Kumagai Gumi Co (1861) AI Stock Analysis

• Market Cap: ¥182.23B
• Dividend Yield: 3.07%
• Average Volume (3M): 152.05K
• Price to Earnings (P/E): 19.4
• Beta (1Y): 0.59
• Revenue Growth: 12.50%
• EPS Growth: 12.87%
• Country: JP
• Employees: 4,432
• Sector: Services
• Sector Strength: N/A
• Industry: Engineering & Construction
• EPS (TTM): 204.16
• Shares Outstanding: 43,285,560
• 10 Day Avg. Volume: 157,530
• 30 Day Avg. Volume: 152,046
• PEG Ratio: -0.31
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.09
• 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: ¥4,561.00 ▲(7.83%Upside)

Kumagai Gumi Co has a robust financial performance with strong revenue growth and a solid balance sheet, despite some profitability and cash flow challenges. Technical indicators show a mixed short-term trend, while valuation metrics suggest the stock is fairly priced with a decent dividend yield.

Kumagai Gumi Co Business Overview & Revenue Model

Company Description

Kumagai Gumi Co.,Ltd. operates as a construction company in Japan and internationally. The company constructs tunnels, roads and bridges, railways, dams, and airports/marine ports, as well as water and sewerage, environmental, energy, renewal, ICT civil engineering, housing/mansion, office/government, hotel, commercial, culture, education/research, sports/entertainment, medical/social welfare, plant, distribution, and other projects. It also engages in the production of asphalt mixture and the paving of roads, airports, ports, bridges, etc.; building renovation business, including building deterioration surveys and seismic diagnosis to the planning, design, and construction of comfortable spaces, as well as after-sales services; and manufacture of steel products for shield tunnels and construction machinery, as well as civil engineering and renovation, environmental-related projects, and basic construction; and operates a leasing business for a steel construction. In addition, the company provides construction and building plans, and applications for projects; construction education to universities and construction companies; and insurance agency services, as well as operates as a technology trading company for construction industry. Kumagai Gumi Co.,Ltd. was founded in 1898 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Kumagai Gumi Co., Ltd. generates revenue through its diverse construction and engineering services. The company's primary revenue streams include contract-based construction projects across various sectors, such as infrastructure, commercial buildings, and residential developments. Kumagai Gumi also engages in public works projects, often funded by government contracts, which contribute significantly to its earnings. The company may also benefit from strategic partnerships and joint ventures that expand its capabilities and market reach, as well as from maintenance and renovation services for existing structures. Additionally, its involvement in overseas projects provides an additional source of income, diversifying its revenue base beyond domestic opportunities.

Kumagai Gumi Co Financial Statement Overview

Summary

Kumagai Gumi Co displays solid revenue growth and a strong balance sheet with low debt levels. However, challenges in profitability and cash flow efficiency could impact future operations, necessitating careful monitoring.

Income Statement

Kumagai Gumi Co has shown positive revenue growth with a 12.51% increase in the latest year, accompanied by improving gross and net profit margins. The EBIT and EBITDA margins indicate stable operational efficiency. However, the company experienced a decline in gross profit margin over the past year, which may suggest rising costs or pricing pressures.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 39.3%, reflecting stability. The debt-to-equity ratio is moderate at 0.23, indicating prudent leverage levels. The return on equity stands at 5.14%, suggesting modest profitability. The decreasing cash position over the years is a concern that could impact future liquidity.

Cash Flow

Kumagai Gumi Co's cash flow from operations is positive, but there's a significant decline compared to previous years, pointing to potential operational challenges. The free cash flow growth is negative, and the ratio of operating cash flow to net income shows a decline, suggesting efficiency issues in translating income into cash.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
466.15B	498.58B	443.19B	403.50B	425.22B	450.23B
	Gross Profit
28.92B	38.31B	36.08B	33.21B	43.47B	48.09B
	EBIT
4.98B	14.30B	12.65B	11.48B	22.74B	28.07B
	EBITDA
6.76B	16.68B	15.04B	13.38B	24.77B	28.56B
	Net Income Common Stockholders
2.98B	9.35B	8.32B	7.97B	15.85B	17.93B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
39.82B	50.16B	70.07B	40.98B	67.40B	71.33B
	Total Assets
440.86B	462.53B	467.23B	376.65B	371.10B	379.57B
	Total Debt
46.53B	42.13B	52.38B	22.20B	12.15B	11.89B
	Net Debt
6.71B	-8.02B	-17.69B	-18.78B	-55.25B	-59.45B
	Total Liabilities
265.68B	280.70B	287.22B	206.79B	201.79B	215.74B
	Stockholders Equity
175.18B	181.83B	180.01B	169.86B	169.30B	163.83B
Cash Flow		Free Cash Flow
0.00	4.16B	14.73B	-23.17B	5.10B	4.48B
	Operating Cash Flow
0.00	8.23B	16.97B	-18.83B	8.26B	6.57B
	Investing Cash Flow
0.00	-11.99B	-10.78B	-8.46B	-3.40B	-4.31B
	Financing Cash Flow
0.00	-16.47B	22.32B	456.00M	-9.69B	-6.11B

Kumagai Gumi Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4230.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1861, the sentiment is Positive. The current price of 4230 is above the 20-day moving average (MA) of 4208.25, above the 50-day MA of 4137.00, and above the 200-day MA of 3749.54, indicating a bullish trend. The MACD of 25.24 indicates Positive momentum. The RSI at 52.48 is Neutral, neither overbought nor oversold. The STOCH value of 39.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1861.

Kumagai Gumi Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1861	69 Neutral	¥182.23B	19.43	5.23%	3.07%	12.50%	12.87%
Sector *	60 Neutral	$943.57M	5.85	2.43%	4.40%	10.27%	-74.96%
2PW		€1.58B	8.44	16.30%	4.97%	―	―
PNOCF		$1.71B	20.70	7.12%	0.02%	―	―
1835	81 Outperform	¥127.37B	11.02		2.70%	12.83%	39.37%
1860	69 Neutral	¥277.75B	10.83		3.20%	12.29%	59.70%
1820	67 Neutral	¥193.05B	11.00		4.91%	-8.67%	40.83%

Kumagai Gumi Co Corporate Events

Kumagai Gumi Co. Reports Strong Financial Performance and Positive Outlook

Kumagai Gumi Co., Ltd. reported its consolidated financial results for the fiscal year ended March 31, 2025, indicating a significant increase in operating profit and ordinary profit compared to the previous year. The company also announced its forecast for the fiscal year ending March 31, 2026, with expectations of continued growth in net sales and profits, reflecting a strong market position and potential positive implications for stakeholders.

Kumagai Gumi Co. Reports Strong Fiscal Year 2025 Results and Positive Outlook

Kumagai Gumi Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a notable increase in net sales and profits compared to the previous year. The company anticipates continued growth in the upcoming fiscal year, with forecasts indicating further improvements in operating and ordinary profits, reflecting its strong market positioning and effective operational strategies.

Kumagai Gumi Co. Announces Amendments to Enhance Governance and Flexibility

Kumagai Gumi Co., Ltd. has announced plans to amend its Articles of Incorporation to enhance corporate governance and operational flexibility. The proposed changes include transitioning from an Audit & Supervisory Board to an Audit & Supervisory Committee to strengthen oversight and governance, and allowing the Board of Directors more flexibility in capital and dividend policies, including increasing dividend payments to twice a year.