Kumagai Gumi Co (1861) AI Stock Analysis

• Market Cap: ¥269.78B
• Dividend Yield: 3.61%
• Average Volume (3M): 778.45K
• Price to Earnings (P/E): 19.4
• Beta (1Y): 0.60
• Revenue Growth: 7.54%
• EPS Growth: 115.47%
• Country: JP
• Employees: 4,432
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 22.08
• Shares Outstanding: 173,142,240
• 10 Day Avg. Volume: 901,790
• 30 Day Avg. Volume: 778,446
• PEG Ratio: 1.40
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.35
• P/FCF Ratio: 41.63
• 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): 99.68
• Revenue Forecast (FY): ¥493.60B

• Rating: 74 Outperform
• Price Target: ¥1,752.00 ▲(14.36% Upside)

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

Consistent revenue growth indicates strong demand for Kumagai Gumi's construction services, enhancing its market position and potential for future expansion.

Balance Sheet Health

A solid equity position and moderate debt levels provide financial stability, allowing Kumagai Gumi to invest in growth opportunities and withstand economic fluctuations.

Operational Efficiency

Stable operational efficiency suggests effective management and cost control, supporting sustainable profitability in competitive markets.

Negative Factors

Cash Flow Challenges

Declining cash flow efficiency may limit Kumagai Gumi's ability to fund operations and growth initiatives, posing a risk to long-term financial health.

Profitability Concerns

A declining gross profit margin could indicate rising costs or pricing pressures, potentially impacting future profitability and competitive positioning.

Cash Position Decline

A declining cash position may affect Kumagai Gumi's liquidity, limiting its ability to respond to unforeseen expenses or investment opportunities.

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 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 these projects. Key revenue streams include construction services, engineering consulting, and project management fees. Additionally, Kumagai Gumi may engage in joint ventures and partnerships with local and international firms to expand its project portfolio and capabilities, further enhancing its earnings potential. Factors contributing to its financial success include a strong reputation for quality and reliability, a diversified project pipeline, and strategic alliances in the construction industry.

Kumagai Gumi Co Financial Statement Overview

Summary

Kumagai Gumi Co exhibits robust revenue growth and maintains a strong balance sheet with manageable debt levels. However, profitability and cash flow efficiency have faced challenges, potentially affecting its operational flexibility. The company's financial health remains stable, but monitoring is required to address cash flow concerns and ensure sustained growth.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	501.27B	498.58B	443.19B	403.50B	425.22B	450.23B
Gross Profit	40.17B	38.31B	36.08B	33.21B	43.47B	48.09B
EBITDA	18.25B	16.68B	15.04B	14.35B	25.12B	30.13B
Net Income	10.40B	9.35B	8.32B	7.97B	15.85B	17.93B
Balance Sheet
Total Assets	443.11B	462.53B	467.23B	376.65B	371.10B	379.57B
Cash, Cash Equivalents and Short-Term Investments	51.05B	50.16B	70.07B	40.98B	67.40B	71.33B
Total Debt	58.74B	42.13B	52.38B	22.20B	12.15B	11.89B
Total Liabilities	266.94B	280.70B	287.22B	206.79B	201.79B	215.74B
Stockholders Equity	176.17B	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: 1532.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1532 is above the 20-day moving average (MA) of 1482.60, above the 50-day MA of 1371.48, and above the 200-day MA of 1124.71, indicating a bullish trend. The MACD of 47.51 indicates Negative momentum. The RSI at 69.73 is Neutral, neither overbought nor oversold. The STOCH value of 87.82 is Negative, 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
1719	79 Outperform	€315.02B	10.02	16.55%	4.66%	9.49%	64.79%
1860	76 Outperform	¥358.53B	11.39	―	3.10%	18.92%	73.08%
1820	75 Outperform	¥210.85B	13.21	―	4.15%	-3.72%	59.02%
1861	74 Outperform	¥269.78B	19.44	7.62%	3.61%	7.54%	115.47%
1835	73 Outperform	¥146.65B	12.36	―	3.76%	11.25%	36.92%
1893	68 Neutral	$407.09B	28.38	10.95%	2.00%	16.67%	5.82%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Kumagai Gumi Co Corporate Events

Kumagai Gumi Co. Reports Q1 2025 Financial Results and Announces Share Split

Kumagai Gumi Co., Ltd. announced its financial results for the three months ended June 30, 2025, reporting a decrease in comprehensive income compared to the previous year. The company plans a 4-for-1 share split of its common stock effective October 1, 2025, which will impact dividend forecasts and basic earnings per share calculations.

Kumagai Gumi Announces Stock Split and Dividend Revision

Kumagai Gumi Co., Ltd. announced a stock split to increase share liquidity and attract individual investors, with a four-for-one split effective October 1, 2025. The company also amended its Articles of Incorporation to reflect the increased number of authorized shares and revised its dividend forecast, maintaining the effective dividend payout despite the stock split.

Kumagai Gumi Co. Reports Q1 2025 Financial Results and Announces Stock Split

Kumagai Gumi Co., Ltd. announced its consolidated financial results for the three months ended June 30, 2025, reporting a decline in comprehensive income compared to the previous year. The company plans a 4-for-1 stock split effective October 1, 2025, which will impact the year-end dividend forecast. The announcement highlights the inclusion of two new companies in its consolidation scope, indicating potential expansion in its operational capabilities.