Kitano Construction Corp. (1866) AI Stock Analysis

• Market Cap: ¥33.02B
• Dividend Yield: 2.04%
• Average Volume (3M): 13.91K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.69
• Revenue Growth: -3.21%
• EPS Growth: -45.14%
• Country: JP
• Employees: 1,094
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 39.81
• Shares Outstanding: 25,347,412
• 10 Day Avg. Volume: 9,770
• 30 Day Avg. Volume: 13,906
• PEG Ratio: -0.44
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.31
• P/FCF Ratio: -3.79
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ¥1,439.00 ▼(-0.62% Downside)
• Action: Downgraded Date: 02/10/26
• Date: Action: Downgraded 02/10/26

The score is driven primarily by mixed financial performance: a strong, low-leverage balance sheet offsets weakening revenue/net income and negative operating cash flow. Technicals are supportive with a clear uptrend, but overbought-leaning indicators temper the outlook. Valuation is reasonable with a moderate P/E and modest dividend yield.

Positive Factors

Strong balance sheet / low leverage

A robust balance sheet with low debt and a healthy equity ratio gives Kitano durable financial flexibility. It reduces refinancing and leverage risk, supports bidding on large public works, and allows capital allocation to sustain operations through project timing cycles over the next several months.

Negative Factors

Declining revenue and net income

Year-over-year declines in revenue and net income signal weakening top-line momentum or loss of contract share. Over a multi-month horizon this can reduce scale advantages, pressure pricing power and margins, and make it harder to absorb fixed costs, impeding sustainable growth.

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 ...

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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 makes money primarily by contracting construction projects and recognizing revenue from those contracts as work is performed. Key revenue streams typically include: (1) Building construction: fees and margins earned as a prime ...

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Kitano Construction makes money primarily by contracting construction projects and recognizing revenue from those contracts as work is performed. Key revenue streams typically include: (1) Building construction: fees and margins earned as a prime ...

Kitano Construction Corp. Financial Statement Overview

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	83.37B	80.85B	84.96B	85.28B	60.10B	75.27B
Gross Profit	10.30B	9.90B	10.49B	9.53B	6.67B	7.26B
EBITDA	5.13B	5.17B	5.99B	4.23B	3.23B	3.71B
Net Income	3.25B	3.38B	3.90B	1.99B	1.74B	1.80B
Balance Sheet
Total Assets	74.83B	75.59B	77.83B	74.76B	65.50B	69.65B
Cash, Cash Equivalents and Short-Term Investments	16.62B	18.77B	26.33B	26.16B	14.91B	13.01B
Total Debt	0.00	5.00M	12.00M	29.00M	4.04B	4.06B
Total Liabilities	27.92B	28.36B	34.14B	35.90B	28.00B	33.25B
Stockholders Equity	46.34B	46.66B	43.13B	38.32B	36.98B	35.90B
Cash Flow
Free Cash Flow	0.00	-6.53B	1.26B	16.06B	1.99B	274.00M
Operating Cash Flow	0.00	-6.17B	1.92B	16.52B	2.32B	4.00B
Investing Cash Flow	0.00	-849.00M	-254.00M	-236.00M	-345.00M	-3.62B
Financing Cash Flow	0.00	-1.24B	-1.31B	-5.24B	-715.00M	3.35B

Kitano Construction Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1448.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 1384.30, below the 50-day MA of 1488.08, and above the 200-day MA of 1257.84, indicating a neutral trend. The MACD of -57.47 indicates Positive momentum. The RSI at 40.57 is Neutral, neither overbought nor oversold. The STOCH value of 29.01 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1810	79 Outperform	¥51.37B	6.41	―	3.97%	2.85%	317.62%
256A	77 Outperform	¥42.72B	6.66	―	3.88%	4.11%	28.37%
1827	73 Outperform	¥48.77B	7.92	―	1.96%	2.55%	-14.37%
5959	69 Neutral	¥40.86B	13.42	―	3.05%	-0.26%	89.66%
1866	67 Neutral	¥33.02B	9.10	―	2.04%	-3.21%	-45.14%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1811	60 Neutral	¥63.74B	19.35	―	1.57%	11.01%	231.83%