Shimizu Corporation (JP:1803)
:1803
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Shimizu
(1803)
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Rating:66Neutral
Price Target:
¥2,896.00
▼(-5.45% Downside)
Action:Reiterated
Date:05/13/26
The score is driven by strong recent profitability and a constructive technical uptrend, but it is held back by weak cash conversion (negative free cash flow and low operating cash flow versus earnings). Valuation is reasonable with a modest dividend, but not compelling enough to fully offset cash-flow volatility risk.
Positive Factors
Revenue and margin improvement
The company delivered a material uplift in scale and profitability in the latest year, with a near-59% revenue jump and expanded margins. Sustained higher topline and improved margin mechanics increase project absorption capacity and provide a stronger earnings base if project execution stays controlled.
Negative Factors
Weak cash conversion
Operating cash flow collapsed relative to profits (coverage ~3%), and free cash flow swung negative, evidencing volatile working-capital and project billing timing. Persistent weak cash conversion undermines reinvestment capacity, raises financing needs, and elevates earnings quality risk over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and margin improvement
The company delivered a material uplift in scale and profitability in the latest year, with a near-59% revenue jump and expanded margins. Sustained higher topline and improved margin mechanics increase project absorption capacity and provide a stronger earnings base if project execution stays controlled.
Read all positive factors
Shimizu (1803) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.79T
Dividend Yield1.48%
Average Volume (3M)2.35M
Price to Earnings (P/E)14.4
Beta (1Y)0.71
Revenue Growth5.83%
EPS Growth96.00%
CountryJP
Employees18,127
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)186.73
Shares Outstanding716,689,400
10 Day Avg. Volume2,270,410
30 Day Avg. Volume2,345,336
Financial Highlights & Ratios
PEG Ratio0.15
Price to Book (P/B)1.92
Price to Sales (P/S)0.91
P/FCF Ratio-32.98
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)206.91
Revenue Forecast (FY)¥2.18T
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, supervisio...
How the Company Makes Money
Shimizu primarily makes money by contracting and executing construction and engineering projects for customers in the private and public sectors. Its core revenue stream is construction contract revenue recognized as work progresses on building co...
Shimizu Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
68
Positive
Cash Flow
41
Neutral
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.06T | 1.94T | 2.01T | 1.93T | 1.48T |
| Gross Profit | 258.09B | 200.56B | 94.98B | 166.07B | 144.87B |
| EBITDA | 152.18B | 104.51B | 5.57B | 80.45B | 65.36B |
| Net Income | 126.62B | 66.02B | 17.16B | 49.06B | 47.76B |
Balance Sheet | |||||
| Total Assets | 2.65T | 2.52T | 2.54T | 2.45T | 2.13T |
| Cash, Cash Equivalents and Short-Term Investments | 355.99B | 438.16B | 339.26B | 386.78B | 287.13B |
| Total Debt | 567.41B | 592.54B | 584.64B | 578.19B | 495.72B |
| Total Liabilities | 1.65T | 1.60T | 1.59T | 1.54T | 1.25T |
| Stockholders Equity | 977.98B | 860.08B | 888.54B | 852.56B | 824.50B |
Cash Flow | |||||
| Free Cash Flow | -57.02B | 125.02B | -78.95B | 15.27B | -31.99B |
| Operating Cash Flow | 41.64B | 159.09B | -21.25B | 83.84B | 77.77B |
| Investing Cash Flow | -6.86B | 7.81B | -5.36B | -48.43B | -89.31B |
| Financing Cash Flow | -120.59B | -71.10B | -23.97B | 61.63B | 19.63B |
Shimizu Technical Analysis
Neutral
3063.00
Price Trends
2863.78
Negative
2937.67
Negative
2546.80
Positive
Market Momentum
-81.97
Positive
44.57
Neutral
37.20
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1803, the sentiment is Neutral. The current price of 3063 is above the 20-day moving average (MA) of 2866.63, above the 50-day MA of 2863.78, and above the 200-day MA of 2546.80, indicating a neutral trend. The MACD of -81.97 indicates Positive momentum. The RSI at 44.57 is Neutral, neither overbought nor oversold. The STOCH value of 37.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1803.
Shimizu Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | ¥324.67B | 9.50 | 16.55% | 4.26% | 3.40% | 12.42% | |
66 Neutral | ¥1.79T | 14.35 | 11.22% | 1.48% | 5.83% | 96.00% | |
66 Neutral | ¥2.87T | 15.53 | 13.56% | 1.96% | 5.34% | 42.44% | |
66 Neutral | ¥247.30B | 12.21 | 7.62% | 3.44% | -2.18% | 114.64% | |
65 Neutral | ¥2.23T | 12.85 | 14.23% | 2.47% | -1.29% | 22.69% | |
64 Neutral | ¥2.28T | 13.55 | 16.64% | 1.83% | -3.02% | 50.20% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
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Shimizu Corporate Events
Shimizu to Launch Performance-Linked Share-Based Pay for Executives
May 12, 2026
Shimizu Corporation will introduce a performance-linked, share-based compensation plan for internal directors and executive officers, subject to shareholder approval at the June 2026 general meeting. The scheme is structured as a Board Incentive P...
Shimizu Revamps Board and Executive Roles to Sharpen Focus on Sustainability and Governance
May 12, 2026
Shimizu Corporation has announced a partial amendment to its previously disclosed changes in top management, following a board resolution and the earlier resignation of a representative director. The company plans to finalize these director appoin...
Shimizu Posts Strong Profit Surge, Hikes Dividend and Targets Further Growth
May 12, 2026
Shimizu Corporation reported consolidated net sales of ¥2.06 trillion for the year ended March 31, 2026, up 5.8% year on year, with operating income surging 67.1% to ¥118.67 billion and net income attributable to shareholders nearly doub...
Shimizu Executive Vice President and Representative Director Higashi Resigns
May 8, 2026
Shimizu Corporation announced that Representative Director, Executive Vice President and Executive Officer Yoshiki Higashi, who oversaw administrative functions, sustainability and human resources, has resigned from all his positions effective May...
Shimizu Lifts FY2026 Profit Outlook and Dividend on Strong Construction Performance
Apr 24, 2026
Shimizu Corporation has raised its consolidated and non-consolidated forecasts for the fiscal year ending March 31, 2026, citing stronger performance in construction contracts, especially in domestic architectural construction and civil engineerin...
Shimizu Cuts Size of Treasury Share Disposal for Employee Stock Plan
Mar 19, 2026
Shimizu Corporation has completed payment procedures for the disposal of treasury shares used as restricted stock incentives for its employee stock ownership plan, following a board resolution made in November 2025. The program is designed to gran...
Shimizu Sets Terms and Pricing for ¥41.3 Billion Secondary Share Offering
Mar 16, 2026
Shimizu Corporation has set the terms for a secondary offering of its common stock, following a board resolution earlier in March. The selling price has been fixed at 2,920.5 yen per share, with the total selling value amounting to 41.29 billion y...
Shimizu Overhauls Top Management in Generational Shift and Governance Refresh
Mar 6, 2026
Shimizu Corporation has approved a broad reshuffle of its top management, including the planned retirement of Executive Vice President and Representative Director Kentaro Ikeda and the promotion of Senior Managing Officer Takefumi Saito to Represe...
Shimizu to See 14 Million Shares Sold in Secondary Offering by Major Financial Institutions
Mar 6, 2026
Shimizu Corporation has approved a secondary offering of 14,137,200 existing common shares, to be sold by a group of major financial institutions including Hachijuni Nagano Bank, Mizuho Bank, Mitsubishi UFJ Trust and Banking, The Norinchukin Bank,...
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.