Yamaura Corporation (1780) AI Stock Analysis

• Market Cap: ¥30.21B
• Dividend Yield: 2.03%
• Average Volume (3M): 18.29K
• Price to Earnings (P/E): 7.0
• Beta (1Y): 0.67
• Revenue Growth: 26.15%
• EPS Growth: 64.47%
• Country: JP
• Employees: 416
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 53.30
• Shares Outstanding: 21,103,514
• 10 Day Avg. Volume: 20,680
• 30 Day Avg. Volume: 18,293
• PEG Ratio: 8.59
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 0.64
• P/FCF Ratio: -61.88
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥1,876.00 ▲(26.33% Upside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

The score is driven by strong financial strength (debt-free balance sheet and improved profitability) and attractive valuation (low P/E with a modest dividend). The key risk holding the score back is the sharp deterioration in 2025 cash flow and negative free cash flow, despite otherwise constructive technical trend signals.

Positive Factors

Debt-free Balance Sheet

Zero reported debt across 2022–2025 creates durable financial flexibility: lowers bankruptcy and refinancing risk, supports competitive bidding on construction projects, and preserves capacity for opportunistic capex, M&A or shareholder returns without urgent external financing.

Strong Revenue Growth and Improving Margins

Material revenue expansion and a meaningful rise in net margin through 2024–2025 indicate improving business scale and operational leverage. Sustained top-line growth with better profitability supports long-term cash generation potential and competitiveness in the construction market.

Rising Equity and Solid ROE

Growing equity capital and mid-teens ROE in recent years signal retained earnings and efficient use of equity. This stronger capital base enhances resilience to project delays or cost overruns and underpins a conservative funding profile that supports stable operations over months.

Negative Factors

Sharp Deterioration in Cash Flow

A sudden collapse in operating cash flow and negative free cash flow in 2025 signals execution or working-capital issues. Even with prior strong FCF years, this swing raises risk that profits will not convert to cash when project timing, collections or payables pressure persist.

Cash Coverage of Earnings Extremely Low

Cash covering ~1% of reported income suggests a material earnings-to-cash disconnect. This raises concerns about non-cash accounting items or receivable build-up that can erode liquidity, constrain funding for working capital or capex, and threaten sustainability of reported profits.

Earnings Volatility and Execution Risk

Historic swings (weak 2023, rebound 2025) and steady gross margins point to project-cycle sensitivity and execution timing risk. This volatility complicates forecasting, can pressure margins in downturns, and increases the chance of future cash-flow swings tied to project delivery.

Yamaura Corporation Business Overview & Revenue Model

Company Description

Yamaura Corporation engages in the construction business in Japan. The company's projects include housing, and civil engineering and public buildings. It also undertakes infrastructure projects, such as roads, bridges, sabo, landslide countermeasures, river, pavements, parks, water and sewerage construction projects, as well as projects for renovation of existing infrastructure, and disaster prevention and mitigation measures. In addition, the company engages in the buying, selling, and leasing of real estate properties; and residential land development, real estate transactions and management, and condominium businesses, etc. Further, it plans, designs, produces, and constructs control/information systems, environment/energy systems, and bridge structure/mechanical systems, as well as provides engineering services. Yamaura Corporation was founded in 1920 and is headquartered in Komagane, Japan.

How the Company Makes Money

Yamaura Corporation makes money through its diversified operations in construction and real estate. Its primary revenue streams include income from construction contracts for civil engineering and building projects, which encompass public infrastructure, commercial facilities, and residential buildings. The company also generates revenue from its real estate development activities by selling developed properties and leasing commercial spaces. Additionally, Yamaura Corporation leverages partnerships with government bodies and private enterprises to secure contracts, ensuring a steady flow of projects that contribute to its earnings.

Yamaura Corporation Financial Statement Overview

Summary

Strong revenue growth and improved profitability in 2024–2025 (net margin ~8.4% in 2025) are supported by an exceptionally conservative balance sheet (no debt, rising equity). The main offset is weak cash quality in 2025, with operating cash flow collapsing and free cash flow turning negative, indicating poor cash conversion and higher execution/working-capital risk.

