Kajima (1812) AI Stock Analysis

• Market Cap: ¥3.41T
• Dividend Yield: 1.96%
• Average Volume (3M): 1.99M
• Price to Earnings (P/E): 19.3
• Beta (1Y): 0.86
• Revenue Growth: 10.52%
• EPS Growth: 71.09%
• Country: JP
• Employees: 19,813
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 96.29
• Shares Outstanding: 528,656,000
• 10 Day Avg. Volume: 2,151,690
• 30 Day Avg. Volume: 1,993,970
• 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: ¥7,044.32
• Price Target Upside: -1.37% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 344.54
• Revenue Forecast (FY): ¥3.00T

• Rating: 71 Outperform
• Price Target: ¥7,588.00 ▲(6.24% Upside)
• Action: Reiterated Date: 02/10/26
• Date: Action: Reiterated 02/10/26

Overall score reflects strong operating performance and solid balance sheet strength as the primary positives, offset by negative free cash flow. Technicals are supportive but flagged by extreme overbought conditions, and valuation/income support is only moderate (P/E 19.44; dividend yield 1.65%).

Positive Factors

Consistent revenue and margins

Kajima's steady revenue growth and persistent gross and EBIT margins indicate durable operational competence in bidding and project execution. These margins provide ongoing earnings capacity to fund operations, support competitive bidding, and absorb input cost swings, underpinning multi‑quarter profitability resilience.

Healthy balance sheet and ROE

Moderate leverage and a solid equity base give Kajima structural financial flexibility for large, long-duration contracts and property development. A 10% ROE reflects effective capital deployment that supports reinvestment and long-term competitiveness without excessive financial fragility.

Diversified construction and real estate cashflows

Kajima's mix of general contracting, engineering services and recurring real estate income creates multiple durable revenue channels. Development gains plus rental and management income reduce cyclicality versus pure contracting peers and provide recurring cash to stabilize results across business cycles.

Negative Factors

Negative free cash flow

Persistent negative free cash flow and a low operating-cash-to-net-income conversion constrain internal funding for capex, working capital and development pipelines. Over time this can force reliance on financing or asset disposals, limiting strategic optionality and increasing funding costs in stressed periods.

High execution and contract risk exposure

Kajima's project-based revenue model exposes the firm to structural execution risks: cost overruns, schedule slips, and subcontractor constraints can erode margins and cash flow. These risks are inherent and can cause material profit and FCF volatility across multi-month to multi-year projects.

Increase in total debt

An uptick in total debt, even from a moderate base, raises medium-term refinancing and interest-rate risk. If cash generation remains weak, higher debt amplifies financial strain, limits capital allocation flexibility and heightens downside in cyclical slowdowns or prolonged project delays.

Kajima Business Overview & Revenue Model

Company Description

Kajima Corporation engages in civil engineering, building construction, and real estate development and other businesses worldwide. It provides procurement and construction services comprising sale and lease of construction equipment and materials, and subcontracting for various construction projects; ground improvement, foundation construction, and soil remediation; paving of roads, bridges, airports, etc., as well as manufacture and sale of paving materials; ocean port and coastal protection work, and geological surveying; calculation and preparation of construction plans; environmental and consulting work focused on water and waste; construction machinery manufacturing; repair and reinforcement work for civil engineering structures, and sale of repair materials; and integrated facility construction, and renovation services. The company also offers building management services; leasing and operational management services of real estate, and hotel management; and brokerage and appraisal services of real estate. In addition, it provides travel agency, product sales, and business services; temporary staffing and human resources placement, and events planning services; planning of construction projects, and building and equipment leasing; design, operation, and management of information communication technology infrastructure and various computer systems; collection, transportation, and processing of waste; public relations and advertising planning and production, as well as video production services; and real estate asset management and consulting, as well as buying, selling, and brokerage of beneficial interests of a trust. Further, the company offers book publishing; hotel, golf course, and ski resort services; and architectural and civil engineering design, engineering, greening landscaping, mountain forest management, and agency handling services of property, casualty, and life insurance. The company was founded in 1840 and is headquartered in Tokyo, Japan.

