Shimizu (1803) AI Stock Analysis

• Market Cap: ¥2.33T
• Dividend Yield: 1.48%
• Average Volume (3M): 2.35M
• Price to Earnings (P/E): 22.4
• Beta (1Y): 0.71
• Revenue Growth: 5.14%
• EPS Growth: 773.86%
• Country: JP
• Employees: 18,127
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 51.39
• Shares Outstanding: 716,689,400
• 10 Day Avg. Volume: 2,270,410
• 30 Day Avg. Volume: 2,345,336
• PEG Ratio: 0.05
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 0.47
• P/FCF Ratio: 7.37
• 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: ¥2,200.37
• Price Target Upside: -37.01% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 151.69
• Revenue Forecast (FY): ¥1.99T

• Rating: 75 Outperform
• Price Target: ¥3,566.00 ▲(2.09% Upside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

Score is driven primarily by solid financial performance (improving profitability, healthy leverage, and strong free cash flow recovery). Technicals are supportive with a strong uptrend but tempered by overbought momentum signals (RSI/Stochastic). Valuation is fair but not compelling, with a moderate P/E and modest dividend yield.

Positive Factors

Balance sheet strength

Manageable leverage (D/E 0.69) and a 34% equity ratio provide durable financial flexibility in a cyclical construction sector. This reduces refinancing risk, supports competitive bidding capacity, and gives room to absorb project delays or short-term working capital swings over the medium term.

Free cash flow recovery

A sustained recovery in free cash flow and strong operating cash conversion improves self-funding for capex and working capital. That enhances financial resilience, lowers reliance on external financing, and supports steady reinvestment into project execution and backlog fulfillment over coming quarters.

Improving profitability

Improving gross and operating margins indicate better project selection, pricing discipline, and cost control. Sustained margin improvement increases internal cash generation, strengthens ability to invest in productivity, and helps weather input cost inflation over the medium term.

Negative Factors

Volatile revenue growth

Revenue volatility and occasional declines reduce predictability of backlog and resource utilization. For a general contractor, swings in project awards and execution timing can materially affect earnings and cash flow from quarter to quarter, challenging consistent capital allocation and planning.

Thin net margins

Relatively low net margins leave limited buffer against cost overruns or contract disputes. In construction, slim profitability amplifies the effect of rising materials or labor costs and reduces retained earnings available for reinvestment or cushioning adverse project outcomes over the medium term.

Execution and input-cost exposure

Business model exposes Shimizu to structural execution risk: material and labor inflation, schedule slippage, and claims can erode margins. These persistent industry risks require sustained project management strength and supplier control to preserve profitability across cycles.

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 the execution of construction projects, which include both public and private sector contracts. The company's revenue model is based on fixed-price contracts and time-and-material contracts, allowing it to earn money through project completions and management fees. Key revenue streams include large infrastructure projects, commercial and residential building contracts, and engineering consulting services. Additionally, Shimizu benefits from strategic partnerships with government entities and private corporations, which facilitate access to large-scale projects and enhance its market presence. The company also invests in technology and innovation to improve operational efficiency, which contributes to cost savings and increased profitability.

Shimizu Financial Statement Overview

Summary

Strong overall fundamentals supported by improving profitability and robust cash generation. Balance sheet leverage is manageable (debt-to-equity 0.69) with solid equity backing (equity ratio 34.08%). Key risk is volatile revenue growth, including a decline in the latest year.

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 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	1.99T	1.94T	2.01T	1.93T	1.48T	1.46T
Gross Profit	213.59B	200.56B	89.51B	161.00B	139.68B	190.42B
EBITDA	157.70B	147.85B	69.45B	80.45B	65.36B	130.59B
Net Income	74.73B	66.02B	17.16B	49.06B	47.76B	77.18B
Balance Sheet
Total Assets	2.43T	2.52T	2.54T	2.45T	2.13T	1.91T
Cash, Cash Equivalents and Short-Term Investments	422.73B	438.16B	339.26B	386.78B	287.13B	276.32B
Total Debt	556.90B	591.35B	603.19B	577.27B	495.14B	422.69B
Total Liabilities	1.50T	1.60T	1.59T	1.54T	1.25T	1.09T
Stockholders Equity	866.57B	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: 3493.00
• 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 3493 is above the 20-day moving average (MA) of 3323.47, above the 50-day MA of 2980.28, and above the 200-day MA of 2211.95, indicating a bullish trend. The MACD of 153.54 indicates Positive momentum. The RSI at 66.24 is Neutral, neither overbought nor oversold. The STOCH value of 74.68 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
1719	79 Outperform	¥385.85B	13.02	16.55%	4.26%	9.49%	64.79%
1803	75 Outperform	¥2.33T	22.36	11.22%	1.48%	5.14%	773.86%
1802	75 Outperform	$3.04T	17.00	14.23%	2.47%	2.27%	70.36%
1861	74 Outperform	¥349.33B	16.73	7.62%	3.44%	7.54%	115.47%
1812	71 Outperform	$3.47T	19.26	13.03%	1.96%	10.52%	71.09%
1801	67 Neutral	¥3.32T	24.19	15.61%	1.83%	6.60%	114.38%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Shimizu Corporate Events

Shimizu Lifts Profit and Dividend Forecasts on Strong Construction Margins and Asset Gains

