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Kitano Construction Corp. (JP:1866)
:1866
Japanese Market
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Kitano Construction Corp. (1866) AI Stock Analysis

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JP:1866

Kitano Construction Corp.

(1866)

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Neutral 60 (OpenAI - 5.2)
Rating:60Neutral
Price Target:
¥1,031.00
▼(-28.80% Downside)
Action:Reiterated
Date:05/17/26
The score is anchored by solid profitability and an exceptionally low-debt balance sheet, but is held back by recent negative operating/free cash flow and a weakening technical setup (below key moving averages with negative MACD). A low P/E and reasonable dividend yield provide some valuation support.
Positive Factors
Conservative balance sheet
Extremely low leverage (debt-to-equity ~0.01) gives durable financial flexibility: it materially lowers insolvency risk, supports competitive bidding on large public projects, allows capital deployment for maintenance or opportunistic investments, and cushions cyclical downturns.
Negative Factors
Negative operating & free cash flow
Consecutive negative operating and free cash flows signal working-capital or execution stress. If persistent this erodes liquidity, constrains the ability to bid or fund contract performance, forces external financing or asset sales, and raises execution risk despite low headline leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Extremely low leverage (debt-to-equity ~0.01) gives durable financial flexibility: it materially lowers insolvency risk, supports competitive bidding on large public projects, allows capital deployment for maintenance or opportunistic investments, and cushions cyclical downturns.
Read all positive factors

Kitano Construction Corp. (1866) vs. iShares MSCI Japan ETF (EWJ)

Kitano Construction Corp. Business Overview & Revenue Model

Company Description
Kitano Construction Corp., a general contractor, engages in the planning, designing, management, and consulting of construction works in Japan and internationally. The company is also involved in the regional and urban development; development of ...
How the Company Makes Money
Kitano Construction primarily makes money by earning contract revenue from construction projects it undertakes as a general contractor. Key revenue streams typically include (1) building construction contracts (e.g., offices, commercial facilities...

Kitano Construction Corp. Financial Statement Overview

Summary
Profitability is steady with improving gross margin (~14.8% in 2026) and a very conservative balance sheet (debt-to-equity ~0.01), but this is offset by the key weakness: negative operating and free cash flow in 2025–2026 and a mild multi-year revenue decline.
Income Statement
62
Positive
Balance Sheet
88
Very Positive
Cash Flow
34
Negative
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue83.37B78.79B80.85B84.96B85.28B60.10B
Gross Profit10.30B11.69B9.90B10.49B9.53B6.67B
EBITDA5.13B5.51B5.17B5.99B4.23B3.23B
Net Income3.25B3.49B3.38B3.90B1.99B1.74B
Balance Sheet
Total Assets74.83B80.33B75.59B77.83B74.76B65.50B
Cash, Cash Equivalents and Short-Term Investments16.62B13.24B18.77B26.33B26.16B14.91B
Total Debt0.00506.00M5.00M12.00M29.00M4.04B
Total Liabilities27.92B28.18B28.36B34.14B35.90B28.00B
Stockholders Equity46.34B51.57B46.66B43.13B38.32B36.98B
Cash Flow
Free Cash Flow0.00-5.00B-6.53B1.26B16.06B1.99B
Operating Cash Flow0.00-4.16B-6.17B1.92B16.52B2.32B
Investing Cash Flow0.00-1.28B-849.00M-254.00M-236.00M-345.00M
Financing Cash Flow0.00-682.00M-1.24B-1.31B-5.24B-715.00M

Kitano Construction Corp. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1448.00
Price Trends
50DMA
1162.92
Negative
100DMA
1316.57
Negative
200DMA
1252.11
Negative
Market Momentum
MACD
-54.11
Positive
RSI
24.46
Positive
STOCH
11.44
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1866, the sentiment is Negative. The current price of 1448 is above the 20-day moving average (MA) of 1084.10, above the 50-day MA of 1162.92, and above the 200-day MA of 1252.11, indicating a bearish trend. The MACD of -54.11 indicates Positive momentum. The RSI at 24.46 is Positive, neither overbought nor oversold. The STOCH value of 11.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:1866.

Kitano Construction Corp. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥43.41B9.321.96%24.91%51.00%
73
Outperform
¥40.13B8.673.97%-3.24%60.95%
69
Neutral
¥37.62B13.253.05%3.03%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
61
Neutral
¥36.47B7.553.88%0.72%30.10%
60
Neutral
¥24.27B6.892.04%-2.55%1.79%
60
Neutral
¥54.86B12.881.57%4.01%21.41%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:1866
Kitano Construction Corp.
989.00
-19.21
-1.91%
JP:1810
Matsui Construction Co., Ltd.
1,305.00
290.18
28.59%
JP:1811
Zenitaka Corporation
7,650.00
3,587.94
88.33%
JP:1827
Nakano Corporation
1,178.00
522.78
79.79%
JP:5959
Okabe Co., Ltd.
898.00
86.14
10.61%
JP:256A
Tobishima Holdings, Inc.
1,889.00
121.89
6.90%
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.Date of analysis: May 17, 2026