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

• Market Cap: ¥40.16B
• Dividend Yield: 3.86%
• Average Volume (3M): 49.66K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.70
• Revenue Growth: 14.97%
• EPS Growth: 72.48%
• Country: JP
• Employees: 668
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): 112.32
• Shares Outstanding: 10,614,225
• 10 Day Avg. Volume: 59,230
• 30 Day Avg. Volume: 49,663
• PEG Ratio: 0.14
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.22
• P/FCF Ratio: -5.21
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥4,381.00 ▲(17.14% Upside)

The overall stock score is driven by strong technical analysis indicators and a reasonable valuation, supported by solid financial performance. However, the need for improved cash flow management is a concern. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth Trend

Sustained revenue growth over multiple years indicates successful market expansion and consistent project wins. This durable top-line momentum supports capacity to scale operations, justify reinvestment in development pipelines, and underpins longer-term earnings potential if converted efficiently into cash.

Conservative Leverage

A strong equity ratio and very low debt-to-equity reflect conservative capital structure and lower financial risk. This provides flexibility to fund new projects, withstand cyclical downturns, and pursue strategic investment without heavy reliance on external financing, supporting long-term stability.

Improving Profit Margins

Progressively better gross and net margins suggest the company is extracting more value from revenues and improving cost control. Sustained margin improvement enhances internal cash generation potential, supports reinvestment in the business, and increases resilience to cost pressures over the medium term.

Negative Factors

Negative Operating Cash Flow

Persistent negative operating cash flow indicates accounting profits are not converting to cash, limiting the firm's ability to self-fund projects, cover capex, or increase dividends. Over months this structural cash-generation shortfall raises reliance on financing or asset sales and warrants operational fixes.

Shrinking Asset Base

A gradual decline in total assets can constrain capacity to take on larger projects or expand backlog. Over the medium term, a shrinking asset base may reduce economies of scale, limit revenue expansion opportunities, and signal underinvestment in productive capacity needed for sustained growth.

Thin Operating Margins

Relatively low EBIT and EBITDA margins leave limited buffers against cost inflation or cyclical downturns in real estate development. Persistently thin operating profitability reduces the company's ability to self-finance growth, increases sensitivity to pricing pressure, and makes operational efficiency a priority.

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

Company Description

Daisue Construction Co., Ltd. operates as a construction company in Japan. It is involved in the construction of condominiums, offices, logistics warehouses, factories, medical facilities, and wedding and funeral buildings. The company also engages in the repair, extension, and renovation of existing buildings. Daisue Construction Co., Ltd. was founded in 1937 and is headquartered in Osaka, Japan.

How the Company Makes Money

DAISUE CONSTRUCTION CO., LTD. generates revenue primarily through its construction projects, which include contracts for public infrastructure, residential buildings, and commercial developments. The company's revenue model is based on fixed-price contracts, cost-plus contracts, and time and materials contracts, allowing for flexibility depending on the project scope. Key revenue streams include project management fees, construction services, and consultancy fees for planning and design. Additionally, partnerships with government agencies and private developers play a significant role in securing contracts, and the company benefits from repeat business and referrals through its established reputation for reliability and quality in the construction industry.

DAISUE CONSTRUCTION CO., LTD. Financial Statement Overview

Summary

DAISUE CONSTRUCTION CO., LTD. shows strong revenue growth and improved profitability metrics, indicating successful business expansion. The balance sheet reflects financial stability with low leverage and a strong equity position. However, persistent negative operating cash flows highlight the need for enhanced 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	90.59B	89.03B	77.81B	71.83B	69.64B	56.49B
Gross Profit	8.52B	8.28B	5.65B	5.38B	6.05B	5.46B
EBITDA	4.31B	4.23B	2.23B	2.06B	2.83B	2.52B
Net Income	2.18B	2.06B	1.24B	1.32B	1.82B	1.60B
Balance Sheet
Total Assets	56.68B	55.59B	59.11B	45.63B	48.66B	40.53B
Cash, Cash Equivalents and Short-Term Investments	4.52B	4.46B	8.78B	10.19B	7.52B	6.22B
Total Debt	10.12B	3.20B	4.67B	202.00M	378.00M	490.00M
Total Liabilities	33.76B	32.60B	36.56B	24.09B	28.03B	21.42B
Stockholders Equity	22.92B	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: 3740.00
• 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:1814, the sentiment is Neutral. The current price of 3740 is below the 20-day moving average (MA) of 3908.50, below the 50-day MA of 3772.10, and above the 200-day MA of 2765.08, indicating a neutral trend. The MACD of 19.25 indicates Positive momentum. The RSI at 40.86 is Neutral, neither overbought nor oversold. The STOCH value of 14.95 is Positive, 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	78 Outperform	¥36.23B	6.94	―	3.01%	-1.93%	47.35%
1814	74 Outperform	¥40.16B	13.43	―	3.86%	14.97%	72.48%
3299	74 Outperform	¥50.00B	8.57	―	6.02%	1.33%	9.59%
8897	68 Neutral	¥53.35B	10.19	6.98%	7.35%	-21.50%	-56.82%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
146A	64 Neutral	¥25.00B	6.36	―	1.80%	45.48%	48.63%

DAISUE CONSTRUCTION CO., LTD. Corporate Events

DAISUE CONSTRUCTION Launches Stock Grant ESOP Trust to Boost Employee Engagement

DAISUE CONSTRUCTION CO., LTD. has introduced a Stock Grant Employee Stock Ownership Plan (ESOP Trust) to incentivize employees by aligning their interests with the company’s stock performance. This plan aims to boost employee motivation and participation in management, thereby enhancing the company’s corporate value over the medium to long term.

The most recent analyst rating on (JP:1814) stock is a Hold with a Yen3759.00 price target. To see the full list of analyst forecasts on DAISUE CONSTRUCTION CO., LTD. stock, see the JP:1814 Stock Forecast page.

DAISUE Construction Announces Increased Interim Dividend

DAISUE CONSTRUCTION CO., LTD. announced a resolution to pay an interim dividend of JPY 87 per share, reflecting a significant increase from the previous fiscal year’s dividend. This decision aligns with the company’s policy of maintaining a total payout ratio of 50% or more, emphasizing its commitment to shareholder returns and growth investment.

The most recent analyst rating on (JP:1814) stock is a Hold with a Yen3759.00 price target. To see the full list of analyst forecasts on DAISUE CONSTRUCTION CO., LTD. stock, see the JP:1814 Stock Forecast page.

DAISUE CONSTRUCTION Reports Strong Semi-Annual Financial Growth

DAISUE CONSTRUCTION CO., LTD. reported significant growth in its consolidated financial results for the six months ended September 30, 2025, with a 14.5% increase in net sales and a substantial rise in profits compared to the previous year. The company’s strong performance reflects its robust market positioning and operational efficiency, with notable increases in operating and ordinary profits, as well as profit attributable to owners of the parent, indicating a positive outlook for stakeholders.

The most recent analyst rating on (JP:1814) stock is a Hold with a Yen3759.00 price target. To see the full list of analyst forecasts on DAISUE CONSTRUCTION CO., LTD. stock, see the JP:1814 Stock Forecast page.