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Ichiken Co., Ltd. (JP:1847)
:1847
Japanese Market

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

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JP:1847

Ichiken Co., Ltd.

(1847)

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Outperform 79 (OpenAI - 5.2)
Rating:79Outperform
Price Target:
¥6,263.00
▲(30.75% Upside)
Action:ReiteratedDate:02/18/26
The score is driven primarily by strong financial performance (improving profitability, robust free cash flow, and low leverage) and favorable valuation (low P/E with a dividend). These positives are partially tempered by technicals showing an overextended rally (very high RSI/Stoch), which raises near-term downside risk despite the strong uptrend.
Positive Factors
Improving profit margins
Sustained margin expansion signals better project pricing and execution discipline rather than one-off items. Higher gross and net margins improve cash conversion and resilience to cost shocks, supporting durable earnings and capacity to fund reinvestment or dividends over the medium term.
Negative Factors
Weak asset utilization
Suboptimal asset utilization can cap returns and require higher capital to sustain revenue growth. If fixed assets or working-capital remain inefficient, the company may face margin pressure and need to allocate cash to improve turnover rather than to growth or distributions.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving profit margins
Sustained margin expansion signals better project pricing and execution discipline rather than one-off items. Higher gross and net margins improve cash conversion and resilience to cost shocks, supporting durable earnings and capacity to fund reinvestment or dividends over the medium term.
Read all positive factors

Ichiken Co., Ltd. (1847) vs. iShares MSCI Japan ETF (EWJ)

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, ...
How the Company Makes Money
Ichiken primarily makes money by earning revenue from construction contracts. Its main revenue stream comes from payments received for executing building construction projects (e.g., new builds and, where applicable, renovations/expansions) for cu...

Ichiken Co., Ltd. Financial Statement Overview

Summary
Strong fundamentals: revenue growth remained positive, margins improved meaningfully (gross and net), and free cash flow expanded sharply with solid cash conversion (operating cash flow to net income 1.73). Balance sheet leverage is low (debt-to-equity 0.20) with a solid equity ratio (50.42%), though asset utilization is noted as an area to improve.
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
82
Very Positive
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue99.00B96.37B88.06B83.78B88.62B
Gross Profit10.51B6.91B5.39B7.39B7.66B
EBITDA7.29B4.32B2.83B4.50B4.95B
Net Income4.70B2.94B1.71B2.98B3.16B
Balance Sheet
Total Assets67.60B63.92B55.71B57.62B54.03B
Cash, Cash Equivalents and Short-Term Investments19.96B13.02B11.65B11.66B11.84B
Total Debt6.79B5.72B5.79B5.90B6.05B
Total Liabilities33.51B33.84B28.19B30.82B29.41B
Stockholders Equity34.09B30.08B27.53B26.80B24.62B
Cash Flow
Free Cash Flow8.11B1.80B1.23B650.00M236.00M
Operating Cash Flow8.14B1.88B1.28B757.00M543.00M
Investing Cash Flow-1.35B417.00M-116.00M-136.00M-63.00M
Financing Cash Flow75.00M-929.00M-1.16B-799.00M-797.00M

Ichiken Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4790.00
Price Trends
50DMA
5615.10
Positive
100DMA
5099.00
Positive
200DMA
4228.49
Positive
Market Momentum
MACD
-10.88
Positive
RSI
45.27
Neutral
STOCH
9.84
Positive
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 4790 is below the 20-day moving average (MA) of 6052.00, below the 50-day MA of 5615.10, and above the 200-day MA of 4228.49, indicating a neutral trend. The MACD of -10.88 indicates Positive momentum. The RSI at 45.27 is Neutral, neither overbought nor oversold. The STOCH value of 9.84 is Positive, 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥41.45B4.483.01%-1.93%47.35%
74
Outperform
¥40.11B6.893.86%14.97%72.48%
69
Neutral
¥3.30T9.1811.39%2.93%1.93%5.42%
69
Neutral
¥55.46B4.436.02%1.33%9.59%
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
59
Neutral
¥113.08B21.794.48%3.30%-2.12%0.89%
55
Neutral
¥55.65B6.366.98%7.35%-21.50%-56.82%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:1847
Ichiken Co., Ltd.
5,710.00
2,954.77
107.24%
JP:8871
GOLDCREST Co
3,320.00
284.15
9.36%
JP:1925
Daiwa House Industry Co
5,082.00
91.63
1.84%
JP:8897
Takara Leben Co., Ltd.
411.00
-82.78
-16.76%
JP:1814
DAISUE CONSTRUCTION CO., LTD.
3,825.00
1,999.52
109.53%
JP:3299
Mugen Estate Co., Ltd.
2,313.00
135.88
6.24%

Ichiken Co., Ltd. Corporate Events

Ichiken Lifts Profits and Dividend on Strong Nine-Month Results
Feb 17, 2026
Ichiken Co., Ltd. reported consolidated net sales of ¥77.9 billion for the nine months ended December 31, 2025, essentially flat year on year, while sharply improving profitability. Operating profit rose 22.5% to ¥6.57 billion and profit...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Feb 18, 2026