Kumagai Gumi Co (1861) AI Stock Analysis

• Market Cap: €217.98B
• Dividend Yield: 2.57%
• Average Volume (3M): 133.08K
• Price to Earnings (P/E): 20.9
• Beta (1Y): 0.52
• Revenue Growth: 10.18%
• EPS Growth: 25.03%
• Country: JP
• Employees: 4,432
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 27.03
• Shares Outstanding: 43,285,560
• 10 Day Avg. Volume: 112,270
• 30 Day Avg. Volume: 133,076
• 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: €4,902.85
• Price Target Upside: -3.11% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: ¥4,902.00 ▼(-3.12% Downside)

Kumagai Gumi Co's stock scores moderately due to strong financial performance and a positive technical outlook. However, the overbought conditions indicated by technical indicators suggest potential price correction risks. The company's valuation is fair, but not compelling for significant upside potential.

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 primarily through its construction and engineering services. The company engages in projects across several sectors, including infrastructure development such as roads, bridges, tunnels, and railways, as well as commercial and residential building construction. Revenue streams are bolstered by long-term contracts with government bodies, private sector companies, and through international projects. Key factors contributing to its earnings include strategic partnerships, investments in technology for construction efficiency, and its reputation for delivering high-quality engineering solutions. The company may also benefit from ventures in urban redevelopment projects and environmental initiatives, aligning with global trends towards sustainable construction practices.

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	498.58B	498.58B	443.19B	403.50B	425.22B	450.23B
Gross Profit	38.31B	38.31B	36.08B	33.21B	43.47B	48.09B
EBITDA	16.61B	16.68B	15.04B	14.35B	25.12B	28.56B
Net Income	9.35B	9.35B	8.32B	7.97B	15.85B	17.93B
Balance Sheet
Total Assets	462.53B	462.53B	467.23B	376.65B	371.10B	379.57B
Cash, Cash Equivalents and Short-Term Investments	50.16B	50.16B	70.07B	40.98B	67.40B	71.33B
Total Debt	42.13B	42.13B	52.38B	22.20B	12.15B	11.89B
Total Liabilities	280.70B	280.70B	287.22B	206.79B	201.79B	215.74B
Stockholders Equity	181.83B	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: 5060.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 5060 is above the 20-day moving average (MA) of 4864.50, above the 50-day MA of 4702.20, and above the 200-day MA of 4165.03, indicating a bullish trend. The MACD of 80.71 indicates Negative momentum. The RSI at 73.25 is Negative, neither overbought nor oversold. The STOCH value of 81.25 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	78 Outperform	310.70B	9.77	15.45%	4.06%	9.82%	92.67%
1860	75 Outperform	322.34B	12.53	7.36%	2.76%	16.62%	42.69%
1835	73 Outperform	151.82B	12.64	9.67%	3.06%	13.51%	28.97%
1820	71 Outperform	209.87B	13.07	10.19%	4.14%	-8.97%	9.14%
1893	65 Neutral	338.67B	23.23	7.24%	2.02%	15.90%	-21.82%
1861	64 Neutral	€217.98B	20.88	6.29%	2.57%	10.18%	25.03%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Kumagai Gumi Co Corporate Events

Kumagai Gumi Co. Affirms Independence Amidst Sumitomo Forestry Affiliation

Kumagai Gumi Co., Ltd. announced its relationship with Sumitomo Forestry Co., Ltd., highlighting that while Sumitomo is the largest shareholder, Kumagai Gumi retains decision-making independence. The two companies aim to leverage their partnership for mutual benefits, although there are no significant transactions between them currently.

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.