Hazama Ando (1719) AI Stock Analysis

• Market Cap: €316.65B
• Dividend Yield: 3.98%
• Average Volume (3M): 807.34K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.56
• Revenue Growth: 9.82%
• EPS Growth: 92.67%
• Country: JP
• Employees: 3,691
• Sector: Industrials
• Sector Strength: 74
• Industry: Engineering & Construction
• EPS (TTM): 20.03
• Shares Outstanding: 181,021,200
• 10 Day Avg. Volume: 778,710
• 30 Day Avg. Volume: 807,343
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €1,830.33
• Price Target Upside: 5.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: ¥1,829.00 ▲(5.18% Upside)

Hazama Ando's strong financial performance and attractive valuation are the most significant positive factors driving the overall stock score. The company's solid revenue growth, profitability, and balance sheet stability are complemented by an appealing P/E ratio and dividend yield. However, the technical indicators suggest caution due to overbought conditions, which slightly tempers the overall score.

Hazama Ando Business Overview & Revenue Model

Company Description

Hazama Ando Corporation engages in the construction and construction-related business in Japan and internationally. The company offers civil engineering and building construction services, including surveys, measurements, planning, designing, executing, supervising, technical guidance contract, commissioning, and consulting services. Its projects include offices, production and distribution facilities, medical and welfare facilities, educational and research facilities, cultural and sports facilities, commercial and leisure facilities, traditional facilities, housing complexes, and other buildings; and dams, water/sewer systems, tunnels, roads and land reclamation, bridges, airports, and other public works, as well as renewal, urban civil engineering, civil engineering structure, offshore engineering, and other projects. The company also provides real estate transaction services; and owns and uses real properties and securities. In addition, it undertakes soil survey and purification works, such as the collection, handling, and disposal of waste, as well as related consulting services; and offers planning, designing, and consulting services related to area and urban development, environmental improvements, etc. Further, the company is involved in power generation; and electricity, thermal, and other energy supply activities. Additionally, it sells construction materials, machinery, and appliances; develops, licenses, and sells software; and provides building maintenance and security services. The company was formerly known as Hazama Corporation and changed its name to Hazama Ando Corporation in April 2013. Hazama Ando Corporation was founded in 1873 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Hazama Ando Corporation generates revenue primarily through its construction and engineering projects. The company engages in large-scale infrastructure projects including roads, bridges, tunnels, and urban developments, which form a significant portion of its income. Additionally, it earns from building construction services, encompassing the development of residential, commercial, and industrial properties. The company's earnings are further supported by its involvement in environmental projects and renewable energy initiatives. Long-term contracts with governmental bodies, private sector clients, and strategic partnerships with other construction and engineering firms also contribute to its revenue streams.

Hazama Ando Financial Statement Overview

Summary

Hazama Ando exhibits solid financial health with strong revenue growth and profitability margins. The company maintains a healthy balance sheet with low leverage and strong equity levels. However, there is room for improvement in cash flow efficiency, which could further strengthen the financial position.

Income Statement

Hazama Ando has demonstrated strong revenue growth of 7.87% from the previous year, with a gross profit margin of 14.34% and a net profit margin of 6.22%. The company has improved its EBIT margin to 8.29% and EBITDA margin to 9.95%, indicating robust operational efficiency. These metrics reflect the company's ability to convert revenue into profit effectively, despite the competitive nature of the engineering and construction industry.

Balance Sheet

The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.16, suggesting prudent financial leverage. The return on equity is strong at 15.45%, showcasing effective use of shareholder funds to generate profits. The equity ratio of 46.02% also indicates a solid equity base relative to total assets, providing financial stability.

Cash Flow

Hazama Ando's cash flow statement shows positive free cash flow growth, reversing from negative in previous periods to ¥7.05 billion. The operating cash flow to net income ratio of 0.42 suggests adequate cash generation relative to net income. The free cash flow to net income ratio of 0.27 indicates potential for reinvestment and debt servicing, albeit with room for improvement in cash flow efficiency.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	425.16B	394.13B	372.15B	340.29B	352.00B
Gross Profit	60.96B	43.31B	42.02B	46.86B	48.16B
EBITDA	42.33B	21.85B	21.95B	29.01B	29.44B
Net Income	26.44B	13.88B	15.19B	17.67B	17.19B
Balance Sheet
Total Assets	371.97B	334.14B	318.01B	295.33B	339.61B
Cash, Cash Equivalents and Short-Term Investments	57.29B	50.21B	75.60B	66.08B	129.32B
Total Debt	27.90B	23.63B	24.11B	24.71B	25.27B
Total Liabilities	199.79B	179.68B	176.69B	153.65B	192.94B
Stockholders Equity	171.21B	153.57B	140.48B	140.92B	145.92B
Cash Flow
Free Cash Flow	7.05B	-18.19B	29.27B	-38.64B	26.22B
Operating Cash Flow	11.18B	-11.12B	32.27B	-36.09B	29.15B
Investing Cash Flow	1.60B	-6.09B	-4.74B	-4.55B	-3.95B
Financing Cash Flow	-5.75B	-9.05B	-18.43B	-22.57B	-12.66B

Hazama Ando Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1739.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1719, the sentiment is Positive. The current price of 1739 is above the 20-day moving average (MA) of 1718.15, above the 50-day MA of 1628.60, and above the 200-day MA of 1374.03, indicating a bullish trend. The MACD of 33.34 indicates Positive momentum. The RSI at 63.62 is Neutral, neither overbought nor oversold. The STOCH value of 81.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1719.

Hazama Ando Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1719	78 Outperform	€316.65B	10.08	17.85%	3.98%	9.82%	92.67%
Sector *	64 Neutral	$10.75B	15.58	7.24%	2.01%	2.80%	-14.32%
PNOCF	―	$2.07B	21.20	8.52%	1.93%	―	―
1860	75 Outperform	¥326.48B	12.77		2.75%	16.62%	42.69%
5076	75 Outperform	¥375.11B	9.96		3.94%	―	―
1835	73 Outperform	¥153.19B	12.91		3.04%	13.51%	28.97%
1820	71 Outperform	¥208.41B	13.06		4.14%	-8.97%	9.14%

Hazama Ando Corporate Events

Hazama Ando Corporation Reports Strong Fiscal Year 2025 Results

Hazama Ando Corporation reported strong financial results for the fiscal year ended March 31, 2025, with a notable increase in net sales and profits compared to the previous year. The company achieved a 7.9% rise in net sales and a significant increase in operating profit by 89.6%, indicating robust operational performance. The company’s strategic financial management and market positioning have resulted in a higher dividend payout, reflecting its commitment to returning value to shareholders.