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Shimizu Corporation (JP:1803)
:1803

Shimizu (1803) AI Stock Analysis

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JP

Shimizu

(OTC:1803)

Rating:76Outperform
Price Target:
¥1,788.00
▲(11.85%Upside)
Shimizu's stock is supported by strong financial performance, with improvements in profitability and cash flow. Technical indicators show a positive price trend, though caution is advised due to near-overbought conditions. Valuation metrics suggest a fair market price, making the stock an attractive option for investors seeking stability with moderate growth potential.

Shimizu (1803) vs. iShares MSCI Japan ETF (EWJ)

Shimizu Business Overview & Revenue Model

Company DescriptionShimizu Corporation, founded in 1803, is a leading construction and civil engineering company based in Japan. The company operates across several sectors, including building construction, civil engineering, and infrastructure development. Shimizu offers a wide range of services, from design and planning to project management and construction execution, catering to both public and private sector clients globally.
How the Company Makes MoneyShimizu Corporation generates revenue primarily through its construction and engineering projects. The company's key revenue streams include contracts for building construction and civil engineering projects, such as infrastructure development, commercial and residential buildings, and public works. Shimizu also earns income from its real estate development projects, where it invests in and develops properties for sale or lease. Strategic partnerships and collaborations with governments, private enterprises, and international organizations further enhance its earnings potential. Additionally, the company focuses on innovation and sustainable practices, which attract environmentally-conscious projects and clients, contributing to its revenue growth.

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
78
Positive
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
80
Positive
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
82
Very Positive
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue1.88T1.94T2.01T1.93T1.48T1.46T
Gross Profit184.04B200.56B89.51B161.00B139.68B190.42B
EBITDA131.48B147.85B69.45B80.45B65.36B116.86B
Net Income78.59B66.02B17.16B49.06B47.76B77.18B
Balance Sheet
Total Assets2.51T2.52T2.54T2.45T2.13T1.91T
Cash, Cash Equivalents and Short-Term Investments289.79B438.16B339.26B386.78B287.13B276.32B
Total Debt672.47B591.35B603.19B577.27B495.14B422.69B
Total Liabilities1.59T1.60T1.59T1.54T1.25T1.09T
Stockholders Equity857.86B860.08B888.54B852.56B824.50B815.29B
Cash Flow
Free Cash Flow0.00125.02B-78.95B15.27B-31.99B-42.22B
Operating Cash Flow0.00159.09B-21.25B83.84B77.77B80.67B
Investing Cash Flow0.007.81B-5.36B-52.43B-89.31B-113.95B
Financing Cash Flow0.00-71.10B-23.97B65.64B19.63B-42.71B

Shimizu Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1598.50
Price Trends
50DMA
1570.14
Positive
100DMA
1463.78
Positive
200DMA
1292.73
Positive
Market Momentum
MACD
8.91
Positive
RSI
53.08
Neutral
STOCH
59.44
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 1598.5 is above the 20-day moving average (MA) of 1597.00, above the 50-day MA of 1570.14, and above the 200-day MA of 1292.73, indicating a bullish trend. The MACD of 8.91 indicates Positive momentum. The RSI at 53.08 is Neutral, neither overbought nor oversold. The STOCH value of 59.44 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

Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$1.54T10.5612.49%3.72%12.68%94.75%
77
Outperform
$1.82T14.0410.06%3.15%9.25%11.71%
76
Outperform
¥1.06T16.687.47%2.21%-3.05%301.87%
76
Outperform
¥1.54T12.3613.61%3.44%22.05%215.17%
75
Outperform
¥288.57B11.26
3.08%12.29%59.92%
75
Outperform
¥688.31B16.2512.02%3.32%12.28%54.97%
71
Outperform
¥254.55B13.008.49%3.09%6.31%12.77%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:1803
Shimizu
1,598.50
709.67
79.84%
JP:1860
Toda Corporation
940.90
-67.63
-6.71%
JP:1942
Kandenko Co., Ltd.
3,369.00
1,742.13
107.09%
JP:1801
TAISEI
8,400.00
2,314.09
38.02%
JP:1812
Kajima
3,766.00
1,073.67
39.88%
JP:1802
Obayashi
2,145.50
285.52
15.35%

Shimizu Corporate Events

Shimizu Corporation Updates on Share Buyback Progress
Jul 3, 2025

Shimizu Corporation announced the status of its share buybacks for June 2025, following a board resolution in May 2025. The company purchased 1,292,100 shares for approximately 2.06 billion Yen, as part of a larger plan to buy back up to 9 million shares by September 2025, aiming to enhance shareholder value and optimize its capital structure.