Income Statement

Revenue has expanded strongly over the last few years, capped by a very large jump in 2025 (annual) (+41.9%). Profitability also improved materially versus 2022–2023, with net margin rising to ~8.4% in 2025 (annual) from ~2.4% in 2023 (annual), and operating margin holding around ~11% in 2024–2025 (annual). Offsetting this, gross margin has been fairly steady (~18–20%) rather than structurally expanding, and earnings were meaningfully weaker in 2023 (annual), highlighting some cyclicality/volatility in results.

Balance Sheet

The balance sheet is very conservative: total debt is reported at 0 in 2022–2025 (annual), and leverage metrics are effectively zero, which lowers financial risk. Equity has also grown (from ~¥16.4B in 2021 to ~¥23.3B in 2025), supporting resilience. Return on equity is solid in 2024–2025 (~13–15%), though it dipped sharply in 2023 (~4%), suggesting profitability can fluctuate even with a strong capital base.

Cash Flow

Cash generation is the main weak spot. After healthy operating cash flow and free cash flow in 2022–2024 (annual), 2025 (annual) shows a sharp deterioration: operating cash flow fell to ~¥0.08B and free cash flow turned negative (~-¥0.37B). Cash flow covered only ~1% of net income in 2025, implying profits did not convert to cash that year (potentially working-capital or project timing effects). The business has shown it can produce strong free cash flow in prior years, but the swing in 2025 raises near-term quality-of-earnings and execution risk.

Breakdown	TTM	Mar 2025	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	36.94B	35.61B	37.55B	31.38B	27.95B	24.83B
Gross Profit	7.07B	7.08B	7.57B	6.12B	5.24B	4.47B
EBITDA	4.21B	4.30B	4.56B	2.38B	2.74B	2.06B
Net Income	3.01B	3.00B	2.98B	744.98M	775.31M	1.14B
Balance Sheet
Total Assets	31.63B	30.84B	31.98B	25.87B	24.50B	23.61B
Cash, Cash Equivalents and Short-Term Investments	12.09B	12.24B	12.97B	8.82B	2.93B	1.94B
Total Debt	0.00	0.00	0.00	0.00	0.00	1.70B
Total Liabilities	8.05B	7.57B	11.50B	8.62B	6.71B	7.19B
Stockholders Equity	23.59B	23.27B	20.48B	17.24B	16.51B	16.42B
Cash Flow
Free Cash Flow	0.00	-368.30M	4.23B	5.04B	2.75B	-223.77M
Operating Cash Flow	0.00	79.70M	4.89B	5.23B	2.97B	-5.34M
Investing Cash Flow	0.00	-606.23M	-639.12M	-242.53M	-196.26M	-218.35M
Financing Cash Flow	0.00	-283.28M	-94.78M	-94.64M	-1.79B	103.99M

Yamaura Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1485.00
• 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:1780, the sentiment is Neutral. The current price of 1485 is below the 20-day moving average (MA) of 1620.60, below the 50-day MA of 1546.86, and above the 200-day MA of 1412.60, indicating a neutral trend. The MACD of 17.97 indicates Positive momentum. The RSI at 46.04 is Neutral, neither overbought nor oversold. The STOCH value of 25.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1780.

Yamaura Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1780	76 Outperform	¥30.21B	6.97	―	2.03%	26.15%	64.47%
1827	73 Outperform	¥54.75B	7.92	―	1.96%	2.55%	-14.37%
1960	73 Outperform	¥22.39B	8.25	―	2.97%	22.32%	5024.88%
1828	73 Outperform	¥29.76B	9.70	―	3.44%	-5.43%	34.48%
1866	67 Neutral	¥34.48B	9.10	―	2.04%	-3.21%	-45.14%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1776	54 Neutral	¥18.18B	14.29	―	2.54%	5.89%	-30.27%

Yamaura Corporation Corporate Events

Yamaura to Dispose of Treasury Shares for New Employee ESOP Trust

Yamaura Corporation has approved the disposal of 251,200 treasury shares, equivalent to about 1.19% of its issued shares, to fund an equity-granting ESOP trust for employees. The shares will be transferred to The Master Trust Bank of Japan at a disposal price of 1,577 yen per share, with the program scheduled to start in March 2026.

