Shimizu (1803) AI Stock Analysis

• Market Cap: ¥1.12T
• Dividend Yield: 2.08%
• Average Volume (3M): 1.87M
• Price to Earnings (P/E): 17.7
• Beta (1Y): 0.56
• Revenue Growth: -3.05%
• EPS Growth: 301.87%
• Country: JP
• Employees: 18,127
• Sector: Industrials
• Sector Strength: 94
• Industry: Engineering & Construction
• EPS (TTM): 36.84
• Shares Outstanding: 716,689,400
• 10 Day Avg. Volume: 1,732,030
• 30 Day Avg. Volume: 1,869,446
• PEG Ratio: -1.22
• Price to Book (P/B): 1.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,709.98
• Price Target Upside: 1.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 76 Outperform
• Price Target: ¥1,788.00 ▲(6.37%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, headquartered in Tokyo, Japan, is one of the leading construction and civil engineering firms globally. Established in 1804, the company is renowned for its expertise in building construction, civil engineering, and infrastructure development. Shimizu operates in various sectors, including commercial, residential, and public infrastructure projects, and offers services ranging from planning and design to execution and maintenance.

How the Company Makes Money

Shimizu Corporation primarily generates revenue through its construction and engineering services. The company's key revenue streams include large-scale building projects, civil engineering works such as roads, bridges, and tunnels, and infrastructure development, including urban development and environmental projects. Shimizu also engages in real estate development and facility management, contributing to its income. The company's earnings are significantly bolstered by long-term contracts with both private and public sector clients, as well as strategic partnerships and joint ventures that expand its project portfolio and geographic reach.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.94T	2.01T	1.93T	1.48T	1.46T
Gross Profit	200.56B	89.51B	161.00B	139.68B	190.42B
EBITDA	147.85B	69.45B	80.45B	65.36B	116.86B
Net Income	66.02B	17.16B	49.06B	47.76B	77.18B
Balance Sheet
Total Assets	2.52T	2.54T	2.45T	2.13T	1.91T
Cash, Cash Equivalents and Short-Term Investments	438.16B	339.26B	386.78B	287.13B	276.32B
Total Debt	591.35B	603.19B	577.27B	495.14B	422.69B
Total Liabilities	1.60T	1.59T	1.54T	1.25T	1.09T
Stockholders Equity	860.08B	888.54B	852.56B	824.50B	815.29B
Cash Flow
Free Cash Flow	125.02B	-78.95B	15.27B	-31.99B	-42.22B
Operating Cash Flow	159.09B	-21.25B	83.84B	77.77B	80.67B
Investing Cash Flow	7.81B	-5.36B	-52.43B	-89.31B	-113.95B
Financing Cash Flow	-71.10B	-23.97B	65.64B	19.63B	-42.71B

Shimizu Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1681.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 1681 is above the 20-day moving average (MA) of 1629.75, above the 50-day MA of 1605.17, and above the 200-day MA of 1339.74, indicating a bullish trend. The MACD of 24.60 indicates Negative momentum. The RSI at 66.11 is Neutral, neither overbought nor oversold. The STOCH value of 71.47 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
1802	78 Outperform	¥1.58T	10.82	12.49%	3.67%	12.68%	94.75%
1812	77 Outperform	$1.83T	14.11	10.06%	2.77%	9.25%	11.71%
1803	76 Outperform	¥1.12T	17.73	7.47%	2.08%	-3.05%	301.87%
1801	76 Outperform	¥1.60T	12.78	13.61%	2.40%	22.05%	215.17%
1860	75 Outperform	¥292.90B	11.34		3.04%	12.29%	59.92%
1942	75 Outperform	¥697.29B	16.41	12.02%	2.34%	12.28%	54.97%
Sector *	71 Outperform	¥269.20B	13.84	8.47%	2.89%	6.33%	13.01%

Shimizu Corporate Events

Shimizu Corporation Updates on Share Buyback Progress

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.

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

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.