Teikoku Sen-i Co., Ltd. — Cyborg Score 6/10

Solid
Specialty Chemicals / Disaster Prevention Equipment / Industrial Textiles

Strategic Profile

The company reported FY 2025 Q3 revenue of ¥5.8b with trailing twelve month EPS of ¥148.84 reflecting earnings growth of 38% over the past year and an improvement in net profit margin to 11.5% from 9.4%. Teikoku Sen-i is a dividend paying company with a current yield of 2.17%, with dividend payments having increased over the last 10 years and well covered by earnings.

Cyborg Score Rationale

Strong recent earnings growth (38% EPS increase) and margin expansion to 11.5% demonstrate operational improvement. However, five-year earnings declined ~1% annually, and volatile quarterly performance raises sustainability concerns about the recent lift.

Top Insights

  • Trailing 12-month EPS up 38% year-over-year with net profit margin expansion from 9.4% to 11.5%, indicating operational leverage
  • Significant quarterly volatility with Q2 FY 2025 loss of ¥3.00 per share followed by Q3 recovery to ¥17.41 basic EPS
  • Five-year earnings declined ~1% annually despite recent recovery, suggesting recent improvement may not be sustainable without structural changes
  • Dividend increased for multiple consecutive years and projected sustainable at ~31-32% payout ratio with expected 25% EPS growth next year

Named Competitors

  • General Industrial Equipment — Potential suppliers of fire hoses and emergency equipment

Recent Developments

  • (March 2026) Dividend payment of ¥55.00 announced for March 31, increased from prior year
  • (February 2026) FY 2025 Q3 results released showing ¥5.8b revenue and net profit margin improvement to 11.5%
  • (December 2025) Analyst rating Strong Buy with ¥3,700 price target, showing 6.47% upside potential from December 2025 levels

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