Shimizu Corporation sharply upgraded its full-year consolidated and non-consolidated earnings forecasts for the fiscal year ending March 31, 2026, citing stronger-than-expected profitability in domestic architectural and civil engineering projects and improved performance at construction subsidiaries in Japan and abroad. The company now expects consolidated net sales of ¥2,010 billion and net income attributable to shareholders of ¥110 billion, representing double-digit percentage increases over its previous guidance, supported in part by higher-margin variation orders and additional work on existing contracts, improved construction profit rates, better net financial income, and a substantial gain on the sale of investment securities that will more than offset an impairment loss at a North American real estate subsidiary. Reflecting the stronger outlook and higher profits, Shimizu also raised its year-end dividend forecast from ¥22 to ¥43 per share, lifting the full-year dividend to ¥65 per share, a significant increase from the prior year, signaling a more shareholder-friendly capital policy and underscoring management’s confidence in the sustainability of its earnings improvement.

The most recent analyst rating on (JP:1803) stock is a Hold with a Yen3182.00 price target. To see the full list of analyst forecasts on Shimizu stock, see the JP:1803 Stock Forecast page.

Shimizu Nearly Doubles Nine-Month Profit and Lifts Full-Year Forecast, Dividend

Shimizu Corporation reported strong earnings for the nine months ended 31 December 2025, with net sales rising 7.6% year-on-year to ¥1.43 trillion and operating income more than doubling, while net income attributable to shareholders nearly doubled to ¥80.96 billion, lifting earnings per share to ¥119.32. The company’s total assets increased to ¥2.57 trillion and the owners’ equity ratio improved to 34.9%, and Shimizu revised its full-year forecast upward, now projecting modest sales growth but sharply higher profits and a higher year-end dividend, underscoring improving profitability and shareholder returns after finalizing accounting for past business combinations and recognizing special gains and losses.

The most recent analyst rating on (JP:1803) stock is a Hold with a Yen3182.00 price target. To see the full list of analyst forecasts on Shimizu stock, see the JP:1803 Stock Forecast page.

Shimizu to Make Aomi Construction a Fully Owned Subsidiary to Bolster Civil Engineering and Offshore Wind Business

Shimizu Corporation has resolved to acquire 100% of Aomi Construction Co., Ltd. through participation in a third-party allotment capital increase, making Aomi a consolidated and specified subsidiary whose capital will exceed one-tenth of Shimizu’s own. Aomi, a long-established marine and onshore civil engineering specialist with solid earnings and expertise in ground improvement and resource-related projects, will be integrated to enhance Shimizu’s capabilities in civil engineering and the offshore wind power market, where significant growth is anticipated; the move is positioned as a key step in strengthening Shimizu’s business base, generating group synergies, and bolstering its competitive standing in large-scale infrastructure and renewable energy-related projects.

The most recent analyst rating on (JP:1803) stock is a Hold with a Yen3196.00 price target. To see the full list of analyst forecasts on Shimizu stock, see the JP:1803 Stock Forecast page.

Shimizu to Issue Japan’s First Blue Bond for Offshore Wind Construction Vessel

Shimizu Corporation has filed an amended shelf registration to issue its first Blue Bond, a 10 billion yen, five-year unsecured straight corporate bond scheduled for January 2026, with proceeds earmarked to refinance the construction of its self-elevating platform vessel “BLUE WIND” used in offshore wind farm projects. Positioned as Japan’s first Blue Bond dedicated to a SEP vessel, the issuance underscores Shimizu’s strategy to strengthen its role in the sustainable blue economy and offshore wind construction, enhance its sustainability credentials with investors and other stakeholders, and support its ambition to become a top player in offshore wind farm construction, backed by the vessel’s track record on projects in Japan and Taiwan and a Blue Bond Framework aligned with international green and blue bond standards and verified by a second-party opinion.

The most recent analyst rating on (JP:1803) stock is a Hold with a Yen2816.00 price target. To see the full list of analyst forecasts on Shimizu stock, see the JP:1803 Stock Forecast page.

Shimizu Corporation Launches Employee Stock Incentive Plan

Shimizu Corporation has announced the introduction of a restricted stock incentive plan aimed at enhancing employee engagement and aligning their interests with corporate performance. The plan involves the disposal of 2,900,000 treasury shares to the Employee’s Stock Ownership Plan, which is expected to foster a sense of ownership among employees and potentially boost the company’s market value.

The most recent analyst rating on (JP:1803) stock is a Buy with a Yen2168.00 price target. To see the full list of analyst forecasts on Shimizu stock, see the JP:1803 Stock Forecast page.

Shimizu Corporation Reports Strong Financial Performance for First Half of 2025

Shimizu Corporation reported strong financial performance for the six months ending September 30, 2025, with significant increases in net sales and income compared to the previous year. Net sales rose by 7.1%, and net income attributable to shareholders surged by 332.3%, reflecting robust operational efficiency and market demand. The company’s financial position remains solid, with a notable increase in owners’ equity ratio. This positive financial outcome positions Shimizu favorably within the construction industry, potentially enhancing stakeholder confidence and market competitiveness.

The most recent analyst rating on (JP:1803) stock is a Buy with a Yen2168.00 price target. To see the full list of analyst forecasts on Shimizu stock, see the JP:1803 Stock Forecast page.