DAISUE CONSTRUCTION CO., LTD. (1814) AI Stock Analysis

• Market Cap: ¥22.44B
• Dividend Yield: 5.09%
• Average Volume (3M): 50.81K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.63
• Revenue Growth: 14.41%
• EPS Growth: 65.57%
• Country: JP
• Employees: 668
• Sector: Real Estate
• Sector Strength: 55
• Industry: Real Estate - Development
• EPS (TTM): 72.26
• Shares Outstanding: 10,614,225
• 10 Day Avg. Volume: 44,350
• 30 Day Avg. Volume: 50,810
• PEG Ratio: -0.34
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.44
• 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

• Rating: 73 Outperform
• Price Target: ¥2,461.00 ▲(15.00%Upside)

DAISUE CONSTRUCTION CO., LTD. scores well due to strong technical momentum and attractive valuation metrics. Financial performance shows growth potential, though cash flow management needs improvement. The absence of earnings call data and corporate events does not detract from the overall positive outlook.

DAISUE CONSTRUCTION CO., LTD. Business Overview & Revenue Model

Company Description

DAISUE CONSTRUCTION CO., LTD. (1814) is a Japan-based company primarily engaged in the construction business. The company operates in various sectors, including civil engineering, building construction, and real estate development. DAISUE is known for its expertise in designing and executing a wide range of construction projects, from residential and commercial buildings to infrastructure projects, such as roads and bridges.

How the Company Makes Money

DAISUE CONSTRUCTION CO., LTD. makes money primarily through its construction and engineering services. The company generates revenue by undertaking and completing construction projects for both private and public sector clients. This includes bidding for and winning contracts to build residential complexes, commercial properties, and infrastructure projects. DAISUE also engages in real estate development, which can involve the purchase, development, and sale of properties, adding another revenue stream. Key factors contributing to its earnings include its competitive bidding process, strong project management capabilities, and strategic partnerships with suppliers and subcontractors that enable cost-effective project execution.

DAISUE CONSTRUCTION CO., LTD. Financial Statement Overview

Summary

DAISUE CONSTRUCTION CO., LTD. shows strong revenue growth and improved profitability, indicating effective market expansion. The balance sheet indicates financial stability with low leverage, reducing financial risks. However, the persistent negative operating cash flows highlight a need for improved cash generation efficiency.

Income Statement

The company shows a strong revenue growth trend, increasing from ¥56.5 billion in 2021 to ¥89 billion in 2025, indicating effective market expansion. Gross profit margins have improved over the years, with a notable margin of 9.15% in 2025. Net profit margin has also increased, reaching 2.31% in 2025, up from 2.84% in 2021. However, the EBIT and EBITDA margins, while positive, indicate room for improvement, as they stand at 4.15% and 4.75% respectively in 2025. The overall profitability is growing, but efficiency gains could further enhance margins.

Balance Sheet

The balance sheet reflects a stable financial position with a healthy equity ratio of 41.34% in 2025, suggesting strong asset backing by equity. The debt-to-equity ratio is low at 0.14, indicating conservative leverage use, which reduces financial risk. Return on equity has improved, reaching 8.96% in 2025, which is an encouraging sign of efficient use of equity. However, the total assets have decreased slightly over the years, which could impact future growth potential.

Cash Flow

Cash flow analysis reveals challenges with operating cash flows consistently negative over recent years, reaching ¥-3.06 billion in 2025. Free cash flow has also been negative, highlighting issues in cash generation from operations. However, the company has maintained a strategy of reducing net debt over time, shown by a net debt position of ¥-1.255 billion in 2025. Improving operational efficiency to convert revenue growth into positive cash flows remains a key priority.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	85.65B	89.03B	77.81B	71.83B	69.64B	56.49B
Gross Profit	7.41B	8.14B	5.65B	5.38B	6.05B	5.46B
EBITDA	3.26B	4.23B	1.90B	2.01B	2.85B	2.34B
Net Income	2.07B	2.06B	1.24B	1.32B	1.82B	1.60B
Balance Sheet
Total Assets	63.55B	55.59B	59.11B	45.63B	48.66B	40.53B
Cash, Cash Equivalents and Short-Term Investments	10.34B	4.46B	8.78B	10.19B	7.52B	6.22B
Total Debt	9.99B	3.20B	4.67B	202.00M	378.00M	490.00M
Total Liabilities	40.51B	32.60B	36.56B	24.09B	28.03B	21.42B
Stockholders Equity	23.04B	22.99B	22.55B	21.54B	20.63B	19.11B
Cash Flow
Free Cash Flow	0.00	-3.71B	-2.65B	3.53B	1.85B	-3.23B
Operating Cash Flow	0.00	-3.06B	-1.92B	4.19B	1.96B	-3.09B
Investing Cash Flow	0.00	808.00M	-2.99B	-516.00M	-122.00M	7.00M
Financing Cash Flow	0.00	-2.07B	3.70B	-1.01B	-535.00M	-706.00M

DAISUE CONSTRUCTION CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2140.00
• 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:1814, the sentiment is Neutral. The current price of 2140 is below the 20-day moving average (MA) of 2165.55, above the 50-day MA of 2108.26, and above the 200-day MA of 1758.70, indicating a neutral trend. The MACD of 11.04 indicates Positive momentum. The RSI at 49.30 is Neutral, neither overbought nor oversold. The STOCH value of 24.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1814.