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

Strong profitability and growth (revenue +9.26%, gross margin 11.10%, EBIT margin 5.19%, ROE 10.00%) and a stable balance sheet (debt-to-equity 0.63). Score is tempered by weak cash generation, including negative free cash flow and a low operating cash flow to net income ratio (0.24).

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.95T	2.91T	2.39T	2.08T	1.91T	2.01T
Gross Profit	337.25B	323.20B	267.10B	255.72B	241.42B	248.12B
EBITDA	234.03B	228.97B	197.42B	175.89B	167.63B	174.06B
Net Income	134.90B	125.82B	111.79B	103.87B	98.52B	103.24B
Balance Sheet
Total Assets	3.27T	3.45T	2.77T	2.34T	2.16T	2.17T
Cash, Cash Equivalents and Short-Term Investments	316.82B	366.07B	297.79B	285.39B	320.28B	275.43B
Total Debt	744.34B	792.01B	537.78B	359.90B	317.03B	326.88B
Total Liabilities	2.02T	2.18T	1.71T	1.38T	1.28T	1.38T
Stockholders Equity	1.23T	1.26T	1.05T	945.70B	874.84B	791.79B
Cash Flow
Free Cash Flow	0.00	-35.90B	-106.07B	-22.87B	103.75B	-30.80B
Operating Cash Flow	0.00	30.72B	-29.12B	30.21B	153.10B	53.06B
Investing Cash Flow	0.00	-104.84B	-81.74B	-51.17B	-65.43B	-101.81B
Financing Cash Flow	0.00	61.69B	111.89B	-20.93B	-39.11B	-10.87B

Kajima Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7142.00
• 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:1812, the sentiment is Positive. The current price of 7142 is above the 20-day moving average (MA) of 7029.65, above the 50-day MA of 6533.92, and above the 200-day MA of 4914.12, indicating a bullish trend. The MACD of 133.75 indicates Positive momentum. The RSI at 58.62 is Neutral, neither overbought nor oversold. The STOCH value of 48.34 is Neutral, 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
1719	79 Outperform	¥378.19B	13.02	16.55%	4.26%	9.49%	64.79%
1802	75 Outperform	$2.96T	17.00	14.23%	2.47%	2.27%	70.36%
1803	75 Outperform	¥2.39T	22.36	11.22%	1.48%	5.14%	773.86%
1861	74 Outperform	¥344.14B	16.73	7.62%	3.44%	7.54%	115.47%
1812	71 Outperform	¥3.41T	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%

Kajima Corporate Events

Kajima overhauls top management ahead of governance transition

Kajima Corporation has announced a significant management reshuffle to coincide with its planned transition to a Company with an Audit & Supervisory Committee in late June 2026, aiming to strengthen corporate governance and support sustainable growth. Chairman and President Yoshikazu Oshimi will relinquish the presidency while remaining Chairman and Representative Director, with Managing Executive Officer Masafumi Kiryu promoted to President and Representative Director, following a succession process designed to avoid a management vacuum after the former president’s death.

The board also approved broader changes to its director lineup, including the retirement of Director and Managing Executive Officer Takashi Kumano and Outside Director Yoichi Suzuki, alongside the appointment of Eiji Omori as Director and Standing Audit & Supervisory Committee Member. Several incumbent executives, including Executive Vice Presidents Keisuke Koshijima and Masaru Kazama, will be reappointed as directors, while outside directors such as Tamotsu Saito, Masami Iijima, and Yuko Yasuda are slated to continue, underscoring Kajima’s effort to reinforce oversight as it revises its governance structure.

The most recent analyst rating on (JP:1812) stock is a Buy with a Yen8405.00 price target. To see the full list of analyst forecasts on Kajima stock, see the JP:1812 Stock Forecast page.

