Zenitaka Corporation (1811) AI Stock Analysis

• Market Cap: ¥67.40B
• Dividend Yield: 1.57%
• Average Volume (3M): 7.28K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.85
• Revenue Growth: 11.01%
• EPS Growth: 231.83%
• Country: JP
• Employees: 920
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 104.08
• Shares Outstanding: 7,353,140
• 10 Day Avg. Volume: 7,980
• 30 Day Avg. Volume: 7,276
• PEG Ratio: 0.28
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.23
• P/FCF Ratio: -3.44
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ¥10,248.00 ▲(27.30% Upside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is primarily constrained by weak cash-flow performance (negative operating and free cash flow) despite a solid balance sheet and stable/improving margins. Technical indicators point to near-term softness, while valuation is reasonable but not compelling enough to offset cash-flow risk.

Positive Factors

Conservative leverage

Low leverage and a solid equity ratio provide durable financial resilience for a contractor. This capital structure supports bidding on large projects, absorbs delays or cost overruns, preserves access to credit, and reduces insolvency risk across construction cycles.

Improving gross margin

Rising gross margin indicates better cost control and project execution. Sustained margin improvement increases per-project profitability, helps absorb material and labour inflation, and enhances competitive positioning on bids over the medium term.

Stable revenue growth

Consistent revenue growth coupled with improved ROE points to steady demand and improving capital efficiency. Over months this supports backlog expansion, reinvestment potential, and a platform for scaling margins if cash conversion improves.

Negative Factors

Negative operating cash flow

Persistent negative operating and free cash flow signal weak cash conversion despite accounting profits. Over time this can strain working capital for projects, force reliance on financing or advances, limit reinvestment and dividends, and heighten liquidity risk.

Thin profitability margins

Low net and operating margins leave little buffer for cost overruns or project delays. In construction, thin margins reduce resilience to input-price shocks, constrain retained earnings for growth, and limit the firm's ability to build cash reserves over time.

Recent revenue softness & efficiency issues

A recent slight revenue decline and flagged operational inefficiencies suggest exposure to competitive pressures or suboptimal project execution. Combined with weak cash conversion and thin margins, this could hamper backlog growth and long-term profitability.

Zenitaka Corporation Business Overview & Revenue Model

Company Description

The Zenitaka Corporation provides general contracting services in Japan and internationally. It is involved in the planning, design, and execution of construction activities; urban, suburban, and marine development operations; and real estate and engineering activities. The company was founded in 1705 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Zanitaka Corporation generates revenue primarily through its construction and civil engineering projects, which include both public and private sector contracts. The company earns money by bidding on and executing large-scale infrastructure projects, often funded by government agencies or private developers. Key revenue streams include construction contracts, project management services, and maintenance agreements. Additionally, Zenitaka may engage in joint ventures or partnerships with other firms to expand its project portfolio and capabilities, thereby enhancing its earning potential. The company also focuses on innovative technologies and sustainable construction practices, which can lead to cost savings and increased competitiveness in securing new contracts.

Zenitaka Corporation Financial Statement Overview

Summary

Balanced fundamentals: stable revenue and improving gross margin, supported by a conservative balance sheet (low debt-to-equity, solid equity ratio). However, persistent negative operating and free cash flow materially weaken overall financial quality and sustainability.

Income Statement

Zenitaka Corporation's revenue has been relatively stable, with a slight decline in the most recent year. Gross profit margin improved to 8.47% from 7.92% the previous year, indicating better cost management. However, the net profit margin remains moderate at 2.90%, reflecting room for improvement in profitability. EBIT and EBITDA margins are low at 3.08% and 4.95% respectively, suggesting operational efficiency challenges.

Balance Sheet

The company's debt-to-equity ratio of 0.38 reflects a conservative leverage position, which is favorable for stability. The equity ratio stands at 46.85%, indicating a solid capital structure. Return on equity improved to 3.62% from 2.95%, showing better profitability from shareholders' equity.

Cash Flow

Zenitaka's cash flow situation is concerning with consistent negative operating cash flows, indicating potential liquidity challenges. Free cash flow also remains negative, although it improved slightly from the previous year. The ratio of operating cash flow to net income is negative, highlighting a disconnect between reported earnings and cash generation.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	126.56B	120.66B	120.98B	107.63B	101.90B	105.79B
Gross Profit	12.36B	10.21B	9.58B	7.37B	8.40B	10.38B
EBITDA	7.79B	5.97B	4.66B	3.68B	3.92B	5.99B
Net Income	4.73B	3.50B	2.74B	2.25B	1.81B	3.22B
Balance Sheet
Total Assets	199.02B	206.76B	203.61B	155.75B	155.10B	153.36B
Cash, Cash Equivalents and Short-Term Investments	14.53B	12.54B	17.49B	17.58B	33.70B	48.82B
Total Debt	33.35B	36.90B	33.49B	13.60B	13.71B	13.36B
Total Liabilities	99.66B	109.89B	110.69B	76.53B	80.80B	78.76B
Stockholders Equity	99.36B	96.87B	92.93B	79.22B	74.30B	74.61B
Cash Flow
Free Cash Flow	0.00	-8.05B	-22.97B	-16.25B	-14.24B	20.50B
Operating Cash Flow	0.00	-7.73B	-22.39B	-2.91B	-13.72B	21.26B
Investing Cash Flow	0.00	-26.00M	2.67B	-12.98B	-1.41B	-716.00M
Financing Cash Flow	0.00	2.66B	19.30B	-696.00M	-394.00M	-948.00M

Zenitaka Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8050.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1811, the sentiment is Positive. The current price of 8050 is below the 20-day moving average (MA) of 8979.00, below the 50-day MA of 8470.40, and above the 200-day MA of 6568.75, indicating a bullish trend. The MACD of 309.34 indicates Negative momentum. The RSI at 63.45 is Neutral, neither overbought nor oversold. The STOCH value of 86.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1811.

Zenitaka Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1929	75 Outperform	¥59.95B	15.67	―	3.78%	11.81%	52.35%
1898	73 Outperform	¥60.71B	15.22	―	4.90%	4.91%	57.89%
1899	67 Neutral	¥66.90B	11.72	―	2.56%	1.71%	14.20%
1888	65 Neutral	¥61.59B	15.24	―	2.84%	15.45%	43.95%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1822	63 Neutral	¥80.63B	19.06	―	3.84%	-8.79%	―
1811	60 Neutral	¥67.40B	16.41	―	1.57%	11.01%	231.83%