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Sumiken Mitsui Road Co., Ltd. (JP:1776)
:1776
Japanese Market
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Sumiken Mitsui Road Co., Ltd. (1776) AI Stock Analysis

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JP:1776

Sumiken Mitsui Road Co., Ltd.

(1776)

Rating:51Neutral
Price Target:
¥1,511.00
▲(2.58% Upside)
The overall stock score of 51 reflects significant financial challenges, including declining revenue and profitability, as well as weak cash flow. Technical indicators suggest a bearish trend with limited momentum. The high P/E ratio raises valuation concerns, although the dividend yield provides some support.

Sumiken Mitsui Road Co., Ltd. (1776) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionSumiken Mitsui Road Co., Ltd. (1776) is a Japanese company primarily engaged in the construction and maintenance of roads and infrastructure projects. The company offers services that encompass the entire lifecycle of road construction, including planning, design, execution, and maintenance. It operates within the civil engineering sector, serving both public and private clients with a focus on high-quality and sustainable infrastructure solutions.
How the Company Makes MoneySumiken Mitsui Road Co., Ltd. generates revenue through its comprehensive road construction and maintenance services. The company secures contracts for infrastructure projects from governmental bodies, municipal agencies, and private sector clients. Revenue is primarily derived from project-based contracts where the company is compensated for services rendered, including design, construction, and ongoing maintenance of roads and related infrastructure. Additionally, the company may engage in partnerships or joint ventures to undertake large-scale projects that require combined expertise and resources. These collaborations can enhance its revenue streams by leveraging synergies with other firms in the industry.

Sumiken Mitsui Road Co., Ltd. Financial Statement Overview

Summary
Sumiken Mitsui Road Co., Ltd. faces several financial challenges, including declining revenue and profitability margins, alongside weakening cash flow. While the balance sheet remains strong with low leverage, the company needs to address operational inefficiencies and improve cash generation to enhance financial health and shareholder value.
Income Statement
58
Neutral
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
72
Positive
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
45
Neutral
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue30.16B30.16B30.91B31.91B31.54B33.80B
Gross Profit2.46B2.46B3.17B3.25B3.21B3.78B
EBITDA825.00M825.00M1.45B1.42B1.47B2.46B
Net Income167.00M167.00M587.00M630.00M627.00M1.19B
Balance Sheet
Total Assets24.55B24.55B27.69B28.16B27.55B27.11B
Cash, Cash Equivalents and Short-Term Investments7.03B7.03B11.18B10.71B9.66B10.68B
Total Debt34.00M34.00M33.00M25.00M7.00M25.00M
Total Liabilities10.99B10.99B14.04B14.81B15.01B15.45B
Stockholders Equity13.56B13.56B13.65B13.36B12.54B12.54B
Cash Flow
Free Cash Flow0.00-3.55B831.00M1.35B1.70B561.00M
Operating Cash Flow0.00-3.15B1.82B2.14B2.43B1.10B
Investing Cash Flow0.00-600.00M-1.00B-793.00M-752.00M-520.00M
Financing Cash Flow0.00-402.00M-351.00M-297.00M-267.00M-250.00M

Sumiken Mitsui Road Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1473.00
Price Trends
50DMA
1521.10
Negative
100DMA
1476.67
Negative
200DMA
1312.07
Positive
Market Momentum
MACD
-15.03
Positive
RSI
43.03
Neutral
STOCH
29.23
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 1473 is below the 20-day moving average (MA) of 1491.10, below the 50-day MA of 1521.10, and above the 200-day MA of 1312.07, indicating a neutral trend. The MACD of -15.03 indicates Positive momentum. The RSI at 43.03 is Neutral, neither overbought nor oversold. The STOCH value of 29.23 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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥107.99B14.95
2.39%4.84%62.58%
77
Outperform
¥84.11B17.45
5.36%6.09%21.09%
75
Outperform
¥163.90B18.35
5.05%0.57%26.93%
73
Outperform
¥57.83B14.04
5.60%9.19%45.78%
71
Outperform
¥56.16B10.09
3.03%0.18%14.61%
64
Neutral
$10.75B15.697.62%2.01%2.75%-15.14%
51
Neutral
¥13.45B78.18
2.72%0.66%-65.05%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:1776
Sumiken Mitsui Road Co., Ltd.
1,473.00
517.92
54.23%
JP:1882
Toa Road Corporation
1,711.00
465.55
37.38%
JP:1884
NIPPON ROAD CO., LTD.
2,513.00
900.34
55.83%
JP:1890
Toyo Construction Co., Ltd.
1,744.00
474.94
37.42%
JP:1898
Seikitokyu Kogyo Co., Ltd.
1,599.00
93.84
6.23%
JP:1899
Fukuda Corporation
6,590.00
1,517.38
29.91%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 26, 2025