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Daiichi Kensetsu Corporation (JP:1799)
:1799
Japanese Market
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Daiichi Kensetsu Corporation (1799) AI Stock Analysis

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JP:1799

Daiichi Kensetsu Corporation

(1799)

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Outperform 74 (OpenAI - 5.2)
Rating:74Outperform
Price Target:
¥4,021.00
▲(8.68% Upside)
Action:ReiteratedDate:03/05/26
The score is driven primarily by strong financial strength—especially improved FY2025 profitability and an effectively debt-free balance sheet—tempered by uneven cash-flow conversion and volatility. Valuation is supportive (P/E ~12.33; ~3.27% yield), while technical signals are neutral overall.
Positive Factors
Debt-free balance sheet
The company’s effectively debt-free balance sheet provides durable financial flexibility and materially lowers refinancing and covenant risk. In a cyclical Engineering & Construction sector this supports competitive bidding, steady capital allocation and resilience through downturns without needing external financing.
Negative Factors
Weak free-cash-flow conversion
FCF covering only ~41% of net income and a ~46.8% YoY decline point to weak conversion of accounting profits into spendable cash. Over the medium term this constrains self-funded capex, dividends or bolt-on investments and raises reliance on working-capital management to fund growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
The company’s effectively debt-free balance sheet provides durable financial flexibility and materially lowers refinancing and covenant risk. In a cyclical Engineering & Construction sector this supports competitive bidding, steady capital allocation and resilience through downturns without needing external financing.
Read all positive factors

Daiichi Kensetsu Corporation (1799) vs. iShares MSCI Japan ETF (EWJ)

Daiichi Kensetsu Corporation Business Overview & Revenue Model

Company Description
Daiichi Kensetsu Corporation provides contract work services for civil engineering, architecture, and railway construction in Japan. The company also offers planning, design, surveying, supervision, inspection, and consulting services for civil en...
How the Company Makes Money
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Daiichi Kensetsu Corporation Financial Statement Overview

Summary
Strong FY2025 profitability and margin expansion (net margin ~9.0% vs ~5.2%; EBIT margin ~13.0% vs ~7.0%) and an exceptionally conservative balance sheet with effectively no debt support a high score. The key offset is cash-flow volatility and weaker recent free-cash-flow conversion (FY2025 FCF ~41% of net income; FCF down ~46.8% YoY).
Income Statement
78
Positive
Balance Sheet
92
Very Positive
Cash Flow
60
Neutral
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue53.30B58.01B53.99B47.37B42.75B54.95B
Gross Profit7.49B11.00B7.01B6.69B5.79B8.47B
EBITDA6.49B9.21B6.01B5.64B4.94B6.90B
Net Income3.08B5.24B2.79B2.64B2.60B3.72B
Balance Sheet
Total Assets78.00B83.94B82.60B76.82B74.23B76.21B
Cash, Cash Equivalents and Short-Term Investments14.74B17.66B18.02B16.48B24.85B17.76B
Total Debt454.42M0.000.001.06M3.59M6.12M
Total Liabilities9.86B12.28B13.26B10.31B8.83B12.03B
Stockholders Equity68.14B71.66B69.34B66.51B65.40B64.18B
Cash Flow
Free Cash Flow0.002.42B3.36B-4.68B7.81B-1.17B
Operating Cash Flow0.005.98B5.37B-400.29M10.46B2.95B
Investing Cash Flow0.00-3.80B-2.27B-6.12B-2.32B-3.86B
Financing Cash Flow0.00-2.84B-1.17B-1.95B-954.68M-799.75M

Daiichi Kensetsu Corporation Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3700.00
Price Trends
50DMA
3944.38
Negative
100DMA
3753.67
Negative
200DMA
3438.99
Positive
Market Momentum
MACD
-35.03
Positive
RSI
41.27
Neutral
STOCH
9.15
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1799, the sentiment is Negative. The current price of 3700 is below the 20-day moving average (MA) of 3832.05, below the 50-day MA of 3944.38, and above the 200-day MA of 3438.99, indicating a neutral trend. The MACD of -35.03 indicates Positive momentum. The RSI at 41.27 is Neutral, neither overbought nor oversold. The STOCH value of 9.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:1799.

Daiichi Kensetsu Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
¥76.07B12.333.55%5.26%37.37%
73
Outperform
¥79.60B12.541.25%3.44%-11.78%
71
Outperform
¥85.83B9.633.46%-3.05%16.73%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
62
Neutral
¥79.90B12.578.02%-2.54%-32.91%
61
Neutral
¥67.40B26.090.79%-15.67%-85.05%
48
Neutral
¥73.72B-149.332.73%-6.70%-12.45%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:1799
Daiichi Kensetsu Corporation
3,745.00
1,245.95
49.86%
JP:1815
Tekken Corporation
4,945.00
2,343.42
90.08%
JP:1882
Toa Road Corporation
1,596.00
176.58
12.44%
JP:1921
Tomoe Corporation
2,008.00
546.55
37.40%
JP:1976
Meisei Industrial Co., Ltd.
1,826.00
489.66
36.64%
JP:9621
CTI Engineering Co., Ltd.
2,813.00
456.22
19.36%
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: Mar 05, 2026