350.00 compared to previous guidance of JPY 240.69 per share. Reasons for the Revision: Consolidated earnings forecasts: Regarding the fiscal year ending March 31, 2025, sales is expected to increase compared with the previous forecasts because the progress of projects both in Japan and overseas were higher than expected. Regarding profit aspects, operating income, ordinary income, and profit attributable to owners of parent are all expected to increase compared with previous forecasts, mainly because of improvement of profitability of projects in addition to the increase of sales, increase of interest income, and increase of gain on sale of investment securities and so on. Non-consolidated earnings forecasts: Regarding the fiscal year ending March 31, 2025, non-consolidated earnings forecasts are expected to increase compared with the previous forecasts due to the same reasons as consolidated earnings forecasts. Reported Earnings • Nov 13
Second quarter 2025 earnings released: EPS: JP¥99.50 (vs JP¥91.91 in 2Q 2024) Second quarter 2025 results: EPS: JP¥99.50 (up from JP¥91.91 in 2Q 2024). Revenue: JP¥61.5b (down 17% from 2Q 2024). Net income: JP¥3.23b (up 6.0% from 2Q 2024). Profit margin: 5.3% (up from 4.1% in 2Q 2024). The increase in margin was driven by lower expenses. Revenue is forecast to grow 1.2% p.a. on average during the next 3 years, compared to a 4.6% growth forecast for the Construction industry in Europe. Announcement • Oct 29
Taikisha Ltd. Revises Consolidated and Non-Consolidated Earnings Guidance for the First Half of Fiscal Year Ending March 31, 2025 Taikisha Ltd. revised Consolidated and Non-Consolidated Earnings Guidance for the first half of Fiscal year Ending March 31, 2025. On consolidated basis for the first half, The company expects net sales to be JPY 114,600 million, Operating income to be JPY 6,200 million, profit attributable to owners of parent to be JPY 5,600 million or JPY 171.60 per basic share against previous guidance of net sales to be JPY 110,000 million, Operating income to be JPY 4,400 million, profit attributable to owners of parent to be JPY 3,400 million or JPY 103.59 per basic share.
On non-consolidated basis for the first half, The company expects sales to be JPY 55,400 million, profit to be JPY 4,900 million or JPY 150.15 per basic share against previous guidance of sales to be JPY 57,100 million, profit to be JPY 3,600 million or JPY 109.68 per basic share. Upcoming Dividend • Sep 20
Upcoming dividend of JP¥60.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 02 December 2024. Payout ratio is a comfortable 30% and this is well supported by cash flows. Trailing yield: 3.0%. Lower than top quartile of German dividend payers (4.8%). Lower than average of industry peers (3.6%). Reported Earnings • Aug 13
First quarter 2025 earnings released: EPS: JP¥74.44 (vs JP¥108 in 1Q 2024) First quarter 2025 results: EPS: JP¥74.44 (down from JP¥108 in 1Q 2024). Revenue: JP¥53.1b (down 6.2% from 1Q 2024). Net income: JP¥2.44b (down 32% from 1Q 2024). Profit margin: 4.6% (down from 6.3% in 1Q 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to stay flat during the next 3 years compared to a 4.8% growth forecast for the Construction industry in Europe. Declared Dividend • Jul 11
Final dividend of JP¥60.00 announced Shareholders will receive a dividend of JP¥60.00. Ex-date: 27th September 2024 Payment date: 2nd December 2024 Dividend yield will be 207%, which is higher than the industry average of 2.9%. Sustainability & Growth Dividend is well covered by both earnings (31% earnings payout ratio) and cash flows (28% cash payout ratio). The dividend has increased by an average of 12% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to decline by 12% over the next 3 years. However, it would need to fall by 66% to increase the payout ratio to a potentially unsustainable range. Reported Earnings • May 20
Full year 2024 earnings released: EPS: JP¥472 (vs JP¥235 in FY 2023) Full year 2024 results: EPS: JP¥472 (up from JP¥235 in FY 2023). Revenue: JP¥293.6b (up 37% from FY 2023). Net income: JP¥15.6b (up 97% from FY 2023). Profit margin: 5.3% (up from 3.7% in FY 2023). The increase in margin was driven by higher revenue. Revenue is expected to decline by 2.9% p.a. on average during the next 3 years, while revenues in the Construction industry in Europe are expected to grow by 4.3%. Announcement • May 17
Taikisha Ltd., Annual General Meeting, Jun 27, 2024 Taikisha Ltd., Annual General Meeting, Jun 27, 2024. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥77.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 01 July 2024. Payout ratio is a comfortable 31% and this is well supported by cash flows. Trailing yield: 2.6%. Lower than top quartile of German dividend payers (4.9%). Lower than average of industry peers (3.9%). Announcement • Mar 03
