Fudo Tetra Corporation (1813) AI Stock Analysis

• Market Cap: ¥51.66B
• Dividend Yield: 2.26%
• Average Volume (3M): 47.17K
• Price to Earnings (P/E): 4.7
• Beta (1Y): 0.92
• Revenue Growth: 12.93%
• EPS Growth: 98.16%
• Country: JP
• Employees: 986
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 142.03
• Shares Outstanding: 16,489,523
• 10 Day Avg. Volume: 52,230
• 30 Day Avg. Volume: 47,166
• PEG Ratio: 1.52
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 0.48
• P/FCF Ratio: -5.24
• 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): 191.4
• Revenue Forecast (FY): ¥80.00B

• Rating: 68 Neutral
• Price Target: ¥3,592.00 ▲(35.39% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is driven primarily by solid overall financial stability (strong balance sheet and steady margins) but held back by weak/volatile cash flow. Technicals are supportive due to a strong uptrend, though overbought indicators raise near-term risk. Valuation appears reasonable with a modest dividend.

Positive Factors

Strong balance sheet

A high equity ratio and moderate leverage provide durable financial flexibility for bidding on large infrastructure projects and absorbing execution risk. The balance sheet strength supports capital spending, joint-venture participation, and resilience through multi-quarter project payment cycles.

Stable operational margins

Consistent gross and EBITDA margins reflect repeatable project execution and cost control in civil engineering operations. Margin stability helps the company sustain profitability across multi-year contracts and supports predictable earnings despite project timing differences.

Specialized marine/coastal niche

Concentration in marine and coastal infrastructure is a durable competitive position: specialized skills, equipment and regulatory know-how create higher barriers to entry and steady public-sector demand for port protection, dredging and shoreline projects.

Negative Factors

Weak cash generation

Declining free cash flow and low OCF-to-net-income indicate cash conversion weakness that can limit reinvestment and increase reliance on financing. For a project-driven contractor, volatile cash flows impair working capital management and constrain bidding capacity over coming quarters.

Thin net profitability

A single-digit net margin provides limited buffer versus cost inflation, labor shortages, or unexpected project overruns. Given competitive tendering in public works, low net profitability heightens sensitivity to input cost swings and small adverse contract variances.

Project-based revenue dependency

Heavy reliance on winning and executing discrete contracts creates revenue and backlog volatility. Tender timing, public spending cycles and competitive bidding can cause uneven revenue recognition and make multi-month visibility and growth planning more challenging.

Fudo Tetra Corporation Business Overview & Revenue Model

Company Description

Fudo Tetra Corporation engages in the civil engineering, ground improvement, and block environment businesses. The company constructs energy facilities, coastline, rivers and erosion control, water supply and drainage, railways, airports, highways, harbors and fishing ports, and structural foundations. Fudo Tetra Corporation was founded in 1947 and is based in Tokyo, Japan.

How the Company Makes Money

Fudo Tetra makes money primarily by acting as a contractor on construction and civil engineering projects. Its core revenue model is project-based: it bids for and is awarded contracts (often as a prime contractor or as part of a consortium) and then recognizes revenue as construction work progresses and upon completion/acceptance of deliverables. Key revenue streams include (1) marine/coastal civil engineering (e.g., port and harbor structures, breakwaters, revetments, dredging-related and shoreline protection works), (2) broader civil engineering and construction services tied to infrastructure development and maintenance, and (3) related engineering services connected to planning, design support, and project management when included in contract scope. Earnings are driven by the volume and value of awarded contracts (order backlog), project execution efficiency (cost control, labor and equipment utilization, procurement), and the timing of milestone completion/acceptance that triggers billing and revenue recognition. Significant partnerships or specific major customers are null.

Fudo Tetra Corporation Financial Statement Overview

Summary

Mixed fundamentals: stable profitability and moderate growth (gross margin 17.27%, net margin 3.17%, revenue growth 2.37%) and a solid balance sheet (equity ratio 53.34%, D/E 0.35), but weakened cash quality with volatile/declining free cash flow and low operating cash flow to net income (0.28).

