First-corporation Inc. (1430) AI Stock Analysis

• Market Cap: ¥12.12B
• Dividend Yield: 4.36%
• Average Volume (3M): 41.27K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.41
• Revenue Growth: 41.95%
• EPS Growth: 35.36%
• Country: JP
• Employees: 182
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Residential Construction
• EPS (TTM): N/A
• Shares Outstanding: 13,363,540
• 10 Day Avg. Volume: 40,730
• 30 Day Avg. Volume: 41,270
• PEG Ratio: 0.08
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 0.25
• P/FCF Ratio: 5.17
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥1,122.00 ▲(14.72% Upside)
• Action: Downgraded Date: 10/29/25
• Date: Action: Downgraded 10/29/25

First-corporation Inc. scores well in valuation due to its low P/E ratio and high dividend yield, making it attractive for value and income investors. Financial performance is solid, with strong profitability and cash flow management, though past cash flow volatility warrants caution. Technical analysis indicates a bearish trend, which may concern short-term investors.

Positive Factors

Profitability & margins

First-corporation reports healthy gross and net margins (9.72% and 3.87%) with EBIT/EBITDA near 6%. Durable margins in construction imply the business can absorb modest cost pressures, support reinvestment and shareholder distributions, and sustain profitability across quarters.

Strong cash generation

Operating cash flow has risen substantially and free cash flow growth is strong, with OCF/Net Income ~1.25. Reliable cash conversion supports capex, dividends and debt servicing, providing durable financial flexibility even if revenue growth moderates over the coming months.

Moderate leverage with high ROE

A sub-0.5 debt-to-equity and ROE above 17% indicate efficient capital use and a conservative leverage profile. The equity ratio near 39% provides a stable capital structure that supports investment and absorbs shocks, making balance-sheet risk manageable over a multi-month horizon.

Negative Factors

Revenue decline / volatility

Reported revenue growth shows a steep multi-period decline (~-25.9%), signalling demand or order-book weakness that can reduce scale benefits and pressure margins. Even with a small recent uptick, the larger downward trend is a structural risk for near-term revenue stability.

Historical cash flow volatility

Although recent operating cash flow is strong, prior periods had negative cash flows, indicating volatility in cash generation. This cyclicality undermines predictability for investment and payouts and raises execution risk if project timing or collections worsen.

Rising debt trend risk

The balance sheet shows moderate leverage now, but management has increased total debt over time. If revenue or margins deteriorate, higher debt levels could strain interest coverage and reduce financial flexibility, making the company more sensitive to downturns.

First-corporation Inc. Business Overview & Revenue Model

Company Description

First-corporation Inc. operates as a general construction company in Japan. It constructs condominiums and apartments. The company was founded in 2011 and is headquartered in Tokyo, Japan.

How the Company Makes Money

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First-corporation Inc. Financial Statement Overview

Summary

First-corporation Inc. demonstrates solid financial performance with strong profitability and efficient cash flow management. The company maintains a stable balance sheet with moderate leverage. While revenue growth has slowed, the company remains profitable with strong margins. Cash flow improvements are notable, though past volatility suggests a need for cautious cash management.

Income Statement

First-corporation Inc. has shown a consistent revenue growth rate of 1.99% in the latest period, with a strong gross profit margin of 9.72% and a net profit margin of 3.87%. The EBIT and EBITDA margins are healthy at 5.97% and 5.98%, respectively. However, the revenue growth has slowed compared to previous years, indicating potential market saturation or increased competition.

Balance Sheet

The company's debt-to-equity ratio is 0.48, indicating a moderate level of leverage. The return on equity is 17.11%, which is strong and suggests efficient use of equity. The equity ratio stands at 39.21%, reflecting a stable financial structure. However, the increase in total debt over the years could pose a risk if not managed properly.

Cash Flow

The operating cash flow has improved significantly to 2,094,972,000, and the free cash flow growth rate is notably high, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 1.25, and the free cash flow to net income ratio is 1.23, both indicating efficient cash conversion. However, previous periods showed negative cash flows, highlighting potential volatility.

Breakdown	May 2024	May 2023	May 2022	May 2021	May 2020
Income Statement
Total Revenue	43.19B	28.49B	25.54B	30.18B	20.92B
Gross Profit	4.20B	2.86B	3.39B	3.17B	2.92B
EBITDA	2.59B	1.47B	2.00B	1.93B	1.69B
Net Income	1.67B	944.92M	1.36B	1.27B	1.13B
Balance Sheet
Total Assets	24.90B	23.72B	21.47B	17.82B	17.43B
Cash, Cash Equivalents and Short-Term Investments	5.40B	4.12B	5.06B	4.92B	4.28B
Total Debt	4.72B	5.10B	3.94B	2.96B	4.61B
Total Liabilities	15.14B	15.25B	13.55B	10.89B	11.15B
Stockholders Equity	9.76B	8.47B	7.92B	6.93B	6.28B
Cash Flow
Free Cash Flow	2.06B	-1.60B	-382.95M	2.99B	2.81B
Operating Cash Flow	2.09B	-1.57B	-302.15M	3.01B	2.81B
Investing Cash Flow	-49.98M	-92.07M	-128.83M	-71.14M	-45.19M
Financing Cash Flow	-762.56M	720.97M	498.74M	-2.30B	-2.58B

First-corporation Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 978.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1430, the sentiment is Neutral. The current price of 978 is below the 20-day moving average (MA) of 1072.50, below the 50-day MA of 1056.50, and above the 200-day MA of 961.27, indicating a neutral trend. The MACD of -5.61 indicates Positive momentum. The RSI at 41.59 is Neutral, neither overbought nor oversold. The STOCH value of 31.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1430.

First-corporation Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1430	68 Neutral	¥12.12B	8.37	―	4.36%	41.95%	35.36%
1873	63 Neutral	¥12.20B	170.52	―	3.44%	―	―
8917	62 Neutral	¥15.73B	15.76	―	3.75%	19.17%	-42.56%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1419	56 Neutral	¥114.87B	13.82	―	5.49%	-16.48%	-77.63%
8904	52 Neutral	¥11.80B	13.48	―	4.61%	-2.47%	7.50%
1420	51 Neutral	¥8.26B	-14.29	―	3.58%	10.75%	117.39%