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Shimizu
(1803)
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Rating:66Neutral
Price Target:
¥2,584.00
▲(5.17% Upside)
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 & Margin Improvement
Sustained revenue and margin improvement indicate stronger project mix, pricing power, and operational execution. Durable higher margins increase internal cash generation potential (when converted), improve bid competitiveness for higher-margin contracts, and support reinvestment in systems and capabilities over the medium term.
Negative Factors
Weak Cash Conversion
Significantly weaker operating cash relative to net income and negative free cash flow highlight working-capital swings and spending volatility. Persistently poor cash conversion undermines earnings quality, forces reliance on external funding for capex or growth, and limits sustainable shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & Margin Improvement
Sustained revenue and margin improvement indicate stronger project mix, pricing power, and operational execution. Durable higher margins increase internal cash generation potential (when converted), improve bid competitiveness for higher-margin contracts, and support reinvestment in systems and capabilities over the medium term.
Read all positive factors
Shimizu (1803) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.59T
Dividend Yield3.03%
Average Volume (3M)2.35M
Price to Earnings (P/E)9.5
Beta (1Y)0.72
Revenue Growth5.73%
EPS Growth132.70%
CountryJP
Employees22,278
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)220.66
Revenue Forecast (FY)¥2.29T
Shimizu Business Overview & Revenue Model
Company Description
Shimizu Corporation, a venerable Japanese company established in 1804 and headquartered in Tokyo, is a diverse enterprise primarily known for its extensive operations in construction and civil engineering across Japan. This includes general buildi...
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 | 234.42B | 147.85B | 69.45B | 105.14B | 87.57B |
| 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 Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | ¥328.81B | 9.62 | 15.87% | 4.26% | 3.40% | 12.40% | |
66 Neutral | ¥1.59T | 9.45 | 13.92% | 2.85% | 5.73% | 132.70% | |
66 Neutral | ¥2.62T | 14.16 | 13.44% | 2.58% | 5.34% | 42.46% | |
66 Neutral | ¥247.47B | 12.24 | 10.92% | 3.44% | -2.18% | 114.64% | |
65 Neutral | ¥2.17T | 12.65 | 14.65% | 2.68% | -1.29% | 22.72% | |
64 Neutral | ¥2.13T | 12.74 | 19.37% | 2.27% | -3.02% | 50.72% | |
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 Use Treasury Shares for New Performance-Linked Executive Compensation Plan
Jul 30, 2026
Shimizu Corporation, a leading Japanese general contractor listed on the Tokyo and Nagoya exchanges, operates in construction and engineering with a focus on large-scale projects and sustainable corporate growth. The company is strengthening its g...
Shimizu Launches ¥10 Billion Share Buyback to Boost Capital Efficiency
Jul 30, 2026
Shimizu Corporation’s board has approved a share buyback program aimed at improving capital efficiency and enhancing corporate value. The move reflects the company’s ongoing focus on disciplined balance sheet management and shareholder...
Shimizu Raises Profit Outlook on Negative Goodwill From Seiwa Building Deal
Jul 30, 2026
Shimizu Corporation has boosted its earnings outlook after acquiring additional shares in Seiwa Building Co., Ltd., turning it into an equity-method affiliate and booking 35.5 billion yen in negative goodwill as non-operating income in the first q...
Shimizu Posts Surging Quarterly Profit and Lifts Full‑Year Outlook
Jul 30, 2026
Shimizu reported a strong start to fiscal 2026, with three‑month net sales to June 30 rising 9.3% year on year to ¥482.8 billion and operating income up 11.8% to ¥19.3 billion. Ordinary income surged 201.0% and net income attributa...
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...
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.