Income Statement

Fudo Tetra Corporation demonstrates a stable financial performance with a gross profit margin of 17.27% and a net profit margin of 3.17% for 2025. The revenue growth rate is 2.37% from 2024 to 2025, indicating moderate growth. The EBIT and EBITDA margins are 4.52% and 8.20%, respectively, showing consistent operational efficiency.

Balance Sheet

The company maintains a strong equity base with an equity ratio of 53.34%. The debt-to-equity ratio has increased to 0.35, reflecting a moderate leverage level. Return on equity stands at 6.44%, indicating satisfactory profitability from shareholders' equity.

Cash Flow

Fudo Tetra's cash flow position shows volatility, with a significant decline in free cash flow from 2024 to 2025. The operating cash flow to net income ratio is 0.28, suggesting that operating cash generation is below expectations. The negative free cash flow to net income ratio highlights potential cash management challenges.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	73.37B	69.56B	67.95B	70.47B	66.78B	72.31B
Gross Profit	13.63B	12.01B	10.81B	11.62B	10.96B	12.51B
EBITDA	7.55B	5.46B	4.43B	5.29B	5.03B	5.91B
Net Income	3.18B	2.20B	2.01B	2.17B	2.06B	2.99B
Balance Sheet
Total Assets	55.99B	64.15B	55.25B	56.13B	51.90B	54.08B
Cash, Cash Equivalents and Short-Term Investments	7.84B	10.39B	10.99B	9.80B	9.29B	12.41B
Total Debt	4.14B	11.98B	5.39B	6.38B	3.95B	1.58B
Total Liabilities	21.49B	29.47B	21.98B	24.28B	21.55B	24.40B
Stockholders Equity	34.05B	34.22B	32.82B	31.42B	29.96B	29.31B
Cash Flow
Free Cash Flow	0.00	-6.44B	3.72B	-1.02B	-2.85B	7.99B
Operating Cash Flow	0.00	621.00M	7.07B	560.00M	-1.03B	10.45B
Investing Cash Flow	0.00	-6.50B	-3.63B	-1.29B	-2.09B	-2.66B
Financing Cash Flow	0.00	5.33B	-2.26B	1.20B	502.00M	-4.75B

Fudo Tetra Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2653.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1813, the sentiment is Neutral. The current price of 2653 is below the 20-day moving average (MA) of 3631.25, below the 50-day MA of 3419.98, and below the 200-day MA of 2737.11, indicating a neutral trend. The MACD of -48.45 indicates Positive momentum. The RSI at 44.00 is Neutral, neither overbought nor oversold. The STOCH value of 17.32 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1813.

Fudo Tetra Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1921	80 Outperform	¥69.95B	26.09	―	0.79%	-8.53%	-83.61%
1929	75 Outperform	¥54.10B	7.30	―	3.78%	11.81%	52.35%
1813	68 Neutral	¥51.66B	4.67	―	2.26%	12.93%	98.16%
1888	65 Neutral	¥58.02B	9.11	―	2.84%	15.45%	43.95%
1815	64 Neutral	¥72.83B	-149.33	―	2.73%	-3.59%	49.34%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1811	60 Neutral	¥61.52B	19.35	―	1.57%	11.01%	231.83%

Fudo Tetra Corporation Corporate Events

Fudo Tetra Lifts FY2026 Earnings Outlook and Hikes Dividend on Strong Ground Improvement Business

Fudo Tetra Corporation revised upward its full-year earnings forecast for the fiscal year ending March 31, 2026, citing stronger-than-expected performance in both its Civil Engineering and Ground Improvement businesses. Net sales are now projected at ¥80 billion, with operating profit of ¥4.9 billion and profit attributable to owners of parent of ¥3.45 billion, representing double-digit percentage increases versus the previous guidance, driven particularly by high profitability on large ground improvement projects and solid utilization of a healthy order backlog. While some major civil engineering projects will shift profit recognition into the next fiscal year, temporarily weighing on that segment’s margin, the company is also stepping up spending on human capital and measures to prevent a recurrence of past accounting irregularities. In light of the higher earnings outlook and its policy of targeting a roughly 40% payout ratio, Fudo Tetra raised its year-end dividend forecast by ¥20 to ¥90 per share, signaling stronger shareholder returns alongside improved operational performance.

