Nankai Tatsumura Construction Co., Ltd. (1850) AI Stock Analysis

• Market Cap: ¥15.91B
• Dividend Yield: 1.01%
• Average Volume (3M): 153.75K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.59
• Revenue Growth: 17.09%
• EPS Growth: 43.01%
• Country: JP
• Employees: 484
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 15.68
• Shares Outstanding: 28,835,730
• 10 Day Avg. Volume: 254,800
• 30 Day Avg. Volume: 153,750
• PEG Ratio: 0.10
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.17
• P/FCF Ratio: -1.47
• 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: 66 Neutral
• Price Target: ¥602.00 ▲(0.17% Upside)
• Action: Downgraded Date: 01/29/26
• Date: Action: Downgraded 01/29/26

The score is driven primarily by solid financial performance (strong revenue trends and a healthy equity base), offset by cash flow volatility and rising leverage risk. Valuation is supportive with a low P/E, while technicals are a headwind due to the stock trading below key short- and mid-term moving averages despite oversold signals.

Positive Factors

Revenue Growth

The company's consistent revenue growth indicates strong demand for its services and effective management, enhancing its market position and long-term sustainability.

Market Position

A long-standing reputation and trust in the construction industry provide a competitive advantage, likely leading to sustained contract wins and market share.

Profitability Margins

Stable margins reflect efficient cost management, supporting long-term profitability and financial health, crucial for enduring competitive pressures.

Negative Factors

Rising Debt Levels

Increasing debt levels pose a risk to financial stability, potentially impacting cash flow and limiting future investment capabilities.

Cash Flow Management

Volatile cash flow management can hinder operational flexibility and investment capacity, affecting long-term growth and stability.

Net Profit Margin

Moderate net profit margins suggest potential inefficiencies in cost control or revenue generation, which could limit profitability improvements over time.

Nankai Tatsumura Construction Co., Ltd. Business Overview & Revenue Model

Company Description

Nankai Tatsumura Construction Co., Ltd. operates as a construction company in Japan. The company undertakes civil engineering; construction; and pipe, electrical, and telecommunications construction works, as well as general construction works. It also owns and sells real estate properties. The company was founded in 1923 and is headquartered in Osaka, Japan. Nankai Tatsumura Construction Co., Ltd. operates as a subsidiary of Nankai Electric Railway Co., Ltd.

How the Company Makes Money

Nankai Tatsumura Construction Co., Ltd. generates revenue primarily through its construction projects, which include public works contracts, private developments, and large-scale infrastructure projects. The company wins contracts through competitive bidding processes, leveraging its reputation, expertise, and financial stability to secure projects. Key revenue streams include payments for construction services, project management fees, and long-term maintenance contracts. Additionally, the company may engage in partnerships with governmental bodies and private developers, which can lead to joint ventures or collaborative projects that enhance its revenue potential. Factors contributing to its earnings include the demand for construction services in urban development, government investment in infrastructure, and the company’s ability to adapt to market trends and technological advancements in construction methodologies.

Nankai Tatsumura Construction Co., Ltd. Financial Statement Overview

Summary

Income statement strength (score 75) reflects consistent revenue growth and stable gross margins, but only moderate net margins. Balance sheet quality is solid (score 70) with a healthy equity base, though rising leverage is a watch item. Cash flow is the main weakness (score 65) due to volatile free cash flow and a recent negative operating cash flow.

Income Statement

The company has shown consistent revenue growth over the years with a significant jump from the previous year, indicating strong demand and effective management. The gross profit margin has been stable, reflecting efficient cost management. However, the net profit margin hovers around a moderate level, suggesting room for improvement in controlling operational costs or enhancing revenue efficiency.

Balance Sheet

The balance sheet is robust with a healthy equity ratio, indicating a strong position in terms of asset financing through equity rather than debt. However, the increasing debt-to-equity ratio poses a potential risk, especially with the recent increase in total debt. Return on equity is satisfactory, illustrating decent profitability relative to shareholder equity.

Cash Flow

The company faces challenges in cash flow management, highlighted by fluctuations in free cash flow and a recent negative operating cash flow. The operating cash flow to net income ratio reflects inconsistencies, suggesting volatility in cash earnings. Nevertheless, there are signs of recovery in cash flow with strategic management of capital expenditures.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	53.82B	52.95B	43.63B	42.40B	37.19B	44.82B
Gross Profit	5.06B	4.82B	3.79B	4.02B	3.99B	3.88B
EBITDA	2.74B	2.52B	1.73B	2.28B	1.41B	1.26B
Net Income	1.90B	1.71B	1.10B	1.90B	1.31B	693.00M
Balance Sheet
Total Assets	34.44B	42.87B	30.34B	34.86B	32.45B	36.00B
Cash, Cash Equivalents and Short-Term Investments	4.25B	3.93B	6.27B	7.83B	5.42B	4.40B
Total Debt	1.66B	5.98B	1.93B	4.42B	4.46B	5.01B
Total Liabilities	16.90B	25.57B	14.56B	20.40B	19.77B	24.65B
Stockholders Equity	17.54B	17.29B	15.77B	14.45B	12.67B	11.35B
Cash Flow
Free Cash Flow	0.00	-6.29B	1.51B	1.80B	1.57B	2.26B
Operating Cash Flow	0.00	-6.13B	1.52B	1.82B	1.60B	2.28B
Investing Cash Flow	0.00	-137.00M	-507.00M	711.00M	-33.00M	-26.00M
Financing Cash Flow	0.00	3.93B	-2.57B	-125.00M	-551.00M	-1.51B

Nankai Tatsumura Construction Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 601.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1850, the sentiment is Negative. The current price of 601 is above the 20-day moving average (MA) of 556.40, above the 50-day MA of 584.92, and above the 200-day MA of 478.44, indicating a neutral trend. The MACD of -8.87 indicates Negative momentum. The RSI at 44.34 is Neutral, neither overbought nor oversold. The STOCH value of 29.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:1850.

Nankai Tatsumura Construction Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1770	76 Outperform	¥16.62B	12.80	―	3.71%	-21.52%	-35.65%
1716	71 Outperform	¥18.35B	10.61	―	2.87%	-1.39%	-4.43%
5918	70 Outperform	¥15.94B	16.66	―	1.39%	2.98%	11.88%
1853	68 Neutral	¥11.40B	13.35	―	4.35%	-7.40%	60.55%
1850	66 Neutral	¥15.91B	7.95	―	1.01%	17.09%	43.01%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1826	59 Neutral	¥15.27B	22.65	―	5.36%	-3.19%	109.84%