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

• Market Cap: ¥47.99B
• Dividend Yield: 3.01%
• Average Volume (3M): 11.98K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 0.66
• Revenue Growth: -1.93%
• EPS Growth: 47.35%
• Country: JP
• Employees: 504
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): 267.26
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: ¥6,973.00 ▲(45.57% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 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

Strong free cash flow generation

A 351% FCF increase and an OCF-to-net-income ratio of 1.73 indicate durable cash conversion from operations. For a construction firm this funds capex, supports working capital during project cycles, enables reinvestment or debt reduction and provides flexibility across multi-month project timelines.

Low financial leverage and strong equity base

A low D/E and >50% equity ratio provide balance-sheet resilience in a capital-intensive industry. That capacity allows selective bidding on larger projects, cushions cash flow swings, and preserves access to credit, supporting stable operations over the coming months.

Improving margins with positive revenue trajectory

Material margin improvement alongside multi-year revenue growth suggests enhanced cost controls, pricing power or project mix optimization. Sustained margin expansion can structurally raise cash generation and profitability, strengthening the firm's ability to invest and absorb construction cycle variability.

Negative Factors

Room for improved asset utilization

Noted weak asset utilization implies capital or equipment may be under-employed. In construction, low turnover of assets or idle capacity reduces returns on invested capital and can limit scalable revenue growth without better project scheduling or higher utilization rates.

Modest absolute net margins

Although improving, a net margin near 4.7% provides a limited buffer against cost inflation, project overruns or competitive bid pressure. Infrequent margin shocks in construction can quickly erode profitability and cash flow, making sustained margin improvement essential for resilience.

Recent revenue growth volatility

A recent negative revenue-growth metric points to project timing or contract variability. Construction revenue is lumpy; near-term declines can persist across quarters as contracts shift, complicating forecasting, utilization and working-capital management over the medium term.

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

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

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	99.00B	96.37B	88.06B	83.78B	88.62B
Gross Profit	10.51B	6.91B	5.39B	7.39B	7.66B
EBITDA	7.29B	4.32B	2.83B	4.50B	4.95B
Net Income	4.70B	2.94B	1.71B	2.98B	3.16B
Balance Sheet
Total Assets	67.60B	63.92B	55.71B	57.62B	54.03B
Cash, Cash Equivalents and Short-Term Investments	19.96B	13.02B	11.65B	11.66B	11.84B
Total Debt	6.79B	5.72B	5.79B	5.90B	6.05B
Total Liabilities	33.51B	33.84B	28.19B	30.82B	29.41B
Stockholders Equity	34.09B	30.08B	27.53B	26.80B	24.62B
Cash Flow
Free Cash Flow	8.11B	1.80B	1.23B	650.00M	236.00M
Operating Cash Flow	8.14B	1.88B	1.28B	757.00M	543.00M
Investing Cash Flow	-1.35B	417.00M	-116.00M	-136.00M	-63.00M
Financing Cash Flow	75.00M	-929.00M	-1.16B	-799.00M	-797.00M

Ichiken Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4790.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 5683.25, below the 50-day MA of 5234.50, and above the 200-day MA of 3968.30, indicating a bullish trend. The MACD of 338.40 indicates Negative momentum. The RSI at 82.19 is Negative, neither overbought nor oversold. The STOCH value of 88.08 is Negative, 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	79 Outperform	¥47.99B	8.60	―	3.01%	-1.93%	47.35%
1814	74 Outperform	¥46.77B	12.11	―	3.86%	14.97%	72.48%
3299	74 Outperform	¥61.91B	9.06	―	6.02%	1.33%	9.59%
1925	73 Outperform	¥3.66T	11.15	11.39%	2.93%	1.93%	5.42%
8871	69 Neutral	¥113.76B	21.51	4.48%	3.30%	-2.12%	0.89%
8897	68 Neutral	¥57.28B	6.17	6.98%	7.35%	-21.50%	-56.82%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Ichiken Co., Ltd. Corporate Events

Ichiken Lifts Profits and Dividend on Strong Nine-Month Results

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 attributable to owners of parent climbed 24.9% to ¥4.46 billion, lifting earnings per share to ¥615.

The company’s equity ratio strengthened to 53.2% as total assets and net assets both increased, underscoring an improving financial base. Ichiken also plans to raise its annual dividend to ¥230 per share for the year ending March 31, 2026, and forecasts full-year net sales of ¥105 billion and a 17.5% rise in profit, signaling confidence in sustained earnings growth and enhanced shareholder returns.

The most recent analyst rating on (JP:1847) stock is a Buy with a Yen6512.00 price target. To see the full list of analyst forecasts on Ichiken Co., Ltd. stock, see the JP:1847 Stock Forecast page.