Takuma Co., Ltd. — Cyborg Score 6/10

Solid
Industrial Machinery & Equipment / Environmental Infrastructure Engineering

Strategic Profile

Operating through four segments—Domestic Environment and Energy Business, Overseas Environment and Energy Business, Package Boiler Business, and Equipment and Systems Business—Takuma constructs waste treatment and sewage plants for local government and facilities, manages power retail operations, and provides after-sales services including plant maintenance and operation management. The company maintains net cash of JP¥44.6b, positioning it as a financially stable player in the industrial machinery and environmental infrastructure sectors.

Cyborg Score Rationale

Takuma has market capitalization of 167.61 billion yen with stable operations but faces valuation headwinds. The stock is trading at 37% below its estimated fair value, though the company has net cash on its balance sheet, providing reassurance about its debt management. Earnings volatility and modest growth present mixed signals.

Top Insights

  • Trading at 37% below fair value estimate despite solid fundamentals
  • Dividend yield of 3.65% in 2024 with 50.67% payout ratio, signaling shareholder-friendly capital allocation
  • Free cash flow amounted to 47% of EBIT over three years, indicating below-expected cash conversion efficiency
  • Company operates through subsidiaries in Thailand and Taiwan, providing international EPC services

Named Competitors

  • Environmental & Energy Infrastructure — Water treatment and environmental solutions
  • Industrial Boiler Systems — Boiler manufacturing and thermal equipment
  • Waste Management Infrastructure — Engineering, procurement, construction for municipal waste facilities

Recent Developments

  • (Mar 2026) Stock trading at 2,272 JPY with 0.49% decline in 24-hour period
  • (Aug 2025) Company has approximately 4,370 employees with market cap of 167.61 billion yen
  • (Mar 2024) Debt increased to 753 million yen while maintaining 45.3 billion yen in cash reserves

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