Shimizu (1803) AI Stock Analysis

• Market Cap: ¥1.06T
• Dividend Yield: 2.2%
• Average Volume (3M): 2.42M
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.58
• Revenue Growth: -3.05%
• EPS Growth: 301.87%
• Country: JP
• Employees: 18,127
• Sector: Industrials
• Sector Strength: 87
• Industry: Engineering & Construction
• EPS (TTM): 36.84
• Shares Outstanding: 716,689,400
• 10 Day Avg. Volume: 2,561,090
• 30 Day Avg. Volume: 2,420,110
• PEG Ratio: 3.30
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 36.35
• 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: ¥1,870.32
• Price Target Upside: 18.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: ¥1,788.00 ▲(12.81%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 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 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

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
1.88T	1.94T	2.01T	1.93T	1.48T	1.46T
	Gross Profit
184.04B	200.56B	89.51B	161.00B	139.68B	190.42B
	EBIT
62.99B	71.03B	-24.68B	54.65B	45.15B	100.15B
	EBITDA
131.48B	147.85B	69.45B	80.45B	65.36B	116.86B
	Net Income Common Stockholders
78.59B	66.02B	17.16B	49.06B	47.76B	77.18B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
289.79B	438.16B	339.26B	386.78B	287.13B	276.32B
	Total Assets
2.51T	2.52T	2.54T	2.45T	2.13T	1.91T
	Total Debt
672.47B	591.35B	603.19B	577.27B	495.14B	422.69B
	Net Debt
452.69B	297.19B	332.93B	204.49B	245.00B	208.37B
	Total Liabilities
1.59T	1.60T	1.59T	1.54T	1.25T	1.09T
	Stockholders Equity
857.86B	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: 1585.00
• 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 1585 is below the 20-day moving average (MA) of 1589.93, above the 50-day MA of 1491.40, and above the 200-day MA of 1243.84, indicating a neutral trend. The MACD of 27.00 indicates Positive momentum. The RSI at 53.17 is Neutral, neither overbought nor oversold. The STOCH value of 43.89 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
1803	76 Outperform	¥1.06T	16.72	7.47%	2.20%	-3.05%	301.87%
Sector *	66 Neutral	$4.51B	12.22	5.40%	3.63%	4.14%	-12.01%
KAJMF		$12.28B	14.82	10.06%	0.02%	―	―
OBYCF		$10.82B	11.25	12.49%	0.02%	―	―
TISCF		$10.04B	12.31	13.61%	3.52%	―	―
5EY		€3.77B	14.37	12.02%	2.79%	―	―
1860	68 Neutral	¥272.96B	10.79		3.26%	12.29%	59.70%

Shimizu Corporate Events

Shimizu Corporation Reports Progress on Share Buyback Initiative

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.

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

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

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

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

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.

Shimizu Corporation Completes Share Buyback Program

Shimizu Corporation announced the completion of its share buyback program, purchasing over 3 million shares for approximately 4.1 billion Yen in March 2025. This move is part of a larger plan to buy back up to 26 million shares, enhancing shareholder value and potentially improving market confidence.