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

• Market Cap: ¥13.51B
• Dividend Yield: 2.66%
• Average Volume (3M): 29.32K
• Price to Earnings (P/E): 78.6
• Beta (1Y): 0.31
• Revenue Growth: 0.66%
• EPS Growth: -65.05%
• Country: JP
• Employees: 429
• Sector: Industrials
• Sector Strength: 78
• Industry: Engineering & Construction
• EPS (TTM): -22.04
• Shares Outstanding: 9,277,500
• 10 Day Avg. Volume: 37,680
• 30 Day Avg. Volume: 29,320
• 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: ¥1,653.00
• Price Target Upside: 10.35% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: ¥1,653.00 ▲(10.35% Upside)

The stock's overall score is primarily impacted by its financial challenges, including declining revenue and weak cash flow, despite having a strong balance sheet. The technical analysis shows positive momentum, but the valuation indicates overvaluation concerns. The lack of impact from the earnings call and corporate events leaves the financial performance and valuation as the most significant factors influencing the score.

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

Company Description

Sumiken 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 Money

Sumiken 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 financial challenges with declining revenue and profit margins. Cash flow is particularly weak, showing a significant negative free cash flow, despite a strong balance sheet with low leverage.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	30.16B	30.91B	31.91B	31.54B	33.38B
Gross Profit	2.46B	3.17B	3.25B	3.21B	3.78B
EBITDA	825.00M	1.54B	1.48B	1.47B	2.46B
Net Income	167.00M	587.00M	630.00M	627.00M	1.19B
Balance Sheet
Total Assets	24.55B	27.69B	28.16B	27.55B	27.11B
Cash, Cash Equivalents and Short-Term Investments	7.03B	11.18B	10.71B	10.68B	9.27B
Total Debt	34.00M	33.00M	25.00M	25.00M	38.00M
Total Liabilities	10.99B	14.04B	14.81B	15.01B	15.45B
Stockholders Equity	13.56B	13.65B	13.36B	12.54B	11.52B
Cash Flow
Free Cash Flow	-3.55B	831.00M	1.35B	1.70B	561.00M
Operating Cash Flow	-3.15B	1.82B	2.14B	2.43B	1.10B
Investing Cash Flow	-600.00M	-1.00B	-793.00M	-752.00M	-520.00M
Financing Cash Flow	-402.00M	-351.00M	-297.00M	-267.00M	-250.00M

Sumiken Mitsui Road Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1498.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1498 is below the 20-day moving average (MA) of 1534.40, below the 50-day MA of 1516.10, and above the 200-day MA of 1279.60, indicating a neutral trend. The MACD of -4.78 indicates Positive momentum. The RSI at 40.53 is Neutral, neither overbought nor oversold. The STOCH value of 7.35 is Positive, 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	¥107.91B	14.94		2.39%	4.84%	62.58%
1882	77 Outperform	¥81.45B	16.90		5.53%	6.09%	21.09%
1890	75 Outperform	¥163.81B	18.34		5.05%	0.57%	26.93%
1898	73 Outperform	¥55.71B	13.52		5.79%	9.19%	45.78%
1899	71 Outperform	¥49.60B	8.91		3.44%	0.18%	14.61%
1776	60 Neutral	¥13.51B	78.55		2.66%	0.66%	-65.05%
Sector *	58 Neutral	HK$13.99B	4.55	-2.78%	5.71%	2.20%	-57.37%