Sumiken Mitsui Road Co., Ltd. (1776) AI Stock Analysis

• Market Cap: ¥13.02B
• Dividend Yield: 2.81%
• Average Volume (3M): 33.85K
• Price to Earnings (P/E): 78.5
• Beta (1Y): 0.33
• Revenue Growth: -2.45%
• EPS Growth: -71.57%
• Country: JP
• Employees: 429
• Sector: Industrials
• Sector Strength: 85
• Industry: Engineering & Construction
• EPS (TTM): 6.74
• Shares Outstanding: 9,277,500
• 10 Day Avg. Volume: 20,450
• 30 Day Avg. Volume: 33,850
• PEG Ratio: -1.33
• Price to Book (P/B): 0.96
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: ¥1,518.00 ▲(6.45%Upside)

The stock score is primarily influenced by financial performance challenges, notably in revenue and cash flow. Technical analysis provides a positive counterbalance with strong momentum indicators. Valuation concerns due to a high P/E ratio weigh on the stock, despite a reasonable dividend yield.

Sumiken Mitsui Road Co., Ltd. Business Overview & Revenue Model

Company Description

Sumiken Mitsui Road Co., Ltd. operates primarily in the construction and civil engineering sectors, focusing on road construction, maintenance, and related infrastructure projects. The company's core services include the design, construction, and repair of roads and highways, as well as the development of pavement materials and technologies.

How the Company Makes Money

The company generates revenue through contracts for road construction and maintenance projects, which may be sourced from government entities, private sector clients, or public-private partnerships. Its revenue streams are bolstered by the development and sale of innovative pavement materials and technologies, which are used in various infrastructure projects. Additionally, strategic partnerships with other construction firms and suppliers can enhance its project capabilities and market reach, contributing to its financial performance.

Sumiken Mitsui Road Co., Ltd. Financial Statement Overview

Summary

The company faces financial challenges with declining revenue and profitability margins. Operational inefficiencies and weakening cash flow are notable concerns. Despite a strong balance sheet with low leverage, these issues weigh heavily on financial health.

Income Statement

The company's revenue has shown a declining trend over the past few years, with a revenue decrease of 2.4% from 2024 to 2025. Gross profit margin decreased to 8.15% in 2025 from 10.3% in 2024, indicating pressure on cost management. Net profit margin fell significantly to 0.55% in 2025 from 1.9% in 2024, reflecting challenges in sustaining profitability. The EBIT and EBITDA margins also decreased, suggesting operational inefficiencies.

Balance Sheet

The company maintains a strong equity position, with an equity ratio of 55.2% in 2025, indicating financial stability. The debt-to-equity ratio remains low at 0.0025, reflecting conservative leverage. However, return on equity decreased to 1.23% in 2025 from 4.3% in 2024, showing a decline in shareholder returns.

Cash Flow

Cash flow performance weakened significantly, with a negative free cash flow of -3.55 billion in 2025 compared to a positive 831 million in 2024. The operating cash flow to net income ratio indicates challenges in generating cash from operations. The free cash flow to net income ratio is negative, highlighting cash generation issues relative to reported earnings.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
29.56B	30.16B	30.91B	31.91B	33.80B	33.38B
	Gross Profit
2.87B	2.46B	3.17B	3.25B	4.06B	3.78B
	EBIT
675.00M	226.00M	994.00M	1.01B	1.82B	1.60B
	EBITDA
1.01B	825.00M	1.54B	1.48B	1.48B	2.46B
	Net Income Common Stockholders
407.00M	167.00M	587.00M	630.00M	1.19B	1.19B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.38B	7.03B	11.18B	10.71B	10.68B	9.27B
	Total Assets
24.49B	24.55B	27.69B	28.16B	27.55B	27.11B
	Total Debt
0.00	34.00M	33.00M	25.00M	25.00M	38.00M
	Net Debt
-6.38B	-6.99B	-11.14B	-10.69B	-10.65B	-9.23B
	Total Liabilities
11.09B	10.99B	14.04B	14.81B	15.01B	15.45B
	Stockholders Equity
13.40B	13.56B	13.65B	13.36B	12.54B	11.52B
Cash Flow		Free Cash Flow
0.00	-3.55B	831.00M	1.35B	1.70B	561.00M
	Operating Cash Flow
0.00	-3.15B	1.82B	2.14B	2.43B	1.10B
	Investing Cash Flow
0.00	-600.00M	-1.00B	-793.00M	-752.00M	-520.00M
	Financing Cash Flow
0.00	-402.00M	-351.00M	-297.00M	-267.00M	-250.00M

Sumiken Mitsui Road Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1426.00
• 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:1776, the sentiment is Neutral. The current price of 1426 is below the 20-day moving average (MA) of 1456.25, above the 50-day MA of 1411.58, and above the 200-day MA of 1165.09, indicating a neutral trend. The MACD of 17.69 indicates Positive momentum. The RSI at 47.70 is Neutral, neither overbought nor oversold. The STOCH value of 26.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1776.

Sumiken Mitsui Road Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1884	79 Outperform	¥108.25B	17.50		2.38%	2.35%	25.15%
1882	77 Outperform	¥74.39B	16.66		6.06%	7.21%	11.23%
1898	75 Outperform	¥51.97B	13.58		6.23%	12.86%	41.67%
1890	74 Outperform	¥138.15B	16.61		7.89%	-7.59%	18.77%
1899	66 Neutral	¥41.03B	8.03		4.15%	-1.39%	16.32%
Sector *	66 Neutral	$4.47B	12.21	5.40%	3.65%	4.14%	-12.00%
1776	61 Neutral	¥13.02B	78.46		2.81%	-2.45%	-71.57%