DAISUE CONSTRUCTION CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1847	82 Outperform	¥21.78B	4.64		0.67%	2.72%	59.88%
146A	77 Outperform	¥18.43B	6.29		2.17%	―	―
3299	74 Outperform	¥47.91B	6.46		4.50%	28.12%	110.57%
1814	73 Outperform	¥22.44B	10.84		5.09%	14.41%	65.57%
Sector *	70 Neutral	¥234.96B	14.48	10.62%	29.30%	17.27%	17.55%
8897	63 Neutral	€51.32B	6.05	11.09%	12.14%	6.12%	-17.70%
1757	50 Neutral	¥7.14B	―		―	-21.82%	-93.99%

DAISUE CONSTRUCTION CO., LTD. Corporate Events

DAISUE CONSTRUCTION Introduces Performance-Linked Stock Remuneration Plan

DAISUE CONSTRUCTION CO., LTD. announced a resolution to grant share delivery units to eligible Directors and Executive Officers under a performance-linked stock remuneration plan. This initiative aims to align executive compensation with the company’s performance and shareholder value, enhancing corporate value in the medium to long term.

DAISUE Construction Announces Parent Company’s Financial Results

DAISUE CONSTRUCTION CO., LTD. announced the financial results of its unlisted parent company, Misawa Homes Co., Ltd., which holds a significant stake in the company. This announcement provides insights into the financial health and ownership structure of Misawa Homes, which could impact DAISUE’s strategic decisions and stakeholder interests.

DAISUE CONSTRUCTION Maintains Independence Amid Affiliation with Misawa Homes

DAISUE CONSTRUCTION CO., LTD. announced that Misawa Homes Co., Ltd. holds 19.8% of its voting rights, positioning it as an ‘other affiliated company.’ Despite this, DAISUE maintains its independent business judgments while benefiting from the exchange of management information and technical know-how through a director appointed from Misawa Homes. This relationship is expected to influence DAISUE’s management policies but does not hinder its autonomy.

DAISUE CONSTRUCTION Announces Change in Major Shareholder

DAISUE CONSTRUCTION CO., LTD. announced a change in its major shareholders, with fundnote Co. Ltd. increasing its voting rights from 9.86% to 11.12%. This change, confirmed by a report filed with the Kanto Local Finance Bureau, reflects a shift in shareholder dynamics but does not indicate any immediate impact on the company’s future outlook.

DAISUE CONSTRUCTION Announces Dividend Payout for Fiscal Year 2025

DAISUE CONSTRUCTION CO., LTD. announced a resolution to pay dividends of surplus with a record date of March 31, 2025. The dividend per share is set at JPY 54.5, aligning with previous forecasts, resulting in an annual dividend of JPY 99 per share. This decision reflects the company’s commitment to enhancing shareholder value through strategic investments and consistent returns.

DAISUE CONSTRUCTION Introduces New Performance-Linked Stock Remuneration Plan

DAISUE CONSTRUCTION CO., LTD. has announced a new Performance-Linked Stock Remuneration Plan for its Directors and Executive Officers, which is part of its medium- to long-term business strategy ‘Road to 100th Anniversary: Embracing New Challenges.’ This plan, subject to shareholder approval, aims to motivate executives by aligning their interests with those of shareholders and enhancing corporate value through a Board Incentive Plan (BIP) Trust structure.

DAISUE CONSTRUCTION Revises Year-End Dividend Forecast Upwards

DAISUE CONSTRUCTION CO., LTD. has revised its year-end dividend forecast for the fiscal year ended March 2025, increasing the dividend per share from JPY 44.5 to JPY 54.5. This decision aligns with the company’s policy to maintain a total payout ratio of 50% or more, reflecting its commitment to shareholder value and growth investment.

DAISUE CONSTRUCTION Reports Strong Financial Growth for FY2025

DAISUE CONSTRUCTION CO., LTD. reported a substantial increase in its financial performance for the fiscal year ended March 31, 2025, with net sales rising by 14.4% and operating profit surging by 132.4% compared to the previous year. The company’s improved profitability and increased dividend payouts highlight its strong market positioning and potential positive implications for stakeholders.