Strong Balance SheetHigh equity ratio (56.5%) and minimal leverage (debt-to-equity 0.09) provide durable financial resilience. This balance-sheet strength supports winning larger contracts, absorbing timing swings in receivables or cost overruns, and funding capex or bid bonds without heavy external financing.

Revenue Growth And Gross Margin ImprovementYear-over-year revenue up 23.7% with gross margin expansion to 9.24% signals structural demand and improved cost control in core construction operations. Sustained top-line growth plus margin improvement supports long-term cash generation and better conversion of backlog into profitable revenue.

Positive Free Cash FlowThe company preserved positive free cash flow even after a drop in operating cash flow, indicating an ability to fund dividends, capex, and debt service from internal resources. Durable FCF provides flexibility to invest selectively and reduces reliance on external financing.

Bears Say

Declining Operating Cash FlowA 55.2% fall in operating cash flow materially weakens the company’s capacity to fund working capital for construction projects. In a business with upfront costs and lumpy receipts, prolonged op-cash weakness can force increased external financing, constrain bidding ability, and impair project execution.

Modest Profitability / Low ROEROE of 3.9% combined with slightly declining EBIT/EBITDA margins indicates limited profitability relative to capital employed. Low returns reduce the firm's ability to build reserves, compete on thinner margins, and deliver meaningful shareholder value unless operational performance or pricing improves.

Need For Operational EfficiencyManagement explicitly flags declining operating cash flow and modest profitability, pointing to operational inefficiencies. Without durable improvements in project controls, procurement, and cost discipline, margin and cash conversion issues could persist and limit sustainable growth and dividend funding.

1826 FAQ

What was Sata Construction Co., Ltd.’s price range in the past 12 months?

Sata Construction Co., Ltd. lowest stock price was ¥920.00 and its highest was ¥1296.00 in the past 12 months.

What is Sata Construction Co., Ltd.’s market cap?

Sata Construction Co., Ltd.’s market cap is ¥14.76B.

When is Sata Construction Co., Ltd.’s upcoming earnings report date?

Sata Construction Co., Ltd.’s upcoming earnings report date is May 08, 2026 which is in 55 days.

How were Sata Construction Co., Ltd.’s earnings last quarter?

Sata Construction Co., Ltd. released its earnings results on Feb 06, 2026. The company reported ¥24.15 earnings per share for the quarter, beating the consensus estimate of N/A by ¥24.15.

Is Sata Construction Co., Ltd. overvalued?

According to Wall Street analysts Sata Construction Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Sata Construction Co., Ltd. pay dividends?

Sata Construction Co., Ltd. pays a Annually dividend of ¥60 which represents an annual dividend yield of 5.36%. See more information on Sata Construction Co., Ltd. dividends here

What is Sata Construction Co., Ltd.’s EPS estimate?

Sata Construction Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Sata Construction Co., Ltd. have?

Sata Construction Co., Ltd. has 13,386,233 shares outstanding.

What happened to Sata Construction Co., Ltd.’s price movement after its last earnings report?

Sata Construction Co., Ltd. reported an EPS of ¥24.15 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -2.174%.

Which hedge fund is a major shareholder of Sata Construction Co., Ltd.?

Currently, no hedge funds are holding shares in JP:1826

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Sata Construction Co., Ltd.

Sata Construction Co., Ltd. engages in the contracting and investigation, planning and designing, and supervision of civil engineering and other construction works in Japan. It also offers civil engineering services for highways, bridges, tunnels, dams, residential land development projects, and disaster recovery works; and extension, renovation, and remodeling of buildings and condominiums. In addition, the company manufactures, sells, and rents construction materials, equipment, and machineries; owns and leases vehicles, ships, aircrafts, and other machineries; and produces and sells gravels and wood products. Further, it engages in the industrial waste recycling and treatment; building rental and tourism; insurance agency and recruitment of life insurance; and land house selling, mediation, and lending businesses, as well as regional development, urban development, and other projects. Additionally, the company generates, supplies, and sells electricity. Sata Construction Co., Ltd. was founded in 1918 and is headquartered in Maebashi, Japan.