# Taiheiyo Cement (5233.JP)

Canonical: https://gigainvestors.com/s/5233.JP

Analysis as of: 2026-10-15T07:10:35.330Z. Financial observations: FY2014–FY2026.

Listing currency: JPY. Reporting currency: JPY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: JPY 4,071.00 per share; close as of 2026-10-15.

Estimated value: low JPY 2,680.43 per share, central JPY 3,085.00 per share, high JPY 3,522.35 per share. Buy at or below the central value JPY 3,085.00 per share. Valuation as of 2026-10-15T07:10:35.330Z; scenarios are not confidence intervals.

Expected annual return: 8.1% at the stated quote. About 8.1% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; JP 10-year bond 2.9% + 4 points).

## Checklist

### understandable: pass

- 4 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 1

- Operating margin variation: 0.32×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.08×

- FY2018: 0.07×

- FY2019: 0.07×

- FY2020: 0.07×

- FY2021: 0.07×

- FY2022: 0.07×

- FY2023: 0.01×

- FY2024: 0.06×

- FY2025: 0.09×

- FY2026: 0.08×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 6.7%

- ROIC, second-lowest year: 4.6%

- Typical minus recent gross margin: -1.3 pp

- Typical gross margin (annual median): 22.9%

- Recent gross margin (lower of latest and 3-year median): 24.2%

- Years with nonpositive capital: 0

- Capital spending / revenue: 7.7%

- ROIC including acquisitions, ten-year median: 4.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 8.6%

- FY2018: 7.0%

- FY2019: 7.8%

- FY2020: 7.2%

- FY2021: 7.3%

- FY2022: 4.6%

- FY2023: 0.4%

- FY2024: 4.8%

- FY2025: 6.3%

- FY2026: 4.7%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.55×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: JPY 67B

- Net income, five-year total: JPY 122B

- Return on incremental invested capital: 2.8%

- Working capital / revenue, annual change: 0.7 pp

- Working capital / revenue, change between three-year averages: 3.8 pp

- Working capital / revenue, final three-year average: 22.8%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 0.61×

- FY2023: 0.97×

- FY2024: 1.00×

- FY2025: 0.73×

- FY2026: -0.13×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 7.8% vs 4.8%

- Per-share earnings: 311.40 to 371.09 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -1.0%

- Ordinary dilution, 5-year annual growth: -1.6%

- Market cap gain: JPY -71B

- Cumulative retained earnings: JPY 204B

- Diluted shares, 10-year annual growth: -1.0%

- Diluted shares, 5-year annual growth: -1.6%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 2.2%

- Per-share value change: JPY 59.69

- Per-share value, starting three-year median: JPY 311.40

- Per-share value, ending three-year median: JPY 371.09

- Buybacks concentrated in cheaper years (correlation): 0.61

- Average buyback yield: 1.3%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: JPY 20B

- Cumulative net income, 10 years: JPY 337B

- ROIC, first three-year median: 7.8%

- ROIC, last three-year median: 4.8%

Chart: Earnings per share; fiscal year observations.

- FY2017: JPY 383.91

- FY2018: JPY 311.40

- FY2019: JPY 351.72

- FY2020: JPY 319.89

- FY2021: JPY 387.79

- FY2022: JPY 245.80

- FY2023: JPY -283.68

- FY2024: JPY 371.09

- FY2025: JPY 502.48

- FY2026: JPY 227.86

### accounting: pass

- Sloan accruals: -6.0%

- Receivables to sales index (DSRI): 0.99×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 4.50×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.06×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -4.6%

- FY2018: -6.8%

- FY2019: -5.2%

- FY2020: -5.0%

- FY2021: -6.1%

- FY2022: -3.8%

- FY2023: -2.6%

- FY2024: -7.3%

- FY2025: -4.2%

- FY2026: -6.0%

## Holders

## Price story

Price needs cash profits to grow 5.7% a year for ten years · sales +0.2%

Story as of 2026-10-16T10:00:14.329Z; price observation 2026-10-15.

Price needs cash profits to grow 5.7% a year for ten years

### Sales · FY2025–2026

sales +0.2%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YJYE.pdf; observed 2026-06-25.

- FY2017: JPY 799B 

- FY2018: JPY 871B 

- FY2019: JPY 916B 

- FY2020: JPY 884B 

- FY2021: JPY 864B 

- FY2022: JPY 708B 

- FY2023: JPY 810B 

- FY2024: JPY 886B 

- FY2025: JPY 896B 

- FY2026: JPY 898B 

### Gross margin · FY2026

gross margin 24.9%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YJYE.pdf; observed 2026-06-25.