Taikisha Ltd. to Report Fiscal Year 2024 Results on May 15, 2024 Taikisha Ltd. announced that they will report fiscal year 2024 results on May 15, 2024 Reported Earnings • Feb 14
Third quarter 2024 earnings released: EPS: JP¥109 (vs JP¥78.53 in 3Q 2023) Third quarter 2024 results: EPS: JP¥109 (up from JP¥78.53 in 3Q 2023). Revenue: JP¥74.9b (up 33% from 3Q 2023). Net income: JP¥3.60b (up 36% from 3Q 2023). Profit margin: 4.8% (up from 4.7% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue is expected to decline by 2.8% p.a. on average during the next 3 years, while revenues in the Construction industry in Europe are expected to grow by 4.1%. Reported Earnings • Nov 15
Second quarter 2024 earnings released: EPS: JP¥91.91 (vs JP¥68.49 in 2Q 2023) Second quarter 2024 results: EPS: JP¥91.91 (up from JP¥68.49 in 2Q 2023). Revenue: JP¥73.8b (up 61% from 2Q 2023). Net income: JP¥3.05b (up 31% from 2Q 2023). Profit margin: 4.1% (down from 5.1% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to stay flat during the next 3 years compared to a 7.2% growth forecast for the Construction industry in Germany. Announcement • Oct 30
Taikisha Ltd. Revises Consolidated and Non-Consolidated Earnings Guidance for the First Half of Fiscal Ending March 31, 2024 Taikisha Ltd. revised Consolidated and Non-Consolidated Earnings Guidance for the first half of Fiscal Ending March 31, 2024. On consolidated basis for the first half, The company expects net sales to be JPY 130,400 million, Operating income to be JPY 7,400 million, profit attributable to owners of parent to be JPY 6,600 million or JPY 198.69 per basic share against previous guidance of net sales to be JPY 127,100 million, Operating income to be JPY 5,700 million, profit attributable to owners of parent to be JPY 4,600 million or JPY 138.55 per basic share.On non-consolidated basis for the first half, The company expects sales to be JPY 81,300 million, profit to be JPY 6,100 million or JPY 183.64 per basic share against previous guidance of sales to be JPY 78,000 million, profit to be JPY 5,000 million or JPY 150.60 per basic share. New Risk • Oct 16
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.1% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 0.1% per year for the foreseeable future. Minor Risk Dividend is not well covered by cash flows (160% cash payout ratio). Upcoming Dividend • Sep 21
Upcoming dividend of JP¥50.00 per share at 2.7% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 30 November 2023. Payout ratio is a comfortable 36% but the company is paying out more than the cash it is generating. Trailing yield: 2.7%. Lower than top quartile of German dividend payers (4.8%). Lower than average of industry peers (3.8%). New Risk • Aug 13
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 2.3% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 2.3% per year for the foreseeable future. Minor Risk Dividend is not well covered by cash flows (161% cash payout ratio). Reported Earnings • Aug 13
First quarter 2024 earnings released: EPS: JP¥108 (vs JP¥3.37 in 1Q 2023) First quarter 2024 results: EPS: JP¥108 (up from JP¥3.37 in 1Q 2023). Revenue: JP¥56.6b (up 42% from 1Q 2023). Net income: JP¥3.57b (up JP¥3.46b from 1Q 2023). Profit margin: 6.3% (up from 0.3% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 1.3% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Construction industry in Germany. Announcement • Aug 11
Taikisha Ltd. (TSE:1979) announces an Equity Buyback for 700,000 shares, representing 2.09% for ¥2,000 million. Taikisha Ltd. (TSE:1979) announces a share repurchase program. Under the program, the company will repurchase up to 700,000 shares, representing 2.09% of its share capital, for ¥2,000 million. The company will repurchase its shares in order to enhance shareholder returns and to increase capital efficiency as well as to enable the company to implement a flexible capital strategy in response to changes in the business environment. The share repurchase program will run until February 29, 2024. As of July 31, 2023, the company had 33,425,874 shares outstanding (excluding treasury shares) and 156,135 shares in treasury. Board Change • Jul 26
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 1 was an independent director. The company's board is composed of: 3 independent directors. 5 non-independent directors. Independent Outside Director Masasuke Kishi was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. 
