Kumagai Gumi Co Ltd (JP:1861)
:1861
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Kumagai Gumi Co
(1861)
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Rating:74Outperform
Price Target:
¥1,956.00
▲(24.98% Upside)
Action:ReiteratedDate:11/30/25
Kumagai Gumi Co's stock is supported by strong technical momentum and a stable financial position, though profitability and cash flow efficiency challenges need attention. The valuation is moderate, with a decent dividend yield, but growth acceleration is necessary to justify higher valuations.
Positive Factors
Revenue Growth
Sustained double-digit revenue growth indicates the company is winning and executing more construction contracts. Over a 2-6 month horizon this supports scale economics, steadier backlog conversion, and greater headroom to invest in project execution capabilities and selective growth initiatives.
Negative Factors
Declining Cash Position
A falling cash balance weakens liquidity buffers that are critical in construction for bid bonds, retention payments, and mobilization costs. Over months this can constrain the company’s ability to take on large or multiple overlapping projects and increase reliance on external short-term financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained double-digit revenue growth indicates the company is winning and executing more construction contracts. Over a 2-6 month horizon this supports scale economics, steadier backlog conversion, and greater headroom to invest in project execution capabilities and selective growth initiatives.
Read all positive factors
Kumagai Gumi Co (1861) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥283.79B
Dividend Yield3.44%
Average Volume (3M)778.45K
Price to Earnings (P/E)9.5
Beta (1Y)0.81
Revenue Growth7.54%
EPS Growth115.47%
CountryJP
Employees4,432
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)40.82
Shares Outstanding173,142,240
10 Day Avg. Volume901,790
30 Day Avg. Volume778,446
Financial Highlights & Ratios
PEG Ratio1.40
Price to Book (P/B)0.95
Price to Sales (P/S)0.35
P/FCF Ratio41.63
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥2,060.00Price Target Upside31.63% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)112.03
Revenue Forecast (FY)¥496.00B
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...
How the Company Makes Money
Kumagai Gumi generates revenue primarily through its construction contracts, which include both public and private sector projects. The company bids on and secures contracts for infrastructure developments, earning revenue from the execution of th...
Kumagai Gumi Co Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
68
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 501.27B | 498.58B | 443.19B | 403.50B | 425.22B | 450.23B |
| Gross Profit | 40.17B | 38.46B | 36.08B | 33.45B | 43.70B | 48.27B |
| EBITDA | 17.92B | 16.37B | 14.71B | 13.38B | 24.77B | 30.10B |
| Net Income | 10.40B | 9.35B | 8.32B | 7.97B | 15.85B | 17.93B |
Balance Sheet | ||||||
| Total Assets | 443.11B | 462.53B | 474.60B | 380.00B | 373.10B | 382.05B |
| Cash, Cash Equivalents and Short-Term Investments | 51.05B | 50.16B | 70.07B | 40.98B | 67.40B | 71.33B |
| Total Debt | 58.74B | 42.41B | 52.69B | 22.48B | 12.55B | 12.53B |
| Total Liabilities | 266.94B | 280.70B | 294.58B | 210.14B | 203.79B | 218.22B |
| Stockholders Equity | 176.17B | 181.83B | 180.01B | 169.86B | 169.30B | 163.84B |
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
Negative
1565.00
Price Trends
1814.66
Negative
1673.03
Negative
1419.85
Positive
Market Momentum
-65.66
Positive
37.36
Neutral
25.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1861, the sentiment is Negative. The current price of 1565 is below the 20-day moving average (MA) of 1748.00, below the 50-day MA of 1814.66, and above the 200-day MA of 1419.85, indicating a neutral trend. The MACD of -65.66 indicates Positive momentum. The RSI at 37.36 is Neutral, neither overbought nor oversold. The STOCH value of 25.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:1861.
Kumagai Gumi Co Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ¥346.74B | 11.11 | 16.55% | 4.26% | 9.49% | 64.79% | |
75 Outperform | ¥2.69T | 10.54 | 14.23% | 2.47% | 2.27% | 70.36% | |
75 Outperform | ¥1.99T | 12.97 | 11.22% | 1.48% | 5.14% | 773.86% | |
74 Outperform | ¥283.79B | 9.47 | 7.62% | 3.44% | 7.54% | 115.47% | |
71 Outperform | ¥2.98T | 15.14 | 13.56% | 1.96% | 10.52% | 71.09% | |
67 Neutral | ¥2.71T | 15.64 | 16.64% | 1.83% | 6.60% | 114.38% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
JP:1861
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Kumagai Gumi Co Corporate Events
Kumagai Gumi Completes ¥3.5 Billion Share Buyback Program
Mar 23, 2026
Kumagai Gumi Co., Ltd. has completed a board-approved share repurchase program conducted under Japan’s Companies Act and the company’s Articles of Incorporation. The buyback, executed via market purchases on the Tokyo Stock Exchange, r...