Kajima to Strengthen Governance With Transition to Audit & Supervisory Committee Structure

Kajima Corporation will shift its governance structure from a “Company with an Audit & Supervisory Board” to a “Company with an Audit & Supervisory Committee,” subject to shareholder approval at its 129th ordinary stockholders’ meeting scheduled for late June 2026. The move is aimed at accelerating decision-making and business execution through greater delegation of authority, deepening board-level debate on management policies and strategies, and reinforcing the board’s supervisory function, signaling a further tightening of corporate governance that may enhance corporate value and stakeholder confidence.

The transition requires amendments to Kajima’s Articles of Incorporation, which will be presented for approval at the upcoming shareholders’ meeting, with details to be disclosed once finalized. Executive appointments tied to the new structure have been decided separately, indicating that the company is aligning its leadership and oversight systems in anticipation of the governance overhaul and its expected impact on internal controls and strategic management.

The most recent analyst rating on (JP:1812) stock is a Buy with a Yen8405.00 price target. To see the full list of analyst forecasts on Kajima stock, see the JP:1812 Stock Forecast page.

Kajima Lifts FY2025 Earnings Forecast on Strong Construction Margins

Kajima has raised its consolidated and nonconsolidated earnings forecasts for the fiscal year ending March 31, 2026, citing stronger-than-expected performance in its core construction operations. The company now projects consolidated revenue of ¥3.03 trillion and net income attributable to owners of the parent of ¥170 billion, representing gains of 1.0% and 9.7% respectively versus its previous outlook, with basic EPS rising to ¥364.11.

Nonconsolidated results are set to benefit from higher construction progress in the building segment, cost reductions, and additional change orders, lifting the expected construction gross margin to 14.7% from 13.5%. Domestic subsidiaries and affiliates are also seen contributing more profit, although net income from overseas subsidiaries and affiliates is forecast to undershoot earlier guidance as Kajima delays some property sales in the U.S., Europe and Southeast Asia to future periods in anticipation of lower interest rates and improved real estate markets.

The most recent analyst rating on (JP:1812) stock is a Buy with a Yen8405.00 price target. To see the full list of analyst forecasts on Kajima stock, see the JP:1812 Stock Forecast page.

Kajima Lifts Earnings and Forecasts as Profitability Surges and Group Scope Expands

Kajima reported consolidated revenue of ¥2.03 trillion for the nine months to December 31, 2025, up 1.6% year on year, with operating income surging 81.6% to ¥171.8 billion and net income attributable to owners of the parent rising sharply to ¥145.9 billion. The builder also strengthened its balance sheet, lifting total equity and owners’ equity ratio, while revising up its full-year consolidated and nonconsolidated earnings forecasts and expanding its consolidation scope by adding several U.S. and other subsidiaries, underscoring improved profitability and a more robust international platform for future growth.

The most recent analyst rating on (JP:1812) stock is a Buy with a Yen8405.00 price target. To see the full list of analyst forecasts on Kajima stock, see the JP:1812 Stock Forecast page.

Kajima Appoints Chairman Yoshikazu Oshimi as President After Sudden Death of Top Executive

Kajima Corporation announced the death of its President and Representative Director, Hiromasa Amano, on January 23, 2026, and has implemented an immediate change in top management. The Board of Directors has promoted Chairman and Representative Director Yoshikazu Oshimi to the combined role of Chairman and President, Representative Director, effective January 27, 2026, consolidating leadership under an executive with extensive internal experience across branch management, building construction and senior corporate roles. While the number of directors will be reduced by one following this change, the company emphasized that its governance structure continues to comply with legal and statutory requirements, signaling a focus on continuity and stability for shareholders and other stakeholders amid the sudden leadership transition.

The most recent analyst rating on (JP:1812) stock is a Buy with a Yen7219.00 price target. To see the full list of analyst forecasts on Kajima stock, see the JP:1812 Stock Forecast page.