Strong Balance SheetHigh equity ratio and minimal leverage give Sata flexibility to bid on large projects, absorb delayed client payments common in construction, and finance working capital or capex without reliance on external debt. This balance-sheet strength supports durability across cycles.

Solid Revenue GrowthSustained 23.7% revenue growth and improved gross margin to 9.24% indicate the company is scaling contract wins while managing direct costs. Durable top-line expansion with rising gross margin supports longer-term EBITDA and cash generation if operating efficiencies are preserved.

Positive Free Cash FlowMaintaining positive free cash flow despite a drop in operating cash flow shows disciplined capital allocation and ability to convert earnings into cash. Healthy free cash flow to net income ratio supports dividends, reinvestment and reduces need for immediate external financing.

Bears Say

Declining Operating Cash FlowA 55.2% decline in operating cash flow signals weakening core cash generation from operations. In construction, persistent OCF declines can stress working capital for project delivery, increase reliance on credit, and impair the firm's ability to fund growth or absorb project delays.

Modest Return On EquityROE of 3.9% is low for a capital-intensive contractor and suggests limited returns on shareholder capital. Unless margins or leverage strategy improves, low ROE can constrain long-term shareholder value and signal inefficient deployment of equity in winning higher-margin contracts.

Eroding Operating MarginsReported decreases in EBIT and EBITDA margins point to eroding operational efficiency. In a competitive construction market, narrowing operating margins reduce earnings resilience, limit cash available for reinvestment, and raise pressure to cut costs or improve project execution.

1826 FAQ

What was Sata Construction Co., Ltd.’s price range in the past 12 months?

Sata Construction Co., Ltd. lowest stock price was ¥920.00 and its highest was ¥1296.00 in the past 12 months.

What is Sata Construction Co., Ltd.’s market cap?

Sata Construction Co., Ltd.’s market cap is ¥15.12B.

When is Sata Construction Co., Ltd.’s upcoming earnings report date?

Sata Construction Co., Ltd.’s upcoming earnings report date is May 08, 2026 which is in 59 days.

How were Sata Construction Co., Ltd.’s earnings last quarter?

Sata Construction Co., Ltd. released its earnings results on Feb 06, 2026. The company reported ¥24.15 earnings per share for the quarter, beating the consensus estimate of N/A by ¥24.15.

Is Sata Construction Co., Ltd. overvalued?

According to Wall Street analysts Sata Construction Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Sata Construction Co., Ltd. pay dividends?

Sata Construction Co., Ltd. pays a Annually dividend of ¥60 which represents an annual dividend yield of 5.36%. See more information on Sata Construction Co., Ltd. dividends here

What is Sata Construction Co., Ltd.’s EPS estimate?

Sata Construction Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Sata Construction Co., Ltd. have?

Sata Construction Co., Ltd. has 13,386,233 shares outstanding.

What happened to Sata Construction Co., Ltd.’s price movement after its last earnings report?

Sata Construction Co., Ltd. reported an EPS of ¥24.15 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -2.174%.

Which hedge fund is a major shareholder of Sata Construction Co., Ltd.?

Currently, no hedge funds are holding shares in JP:1826

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Sata Construction Co., Ltd.

Sata Construction Co., Ltd. engages in the contracting and investigation, planning and designing, and supervision of civil engineering and other construction works in Japan. It also offers civil engineering services for highways, bridges, tunnels, dams, residential land development projects, and disaster recovery works; and extension, renovation, and remodeling of buildings and condominiums. In addition, the company manufactures, sells, and rents construction materials, equipment, and machineries; owns and leases vehicles, ships, aircrafts, and other machineries; and produces and sells gravels and wood products. Further, it engages in the industrial waste recycling and treatment; building rental and tourism; insurance agency and recruitment of life insurance; and land house selling, mediation, and lending businesses, as well as regional development, urban development, and other projects. Additionally, the company generates, supplies, and sells electricity. Sata Construction Co., Ltd. was founded in 1918 and is headquartered in Maebashi, Japan.