Kajima (1812) AI Stock Analysis

• Market Cap: $2.79T
• Dividend Yield: 2.05%
• Average Volume (3M): 1.99M
• Price to Earnings (P/E): 16.0
• Beta (1Y): 0.79
• Revenue Growth: 10.52%
• EPS Growth: 71.09%
• Country: JP
• Employees: 19,813
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 108.83
• 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: 0.91
• Enterprise Value/Revenue: 0.86
• Enterprise Value/Gross Profit: 7.54
• Enterprise Value/Ebitda: 10.87
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 323.65
• Revenue Forecast (FY): $2.97T

• Rating: 71 Outperform
• Price Target: ¥6,259.00 ▲(7.54% Upside)

Kajima's strong financial performance and bullish technical indicators drive the stock's attractiveness. However, challenges in cash flow management and potential overbought technical conditions temper the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates Kajima's ability to expand its market presence and capture more contracts, supporting long-term business sustainability.

Profitability

Strong profitability margins reflect efficient cost management and operational efficiency, enhancing Kajima's ability to reinvest in growth and innovation.

Balance Sheet Health

A stable balance sheet with moderate leverage provides Kajima with financial flexibility to pursue strategic investments and withstand economic fluctuations.

Negative Factors

Free Cash Flow Challenges

Negative free cash flow can limit Kajima's ability to fund new projects and return capital to shareholders, potentially impacting long-term growth.

Debt Levels

Rising debt levels, despite current stability, could strain future cash flows and limit financial flexibility if not managed carefully.

Cash Conversion

A low cash conversion ratio suggests inefficiencies in turning profits into cash, which could affect liquidity and operational agility.

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

Kajima demonstrates strong financial health with consistent revenue and profit growth, robust margins, and a stable balance sheet. The company maintains moderate leverage and generates solid returns on equity. However, challenges in free cash flow management suggest areas for improvement in operational cash generation.

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: 5820.00
• 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 5820 is above the 20-day moving average (MA) of 5437.05, above the 50-day MA of 4896.42, and above the 200-day MA of 3855.71, indicating a bullish trend. The MACD of 255.68 indicates Negative momentum. The RSI at 70.92 is Negative, neither overbought nor oversold. The STOCH value of 89.61 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
1721	74 Outperform	$460.44B	14.97	8.34%	2.82%	5.14%	12.52%
1801	74 Outperform	¥2.29T	15.33	15.61%	2.16%	6.60%	114.38%
1802	73 Outperform	¥2.00T	11.95	14.23%	3.06%	2.27%	70.36%
1812	71 Outperform	$2.79T	16.03	13.03%	2.05%	10.52%	71.09%
1803	69 Neutral	$1.41T	19.45	11.22%	1.81%	5.14%	773.86%
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 Reports Strong Q2 2025 Earnings

Kajima Corporation is a leading construction and real estate company based in Japan, known for its comprehensive services in civil engineering, building construction, and real estate development. The company operates both domestically and internationally, with a strong presence in the construction industry.

Kajima Corporation Revises Financial Forecasts Upward Amid Strong Domestic Performance

Kajima Corporation has revised its financial and dividend forecasts for the fiscal year ending March 31, 2026, reflecting improved business performance. The company anticipates increased revenues and income, driven by strong performance in its domestic construction and real estate sales sectors, although overseas income is expected to fall short due to rescheduled property sales.

The most recent analyst rating on (JP:1812) stock is a Buy with a Yen5269.00 price target. To see the full list of analyst forecasts on Kajima stock, see the JP:1812 Stock Forecast page.

Kajima Corporation Reports Q2 FY2025 Financial Results and Strategic Expansion

Kajima Corporation has announced its consolidated financial results for the second quarter of the fiscal year ending March 31, 2026. The company reported a significant year-on-year change in revenues and net income, with notable revisions to its financial forecasts. The announcement highlights the inclusion of four new companies in its consolidation scope, indicating strategic expansion. These developments suggest a positive impact on Kajima’s market positioning and potential implications for stakeholders, reflecting the company’s adaptability and growth strategy in the competitive construction industry.

The most recent analyst rating on (JP:1812) stock is a Buy with a Yen5269.00 price target. To see the full list of analyst forecasts on Kajima stock, see the JP:1812 Stock Forecast page.

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.