Hazama Ando (1719) AI Stock Analysis

• Market Cap: ¥378.19B
• Dividend Yield: 4.26%
• Average Volume (3M): 713.92K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.53
• Revenue Growth: 9.49%
• EPS Growth: 64.79%
• Country: JP
• Employees: 3,691
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 42.54
• Shares Outstanding: 181,021,200
• 10 Day Avg. Volume: 666,510
• 30 Day Avg. Volume: 713,920
• PEG Ratio: 0.09
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 0.50
• P/FCF Ratio: 30.36
• 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): 136.16
• Revenue Forecast (FY): ¥435.80B

• Rating: 79 Outperform
• Price Target: ¥2,403.00 ▲(27.08% Upside)
• Action: Reiterated Date: 11/28/25
• Date: Action: Reiterated 11/28/25

Hazama Ando's strong financial performance and attractive valuation are the primary drivers of its stock score. The technical analysis supports a positive outlook, though the near overbought RSI suggests caution. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Balance-sheet strength

Prudent leverage (D/E 0.16) and an equity ratio near 46% provide durable financial stability, while a 15.45% ROE signals management effectiveness in deploying shareholder capital. This combination supports capital access and resilience through construction cycles.

Recovering free cash flow

Free cash flow recovery to ¥7.05B after prior negatives shows improving cash generation from operations. Positive FCF and an improving OCF profile increase the company's ability to fund capex, pay dividends and reduce debt over the medium term.

Stable revenue growth and margins

Consistent revenue growth (~7.8%) combined with double-digit gross margin and improved EBIT/EBITDA margins reflects operational discipline. These durable profitability metrics indicate the business converts project revenues into sustained earnings despite competitive pressures.

Negative Factors

Cash conversion inefficiency

Operating cash flow and free cash flow lag net income (OCF/net income 0.42; FCF/net income 0.27), indicating slower cash realization from profits. Over time this limits internal funding for growth and makes the firm more sensitive to timing swings in project cash flows.

Modest net margins

Net margin near 6% leaves limited buffer against input cost increases or contract price pressure in the construction sector. In project-based contracting, modest margins raise vulnerability to overruns and cyclical cost swings, constraining long-term margin resilience.

Concentrated revenue model

Revenue is driven mainly by construction contracting with no detailed diversification disclosed. This concentration ties performance to project cycles, client mix and sector demand, reducing structural diversification and increasing exposure to sector-specific downturns.

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 generates revenue primarily through its construction and engineering projects. The company earns money by securing contracts for public and private construction projects, which include infrastructure development such as highways, bridges, and tunnels, as well as commercial and residential buildings. Key revenue streams include project bidding and execution, consultancy services in engineering, and maintenance contracts. The company also benefits from partnerships with government agencies and private sector firms, enabling it to access larger projects and diversify its portfolio. Furthermore, Hazama Ando invests in research and development to innovate and improve its service offerings, which helps maintain its competitive edge and drive profitability.

Hazama Ando Financial Statement Overview

Summary

Hazama Ando demonstrates strong financial health with robust revenue growth and profitability margins. The balance sheet is well-managed with low leverage and strong equity levels. Cash flows are improving, indicating potential for sustainable growth, though there is room for enhancing cash flow efficiency.

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	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	434.94B	425.16B	394.13B	372.15B	340.29B	352.00B
Gross Profit	65.31B	60.96B	43.31B	42.02B	46.86B	48.16B
EBITDA	38.14B	42.33B	21.85B	21.95B	28.12B	27.50B
Net Income	27.33B	26.44B	13.88B	15.19B	17.67B	17.19B
Balance Sheet
Total Assets	350.97B	371.97B	334.14B	318.01B	295.33B	339.61B
Cash, Cash Equivalents and Short-Term Investments	61.86B	57.29B	50.21B	75.60B	66.08B	129.32B
Total Debt	32.97B	27.90B	23.63B	24.11B	24.71B	25.27B
Total Liabilities	179.85B	199.79B	179.68B	176.69B	153.65B	192.94B
Stockholders Equity	170.19B	171.21B	153.57B	140.48B	140.92B	145.92B
Cash Flow
Free Cash Flow	0.00	7.05B	-18.19B	29.27B	-38.64B	26.22B
Operating Cash Flow	0.00	11.18B	-11.12B	32.27B	-36.09B	29.15B
Investing Cash Flow	0.00	1.60B	-6.09B	-4.74B	-4.55B	-3.95B
Financing Cash Flow	0.00	-5.75B	-9.05B	-18.43B	-22.57B	-12.66B

