Ichiken Co., Ltd. (1847) AI Stock Analysis

• Market Cap: ¥30.64B
• Dividend Yield: 3.38%
• Average Volume (3M): 11.98K
• Price to Earnings (P/E): 6.7
• Beta (1Y): 0.60
• Revenue Growth: -1.93%
• EPS Growth: 47.35%
• Country: JP
• Employees: 504
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): 194.14
• Shares Outstanding: 7,284,400
• 10 Day Avg. Volume: 13,630
• 30 Day Avg. Volume: 11,976
• PEG Ratio: 0.07
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 2.47
• 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: 81 Outperform
• Price Target: ¥4,876.00 ▲(8.36% Upside)

Ichiken Co., Ltd. scores highly due to its strong financial performance, characterized by consistent revenue growth, improving profitability, and robust cash flow generation. The stock's attractive valuation, with a low P/E ratio and a solid dividend yield, further enhances its appeal. Technical indicators show strong upward momentum, although the high RSI suggests caution due to potential overbought conditions.

Positive Factors

Cash Flow Generation

Strong cash flow generation enhances Ichiken's ability to reinvest in growth opportunities and maintain financial stability, supporting long-term business expansion.

Profit Margin Improvement

Improving profit margins indicate enhanced operational efficiency and pricing power, strengthening Ichiken's competitive position in the construction sector.

Balance Sheet Health

A strong equity base and low leverage provide Ichiken with financial flexibility and resilience, supporting sustainable growth and investment capacity.

Negative Factors

Revenue Growth Decline

A decline in revenue growth poses challenges for Ichiken's market expansion and could impact its ability to capitalize on new business opportunities.

Asset Utilization

Suboptimal asset utilization may limit Ichiken's operational efficiency and profitability, affecting its competitive edge in the construction industry.

Industry Competition

Intense competition in the construction sector could pressure Ichiken's margins and contract win rates, challenging its market position and growth prospects.

Ichiken Co., Ltd. Business Overview & Revenue Model

Company Description

Ichiken Co., Ltd. engages in the construction business in Japan. The company is involved in the urban environment maintenance business; rents buildings; and develops commercial and housing facilities. It also plans, designs, develops, constructs, and supervises commercial facilities and specialty stores. The company was formerly known as Daiichi Kensetsu Corporation Ltd. and changed its name to Ichiken Co., Ltd. in 1989. Ichiken Co., Ltd. was incorporated in 1930 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Ichiken Co., Ltd. generates revenue primarily through its construction contracts, which are awarded based on competitive bidding processes. The company earns money by executing large-scale construction projects, infrastructure developments, and renovation contracts. Key revenue streams include fixed-price contracts, cost-plus contracts, and design-build agreements. Additionally, Ichiken may engage in public-private partnerships (PPPs) for infrastructure projects, which can provide significant income and long-term cash flows. The company also benefits from strategic partnerships with local governments and private entities, enhancing its project opportunities and financial stability.

Ichiken Co., Ltd. Financial Statement Overview

Summary

Ichiken Co., Ltd. presents a strong financial position with consistent revenue growth, improving profitability, and robust cash flow generation. The company has effectively managed its balance sheet, maintaining low leverage and a strong equity base, which supports its growth trajectory. While the income statement and cash flow performance are commendable, further enhancements in asset utilization could strengthen the balance sheet further.

Income Statement

Ichiken Co., Ltd. has demonstrated robust revenue growth and improving profit margins over the past years. The gross profit margin increased to 10.62% in 2025 from 7.18% in 2023, while net profit margin rose to 4.74% from 1.94% over the same period. The revenue growth rate has been consistently positive, with a notable increase of 11.76% from 2023 to 2025. EBIT and EBITDA margins also show positive trends, reflecting improved operational efficiency.

Balance Sheet

The company maintains a healthy balance sheet with a significant equity base, as evidenced by an equity ratio of 50.42% in 2025. The debt-to-equity ratio remains manageable at 0.20, indicating low financial leverage. Return on equity improved significantly to 13.77% in 2025, showing enhanced profitability from shareholder investments. Overall, the balance sheet reflects stability and a strong equity position, although there is room for improved asset utilization.

Cash Flow

Ichiken Co., Ltd. has shown impressive growth in free cash flow, which increased significantly from previous years, with a free cash flow growth rate of 351.47% from 2023 to 2025. The operating cash flow to net income ratio is strong at 1.73 in 2025, indicating efficient cash generation relative to net income. The company has managed capital expenditures well, contributing to the positive free cash flow position, enhancing its ability to reinvest in growth opportunities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	47.40B	99.00B	96.37B	88.06B	83.78B	88.62B
Gross Profit	5.77B	10.51B	6.91B	5.39B	7.39B	7.66B
EBITDA	4.02B	7.29B	4.32B	2.83B	4.50B	4.95B
Net Income	2.70B	4.70B	2.94B	1.71B	2.98B	3.16B
Balance Sheet
Total Assets	67.60B	67.60B	63.92B	55.71B	57.62B	54.03B
Cash, Cash Equivalents and Short-Term Investments	19.96B	19.96B	13.02B	11.65B	11.66B	11.84B
Total Debt	6.79B	6.79B	5.72B	5.79B	5.90B	6.05B
Total Liabilities	33.51B	33.51B	33.84B	28.19B	30.82B	29.41B
Stockholders Equity	34.09B	34.09B	30.08B	27.53B	26.80B	24.62B
Cash Flow
Free Cash Flow	0.00	8.11B	1.80B	1.23B	650.00M	236.00M
Operating Cash Flow	0.00	8.14B	1.88B	1.28B	757.00M	543.00M
Investing Cash Flow	0.00	-1.35B	417.00M	-116.00M	-136.00M	-63.00M
Financing Cash Flow	0.00	75.00M	-929.00M	-1.16B	-799.00M	-797.00M

Ichiken Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4500.00
• 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:1847, the sentiment is Positive. The current price of 4500 is above the 20-day moving average (MA) of 4206.50, above the 50-day MA of 3874.66, and above the 200-day MA of 3178.50, indicating a bullish trend. The MACD of 146.02 indicates Positive momentum. The RSI at 69.77 is Neutral, neither overbought nor oversold. The STOCH value of 72.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1847.

Ichiken Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1847	81 Outperform	¥30.64B	6.70	―	3.38%	-1.93%	47.35%
1814	74 Outperform	¥35.91B	16.44	―	4.13%	14.97%	72.48%
146A	68 Neutral	¥23.16B	9.76	―	1.81%	45.48%	48.63%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Ichiken Co., Ltd. Corporate Events

Ichiken Co., Ltd. Reports Q1 2025 Financial Results Amidst Forecasted Challenges

Ichiken Co., Ltd. reported its consolidated financial results for the three months ended June 30, 2025, showing net sales of 22,179 million yen and a profit attributable to owners of the parent of 1,114 million yen. The company anticipates a challenging fiscal year with a forecasted decline in operating profit and ordinary profit, reflecting potential difficulties in maintaining its financial performance.