Mori-Gumi Co., Ltd. (1853) AI Stock Analysis

• Market Cap: ¥10.64B
• Dividend Yield: 4.31%
• Average Volume (3M): 69.82K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.23
• Revenue Growth: -4.01%
• EPS Growth: 42.07%
• Country: JP
• Employees: 371
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 6.04
• Shares Outstanding: 32,800,000
• 10 Day Avg. Volume: 65,820
• 30 Day Avg. Volume: 69,823
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥334.00
• Price Target Upside: 2.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: ¥334.00 ▲(2.77% Upside)

The stock of Mori-Gumi Co., Ltd. is supported by a strong balance sheet and a favorable valuation with a low P/E ratio and high dividend yield. However, cash flow challenges and moderate technical indicators slightly temper the overall score.

Mori-Gumi Co., Ltd. Business Overview & Revenue Model

Company Description

Mori-Gumi Co., Ltd. engages in civil engineering and construction, and other construction works in Japan. The company undertakes construction of civil engineering projects, such as roads, tunnel, railroad, flood control/water and utilization, disaster recovery, and residential land businesses. It also undertakes construction of residential, public, transportation, welfare, plant, and other commercial facilities. In addition, it surveys, designs, and supervises construction work; buys, extracts, and sells crushed stones materials, and other underground resources; and manufactures and sells pollution control facilities and equipment. Further, the company produces and sells secondary products made from rock; maintains, manages, and operates public facilities; buys and sells construction and civil engineering equipment; and buys and sells, exchanges, and leases real estate properties. The company was incorporated in 1934 and is headquartered in Osaka, Japan.

How the Company Makes Money

Mori-Gumi Co., Ltd. generates revenue primarily through its construction and engineering services. The company undertakes various projects, including infrastructure development like roads, bridges, and tunnels, as well as residential and commercial building construction. Key revenue streams include contracts with government and public sector entities, as well as private sector clients. The company's earnings are bolstered by its reputation for delivering high-quality projects on time and within budget, which helps secure repeat business and long-term partnerships. Additionally, Mori-Gumi may engage in joint ventures and collaborations with other construction firms to tackle large-scale projects, further enhancing its revenue potential.

Mori-Gumi Co., Ltd. Financial Statement Overview

Summary

Mori-Gumi Co., Ltd. shows solid revenue growth and a strong balance sheet with low leverage, highlighted by a low debt-to-equity ratio and substantial equity ratio. However, challenges with cash flow, particularly in converting income into cash, pose risks, which moderates the overall financial performance score.

Income Statement

Mori-Gumi Co., Ltd. shows a consistent increase in revenue over the years, with a notable revenue growth rate of 6.79% in the latest year. The gross profit margin stands at 8.64% for the most recent year, indicating moderate cost efficiency. The net profit margin improved to 3.13%, showcasing better profitability. However, the EBIT margin has slightly decreased to 3.67%, suggesting potential efficiency issues in operations.

Balance Sheet

Mori-Gumi Co., Ltd. maintains a strong balance sheet with a low debt-to-equity ratio of 0.06, indicating minimal leverage. The return on equity is 6.18%, showing moderate profitability on shareholder's equity. The equity ratio is substantial at 58.91%, highlighting financial stability and a strong capital structure. However, overall asset growth has been relatively stagnant.

Cash Flow

The company experienced a significant decline in operating cash flow, resulting in negative free cash flow growth. The operating cash flow to net income ratio is negative, reflecting challenges in converting income to cash. Despite this, the company has managed its capital expenditures efficiently, maintaining a positive free cash flow to net income ratio.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.45B	27.58B	24.62B	31.32B	28.58B
Gross Profit	2.55B	2.43B	2.23B	3.27B	3.36B
EBITDA	1.17B	1.14B	921.00M	2.00B	2.10B
Net Income	921.00M	685.00M	523.00M	1.25B	1.32B
Balance Sheet
Total Assets	25.30B	27.39B	23.78B	25.41B	23.60B
Cash, Cash Equivalents and Short-Term Investments	4.48B	9.57B	9.43B	9.18B	7.73B
Total Debt	831.00M	827.00M	831.00M	821.00M	929.00M
Total Liabilities	10.40B	13.03B	9.72B	11.45B	10.45B
Stockholders Equity	14.90B	14.36B	14.06B	13.97B	13.14B
Cash Flow
Free Cash Flow	-4.45B	617.00M	711.00M	2.02B	-325.00M
Operating Cash Flow	-4.23B	680.00M	799.00M	2.10B	-228.00M
Investing Cash Flow	-407.00M	-70.00M	-80.00M	-78.00M	-74.00M
Financing Cash Flow	-466.00M	-468.00M	-468.00M	-569.00M	-474.00M

Mori-Gumi Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 325.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1853, the sentiment is Positive. The current price of 325 is below the 20-day moving average (MA) of 325.15, above the 50-day MA of 317.48, and above the 200-day MA of 303.80, indicating a neutral trend. The MACD of 2.61 indicates Positive momentum. The RSI at 51.75 is Neutral, neither overbought nor oversold. The STOCH value of 12.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1853.

Mori-Gumi Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1798	80 Outperform	11.94B	5.53	10.36%	1.84%	24.64%	35.00%
1850	80 Outperform	14.27B	7.51	9.91%	1.21%	23.15%	46.68%
1966	77 Outperform	11.68B	5.80	11.39%	4.40%	7.07%	-0.67%
1807	75 Outperform	10.42B	10.13	4.18%	4.56%	3.49%	9.50%
1853	72 Outperform	¥10.64B	10.07		4.31%	-4.01%	42.07%
1848	63 Neutral	10.24B	4.07	17.77%	2.25%	12.27%	682.78%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%