Nishimatsu Construction Co., Ltd. (1820) AI Stock Analysis

• Market Cap: ¥209.87B
• Dividend Yield: 4.16%
• Average Volume (3M): 99.58K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.62
• Revenue Growth: -8.97%
• EPS Growth: 9.14%
• Country: JP
• Employees: 3,301
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 41.79
• Shares Outstanding: 41,791,504
• 10 Day Avg. Volume: 75,910
• 30 Day Avg. Volume: 99,576
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥5,050.50
• Price Target Upside: -5.01% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 71 Outperform
• Price Target: ¥5,401.00 ▲(1.58% Upside)

Nishimatsu Construction's strong financial performance, highlighted by robust profitability and valuation metrics such as a low P/E ratio and high dividend yield, support a favorable view. However, cash flow issues and mixed technical indicators moderate the overall score. Addressing cash flow concerns could improve the outlook significantly.

Nishimatsu Construction Co., Ltd. Business Overview & Revenue Model

Company Description

Nishimatsu Construction Co., Ltd. (1820) is a prominent Japanese construction and civil engineering company. Established in 1937, the company engages in a wide range of construction activities, including the development of infrastructure projects such as tunnels, bridges, roads, and commercial as well as residential buildings. Nishimatsu Construction is also involved in environmental conservation projects and urban development, with a strong emphasis on leveraging advanced technology and sustainable practices in its operations.

How the Company Makes Money

Nishimatsu Construction Co., Ltd. generates revenue through its involvement in large-scale construction and engineering projects both domestically and internationally. The company primarily earns money by undertaking contracts for public and private sector clients, delivering comprehensive services from project planning and design to construction and maintenance. Key revenue streams include infrastructure development projects, such as tunnels and bridges, which are often commissioned by government agencies. Additionally, Nishimatsu Construction engages in real estate development, contributing to its income through the sale or leasing of commercial and residential properties. Partnerships with other construction firms and technology providers enhance its capabilities and project portfolio, further driving revenue growth.

Nishimatsu Construction Co., Ltd. Financial Statement Overview

Summary

Nishimatsu Construction demonstrates strong profitability with improving margins and revenue growth. However, the company faces challenges with cash flow management, as indicated by negative free cash flow and low cash conversion ratios, which slightly detracts from the overall financial performance.

Income Statement

Nishimatsu Construction shows strong profitability with a consistent gross profit margin of around 12% over recent years. The net profit margin has improved to 4.8% from 3.1% last year, indicating better operational efficiency. Revenue growth is positive, with a 7% increase in the latest year compared to a slight decline the previous year. Overall, these metrics suggest a stable and improving financial performance.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.13, indicating higher leverage, which could pose risks in a volatile market. However, the equity ratio remains solid at 29%, reflecting a stable financial structure with adequate equity base. Return on equity has improved to 10.2%, which demonstrates enhanced profitability for shareholders.

Cash Flow

Nishimatsu Construction has experienced a significant decline in free cash flow, turning negative due to high capital expenditures. Operating cash flow to net income ratio suggests operational cash generation is below net income, raising concerns about cash flow sustainability. The company may need to focus on optimizing capital expenditure and improving cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	366.81B	366.81B	401.63B	339.76B	323.75B	336.24B
Gross Profit	44.11B	44.11B	40.79B	33.72B	43.77B	39.76B
EBITDA	30.86B	30.70B	23.95B	18.39B	27.80B	27.95B
Net Income	17.54B	17.54B	12.39B	9.65B	15.10B	17.17B
Balance Sheet
Total Assets	592.05B	592.05B	579.62B	513.62B	477.61B	472.44B
Cash, Cash Equivalents and Short-Term Investments	43.42B	43.42B	56.53B	53.73B	47.12B	43.77B
Total Debt	194.21B	194.21B	186.15B	169.41B	161.08B	115.04B
Total Liabilities	410.85B	410.85B	402.77B	357.48B	319.90B	264.90B
Stockholders Equity	172.14B	172.14B	168.82B	148.84B	151.33B	205.98B
Cash Flow
Free Cash Flow	-34.91B	-18.17B	17.30B	8.70B	11.41B	-14.98B
Operating Cash Flow	-26.56B	5.89B	32.04B	34.75B	41.24B	4.91B
Investing Cash Flow	-13.26B	-36.21B	-41.82B	-27.45B	-22.53B	5.30B
Financing Cash Flow	40.90B	16.09B	11.08B	-2.37B	-16.07B	-12.65B

Nishimatsu Construction Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5317.00
• 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:1820, the sentiment is Positive. The current price of 5317 is above the 20-day moving average (MA) of 5244.95, above the 50-day MA of 5140.84, and above the 200-day MA of 4974.47, indicating a bullish trend. The MACD of 47.15 indicates Positive momentum. The RSI at 54.40 is Neutral, neither overbought nor oversold. The STOCH value of 29.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1820.

Nishimatsu Construction Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1951	76 Outperform	446.56B	16.49	8.36%	2.84%	11.20%	36.74%
1860	75 Outperform	322.34B	12.53	7.36%	2.76%	16.62%	42.69%
1820	71 Outperform	¥209.87B	13.07	―	4.16%	-8.97%	9.14%
1893	65 Neutral	338.67B	23.23	7.24%	2.02%	15.90%	-21.82%
1963	64 Neutral	381.97B	-50.78	-0.10%	2.65%	-1.54%	-26.26%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%