- FY2017: 24.9% 

- FY2018: 23.7% 

- FY2019: 22.2% 

- FY2020: 22.1% 

- FY2021: 22.1% 

- FY2022: 24.8% 

- FY2023: 17.4% 

- FY2024: 21.7% 

- FY2025: 24.2% 

- FY2026: 24.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Annual sales are JPY 898.4 billion.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YJYE.pdf (filed 2026-06-25); FY2026: revenue 898441000000; grossProfit 223264000000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 21.7% to 24.9% during 2024–26; it earns 6.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2024: grossProfit / revenue = 21.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2025: grossProfit / revenue = 24.2%.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YJYE.pdf (filed 2026-06-25); FY2026: grossProfit / revenue = 24.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); 10-year return on capital observations [[2017,0.08637908858477668],[2018,0.07039740515344056],[2019,0.07768531467304195],[2020,0.07195790256132473],[2021,0.0734840257298976],[2022,0.0461170450080096],[2023,0.0041659004062659395],[2024,0.048387669797012624],[2025,0.06269167044371955],[2026,0.04735566690229129]]; median 0.06654453779858005. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back JPY 27 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2017: growth capex 0; upkeep 48638000000; owner earnings 43418000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2018: growth capex 8585000000; upkeep 44003000000; owner earnings 38525000000. Growth capex / owner earnings = 0.22284231018818948.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2019: growth capex 20512000000; upkeep 44008000000; owner earnings 43452000000. Growth capex / owner earnings = 0.47206112491945135.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2020: growth capex 0; upkeep 66378000000; owner earnings 21636000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2021: growth capex 0; upkeep 58656000000; owner earnings 40828000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2022: growth capex 0; upkeep 67326000000; owner earnings 17656000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2024: growth capex 20854000000; upkeep 66305000000; owner earnings 43273000000. Growth capex / owner earnings = 0.48191713077438586.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2025: growth capex 7496401646.396423; upkeep 76456598353.60358; owner earnings 41847401646.39642. Growth capex / owner earnings = 0.17913660947792576.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); Dividend observations: [[2017,7474000000],[2018,7423000000],[2019,9909000000],[2020,7350000000],[2021,7292000000],[2022,7648000000],[2023,8204000000],[2024,8216000000],[2025,8677000000],[2026,10039000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YJYE.pdf (filed 2026-06-25); FY2026: cash repurchases 27000000 JPY.

### What the price says

The price assumes cash profits grow 5.7% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); Ten-year compound average after fade. Initial solved rate 0.06842383179930145. Price 4071; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 359.6658862662658 → FY2026 -30.184768310982708. Closing-price date 2026-10-15.

