Sanyu Construction Co., Ltd. (1841) AI Stock Analysis

• Market Cap: ¥4.15B
• Dividend Yield: 1.88%
• Average Volume (3M): 2.56K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.39
• Revenue Growth: -16.60%
• EPS Growth: -19.91%
• Country: JP
• Employees: 154
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 48.18
• Shares Outstanding: 4,000,000
• 10 Day Avg. Volume: 570
• 30 Day Avg. Volume: 2,560
• PEG Ratio: 0.18
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.33
• P/FCF Ratio: 3.44
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 82 Outperform
• Price Target: ¥1,926.00 ▲(20.75% Upside)

Sanyu Construction Co., Ltd. receives a strong overall stock score driven by robust technical analysis indicators and a solid financial performance. The stock's valuation suggests it may be undervalued, providing potential upside. However, investors should monitor the volatility in net profit margins and free cash flow for sustained performance.

Positive Factors

Financial Stability

A strong balance sheet with low leverage ensures financial stability, allowing the company to withstand economic fluctuations and invest in growth opportunities.

Cash Flow Management

Effective cash management and positive free cash flow growth enhance the company's ability to fund operations, invest in new projects, and return capital to shareholders.

Operational Efficiency

Improved EBIT and EBITDA margins indicate better operational efficiency, which can lead to higher profitability and competitive advantage in the long term.

Negative Factors

Revenue Decline

A decline in revenue growth poses a risk to the company's ability to maintain its market position and could impact long-term profitability if not addressed.

Net Profit Margin Volatility

Volatility in net profit margins suggests challenges in managing non-operating expenses, which could affect the company's profitability and financial predictability.

Cash Flow Volatility

Volatile free cash flow can impact the company's ability to consistently fund operations and growth initiatives, potentially affecting its financial flexibility.

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

Company Description

Sanyu Construction Co., Ltd. (1841) is a leading player in the construction industry, specializing in a wide range of services including residential, commercial, and industrial construction projects. The company is renowned for its commitment to quality, safety, and innovative building solutions, catering to a diverse clientele that includes government agencies, private firms, and individual homeowners. Sanyu Construction's core products and services encompass project management, general contracting, design-build services, and renovation solutions, making it a comprehensive service provider in the construction sector.

How the Company Makes Money

Sanyu Construction Co., Ltd. generates revenue primarily through its construction contracts, which account for the majority of its income. The company bids on various projects, securing contracts from public and private entities for new construction, renovation, and infrastructure development. Key revenue streams include fixed-price contracts, time and materials contracts, and cost-plus contracts. Additionally, Sanyu Construction often partners with subcontractors and suppliers for specialized services and materials, enhancing its project capabilities and efficiency. Strategic partnerships with local governments and private developers also play a critical role in securing ongoing projects, thereby contributing to a stable revenue flow.

Sanyu Construction Co., Ltd. Financial Statement Overview

Summary

Sanyu Construction Co., Ltd. exhibits strong financial performance with consistent revenue growth and operational efficiency. The balance sheet is robust with low leverage, and cash flow management is effective. However, there is some volatility in net profit margins and free cash flow.

Income Statement

Sanyu Construction Co., Ltd. has demonstrated strong revenue growth over the years, with a notable increase from 2022 to 2024. The gross profit margin has been relatively stable, indicating effective cost management. However, the net profit margin has shown some volatility, suggesting potential challenges in controlling non-operating expenses. The EBIT and EBITDA margins have improved, reflecting enhanced operational efficiency.

Balance Sheet

The company maintains a robust balance sheet with a low debt-to-equity ratio, indicating conservative leverage and financial stability. The equity ratio is strong, showcasing a solid capital structure. Return on equity has improved, suggesting better utilization of shareholder funds. Overall, the balance sheet reflects financial health and stability.

Cash Flow

Sanyu Construction has shown positive free cash flow growth, indicating effective cash management and operational efficiency. The operating cash flow to net income ratio is strong, suggesting good cash conversion. However, fluctuations in free cash flow in previous years highlight potential volatility in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.78B	10.41B	11.55B	9.23B	8.12B	7.50B
Gross Profit	1.21B	1.23B	1.01B	564.95M	551.09M	571.67M
EBITDA	840.72M	856.54M	674.65M	266.36M	265.62M	257.96M
Net Income	447.56M	480.27M	371.54M	119.34M	131.32M	40.49M
Balance Sheet
Total Assets	14.79B	14.43B	14.73B	14.62B	14.11B	13.28B
Cash, Cash Equivalents and Short-Term Investments	2.69B	3.78B	2.90B	2.93B	4.15B	4.71B
Total Debt	110.36M	112.80M	322.87M	632.31M	352.48M	76.01M
Total Liabilities	3.13B	2.84B	3.48B	3.46B	3.00B	2.24B
Stockholders Equity	11.66B	11.58B	11.24B	11.16B	11.10B	11.03B
Cash Flow
Free Cash Flow	0.00	989.16M	715.24M	-1.28B	-619.48M	520.48M
Operating Cash Flow	0.00	1.09B	1.03B	-910.45M	1.45M	823.30M
Investing Cash Flow	0.00	106.06M	-317.44M	-434.22M	-628.80M	-38.09M
Financing Cash Flow	0.00	-309.43M	-747.34M	127.40M	69.76M	-343.89M

Sanyu Construction Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1595.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1841, the sentiment is Positive. The current price of 1595 is above the 20-day moving average (MA) of 1477.00, above the 50-day MA of 1274.81, and above the 200-day MA of 1127.57, indicating a bullish trend. The MACD of 109.14 indicates Positive momentum. The RSI at 79.47 is Negative, neither overbought nor oversold. The STOCH value of 4.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1841.

Sanyu Construction Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1841	82 Outperform	¥4.15B	8.42	―	1.88%	-16.60%	-19.91%
1788	78 Outperform	¥2.73B	12.09	―	2.14%	21.66%	385.30%
1795	73 Outperform	¥3.83B	10.76	―	3.64%	19.00%	46.05%
1897	71 Outperform	¥6.36B	33.69	―	1.69%	-28.06%	-43.82%
1764	66 Neutral	¥3.03B	6.82	―	4.18%	14.64%	48.31%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1844	55 Neutral	¥11.64B	22.45	―	1.94%	7.73%	21.42%