The most recent analyst rating on (JP:1813) stock is a Hold with a Yen3496.00 price target. To see the full list of analyst forecasts on Fudo Tetra Corporation stock, see the JP:1813 Stock Forecast page.

Fudo Tetra Doubles Profits and Hikes Dividend Forecast on Strong Nine-Month Results

Fudo Tetra reported strong consolidated results for the nine months ended December 31, 2025, with net sales rising 18.4% year on year to ¥60.0 billion and operating profit more than doubling to ¥5.1 billion. Ordinary profit climbed 103.4% to ¥5.2 billion and profit attributable to owners of parent surged 91.8% to ¥3.4 billion, lifting basic earnings per share to ¥225.98 and boosting equity and the equity-to-asset ratio to 54.4%. Reflecting this earnings strength, the company raised its full-year forecast, now projecting net sales of ¥80.0 billion, operating profit of ¥4.9 billion and profit attributable to owners of parent of ¥3.45 billion, alongside a higher total annual dividend forecast of ¥90 per share, signaling improved shareholder returns and a solid financial position with no major changes in consolidation scope or accounting policies.

The most recent analyst rating on (JP:1813) stock is a Hold with a Yen3496.00 price target. To see the full list of analyst forecasts on Fudo Tetra Corporation stock, see the JP:1813 Stock Forecast page.

Fudo Tetra Slashes Executive Pay Over Fictitious Order Scandal

Fudo Tetra Corporation has announced disciplinary measures against its top management following an incident involving fictitious orders placed by employees, which had previously prompted a special committee investigation and the formulation of additional recurrence prevention measures. The board resolved to cut the monthly remuneration of President Shinya Okuda by 20% for three months, Executive Vice President Jun Ohbayashi by 15% for three months, and Director and Managing Executive Officer Yoji Kawachi by 10% for three months, with further temporary pay reductions imposed on several executive officers responsible for the soil improvement business and a regional branch; the company reiterated its apology to shareholders, business partners and other stakeholders, signaling an effort to assume management responsibility, strengthen internal controls and restore trust.

The most recent analyst rating on (JP:1813) stock is a Hold with a Yen3286.00 price target. To see the full list of analyst forecasts on Fudo Tetra Corporation stock, see the JP:1813 Stock Forecast page.

Fudo Tetra Posts Sharp Profit Surge and Plans Higher Dividend for FY2025

Fudo Tetra Corporation reported strong consolidated results for the six months ended September 30, 2025, with net sales rising 25.1% year on year to ¥37.3 billion and operating profit surging more than fourfold to ¥2.1 billion. Ordinary profit climbed 267.0% to ¥2.2 billion, while profit attributable to owners of parent jumped 181.1% to ¥1.3 billion, lifting basic earnings per share to ¥83.95 and improving the equity-to-asset ratio to 58.6%. For the full fiscal year ending March 31, 2026, the company is forecasting net sales of ¥78.0 billion, operating and ordinary profit of ¥4.0 billion each, and profit attributable to owners of parent of ¥2.65 billion, implying double-digit growth in earnings per share to ¥175.09 and supporting a planned increase in the annual dividend from ¥60 to ¥70 per share, underscoring management’s confidence in earnings momentum and commitment to shareholder returns.

The most recent analyst rating on (JP:1813) stock is a Hold with a Yen2708.00 price target. To see the full list of analyst forecasts on Fudo Tetra Corporation stock, see the JP:1813 Stock Forecast page.

Fudo Tetra Unveils Expanded Plan to Prevent Recurrence of Fictitious Orders Scandal

Fudo Tetra Corporation has drawn up a new detailed execution plan for additional measures to prevent a recurrence of fictitious orders and related improper practices uncovered in an earlier internal investigation, following further recommendations from a Special Committee established in August 2025. The group will pursue broad reforms spanning corporate culture, internal controls in accounting and procurement, governance structures, and compliance training, while also improving employee treatment and workplace conditions and reinforcing fair dealings and whistleblowing channels for business partners, as it seeks to restore public trust, clarify management accountability through potential disciplinary actions, and strengthen its overall governance framework.

The most recent analyst rating on (JP:1813) stock is a Hold with a Yen2708.00 price target. To see the full list of analyst forecasts on Fudo Tetra Corporation stock, see the JP:1813 Stock Forecast page.