Sata Construction Co., Ltd. (1826) AI Stock Analysis

• Market Cap: ¥19.89B
• Dividend Yield: 4.72%
• Average Volume (3M): 39.70K
• Price to Earnings (P/E): 34.5
• Beta (1Y): 0.15
• Revenue Growth: 4.96%
• EPS Growth: 152.04%
• Country: JP
• Employees: 460
• Sector: Industrials
• Sector Strength: 74
• Industry: Engineering & Construction
• EPS (TTM): 4.50
• Shares Outstanding: 15,521,233
• 10 Day Avg. Volume: 16,670
• 30 Day Avg. Volume: 39,700
• 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: ¥1,127.00
• Price Target Upside: -12.09% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 58 Neutral
• Price Target: ¥1,127.00 ▼(-12.09% Downside)

Sata Construction Co., Ltd.'s overall stock score reflects a balanced view of its strong financial performance and dividend yield against negative technical indicators and high valuation. The company's solid revenue growth and stable balance sheet are significant positives, but challenges in operational efficiency and cash flow, along with bearish market momentum and high P/E ratio, weigh on the stock's attractiveness.

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

Company Description

Sata Construction Co., Ltd. (1826) is a leading construction company based in Japan, specializing in civil engineering, building construction, and infrastructure development. The company is known for its expertise in designing and constructing large-scale projects, including roads, bridges, and commercial buildings. Sata Construction Co., Ltd. is committed to delivering high-quality construction solutions while adhering to sustainable practices and innovative technologies.

How the Company Makes Money

Sata Construction Co., Ltd. generates revenue primarily through its construction and engineering services. The company secures contracts from both public and private sector clients for large-scale infrastructure and building projects. Revenue streams include income from project management, construction services, and maintenance contracts. Sata Construction Co., Ltd. may also engage in partnerships and joint ventures to expand its project portfolio and enhance its market presence. Additionally, the company could derive income from consultancy services and technical support provided to clients. Factors such as government infrastructure spending, urban development initiatives, and demand for commercial and residential spaces significantly contribute to the company's earnings.

Sata Construction Co., Ltd. Financial Statement Overview

Summary

Sata Construction Co., Ltd. demonstrates a robust financial standing with strong revenue growth of 23.7% and an improved gross profit margin of 9.24%. The balance sheet is stable with a high equity ratio of 56.5% and low debt-to-equity ratio of 0.09. However, operational efficiencies and cash flow management need improvement, as indicated by decreased operating cash flow and modest return on equity.

Income Statement

Sata Construction Co., Ltd. shows a solid revenue growth of 23.7% from the previous year, with a steady increase in gross and net profit margins. Gross profit margin improved to 9.24%, indicating efficient cost management. However, the company's EBIT and EBITDA margins have slightly decreased, showcasing a need for operational efficiency improvements.

Balance Sheet

The company maintains a strong equity base with an equity ratio of 56.5%, reflecting financial stability. The debt-to-equity ratio is low at 0.09, indicating conservative leverage. Return on equity is modest at 3.9%, suggesting room for profitability enhancement.

Cash Flow

Although operating cash flow decreased by 55.2% from the previous year, the company managed to maintain a positive free cash flow. The free cash flow to net income ratio is healthy, but the declining operating cash flow poses a risk if not addressed.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	32.26B	32.26B	26.08B	30.12B	26.66B	31.69B
Gross Profit	2.98B	2.98B	1.72B	3.47B	2.22B	2.39B
EBITDA	1.12B	1.14B	357.00M	2.01B	689.00M	1.12B
Net Income	611.00M	611.00M	75.00M	1.32B	355.00M	651.00M
Balance Sheet
Total Assets	27.49B	27.49B	26.30B	26.78B	25.84B	25.20B
Cash, Cash Equivalents and Short-Term Investments	14.10B	14.10B	13.94B	12.39B	10.11B	9.60B
Total Debt	1.33B	1.33B	1.29B	1.27B	1.54B	1.55B
Total Liabilities	11.96B	11.96B	11.05B	11.21B	11.28B	10.80B
Stockholders Equity	15.52B	15.52B	15.24B	15.57B	14.55B	14.40B
Cash Flow
Free Cash Flow	0.00	579.00M	1.97B	2.72B	754.00M	185.00M
Operating Cash Flow	0.00	900.00M	2.01B	2.91B	1.32B	194.00M
Investing Cash Flow	0.00	-362.00M	-97.00M	-21.00M	-584.00M	-109.00M
Financing Cash Flow	0.00	-371.00M	-367.00M	-601.00M	-230.00M	-357.00M

Sata Construction Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1282.00
• 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:1826, the sentiment is Positive. The current price of 1282 is above the 20-day moving average (MA) of 1245.70, above the 50-day MA of 1177.28, and above the 200-day MA of 1056.75, indicating a bullish trend. The MACD of 21.83 indicates Positive momentum. The RSI at 65.35 is Neutral, neither overbought nor oversold. The STOCH value of 79.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1826.

Sata Construction Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1780	80 Outperform	¥26.71B	8.88		1.70%	3.21%	4.85%
1770	75 Outperform	¥15.04B	11.33		3.83%	-12.29%	-34.50%
1827	73 Outperform	¥26.50B	10.46		2.85%	>-0.01%	-11.62%
1866	69 Neutral	¥25.01B	8.05		2.51%	2.38%	-22.00%
1914	67 Neutral	¥14.23B	13.32		3.64%	17.93%	-31.47%
Sector *	64 Neutral	$10.73B	15.74	7.64%	2.01%	2.76%	-15.10%
1826	58 Neutral	¥19.89B	34.50		4.72%	4.96%	152.04%