Kajima (1812) AI Stock Analysis

• Market Cap: ¥2.48T
• Dividend Yield: 2.26%
• Average Volume (3M): 1.55M
• Price to Earnings (P/E): 17.8
• Beta (1Y): 0.76
• Revenue Growth: 9.40%
• EPS Growth: 21.78%
• Country: JP
• Employees: 19,813
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 56.46
• Shares Outstanding: 528,656,000
• 10 Day Avg. Volume: 1,810,740
• 30 Day Avg. Volume: 1,547,140
• PEG Ratio: 2.72
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 0.56
• P/FCF Ratio: 18.60
• 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): 305.71
• Revenue Forecast (FY): ¥2.97T

• Rating: 78 Outperform
• Price Target: ¥5,269.00 ▲(12.42% Upside)

Kajima's strong financial performance, characterized by robust revenue growth and profitability, is the most significant factor contributing to its high score. The positive technical indicators further enhance the stock's attractiveness, indicating strong market momentum. The valuation is fair, supporting the overall positive outlook. However, challenges in free cash flow management and the absence of notable earnings call insights or corporate events slightly temper the score.

Kajima Business Overview & Revenue Model

Company Description

Kajima Corporation, founded in 1812, is one of Japan's leading construction and engineering companies, operating in various sectors including civil engineering, building construction, and real estate development. The company is recognized for its innovative design and construction capabilities, engaging in projects such as infrastructure development, urban planning, and large-scale industrial facilities. Kajima also focuses on sustainable construction practices and advanced technologies in building and project management.

How the Company Makes Money

Kajima generates revenue primarily through its construction and engineering services, which include bidding on and executing contracts for public and private sector projects. The company earns money from a range of activities such as design, construction, project management, and consulting services. Key revenue streams include large-scale infrastructure projects, commercial and residential building construction, and public works contracts. Additionally, Kajima benefits from partnerships with government entities and private developers, allowing it to tap into various projects and secure long-term contracts. The company also invests in real estate development, generating revenue through property sales and rental income, further diversifying its income sources.

Kajima Financial Statement Overview

Summary

Kajima showcases strong financial health with consistent revenue growth and robust profit margins. The balance sheet indicates moderate leverage with a solid equity base, and the return on equity is strong. However, the negative free cash flow and cash conversion issues suggest areas for improvement.

Income Statement

Kajima's income statement reflects strong performance with consistent revenue growth, highlighted by a significant revenue growth rate of 9.26% in the latest year. The gross profit margin is robust at 11.10%, supported by an EBIT margin of 5.19% and a net profit margin of 4.32%, indicating efficient cost management and profitability. This strong performance is also seen in the EBITDA margin of 7.86%, suggesting solid operational efficiency.

Balance Sheet

The balance sheet of Kajima exhibits a healthy equity base with a debt-to-equity ratio of 0.63, indicating moderate leverage. The equity ratio stands at 36.42%, reflecting a stable financial structure. Return on equity is strong at 10.00%, showcasing effective use of shareholder funds to generate profits. While the increase in total debt warrants attention, the overall financial stability remains solid.

Cash Flow

Kajima's cash flow statement reveals a challenging free cash flow position with a negative free cash flow in the latest year. However, the operating cash flow to net income ratio of 0.24 indicates some ability to convert profits into cash. The company has experienced fluctuations in free cash flow, highlighting potential areas for improvement in cash management.

Breakdown	TTM	Dec 2024	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.95T	2.67T	2.91T	2.39T	2.08T	1.91T
Gross Profit	337.25B	291.50B	323.20B	267.10B	255.72B	241.42B
EBITDA	234.03B	211.00B	228.97B	197.42B	175.89B	167.63B
Net Income	134.90B	115.03B	125.82B	111.79B	103.87B	98.52B
Balance Sheet
Total Assets	3.27T	3.14T	3.45T	2.77T	2.34T	2.16T
Cash, Cash Equivalents and Short-Term Investments	316.82B	366.20B	366.07B	297.79B	285.39B	320.28B
Total Debt	744.34B	612.66B	792.01B	537.78B	359.90B	317.03B
Total Liabilities	2.02T	1.91T	2.18T	1.71T	1.38T	1.28T
Stockholders Equity	1.23T	1.21T	1.26T	1.05T	945.70B	874.84B
Cash Flow
Free Cash Flow	0.00	79.60B	-35.90B	-106.07B	-22.87B	103.75B
Operating Cash Flow	0.00	123.73B	30.72B	-29.12B	30.21B	153.10B
Investing Cash Flow	0.00	-58.64B	-104.84B	-81.74B	-51.17B	-65.43B
Financing Cash Flow	0.00	-9.57B	61.69B	111.89B	-20.93B	-39.11B

Kajima Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4687.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1812, the sentiment is Positive. The current price of 4687 is below the 20-day moving average (MA) of 4800.95, above the 50-day MA of 4543.61, and above the 200-day MA of 3632.94, indicating a bullish trend. The MACD of 178.05 indicates Negative momentum. The RSI at 72.96 is Negative, neither overbought nor oversold. The STOCH value of 88.92 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1812.

Kajima Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1812	78 Outperform	¥2.48T	17.77	11.30%	2.26%	9.40%	21.78%
1802	78 Outperform	¥1.86T	11.13	14.23%	3.06%	2.27%	70.36%
1801	76 Outperform	¥2.11T	15.80	15.06%	1.89%	12.91%	105.21%
1721	74 Outperform	$460.44B	14.97	8.66%	2.84%	5.51%	10.18%
1803	70 Outperform	$1.41T	19.45	8.70%	1.78%	1.02%	5782.30%
1942	69 Neutral	€985.37B	19.13	14.15%	1.74%	16.43%	53.76%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Kajima Corporate Events

Kajima Corporation Reclassifies Subsidiary with New Investment Strategy

Kajima Corporation has announced a strategic shift involving its subsidiary, Sakurajima Kaihatsu LLC, by inviting three external investors to become silent partners. This move will result in Sakurajima being reclassified from a wholly owned subsidiary to an affiliate, reflecting a change in the company’s investment strategy and potentially impacting its real estate development operations.

The most recent analyst rating on (JP:1812) stock is a Buy with a Yen4200.00 price target. To see the full list of analyst forecasts on Kajima stock, see the JP:1812 Stock Forecast page.

Kajima Corporation Reports Strong Q1 Earnings Growth

Kajima Corporation is a leading construction and real estate development company based in Japan, known for its extensive operations both domestically and internationally, with a strong presence in the civil engineering and building construction sectors.