Hazama Ando Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1891.00
• 50DMA: Positive
• 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:1719, the sentiment is Neutral. The current price of 1891 is below the 20-day moving average (MA) of 2113.45, below the 50-day MA of 2024.23, and above the 200-day MA of 1726.00, indicating a neutral trend. The MACD of 23.53 indicates Positive momentum. The RSI at 53.50 is Neutral, neither overbought nor oversold. The STOCH value of 70.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1719.

Hazama Ando Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1719	79 Outperform	¥378.19B	13.02	16.55%	4.26%	9.49%	64.79%
1802	75 Outperform	$2.96T	17.00	14.23%	2.47%	2.27%	70.36%
1803	75 Outperform	¥2.39T	22.36	11.22%	1.48%	5.14%	773.86%
1861	74 Outperform	¥344.14B	16.73	7.62%	3.44%	7.54%	115.47%
1812	71 Outperform	$3.41T	19.26	13.03%	1.96%	10.52%	71.09%
1801	67 Neutral	¥3.32T	24.19	15.61%	1.83%	6.60%	114.38%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Hazama Ando Corporate Events

Hazama Ando Overhauls Board and Executive Lineup to Bolster Governance

Hazama Ando Corporation has announced board and executive officer changes, including expanding its board to six directors, three of whom are external and designated as independent, subject to shareholder approval in June 2026. The reshuffle elevates Managing Executive Officer Shinichi Monjugawa to board director while keeping President Kazuhiko Kuniya and other external directors in place, reflecting a drive to reinforce governance and oversight.

Monjugawa’s promotion, based on his broad administrative experience in finance, HR, and general affairs, is positioned as a key move to support sustainable growth and corporate value, while some executive responsibilities are reallocated and one executive officer retires to become an advisor. The adjustments in regional and divisional leadership, including a new executive officer for the Sapporo Branch, indicate a fine-tuning of the management structure aimed at enhancing operational effectiveness and risk management across the company’s nationwide construction operations.

The most recent analyst rating on (JP:1719) stock is a Buy with a Yen2584.00 price target. To see the full list of analyst forecasts on Hazama Ando stock, see the JP:1719 Stock Forecast page.

Hazama Ando Lifts Sales and Dividends but Trims Full-Year Profit Outlook

Hazama Ando reported consolidated net sales of ¥311.0 billion for the nine months to December 31, 2025, up 5.1% year on year, with operating profit rising 7.6% to ¥20.6 billion and ordinary profit up 4.7% to ¥19.9 billion. However, profit attributable to owners of parent slipped 4.4% to ¥14.4 billion, while basic earnings per share declined to ¥91.99.

The company’s financial position strengthened, with total assets increasing to ¥377.5 billion and the equity ratio improving to 49.7%, alongside a planned full-year dividend increase to ¥80 per share from ¥70 a year earlier. Despite the solid nine-month performance and higher dividends, Hazama Ando cut its full-year earnings outlook, forecasting only 2.3% growth in net sales and double-digit declines in operating, ordinary and bottom-line profit, signaling expectations of margin pressure or slower project profitability ahead.

The most recent analyst rating on (JP:1719) stock is a Buy with a Yen2584.00 price target. To see the full list of analyst forecasts on Hazama Ando stock, see the JP:1719 Stock Forecast page.

Hazama Ando Buys Singapore Refurbishment Specialist QXY Resources to Bolster Southeast Asia Growth

Hazama Ando has acquired 100% of the shares of Singapore-based construction firm QXY Resources Pte. Ltd., a specialist in refurbishment projects across offices, commercial and educational facilities, as part of its strategy to reinforce its overseas operations. The deal deepens the company’s footprint in Southeast Asia by bringing in a profitable, highly regarded refurbishment player in Singapore, supporting Hazama Ando’s efforts to stabilize earnings and enhance long-term corporate value, while the immediate impact on its fiscal 2025–26 consolidated results is expected to be minimal.

The most recent analyst rating on (JP:1719) stock is a Buy with a Yen2135.00 price target. To see the full list of analyst forecasts on Hazama Ando stock, see the JP:1719 Stock Forecast page.