The ESOP trust is designed to foster a stronger sense of ownership and management participation among employees, aligning their interests with medium- to long-term performance and share price growth. The company expects only a minor impact on the secondary market, as the shares will be delivered gradually to employees under share delivery regulations, making the dilution level and market effect appear reasonable for stakeholders.

The most recent analyst rating on (JP:1780) stock is a Hold with a Yen1637.00 price target. To see the full list of analyst forecasts on Yamaura Corporation stock, see the JP:1780 Stock Forecast page.

Yamaura Launches ESOP Trust to Align Employees With Long-Term Corporate Value

Yamaura Corporation has approved the introduction of a Stock Grant ESOP Trust, an employee stock ownership plan designed to foster a stronger sense of belonging and involvement in management among its workforce. By granting shares with transfer restrictions until retirement and having the company fully fund the trust, the scheme aims to align employees’ interests with medium- to long-term business performance and stock price appreciation.

Under the plan, a trust managed by Mitsubishi UFJ Trust and Banking, with The Master Trust Bank of Japan as co-trustee, will acquire company shares and allocate them to eligible employees based on preset grant rules. Voting rights attached to the trust’s shares will be exercised in line with employees’ intentions, reinforcing their participation in corporate governance and supporting efforts to enhance corporate value and stakeholder alignment over time.

The most recent analyst rating on (JP:1780) stock is a Hold with a Yen1637.00 price target. To see the full list of analyst forecasts on Yamaura Corporation stock, see the JP:1780 Stock Forecast page.

Yamaura Lifts Earnings Outlook and Hikes Year-End Dividend Forecast

Yamaura Corporation has raised its full-year consolidated forecasts for the fiscal year ending March 31, 2026, citing stronger-than-expected performance in its construction business and successful cost reductions. The company now projects higher net sales, operating profit, ordinary profit, and profit attributable to owners of the parent compared with its previous outlook and with the prior fiscal year, underscoring solid execution and healthy order progress.

Alongside the earnings upgrade, Yamaura increased its forecast for the fiscal year-end dividend from 26 yen to 30 yen per share, following a higher interim payout and continuing a trend of rising dividends year on year. Management framed the move as consistent with its medium-term management plan and shareholder return policy, signaling confidence in the company’s earnings base and a stronger commitment to returning profits to investors while preserving long-term financial stability.

The most recent analyst rating on (JP:1780) stock is a Hold with a Yen1637.00 price target. To see the full list of analyst forecasts on Yamaura Corporation stock, see the JP:1780 Stock Forecast page.

Yamaura Lifts Full-Year Outlook on Strong Nine-Month Earnings and Higher Dividend Plan

Yamaura Corporation reported strong consolidated results for the nine months ended December 31, 2025, with net sales rising 19.4% year on year to ¥29.97 billion and profit attributable to owners of parent climbing 27.1% to ¥2.58 billion. The company’s financial position also improved, with total assets increasing to ¥32.63 billion and the equity ratio strengthening to 78.3%, highlighting enhanced balance sheet resilience.

Management raised its full-year forecast, now expecting net sales of ¥40.56 billion and profit attributable to owners of parent of ¥3.15 billion, implying continued earnings growth despite a more moderate profit increase rate. The dividend outlook was also upgraded, with the annual dividend forecast lifted to ¥30 per share from ¥24 in the previous year, signaling confidence in cash flow generation and offering a tangible benefit to shareholders.

The most recent analyst rating on (JP:1780) stock is a Hold with a Yen1637.00 price target. To see the full list of analyst forecasts on Yamaura Corporation stock, see the JP:1780 Stock Forecast page.