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

• Market Cap: ¥40.74B
• Dividend Yield: 3.86%
• Average Volume (3M): 49.66K
• Price to Earnings (P/E): 6.9
• Beta (1Y): 0.78
• Revenue Growth: 14.97%
• EPS Growth: 72.48%
• Country: JP
• Employees: 668
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): 134.39
• 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: ¥4,482.00 ▲(19.84% Upside)
• Action: Upgraded Date: 11/15/25
• Date: Action: Upgraded 11/15/25

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

Sustained Revenue Growth

A multi-year revenue climb to ¥89bn by 2025 and a 15.7% growth trend indicate durable demand and successful market expansion. Strong top-line momentum supports scale economies, reinvestment capacity, and long-term project pipeline development, underpinning sustainable business growth.

Conservative Capital Structure

Low leverage and a healthy equity ratio signal financial resilience and lower refinancing risk. A net cash position provides flexibility for strategic investment, buffering cyclical construction risk and enabling funding for projects or dividends without overreliance on external debt.

Improving Profitability Metrics

Rising gross and net margins alongside an improving ROE reflect better project execution and pricing discipline. Margin improvement enhances long-term cash generation potential and indicates operational adjustments that can sustain profitability through project cycles.

Negative Factors

Negative Operating Cash Flow

Consistent negative operating and free cash flows despite revenue growth show difficulty converting profits to cash. This structural cash generation gap can constrain capex, project financing and dividend capacity, increasing reliance on balance-sheet liquidity or external funding over time.

Shrinking Asset Base

A slight decline in total assets may limit capacity to take on new projects or expand operations and suggests potential underinvestment. Over the medium term this could cap revenue growth and hamper the company's ability to scale or respond to larger contract opportunities.

Moderate Operating Margins

Relatively low EBIT/EBITDA margins leave limited buffer against cost inflation or project overruns. In a cyclical development industry, modest margins increase earnings and cashflow volatility risk, requiring continued efficiency gains to sustain returns and fund growth without increasing leverage.

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

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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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Negative
• Last Price: 3740.00
• 50DMA: Negative
• 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 Negative. The current price of 3740 is below the 20-day moving average (MA) of 4251.50, below the 50-day MA of 4056.10, and above the 200-day MA of 3063.62, indicating a neutral trend. The MACD of -17.37 indicates Positive momentum. The RSI at 45.18 is Neutral, neither overbought nor oversold. The STOCH value of 31.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	79 Outperform	¥44.07B	4.48	―	3.01%	-1.93%	47.35%
1814	74 Outperform	¥40.74B	6.89	―	3.86%	14.97%	72.48%
3293	73 Outperform	¥6.38B	11.79	2.90%	4.53%	-15.55%	-41.48%
8871	69 Neutral	¥112.23B	21.79	4.48%	3.30%	-2.12%	0.89%
3299	69 Neutral	¥58.17B	4.43	―	6.02%	1.33%	9.59%
8897	68 Neutral	¥55.65B	6.36	6.98%	7.35%	-21.50%	-56.82%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

DAISUE CONSTRUCTION CO., LTD. Corporate Events

Daisue Construction Doubles Profits and Hikes Dividend as Earnings Momentum Builds

For the nine months ended 31 December 2025, Daisue Construction reported strong growth, with net sales rising 15.5% year-on-year to ¥74.6 billion and profit attributable to owners of parent surging 134.8% to ¥3.07 billion, driving basic earnings per share up to ¥294.25. The company’s financial position remained solid, with total assets increasing to ¥58.3 billion and an equity ratio of 41.4%, and management maintained its full-year forecast for the fiscal year ending March 2026, targeting ¥101.0 billion in net sales and a 75.7% jump in full-year profit to ¥3.62 billion, alongside a sharp hike in annual dividends to ¥174 per share, signaling confidence in earnings momentum and a shareholder-friendly capital policy.

The most recent analyst rating on (JP:1814) stock is a Buy with a Yen4381.00 price target. To see the full list of analyst forecasts on DAISUE CONSTRUCTION CO., LTD. stock, see the JP:1814 Stock Forecast page.