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

• Market Cap: ¥210.85B
• Dividend Yield: 4.15%
• Average Volume (3M): 106.88K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.63
• Revenue Growth: -3.72%
• EPS Growth: 59.02%
• Country: JP
• Employees: 3,301
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 121.80
• Shares Outstanding: 41,791,504
• 10 Day Avg. Volume: 108,890
• 30 Day Avg. Volume: 106,876
• PEG Ratio: 0.26
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 0.52
• P/FCF Ratio: -10.43
• 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: ¥4,700.00
• Price Target Upside: -17.15% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥6,452.00 ▲(13.73% Upside)

Nishimatsu Construction's overall stock score is driven by strong technical indicators and reasonable valuation. Financial performance is solid but could be improved by addressing cash flow challenges. The lack of earnings call and corporate events data did not impact the score.

Positive Factors

Profitability

Improved net profit margins indicate better operational efficiency, enhancing the company's ability to generate profits from its operations, which is crucial for long-term sustainability.

Equity Stability

A stable equity ratio suggests a strong financial structure, providing a buffer against market volatility and supporting long-term growth initiatives.

Return on Equity

An improved return on equity demonstrates enhanced profitability for shareholders, indicating effective management and potential for continued investor confidence.

Negative Factors

Revenue Growth

Negative revenue growth suggests challenges in expanding market reach or product adoption, potentially impacting future profitability and market position.

Leverage

Higher leverage can increase financial risk, potentially limiting the company's ability to invest in growth opportunities and affecting its long-term financial health.

Cash Flow Management

Negative free cash flow due to high capital expenditures raises concerns about cash flow sustainability, which could affect the company's ability to fund operations and growth.

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

Company Description

Nishimatsu Construction Co., Ltd. engages in the construction, development, real estate, and other businesses in Japan and internationally. It operates in three segments: Civil Engineering, Building Construction, and Development and Real Estate. The company's projects include offices, hospitals, accommodations, residential and commercial buildings, dams, railways, airports/harbors and wharfs, roads, and earthworks; welfare facilities for senior citizens; building renovation and civil engineering renewal projects; and educational, cultural, sports, industrial, logistics, energy, environmental, agricultural civil engineering, river, water supply, and sewer facilities. It also provides civil engineering, architectural, environmental, and information technology and solutions. The company was formerly known as Nishimatsu Gumi Co., Ltd. and changed its name to Nishimatsu Construction Co., Ltd. in July 1948. Nishimatsu Construction Co., Ltd. was founded in 1874 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nishimatsu Construction generates revenue through various streams, primarily focused on project contracting in civil engineering and building construction. The company earns money by securing contracts from public and private sector clients for large infrastructure projects, including highways, bridges, and urban developments. Key revenue streams include fixed-price contracts, where the company agrees to complete a project for a specified amount, and cost-plus contracts, which reimburse the company for costs incurred plus a fee. Additionally, Nishimatsu Construction benefits from strategic partnerships with local government agencies and other construction firms, enabling it to access larger projects and share resources. The company's commitment to sustainability and innovation also allows it to tap into emerging markets related to environmental construction and smart infrastructure solutions, contributing to its overall earnings.

Nishimatsu Construction Co., Ltd. Financial Statement Overview

Summary

Nishimatsu Construction demonstrates strong profitability with improved net profit margins and revenue growth. However, the balance sheet shows increased leverage, and cash flow management is a concern due to negative free cash flow and lower cash conversion ratios.

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	365.58B	366.81B	401.63B	339.76B	323.75B	336.24B
Gross Profit	43.21B	44.11B	40.79B	33.72B	43.77B	39.76B
EBITDA	28.93B	30.70B	22.52B	16.59B	27.80B	24.31B
Net Income	15.96B	17.54B	12.39B	9.65B	15.10B	17.17B
Balance Sheet
Total Assets	603.27B	592.05B	579.62B	513.62B	477.61B	472.44B
Cash, Cash Equivalents and Short-Term Investments	90.89B	43.42B	56.53B	53.73B	47.12B	43.77B
Total Debt	235.49B	194.21B	186.15B	169.41B	161.08B	115.04B
Total Liabilities	426.81B	410.85B	402.77B	357.48B	319.90B	264.90B
Stockholders Equity	167.91B	172.14B	168.82B	148.84B	151.33B	205.98B
Cash Flow
Free Cash Flow	-17.45B	-18.17B	17.30B	8.70B	11.41B	-14.98B
Operating Cash Flow	-13.28B	5.89B	32.04B	34.75B	41.24B	4.91B
Investing Cash Flow	-6.63B	-36.21B	-41.82B	-27.45B	-22.53B	5.30B
Financing Cash Flow	20.45B	16.09B	11.08B	-2.37B	-16.07B	-12.65B

Nishimatsu Construction Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5673.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 5673 is above the 20-day moving average (MA) of 5428.40, above the 50-day MA of 5302.76, and above the 200-day MA of 4974.49, indicating a bullish trend. The MACD of 96.39 indicates Negative momentum. The RSI at 67.17 is Neutral, neither overbought nor oversold. The STOCH value of 92.48 is Negative, 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
1860	76 Outperform	¥358.53B	11.39	―	3.10%	18.92%	73.08%
1820	75 Outperform	¥210.85B	13.21	―	4.15%	-3.72%	59.02%
1951	73 Outperform	¥454.52B	17.00	―	2.76%	15.47%	64.50%
1893	68 Neutral	$407.09B	28.38	10.95%	2.00%	16.67%	5.82%
1963	65 Neutral	$488.25B	―	-0.24%	2.10%	-0.41%	80.25%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%