Kajima (1812) AI Stock Analysis

• Market Cap: $2.21T
• Dividend Yield: 2.29%
• Average Volume (3M): 1.44M
• Price to Earnings (P/E): 15.9
• 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: 1,290,470
• 30 Day Avg. Volume: 1,444,843
• 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: 1.00
• Enterprise Value/Revenue: 0.76
• Enterprise Value/Gross Profit: 6.85
• Enterprise Value/Ebitda: 10.35
• 1Y Price Target: $4,192.84
• Price Target Upside: -8.33% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• Price Target: ¥4,111.00 ▼(-10.12% Downside)

Kajima's strong financial performance, characterized by robust profit margins and a stable balance sheet, drives the positive stock score. While technical indicators show bullish momentum, caution is warranted due to potential overbought conditions. The stock's reasonable valuation and attractive dividend yield further support its investment appeal.

Kajima Business Overview & Revenue Model

Company Description

Kajima Corporation is a leading Japanese construction company, specializing in engineering, architecture, and real estate development. With a strong presence in both domestic and international markets, Kajima is renowned for its expertise in delivering large-scale infrastructure projects, commercial buildings, and residential developments. The company also engages in environmental engineering and disaster prevention services, contributing to sustainable urban development.

How the Company Makes Money

Kajima Corporation generates revenue primarily through its construction and real estate development operations. The company undertakes large-scale projects in both public and private sectors, including infrastructure, commercial buildings, and residential complexes. Revenue streams include construction contracts, project management fees, and sales or leasing of developed properties. Additionally, Kajima invests in engineering services and environmental solutions, which provide auxiliary income. Partnerships with government bodies and private sector clients play a significant role in securing projects and sustaining revenue growth. The company's diversification into international markets also contributes to its earnings, allowing it to tap into a broader range of opportunities.

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 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.91T	2.91T	2.67T	2.39T	2.08T	1.91T
Gross Profit	323.20B	323.20B	291.50B	267.10B	255.72B	241.42B
EBITDA	213.95B	228.97B	211.00B	197.42B	175.89B	167.63B
Net Income	125.82B	125.82B	115.03B	111.79B	103.87B	98.52B
Balance Sheet
Total Assets	3.45T	3.45T	3.14T	2.77T	2.34T	2.16T
Cash, Cash Equivalents and Short-Term Investments	366.07B	366.07B	366.20B	297.79B	285.39B	320.28B
Total Debt	792.01B	792.01B	612.66B	537.78B	359.90B	317.03B
Total Liabilities	2.18T	2.18T	1.91T	1.71T	1.38T	1.28T
Stockholders Equity	1.26T	1.26T	1.21T	1.05T	945.70B	874.84B
Cash Flow
Free Cash Flow	0.00	-35.90B	79.60B	-106.07B	-22.87B	103.75B
Operating Cash Flow	0.00	30.72B	123.73B	-29.12B	30.21B	153.10B
Investing Cash Flow	0.00	-104.84B	-58.64B	-81.74B	-51.17B	-65.43B
Financing Cash Flow	0.00	61.69B	-9.57B	111.89B	-20.93B	-39.11B

Kajima Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4574.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 4574 is above the 20-day moving average (MA) of 4405.95, above the 50-day MA of 4078.20, and above the 200-day MA of 3336.18, indicating a bullish trend. The MACD of 136.06 indicates Positive momentum. The RSI at 70.43 is Negative, neither overbought nor oversold. The STOCH value of 82.59 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	77 Outperform	$2.21T	15.88	11.30%	2.29%	9.40%	21.78%
Sector *	63 Neutral	$10.84B	15.52	7.40%	2.00%	2.86%	-14.57%
CMSYF	―	$2.97B	14.19	8.66%	―	―	―
OBYCF	―	$11.87B	13.47	12.51%	3.31%	―	―
SHMUF	―	$9.88B	15.76	8.70%	3.49%	―	―
TISCF	―	$12.47B	14.03	15.06%	2.45%	―	―
5EY	―	€4.85B	16.33	14.13%	―	―	―

Kajima Corporate Events

Kajima Corporation Completes Share Buyback

Kajima Corporation has completed the acquisition of its own shares, buying 830,700 shares at a total cost of 3,134,900,100 yen. This move, executed through market purchases on the Tokyo Stock Exchange, is part of a larger strategy approved by the Board of Directors to acquire up to 9,000,000 shares, enhancing shareholder value and optimizing capital structure.

Kajima Corporation Acquires Own Shares to Boost Shareholder Value

Kajima Corporation announced the acquisition of 2,691,000 of its own shares in June 2025, as part of a broader strategy to buy back up to 9,000,000 shares by September 30, 2025. This move, executed through market purchases on the Tokyo Stock Exchange, reflects Kajima’s efforts to enhance shareholder value and optimize its capital structure.

Kajima Corporation Announces Share Buyback Initiative

Kajima Corporation has announced the acquisition of its own shares, purchasing 1,953,200 shares for approximately 6.98 billion yen between May 15 and May 31, 2025, through market purchases on the Tokyo Stock Exchange. This move is part of a broader strategy approved by the Board of Directors to acquire up to 9 million shares by September 30, 2025, potentially impacting the company’s market positioning and shareholder value.

Kajima Corporation Files Final Appeal in Antimonopoly Case

Kajima Corporation has filed a final appeal with the Supreme Court after the Tokyo High Court dismissed its appeal regarding a violation of the Antimonopoly Act related to the Linear Chuo Shinkansen project. Despite the legal setback, Kajima asserts that the issue will have a minor impact on its financial performance, maintaining its forecast for the fiscal year ending March 31, 2026, and continues to seek support from stakeholders.