Giken Holdings Co., Ltd. (1443) AI Stock Analysis

• Market Cap: ¥3.62B
• Dividend Yield: 0.48%
• Average Volume (3M): 92.39K
• Price to Earnings (P/E): 6.7
• Beta (1Y): 0.55
• Revenue Growth: -4.59%
• EPS Growth: -2.07%
• Country: JP
• Employees: 100
• Sector: Industrials
• Sector Strength: 78
• Industry: Engineering & Construction
• EPS (TTM): 4.76
• Shares Outstanding: 16,237,976
• 10 Day Avg. Volume: 128,540
• 30 Day Avg. Volume: 92,393
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥241.00
• Price Target Upside: 8.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 81 Outperform
• Price Target: ¥241.00 ▲(8.07% Upside)

Strong technical momentum and attractive valuation are the most significant factors, suggesting potential investor interest. However, financial performance is mixed, with concerns over revenue decline and cash flow sustainability.

Giken Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Giken Holdings Co., Ltd. (1443) is a Japanese construction company that specializes in delivering comprehensive architectural and engineering solutions. The company is engaged in a wide array of construction-related activities, including civil engineering, building construction, and infrastructure development. Giken Holdings is known for its innovative approaches and high-quality standards, catering primarily to the domestic Japanese market while also exploring opportunities for international expansion.

How the Company Makes Money

Giken Holdings Co., Ltd. generates revenue through its diverse range of construction services. The company earns income primarily from contracts for building and civil engineering projects, which include residential, commercial, and public infrastructure developments. Additionally, Giken Holdings may establish partnerships with local governments and private sector clients to undertake large-scale projects, contributing to its revenue streams. The company also benefits from maintenance and renovation contracts that provide recurring income. Strategic collaborations and investments in technology and sustainable construction practices may further enhance its profitability.

Giken Holdings Co., Ltd. Financial Statement Overview

Summary

The company shows strong equity and low leverage, with healthy profit margins. However, declining revenues and fluctuating cash flows suggest challenges in market demand and operational efficiency.

Income Statement

The company's income statement shows a declining trend in total revenue over recent years, from 10 billion to approximately 4.9 billion. Despite this, the gross profit margin has remained relatively healthy at around 26.4% in the latest year, and the net profit margin is stable at about 10%. However, revenue growth is a concern with a consistent decline, indicating potential challenges in market demand or competitiveness. The EBIT and EBITDA margins are also lower compared to historical figures, suggesting pressures on operating efficiency.

Balance Sheet

The balance sheet reflects a strong equity position with a debt-to-equity ratio of 0.3, indicating low leverage. The return on equity is stable at around 4.5%, which is modest but consistent. The equity ratio remains robust at approximately 67.5%, highlighting a solid capital structure. However, the declining asset base and reduced cash reserves over recent years could pose potential risks to liquidity and future investment capabilities.

Cash Flow

The cash flow statement reveals significant volatility in free cash flow, which turned positive in the latest year to 325.6 million from a negative position in previous years. The operating cash flow to net income ratio is favorable, suggesting efficient cash generation from operations. However, the free cash flow to net income ratio indicates potential challenges in maintaining positive free cash flow consistently. The recent improvement in free cash flow growth is a positive sign, but sustainability remains uncertain.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.91B	5.17B	5.48B	8.18B	9.36B
Gross Profit	1.30B	1.22B	1.21B	1.88B	2.11B
EBITDA	972.51M	881.59M	732.22M	1.07B	1.41B
Net Income	491.95M	444.22M	329.15M	466.68M	746.47M
Balance Sheet
Total Assets	16.16B	17.23B	15.73B	15.98B	16.29B
Cash, Cash Equivalents and Short-Term Investments	1.86B	2.62B	3.24B	3.85B	4.83B
Total Debt	3.31B	3.82B	4.13B	2.93B	3.19B
Total Liabilities	5.25B	6.16B	6.19B	6.09B	6.91B
Stockholders Equity	10.92B	11.06B	9.54B	9.88B	9.38B
Cash Flow
Free Cash Flow	325.61M	83.67M	-463.46M	-45.49M	1.40B
Operating Cash Flow	358.36M	932.67M	668.54M	98.51M	1.68B
Investing Cash Flow	-286.74M	-841.82M	-2.37B	-1.06B	-2.65B
Financing Cash Flow	-532.53M	-326.90M	935.49M	-13.36M	1.79B

Giken Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 223.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1443, the sentiment is Positive. The current price of 223 is above the 20-day moving average (MA) of 204.10, above the 50-day MA of 198.18, and above the 200-day MA of 188.11, indicating a bullish trend. The MACD of 6.01 indicates Negative momentum. The RSI at 83.32 is Negative, neither overbought nor oversold. The STOCH value of 91.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1443.

Giken Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1443	81 Outperform	¥3.62B	6.70		0.48%	-4.59%	-2.07%
1743	80 Outperform	¥4.19B	7.91		1.89%	22.30%	19.46%
1764	75 Outperform	¥3.17B	7.14		4.22%	9.69%	175.96%
1841	74 Outperform	¥4.08B	8.27		2.68%	-9.83%	33.02%
1758	72 Outperform	¥4.70B	17.50		2.47%	-7.48%	9.38%
Sector *	71 Outperform	¥267.81B	14.79	8.32%	2.78%	6.12%	11.24%
1788	67 Neutral	¥2.42B	10.73		1.71%	10.80%	73.04%