Zenitaka Corporation (1811) AI Stock Analysis

• Market Cap: ¥56.94B
• Dividend Yield: 1.51%
• Average Volume (3M): 7.28K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.88
• Revenue Growth: 11.01%
• EPS Growth: 231.83%
• Country: JP
• Employees: 920
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 61.48
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥9,034.00 ▲(14.94% Upside)

Zenitaka Corporation's stock score is primarily driven by its strong technical indicators, suggesting positive market momentum. The financial performance is stable but hampered by negative cash flows, which is a concern. Valuation metrics indicate the stock is fairly priced, with a modest dividend yield.

Positive Factors

Strong Balance Sheet

A conservative leverage position enhances financial stability, providing Zenitaka with the flexibility to invest in growth opportunities and weather economic downturns effectively.

Improving Profit Margins

The improvement in gross profit margin indicates better cost management, which can lead to enhanced profitability and competitiveness in the construction industry over the long term.

Revenue Growth

Consistent revenue growth suggests a strong market position and the ability to secure new contracts, which is crucial for sustaining long-term business expansion in the construction sector.

Negative Factors

Negative Cash Flow

Persistent negative cash flows pose liquidity challenges, potentially limiting Zenitaka's ability to invest in new projects and meet financial obligations, affecting long-term growth.

Operational Efficiency Challenges

Low EBIT and EBITDA margins indicate inefficiencies in operations, which could hinder profitability improvements and competitiveness in the industry over time.

Moderate Net Profit Margin

A moderate net profit margin reflects limited profitability, suggesting that Zenitaka may struggle to convert revenue into meaningful profits, impacting long-term financial health.

Zenitaka Corporation Business Overview & Revenue Model

Company Description

Zanitaka Corporation (1811) is a prominent player in the Japanese construction and civil engineering sector, specializing in various infrastructure projects, including roads, bridges, and urban development. The company is known for its commitment to innovative construction techniques and sustainable practices, offering a wide range of services from project planning and design to execution and maintenance. With a strong emphasis on quality and safety, Zenitaka aims to contribute to society by enhancing infrastructure that supports economic growth and improves the quality of life for communities.

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

Zenitaka Corporation shows stable revenue and improving profit margins, but faces challenges in operational efficiency and cash flow management. The balance sheet is strong with a conservative leverage position, yet persistent negative cash flows are a concern.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: 7860.00
• 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:1811, the sentiment is Positive. The current price of 7860 is below the 20-day moving average (MA) of 7973.50, above the 50-day MA of 7705.40, and above the 200-day MA of 5470.17, indicating a neutral trend. The MACD of -25.90 indicates Positive momentum. The RSI at 52.89 is Neutral, neither overbought nor oversold. The STOCH value of 33.58 is Neutral, 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
1780	80 Outperform	¥27.75B	7.90	―	2.01%	26.15%	64.47%
1810	79 Outperform	¥44.38B	10.35	―	3.95%	2.85%	317.62%
1827	78 Outperform	¥37.94B	12.19	―	1.96%	2.55%	-14.37%
1866	72 Outperform	¥32.50B	12.33	―	2.04%	-3.21%	-45.14%
1811	69 Neutral	¥56.94B	13.74	―	1.51%	11.01%	231.83%
1813	65 Neutral	¥40.37B	12.61	―	2.26%	12.93%	98.16%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%