Kumagai Gumi Details Progress of Ongoing Share Buyback Program
Mar 2, 2026
Kumagai Gumi Co., Ltd. reported progress on its ongoing share buyback program authorized by its board on January 8, 2026, under the Companies Act and its Articles of Incorporation. The program targets up to 3 million common shares, or about 1.7% o...
Kumagai Gumi Posts Higher Sales but Lower Profit, Keeps Full-Year Outlook and Dividend Plan
Feb 18, 2026
Kumagai Gumi reported consolidated net sales of completed construction contracts of ¥351.9 billion for the nine months ended December 31, 2025, up 6.4% year on year, with operating profit of ¥17.45 billion and ordinary profit of ¥11...
Kumagai Gumi Posts Higher Nine‑Month Sales, Confirms Forecasts After Stock Split
Feb 13, 2026
Kumagai Gumi reported consolidated net sales of completed construction contracts of ¥351.9 billion for the nine months ended December 31, 2025, up 6.4% year on year, with operating profit of ¥17.5 billion and profit attributable to owner...
Kumagai Gumi Reshapes Top Management With Representative Director Change
Feb 13, 2026
Kumagai Gumi has announced a change in its representative directors as part of a broader effort to strengthen and improve its management system. Executive Vice President Koji Okaichi, currently a Representative Director overseeing technology, safe...
Kumagai Gumi Begins Execution of ¥3.5 Billion Share Buyback Program
Feb 2, 2026
Kumagai Gumi Co., Ltd., a Japanese construction firm listed on the Tokyo Stock Exchange Prime Market, focuses on civil engineering and building construction projects. The company has disclosed the initial status of a board-approved share repurchas...
Kumagai Gumi Sets Offer Price for Secondary Share Offering and Over-Allotment
Jan 19, 2026
Kumagai Gumi Co., Ltd. has set the offer price for a secondary offering of its common shares at 1,673 yen per share, with the total amount of the offering through purchase and underwriting by the underwriter reaching approximately 16.69 billion ye...
Kumagai Gumi Books ¥3.8 Billion Extraordinary Gain From Partial Sale of Sumitomo Forestry Stake
Jan 8, 2026
Kumagai Gumi has completed the partial sale of its shareholding in Sumitomo Forestry Co., Ltd., disposing of 4,777,600 shares via a block trade through a securities firm. As a result, its stake in Sumitomo Forestry has been reduced from 2.5% to 1....
Kumagai Gumi Books ¥4 Billion Share-Sale Gain, Lifts Profit and Dividend Forecasts
Jan 8, 2026
Kumagai Gumi has decided to sell 4,777,600 shares of Sumitomo Forestry, booking an expected ¥4.0 billion gain on sale of investment securities as extraordinary income to improve asset efficiency and reinforce its financial position. The sale ...
Kumagai Gumi and Sumitomo Forestry Cut Cross-Shareholdings While Deepening Alliance
Jan 8, 2026
Kumagai Gumi Co., Ltd. and Sumitomo Forestry Co., Ltd. announced coordinated reductions in their cross-shareholdings as part of efforts to improve capital efficiency while maintaining and deepening their capital and business alliance. Sumitomo For...
Kumagai Gumi Launches Share Buyback to Boost Shareholder Returns and Capital Efficiency
Jan 8, 2026
Kumagai Gumi has resolved to acquire up to 3 million of its own common shares, representing about 1.7% of its outstanding stock (excluding treasury shares), with a maximum outlay of 3.5 billion yen. The buyback, to be executed via market purchases...
Kumagai Gumi to Adjust Alliance Structure with Sumitomo Forestry via Large Secondary Share Offering
Jan 8, 2026
Kumagai Gumi has resolved to conduct a secondary offering of its common shares as part of an adjustment to its long-standing capital and business alliance with Sumitomo Forestry. Sumitomo Forestry will sell 9,976,900 Kumagai Gumi shares through an...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.