## Monthly share-price history (JPY per share)

- 2016-11: JPY 3,580.00 per share

- 2016-12: JPY 3,700.00 per share

- 2017-01: JPY 3,950.00 per share

- 2017-02: JPY 3,950.00 per share

- 2017-03: JPY 3,720.00 per share

- 2017-04: JPY 3,710.00 per share

- 2017-05: JPY 3,560.00 per share

- 2017-06: JPY 4,090.00 per share

- 2017-07: JPY 4,150.00 per share

- 2017-08: JPY 4,240.00 per share

- 2017-09: JPY 4,345.00 per share

- 2017-10: JPY 4,520.00 per share

- 2017-11: JPY 4,610.00 per share

- 2017-12: JPY 4,865.00 per share

- 2018-01: JPY 4,635.00 per share

- 2018-02: JPY 4,000.00 per share

- 2018-03: JPY 3,865.00 per share

- 2018-04: JPY 4,145.00 per share

- 2018-05: JPY 4,030.00 per share

- 2018-06: JPY 3,645.00 per share

- 2018-07: JPY 3,515.00 per share

- 2018-08: JPY 3,360.00 per share

- 2018-09: JPY 3,565.00 per share

- 2018-10: JPY 3,335.00 per share

- 2018-11: JPY 3,840.00 per share

- 2018-12: JPY 3,395.00 per share

- 2019-01: JPY 3,720.00 per share

- 2019-02: JPY 3,805.00 per share

- 2019-03: JPY 3,690.00 per share

- 2019-04: JPY 3,570.00 per share

- 2019-05: JPY 3,210.00 per share

- 2019-06: JPY 3,260.00 per share

- 2019-07: JPY 3,075.00 per share

- 2019-08: JPY 2,682.00 per share

- 2019-09: JPY 2,891.00 per share

- 2019-10: JPY 3,080.00 per share

- 2019-11: JPY 3,165.00 per share

- 2019-12: JPY 3,215.00 per share

- 2020-01: JPY 2,984.00 per share

- 2020-02: JPY 2,663.00 per share

- 2020-03: JPY 1,850.00 per share

- 2020-04: JPY 2,138.00 per share

- 2020-05: JPY 2,547.00 per share

- 2020-06: JPY 2,492.00 per share

- 2020-07: JPY 2,285.00 per share

- 2020-08: JPY 2,696.00 per share

- 2020-09: JPY 2,674.00 per share

- 2020-10: JPY 2,444.00 per share

- 2020-11: JPY 2,806.00 per share

- 2020-12: JPY 2,579.00 per share

- 2021-01: JPY 2,602.00 per share

- 2021-02: JPY 2,652.00 per share

- 2021-03: JPY 2,911.00 per share

- 2021-04: JPY 2,739.00 per share

- 2021-05: JPY 2,521.00 per share

- 2021-06: JPY 2,437.00 per share

- 2021-07: JPY 2,540.00 per share

- 2021-08: JPY 2,522.00 per share

- 2021-09: JPY 2,326.00 per share

- 2021-10: JPY 2,411.00 per share

- 2021-11: JPY 2,199.00 per share

- 2021-12: JPY 2,273.00 per share

- 2022-01: JPY 2,273.00 per share

- 2022-02: JPY 2,207.00 per share

- 2022-03: JPY 2,019.00 per share

- 2022-04: JPY 2,104.00 per share

- 2022-05: JPY 1,925.00 per share

- 2022-06: JPY 2,025.00 per share

- 2022-07: JPY 1,991.00 per share

- 2022-08: JPY 2,089.00 per share

- 2022-09: JPY 2,038.00 per share

- 2022-10: JPY 2,021.00 per share

- 2022-11: JPY 2,167.00 per share

- 2022-12: JPY 2,057.00 per share

- 2023-01: JPY 2,236.00 per share

- 2023-02: JPY 2,503.00 per share

- 2023-03: JPY 2,487.00 per share

- 2023-04: JPY 2,430.00 per share

- 2023-05: JPY 2,373.00 per share

- 2023-06: JPY 2,839.50 per share

- 2023-07: JPY 2,967.00 per share

- 2023-08: JPY 2,794.50 per share

- 2023-09: JPY 2,650.00 per share

- 2023-10: JPY 2,568.50 per share

- 2023-11: JPY 2,777.50 per share

- 2023-12: JPY 2,906.00 per share

- 2024-01: JPY 3,050.00 per share

- 2024-02: JPY 3,143.00 per share

- 2024-03: JPY 3,535.00 per share

- 2024-04: JPY 3,617.00 per share

- 2024-05: JPY 3,916.00 per share

- 2024-06: JPY 4,038.00 per share

- 2024-07: JPY 4,131.00 per share

- 2024-08: JPY 3,315.00 per share

- 2024-09: JPY 3,369.00 per share

- 2024-10: JPY 3,365.00 per share

- 2024-11: JPY 3,803.00 per share

- 2024-12: JPY 3,587.00 per share

- 2025-01: JPY 3,929.00 per share

- 2025-02: JPY 3,900.00 per share

- 2025-03: JPY 3,897.00 per share

- 2025-04: JPY 3,846.00 per share

- 2025-05: JPY 3,709.00 per share

- 2025-06: JPY 3,584.00 per share

- 2025-07: JPY 3,714.00 per share

- 2025-08: JPY 4,021.00 per share

- 2025-09: JPY 3,845.00 per share

- 2025-10: JPY 4,191.00 per share

- 2025-11: JPY 3,789.00 per share

- 2025-12: JPY 3,883.00 per share

- 2026-01: JPY 4,239.00 per share

- 2026-02: JPY 4,493.00 per share

- 2026-03: JPY 3,501.00 per share

- 2026-04: JPY 3,568.00 per share

- 2026-05: JPY 4,530.00 per share

- 2026-06: JPY 3,971.00 per share

- 2026-07: JPY 4,074.00 per share

- 2026-08: JPY 4,240.00 per share

- 2026-09: JPY 4,107.00 per share

- 2026-10: JPY 4,230.00 per share

## Annual estimated value (JPY per share)

- FY2020: low JPY 4,023.64 per share, central JPY 4,540.16 per share, high JPY 5,227.76 per share

- FY2021: low JPY 4,160.00 per share, central JPY 4,669.83 per share, high JPY 5,348.52 per share

- FY2022: low JPY 3,295.59 per share, central JPY 3,696.04 per share, high JPY 4,229.14 per share

- FY2023: low JPY 2,428.29 per share, central JPY 2,688.13 per share, high JPY 3,034.02 per share

- FY2024: low JPY 2,666.81 per share, central JPY 3,035.90 per share, high JPY 3,444.18 per share

- FY2025: low JPY 4,651.52 per share, central JPY 5,410.90 per share, high JPY 6,215.26 per share

- FY2026: low JPY 2,680.43 per share, central JPY 3,085.00 per share, high JPY 3,522.35 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original EDINET filing](https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YJYE.pdf); period 2026-03-31, filed 2026-06-25.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations