Shimizu (1803) AI Stock Analysis

• Market Cap: ¥1.95T
• Dividend Yield: 1.48%
• Average Volume (3M): 2.35M
• Price to Earnings (P/E): 19.7
• Beta (1Y): 0.61
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥2,203.90
• Price Target Upside: -24.49% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥3,183.00 ▲(9.06% 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

Cash generation

A sustained recovery in free cash flow and strong operating cash conversion indicate durable internal funding for capex, working capital and debt service. Reliable cash generation supports investment in technology, bidding capacity for large projects and financial flexibility across cycles.

Balance sheet strength

Manageable leverage and a healthy equity ratio give Shimizu resilience to project delays or cost overruns common in construction. A moderate debt load preserves borrowing capacity for large infrastructure contracts and underpins creditworthiness for multi-year public and private projects.

Diversified business model

A broad footprint across civil engineering, building construction and real estate reduces reliance on any single cyclical end market. Diversification plus established government and corporate partnerships supports steady project pipelines and mitigates localized downturns over the medium term.

Negative Factors

Low profit margins

Relatively thin net margins limit the company’s buffer against cost inflation, execution issues or contract disputes. In construction, narrow margins reduce flexibility for competitive bidding and make long-term profitability sensitive to input price swings and project delays.

Revenue volatility

Volatile top-line trends impair predictability of backlog and cash flow, complicating capacity planning and investment decisions. For a business reliant on multi-year contracts, inconsistent revenue momentum increases earnings risk and can pressure margins during downturns.

Fixed-price contract exposure

Significant exposure to fixed-price contracts creates structural margin risk if input costs rise or projects face delays. Over the medium term, this model can amplify cost-overrun impacts and requires strong project controls and risk pricing to preserve long-term profitability.

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: 2918.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 2918.5 is above the 20-day moving average (MA) of 2730.50, above the 50-day MA of 2626.99, and above the 200-day MA of 1942.43, indicating a bullish trend. The MACD of 70.64 indicates Negative momentum. The RSI at 74.01 is Negative, neither overbought nor oversold. The STOCH value of 81.33 is Negative, 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	¥433.52B	13.77	―	2.73%	18.92%	73.08%
1801	74 Outperform	¥2.69T	20.18	15.61%	1.83%	6.60%	114.38%
1802	73 Outperform	¥2.54T	15.18	14.23%	2.47%	2.27%	70.36%
1812	71 Outperform	¥3.23T	18.58	13.03%	1.96%	10.52%	71.09%
1803	69 Neutral	¥1.95T	19.72	11.22%	1.48%	5.14%	773.86%
1942	69 Neutral	¥1.20T	23.35	14.15%	2.00%	16.43%	53.76%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Shimizu Corporate Events

Shimizu to Issue Japan’s First Blue Bond for Offshore Wind Construction Vessel

Shimizu Corporation has filed an amended shelf registration to issue its first Blue Bond, a 10 billion yen, five-year unsecured straight corporate bond scheduled for January 2026, with proceeds earmarked to refinance the construction of its self-elevating platform vessel “BLUE WIND” used in offshore wind farm projects. Positioned as Japan’s first Blue Bond dedicated to a SEP vessel, the issuance underscores Shimizu’s strategy to strengthen its role in the sustainable blue economy and offshore wind construction, enhance its sustainability credentials with investors and other stakeholders, and support its ambition to become a top player in offshore wind farm construction, backed by the vessel’s track record on projects in Japan and Taiwan and a Blue Bond Framework aligned with international green and blue bond standards and verified by a second-party opinion.

The most recent analyst rating on (JP:1803) stock is a Hold with a Yen2816.00 price target. To see the full list of analyst forecasts on Shimizu stock, see the JP:1803 Stock Forecast page.

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.

The most recent analyst rating on (JP:1803) stock is a Buy with a Yen2168.00 price target. To see the full list of analyst forecasts on Shimizu stock, see the JP:1803 Stock Forecast page.

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.

The most recent analyst rating on (JP:1803) stock is a Buy with a Yen2168.00 price target. To see the full list of analyst forecasts on Shimizu stock, see the JP:1803 Stock Forecast page.