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Kajima
(1812)
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Rating:61Neutral
Price Target:
¥5,209.00
▼(-6.65% Downside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by solid multi-year growth and rising earnings, tempered by uneven cash conversion, increasing leverage, and margin pressure. Technicals are a significant drag due to a clear downtrend versus major moving averages, although oversold indicators provide some near-term stabilization potential. Valuation (moderate P/E and ~3% yield) helps offset these risks.
Positive Factors
Sustained Revenue Growth
Revenue rising from about ¥1.91T in 2021 to ¥3.07T in 2026 indicates sustained demand and execution across contract-based construction and engineering. A larger revenue base can support recurring project flow and deepen customer relationships over the next several quarters.
Negative Factors
Margin Compression
Operating profitability and cash earnings margins were higher in 2021–2023 and appear compressed by 2024–2025. In a lower-margin contracting business, sustained pressure can reduce earnings quality and leave less buffer for cost overruns, wage inflation, or project delays.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Growth
Revenue rising from about ¥1.91T in 2021 to ¥3.07T in 2026 indicates sustained demand and execution across contract-based construction and engineering. A larger revenue base can support recurring project flow and deepen customer relationships over the next several quarters.
Read all positive factors
Kajima (1812) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.42T
Dividend Yield2.99%
Average Volume (3M)1.99M
Price to Earnings (P/E)12.8
Beta (1Y)0.92
Revenue Growth3.72%
EPS Growth36.12%
CountryJP
Employees21,170
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)390.16
Shares Outstanding528,656,000
10 Day Avg. Volume2,151,690
30 Day Avg. Volume1,993,970
Financial Highlights & Ratios
PEG Ratio0.37
Price to Book (P/B)1.95
Price to Sales (P/S)0.90
P/FCF Ratio43.05
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)402.68
Revenue Forecast (FY)¥2.95T
Kajima Business Overview & Revenue Model
Company Description
Kajima Corporation operates globally, focusing primarily on civil engineering, building construction, and real estate development. Its comprehensive offerings span the entire construction and engineering spectrum, encompassing everything from arch...
How the Company Makes Money
Kajima primarily generates revenue through contract-based construction and engineering work. The main revenue stream is the value of construction contracts (typically recognized over time as work progresses) for building projects and civil enginee...
Kajima Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
67
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.06T | 3.07T | 2.91T | 2.67T | 2.39T | 2.08T |
| Gross Profit | 435.47B | 425.87B | 327.57B | 294.68B | 269.26B | 257.32B |
| EBITDA | 311.25B | 314.93B | 229.81B | 211.00B | 197.42B | 175.88B |
| Net Income | 181.74B | 177.33B | 125.82B | 115.03B | 111.79B | 103.87B |
Balance Sheet | ||||||
| Total Assets | 3.38T | 3.62T | 3.45T | 3.14T | 2.77T | 2.34T |
| Cash, Cash Equivalents and Short-Term Investments | 492.12B | 415.03B | 366.07B | 366.20B | 297.79B | 285.39B |
| Total Debt | 817.70B | 833.13B | 847.77B | 666.75B | 589.53B | 404.45B |
| Total Liabilities | 2.00T | 2.19T | 2.18T | 1.91T | 1.71T | 1.38T |
| Stockholders Equity | 1.37T | 1.42T | 1.26T | 1.21T | 1.05T | 945.71B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 64.07B | -35.90B | 82.23B | -86.91B | -19.20B |
| Operating Cash Flow | 0.00 | 114.58B | 30.72B | 123.73B | -26.17B | 30.21B |
| Investing Cash Flow | 0.00 | -42.74B | -101.67B | -58.64B | -79.38B | -49.47B |
| Financing Cash Flow | 0.00 | -34.27B | 58.44B | -13.85B | 106.59B | -22.62B |
Kajima Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥342.96B | 9.68 | 15.87% | 4.26% | 3.73% | 12.75% | |
67 Neutral | ¥227.07B | 11.07 | 10.92% | 3.44% | -3.78% | 95.71% | |
67 Neutral | ¥2.09T | 10.78 | 14.65% | 2.68% | 4.54% | 45.54% | |
64 Neutral | ¥2.11T | 12.41 | 19.37% | 2.27% | 1.52% | 43.29% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | ¥2.42T | 12.77 | 13.44% | 2.58% | 3.72% | 36.12% | |
61 Neutral | ¥1.62T | 9.48 | 13.92% | 2.85% | 5.73% | 132.70% |
* Industrials Sector Average
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Kajima Corporate Events
Kajima to Dispose Treasury Stock for Performance-Linked Share Incentive Trusts
Aug 5, 2026
Kajima Corporation has approved the disposal of 2,400,000 shares of its treasury stock, worth about ¥12.7 billion, to fund existing stock-based remuneration trusts for directors, executive officers and employees. The shares will be transferre...
Kajima Expands Stock-Based Incentive Trusts for Executives and Employees
Aug 5, 2026
Kajima Corporation has decided to continue and expand its performance-linked stock remuneration plans for Directors, Executive Officers and certain Employees, using existing trust structures to deliver company shares as incentives. The Board appro...
Kajima to Cancel 45 Million Treasury Shares in Capital Structure Overhaul
Aug 5, 2026
Kajima Corporation has resolved to cancel 45,000,000 shares of its own common stock, representing 8.5 percent of its issued shares before cancellation, with the effective date set for August 31, 2026. After the cancellation, Kajima’s total i...
Kajima Posts Strong Q1 Profit Growth and Affirms Full-Year Outlook
Aug 5, 2026
Kajima reported consolidated revenues of ¥649.6 billion for the three months ended June 30, 2026, up 5.9% year on year, with operating income rising 7.8% to ¥40.5 billion and net income attributable to owners of the parent surging 58.4% ...
Kajima Completes ¥40 Billion Share Buyback, Plans Partial Cancellation
Jul 14, 2026
Kajima Corporation has completed a share buyback program authorized by its board on May 14, 2026, reaching the upper limit of the planned aggregate acquisition price of ¥40 billion. During July 1–10, 2026, the company purchased 1,264,90...
Kajima Advances ¥40 Billion Share Buyback, Repurchasing Over 5.6 Million Shares
Jul 3, 2026
Kajima Corporation has been actively repurchasing its own common stock under a board-approved share buyback program authorized in mid-May 2026. The initiative is designed to optimize capital structure and enhance shareholder value, signaling confi...
Kajima Corrects FY2024 Operating Cash Flow Figure in 2026 Financial Statement Summary
Jun 12, 2026
Kajima Corporation issued a correction to its previously announced summary financial statements for the fiscal year ended March 31, 2026 under Japanese GAAP. The revision concerns a single cash flow figure for fiscal 2024, adjusting cash flows fro...
Kajima Issues Minor Correction to Fiscal 2024 Cash Flow Figures
Jun 12, 2026
Kajima has issued a minor correction to its summary financial statements for the fiscal year ended March 31, 2025, adjusting a single figure in its consolidated cash flow data. The revision changes cash flows from operating activities for fiscal 2...
Kajima Advances ¥40 Billion Share Buyback With Initial 2.15 Million-Share Purchase
Jun 5, 2026
Kajima Corporation has reported the progress of its ongoing share buyback program, launched under a board resolution on May 14, 2026, authorizing repurchases of up to 9 million shares or ¥40 billion through market purchases on the Tokyo Stock...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.