Shimizu (1803) AI Stock Analysis

• Market Cap: $1.78T
• Dividend Yield: 1.46%
• Average Volume (3M): 2.35M
• Price to Earnings (P/E): 18.1
• Beta (1Y): 0.60
• Revenue Growth: 5.14%
• EPS Growth: 773.86%
• Country: JP
• Employees: 18,127
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 51.60
• Shares Outstanding: 716,689,400
• 10 Day Avg. Volume: 2,270,410
• 30 Day Avg. Volume: 2,345,336
• PEG Ratio: 0.05
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 0.47
• P/FCF Ratio: 7.37
• Enterprise Value/Market Cap: 0.73
• Enterprise Value/Revenue: 0.65
• Enterprise Value/Gross Profit: 6.06
• Enterprise Value/Ebitda: 8.21
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥2,816.00 ▲(5.90% Upside)

Shimizu's overall stock score is driven primarily by its strong financial performance, which reflects solid profitability, stable leverage, and robust cash flow generation. Technical analysis suggests strong bullish momentum, though overbought conditions could lead to a short-term pullback. The valuation is moderate, with a reasonable P/E ratio and modest dividend yield.

Positive Factors

Strong Cash Flow

Strong cash flow generation enhances financial flexibility, allowing Shimizu to invest in growth opportunities and manage debt effectively, supporting long-term sustainability.

Balance Sheet Health

A healthy balance sheet with manageable leverage and strong equity backing provides Shimizu with the stability to withstand economic fluctuations and invest in strategic initiatives.

Profitability Improvement

Improved profitability margins indicate effective cost management and operational efficiency, positioning Shimizu well for sustained earnings growth and competitive advantage.

Negative Factors

Revenue Volatility

Volatile revenue growth can create uncertainty in financial planning and may impact investor confidence, posing a risk to long-term strategic execution and market positioning.

Low Net Profit Margin

A low net profit margin suggests limited pricing power and potential vulnerability to cost increases, which could pressure profitability and affect competitive positioning over time.

Earnings Call Absence

The absence of earnings call data limits transparency and investor insight into management's strategic direction, potentially affecting stakeholder confidence and engagement.

Shimizu Business Overview & Revenue Model

Company Description

Shimizu Corporation engages in the building contracting, civil engineering, machinery, and other construction works in Japan. It is also involved in the research, planning, study, evaluation, diagnosis, soil analysis, surveying, design, supervision, management, and consultancy related to regional, urban, ocean, space, resources, and energy developments, as well as construction works and environment improvement; and purchase, sale, letting, brokerage, management, appraisal, and consultancy of real estate. The company constructs, lets, sells, and caretaking of residential houses and other buildings; plans, constructs, possesses, maintains, and operates public office buildings, roads, harbors, airports, and parks, as well as educational and cultural, medical and welfare, and water supply and sewerage facilities; generates and supplies electricity and heat; undertakes purification works; collects, disposes, and reutilizes waste; and designs, installs, leases, sells, and maintains information communication and building management system. It also engages in the cultivation of agricultural produce and seafood, and forestry work; maintenance and upkeep, security, and cleaning of buildings, equipment, and machinery; and design, manufacture, sale, lease, and brokerage of construction machinery and materials, concrete and wooden products, furniture, and interior fitting. The company offers industrial property, copyrights, and computer software; pharmaceutical, medical care material, and medical machinery and equipment; and advertisement, publication, printing, images and other information media, business event, inland transportation, warehouse, distribution center, insurance and travel agency, manpower supply, loan, guarantee, and factoring services. It also engages in the management and consultancy of sporting, hotel, restaurant, nursing, and resort facilities. The company was founded in 1804 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Shimizu Corporation generates revenue primarily through the execution of construction projects, which include both public and private sector contracts. The company's revenue model is based on fixed-price contracts and time-and-material contracts, allowing it to earn money through project completions and management fees. Key revenue streams include large infrastructure projects, commercial and residential building contracts, and engineering consulting services. Additionally, Shimizu benefits from strategic partnerships with government entities and private corporations, which facilitate access to large-scale projects and enhance its market presence. The company also invests in technology and innovation to improve operational efficiency, which contributes to cost savings and increased profitability.

Shimizu Financial Statement Overview

Summary

Shimizu demonstrates a solid financial performance with improvements in profitability, leverage, and cash flow. The company has shown resilience in its income statement, supported by a stable balance sheet and strong cash flow generation. While revenue fluctuations pose a risk, overall financial health remains robust, positioning the company well for future growth.

Income Statement

Shimizu's income statement shows a solid recovery with a gross profit margin of 10.31% and a net profit margin of 3.40% for the latest period. The revenue growth rate has been volatile, with a decline in the latest year but returning to growth prior. EBIT and EBITDA margins have shown improvement, marking a return to profitability after a previous decline in EBIT.

Balance Sheet

The balance sheet reflects a stable financial position, with a debt-to-equity ratio of 0.69 indicating manageable leverage, and a strong equity ratio of 34.08%. Return on equity stands at 7.67%, showcasing a decent return for shareholders. Overall, the company maintains a healthy balance sheet with ample equity backing.

Cash Flow

Shimizu's cash flow statement reveals a robust recovery in free cash flow, with a significant growth rate following previous declines. The operating cash flow to net income ratio is favorable, indicating strong cash generation capabilities relative to earnings. The company has effectively converted its earnings into cash flow, enhancing financial flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.99T	1.94T	2.01T	1.93T	1.48T	1.46T
Gross Profit	213.59B	200.56B	89.51B	161.00B	139.68B	190.42B
EBITDA	157.70B	147.85B	69.45B	80.45B	65.36B	130.59B
Net Income	74.73B	66.02B	17.16B	49.06B	47.76B	77.18B
Balance Sheet
Total Assets	2.43T	2.52T	2.54T	2.45T	2.13T	1.91T
Cash, Cash Equivalents and Short-Term Investments	422.73B	438.16B	339.26B	386.78B	287.13B	276.32B
Total Debt	556.90B	591.35B	603.19B	577.27B	495.14B	422.69B
Total Liabilities	1.50T	1.60T	1.59T	1.54T	1.25T	1.09T
Stockholders Equity	866.57B	860.08B	888.54B	852.56B	824.50B	815.29B
Cash Flow
Free Cash Flow	0.00	125.02B	-78.95B	15.27B	-31.99B	-42.22B
Operating Cash Flow	0.00	159.09B	-21.25B	83.84B	77.77B	80.67B
Investing Cash Flow	0.00	7.81B	-5.36B	-52.43B	-89.31B	-113.95B
Financing Cash Flow	0.00	-71.10B	-23.97B	65.64B	19.63B	-42.71B

Shimizu Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2659.00
• 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:1803, the sentiment is Positive. The current price of 2659 is above the 20-day moving average (MA) of 2642.97, above the 50-day MA of 2319.69, and above the 200-day MA of 1790.21, indicating a bullish trend. The MACD of 104.25 indicates Positive momentum. The RSI at 65.58 is Neutral, neither overbought nor oversold. The STOCH value of 35.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1803.

Shimizu Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1860	76 Outperform	¥386.14B	12.27	―	2.75%	18.92%	73.08%
1801	74 Outperform	¥2.35T	17.64	15.61%	1.89%	6.60%	114.38%
1802	73 Outperform	¥2.29T	13.68	14.23%	2.47%	2.27%	70.36%
1812	71 Outperform	¥2.85T	16.35	13.03%	1.96%	10.52%	71.09%
1803	69 Neutral	$1.78T	18.05	11.22%	1.46%	5.14%	773.86%
1942	69 Neutral	€1.00T	19.47	14.15%	2.06%	16.43%	53.76%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Shimizu Corporate Events

Shimizu Corporation Launches Employee Stock Incentive Plan

Shimizu Corporation has announced the introduction of a restricted stock incentive plan aimed at enhancing employee engagement and aligning their interests with corporate performance. The plan involves the disposal of 2,900,000 treasury shares to the Employee’s Stock Ownership Plan, which is expected to foster a sense of ownership among employees and potentially boost the company’s market value.

Shimizu Corporation Reports Strong Financial Performance for First Half of 2025

Shimizu Corporation reported strong financial performance for the six months ending September 30, 2025, with significant increases in net sales and income compared to the previous year. Net sales rose by 7.1%, and net income attributable to shareholders surged by 332.3%, reflecting robust operational efficiency and market demand. The company’s financial position remains solid, with a notable increase in owners’ equity ratio. This positive financial outcome positions Shimizu favorably within the construction industry, potentially enhancing stakeholder confidence and market competitiveness.

Shimizu Corporation Completes Share Buyback Program

Shimizu Corporation has completed a share buyback program, purchasing 946,600 shares for approximately 1.97 billion yen between September 1 and September 25, 2025. This move is part of a broader strategy authorized by the Board of Directors to buy back up to 9 million shares, aiming to enhance shareholder value and optimize capital structure.