Kumagai Gumi Co Ltd (JP:1861)
:1861
Want to see JP:1861 full AI Analyst Report?
Top Page
Kumagai Gumi Co
(1861)
Select Model
Select Model
Rating:66Neutral
Price Target:
¥1,539.00
▼(-1.66% Downside)
Action:Downgraded
Date:05/17/26
The score is primarily supported by improved profitability and a moderate balance sheet, plus attractive valuation (low P/E and solid dividend yield). These positives are tempered by weak technical momentum (below major moving averages with negative MACD) and a history of volatile cash flow and uneven revenue growth.
Positive Factors
Margin recovery
A clear rebound in operating and net margins signals improved project pricing or execution discipline. Sustained higher margins enhance resilience to cost shocks, increase retained earnings for reinvestment or dividends, and raise the firm's ability to withstand cyclical downturns over the medium term.
Negative Factors
Uneven revenue trends
Inconsistent top-line performance reflects exposure to cyclical project demand and makes backlog forecasting harder. Persistent revenue variability limits predictable scale economies, complicates long-term resource planning, and can mute the impact of margin improvements if volume falls again.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin recovery
A clear rebound in operating and net margins signals improved project pricing or execution discipline. Sustained higher margins enhance resilience to cost shocks, increase retained earnings for reinvestment or dividends, and raise the firm's ability to withstand cyclical downturns over the medium term.
Read all positive factors
Kumagai Gumi Co (1861) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥247.30B
Dividend Yield3.44%
Average Volume (3M)778.45K
Price to Earnings (P/E)12.2
Beta (1Y)0.78
Revenue Growth-2.18%
EPS Growth114.64%
CountryJP
Employees4,432
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)60.60
Shares Outstanding173,142,240
10 Day Avg. Volume901,790
30 Day Avg. Volume778,446
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)1.40
Price to Sales (P/S)0.54
P/FCF Ratio12.93
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥2,026.67Price Target Upside29.50% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)129.78
Revenue Forecast (FY)¥512.74B
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 primarily makes money by contracting and delivering construction projects. Revenue is recognized from construction contracts for (1) building construction (e.g., commercial, residential, industrial and other facilities) and (2) civil ...
Kumagai Gumi Co Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
61
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 501.27B | 487.70B | 498.58B | 443.19B | 403.50B | 425.22B |
| Gross Profit | 40.17B | 53.24B | 38.46B | 36.08B | 33.45B | 43.70B |
| EBITDA | 17.92B | 29.23B | 16.37B | 14.71B | 13.38B | 24.77B |
| Net Income | 10.40B | 20.06B | 9.35B | 8.32B | 7.97B | 15.85B |
Balance Sheet | ||||||
| Total Assets | 443.11B | 448.92B | 462.53B | 474.60B | 380.00B | 373.10B |
| Cash, Cash Equivalents and Short-Term Investments | 51.05B | 64.68B | 50.16B | 70.07B | 40.98B | 67.40B |
| Total Debt | 58.74B | 49.73B | 42.41B | 52.69B | 22.48B | 12.55B |
| Total Liabilities | 266.94B | 261.05B | 280.70B | 294.58B | 210.14B | 203.79B |
| Stockholders Equity | 176.17B | 187.87B | 181.83B | 180.01B | 169.86B | 169.30B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 20.33B | 4.16B | 14.73B | -23.17B | 5.10B |
| Operating Cash Flow | 0.00 | 25.02B | 8.23B | 16.97B | -18.83B | 8.26B |
| Investing Cash Flow | 0.00 | -6.46B | -11.99B | -10.78B | -8.46B | -3.40B |
| Financing Cash Flow | 0.00 | -5.27B | -16.47B | 22.32B | 456.00M | -9.69B |
Kumagai Gumi Co Technical Analysis
Negative
1565.00
Price Trends
1522.75
Negative
1643.65
Negative
1480.83
Negative
Market Momentum
-29.59
Negative
40.53
Neutral
40.24
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 above the 20-day moving average (MA) of 1473.25, above the 50-day MA of 1522.75, and above the 200-day MA of 1480.83, indicating a bearish trend. The MACD of -29.59 indicates Negative momentum. The RSI at 40.53 is Neutral, neither overbought nor oversold. The STOCH value of 40.24 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | ¥324.67B | 9.50 | 16.55% | 4.26% | 3.40% | 12.42% | |
66 Neutral | ¥247.30B | 12.21 | 7.62% | 3.44% | -2.18% | 114.64% | |
66 Neutral | ¥2.87T | 15.53 | 13.56% | 1.96% | 5.34% | 42.44% | |
66 Neutral | ¥1.79T | 14.35 | 11.22% | 1.48% | 5.83% | 96.00% | |
65 Neutral | ¥2.23T | 12.85 | 14.23% | 2.47% | -1.29% | 22.69% | |
64 Neutral | ¥2.28T | 13.55 | 16.64% | 1.83% | -3.02% | 50.20% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
JP:1861
Kumagai Gumi Co
1,430.00
387.46
37.17%
JP:1719
Hazama Ando
1,801.50
405.06
29.01%
JP:1812
Kajima
5,907.00
2,372.40
67.12%
JP:1802
Obayashi
3,245.00
1,110.33
52.01%
JP:1803
Shimizu
2,681.50
1,125.93
72.38%
JP:1801
TAISEI
14,010.00
6,044.68
75.89%
Kumagai Gumi Co Corporate Events
Kumagai Gumi Raises Year-End Dividend After Strong FY2026 Results
May 15, 2026
Kumagai Gumi Co., Ltd. has approved a year-end dividend of 27 yen per share for the fiscal year ended March 31, 2026, up from its previous forecast of 25 yen and funded from retained earnings. The proposal, which reflects the company’s solid...
Kumagai Gumi Lifts Profit, Tightens Balance Sheet After Share Split and Eyes Growth in FY2027
May 15, 2026
Kumagai Gumi reported consolidated net sales of completed construction contracts of ¥448.9 billion for the fiscal year ended March 31, 2026, a slight decline from the previous year, while profit attributable to owners of parent rose to ¥...
Kumagai Gumi Announces Sharp Reduction in Stake by Former Major Shareholder Oasis Management
May 7, 2026
Kumagai Gumi Co., Ltd. has reported a change in its major shareholder status involving Oasis Management Company Ltd., an asset management firm based in the Cayman Islands. The change was identified after Oasis filed a Large-Volume Holding Change R...
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...
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.