The most recent analyst rating on (JP:1803) stock is a Hold with a Yen800.00 price target. To see the full list of analyst forecasts on Shimizu stock, see the JP:1803 Stock Forecast page.

Shimizu Corporation Completes Successful Tender Offer for The Nippon Road Co., Ltd.
Jun 26, 2025

Shimizu Corporation announced the successful completion of its tender offer for The Nippon Road Co., Ltd., acquiring 16,796,643 shares, which exceeded the minimum threshold of 7,277,000 shares. This acquisition strengthens Shimizu’s position in the construction sector and is expected to enhance its market capabilities and stakeholder value.

The most recent analyst rating on (JP:1803) stock is a Hold with a Yen800.00 price target. To see the full list of analyst forecasts on Shimizu stock, see the JP:1803 Stock Forecast page.

Shimizu Corporation Reports Progress on Share Buyback Initiative
Jun 4, 2025

Shimizu Corporation announced the status of its share buyback program for May 2025, following a Board of Directors resolution to repurchase up to 9 million shares. The company successfully bought back 805,300 shares at a total cost of approximately 1.26 billion Yen, which is part of a larger plan to enhance shareholder value by purchasing shares from the market.

The most recent analyst rating on (JP:1803) stock is a Hold with a Yen800.00 price target. To see the full list of analyst forecasts on Shimizu stock, see the JP:1803 Stock Forecast page.

Shimizu Corporation Launches Tender Offer for Full Acquisition of The Nippon Road Co., Ltd.
May 14, 2025

Shimizu Corporation has announced a tender offer to acquire all remaining shares of The Nippon Road Co., Ltd., aiming to make it a wholly-owned subsidiary. This move is part of a strategic effort to consolidate its holdings and strengthen its position in the market, ensuring a greater control over the target company’s operations.

The most recent analyst rating on (JP:1803) stock is a Hold with a Yen800.00 price target. To see the full list of analyst forecasts on Shimizu stock, see the JP:1803 Stock Forecast page.

Shimizu Corporation Reports Significant Financial Recovery in FY2025
May 14, 2025

Shimizu Corporation reported a substantial financial turnaround for the fiscal year ending March 31, 2025, with net income attributable to shareholders surging by 284.6% compared to the previous year. This improvement is reflected in the company’s increased dividend payments and a positive outlook for the next fiscal year, highlighting a strategic recovery in its operations and a strengthened market position.

The most recent analyst rating on (JP:1803) stock is a Hold with a Yen800.00 price target. To see the full list of analyst forecasts on Shimizu stock, see the JP:1803 Stock Forecast page.

Shimizu Corporation to Recognize Special Gains from Securities Sale
May 14, 2025

Shimizu Corporation has announced its plan to recognize special gains from the sale of investment securities in FY2025. The company aims to reduce its securities holdings to less than 20% of consolidated net assets by March 2026 and less than 10% by March 2027, reflecting a strategic move to optimize its financial management. This sale is expected to generate a gain of 46 billion Yen, which will be included in the operating results forecast for the fiscal year ending March 31, 2026.

The most recent analyst rating on (JP:1803) stock is a Hold with a Yen800.00 price target. To see the full list of analyst forecasts on Shimizu stock, see the JP:1803 Stock Forecast page.

Shimizu Corporation Announces Share Buyback Program
May 14, 2025

Shimizu Corporation announced its decision to implement a share buyback program, aiming to purchase up to 9 million shares of its common stock for a total of up to 10 billion Japanese Yen. This move is intended to enhance the company’s value by improving capital efficiency, with the purchases set to occur on the Tokyo Stock Exchange between May 15, 2025, and September 30, 2025.

The most recent analyst rating on (JP:1803) stock is a Hold with a Yen800.00 price target. To see the full list of analyst forecasts on Shimizu stock, see the JP:1803 Stock Forecast page.

Shimizu Corporation Revises Financial and Dividend Forecasts Upward
Apr 25, 2025

Shimizu Corporation has revised its financial forecasts for the fiscal year ending March 31, 2025, reflecting an optimistic outlook with increased net sales and profitability. The revisions are driven by steady progress in domestic construction projects and improved profitability in civil engineering. Consequently, the company has also increased its fiscal year-end dividend forecast, aligning with its policy of maintaining stable dividends and a payout ratio target of roughly 40%, which is expected to positively impact shareholders.

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: May 27, 2025