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

• Market Cap: ¥9.79B
• Dividend Yield: 4.68%
• Average Volume (3M): 48.73K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.24
• Revenue Growth: 6.79%
• EPS Growth: 34.45%
• Country: JP
• Employees: 371
• Sector: Industrials
• Sector Strength: 85
• Industry: Engineering & Construction
• EPS (TTM): 12.47
• Shares Outstanding: 32,800,000
• 10 Day Avg. Volume: 23,990
• 30 Day Avg. Volume: 48,726
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: ¥328.00 ▲(9.70%Upside)

The stock's overall score is primarily driven by its strong valuation, with a low P/E ratio and high dividend yield. Financial performance is solid, but cash flow issues pose potential risks. Technical analysis suggests a neutral to slightly negative outlook.

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

Company Description

Mori-Gumi Co., Ltd. is a Japan-based company primarily engaged in the construction business. The company operates in various sectors, including civil engineering, building construction, and real estate development. Its core services encompass a wide range of construction-related activities, from designing and planning to executing large-scale infrastructure projects such as roads, bridges, and commercial buildings.

How the Company Makes Money

Mori-Gumi Co., Ltd. generates revenue through its construction and engineering services. The company's key revenue streams include contracts for civil engineering projects, building construction, and infrastructure development. These projects are often funded by government entities, private corporations, and real estate developers. Additionally, Mori-Gumi may engage in real estate development activities, which can include the sale or leasing of developed properties, contributing to its overall earnings. The company may also have strategic partnerships or joint ventures that enhance its capabilities and expand its market reach.

Mori-Gumi Co., Ltd. Financial Statement Overview

Summary

Mori-Gumi Co., Ltd. demonstrates solid revenue growth and a strong balance sheet with low leverage. However, challenges with cash flow, particularly in converting income into cash, pose risks in liquidity management.

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
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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
	EBIT
1.08B	1.07B	833.00M	1.90B	1.96B
	EBITDA
1.17B	1.14B	921.00M	2.00B	2.10B
	Net Income Common Stockholders
921.00M	685.00M	523.00M	1.25B	1.32B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.48B	9.57B	9.43B	9.18B	7.73B
	Total Assets
25.30B	27.39B	23.78B	25.41B	23.60B
	Total Debt
831.00M	827.00M	831.00M	821.00M	929.00M
	Net Debt
-3.64B	-8.75B	-8.60B	-8.36B	-6.80B
	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: Negative
• Last Price: 299.00
• 50DMA: Positive
• 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:1853, the sentiment is Negative. The current price of 299 is above the 20-day moving average (MA) of 298.85, above the 50-day MA of 298.92, and above the 200-day MA of 297.21, indicating a bullish trend. The MACD of -0.15 indicates Negative momentum. The RSI at 49.09 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
1807	83 Outperform	¥9.87B	11.59		4.82%	5.27%	-26.39%
1798	82 Outperform	¥8.38B	5.03		0.26%	15.97%	3.62%
1966	81 Outperform	¥11.18B	4.21		4.59%	11.12%	37.32%
1850	71 Outperform	¥8.88B	5.18		0.32%	21.36%	55.82%
1853	69 Neutral	¥9.79B	10.63		4.68%	6.79%	34.45%
1848	69 Neutral	¥8.27B	3.78		2.79%	18.22%	428.48%
Sector *	66 Neutral	$4.47B	12.21	5.40%	3.65%	4.14%	-12.00%