Kitano Construction Corp. (1866) AI Stock Analysis

• Market Cap: ¥23.70B
• Dividend Yield: 2.65%
• Average Volume (3M): 2.36K
• Price to Earnings (P/E): 7.4
• Beta (1Y): 0.58
• Revenue Growth: -4.84%
• EPS Growth: -16.53%
• Country: JP
• Employees: 1,094
• Sector: Industrials
• Sector Strength: 86
• Industry: Engineering & Construction
• EPS (TTM): 173.56
• Shares Outstanding: 6,336,853
• 10 Day Avg. Volume: 2,810
• 30 Day Avg. Volume: 2,360
• PEG Ratio: -0.40
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.28
• 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

• Rating: 71 Outperform
• Price Target: ¥4,807.00 ▲(15.69%Upside)

Kitano Construction Corp. receives a solid stock score driven by strong technical indicators and an attractive valuation. While financial performance shows stability, challenges in revenue growth and cash flow management weigh down the overall score. The stock's upward momentum and undervaluation present a favorable opportunity, though investors should monitor for improvements in financial metrics.

Kitano Construction Corp. Business Overview & Revenue Model

Company Description

Kitano Construction Corp. (1866) is a prominent construction company based in Japan, specializing in civil engineering, architectural projects, and real estate development. The company is engaged in the construction of infrastructure projects such as roads, bridges, and tunnels, as well as commercial and residential buildings. Kitano Construction Corp. is known for its innovative approach to construction and engineering, leveraging modern technologies to deliver high-quality projects across various sectors.

How the Company Makes Money

Kitano Construction Corp. generates revenue primarily through its construction and engineering services. The company secures contracts for large-scale infrastructure and building projects from both government entities and private sector clients. These contracts provide a steady stream of income as projects are executed over time. Additionally, Kitano Construction Corp. engages in real estate development, where it invests in and develops properties that are later sold or leased, adding another significant revenue stream. The company's earnings are further supported by strategic partnerships and collaborations that enhance its competitive edge and expand its market reach. Kitano's ability to deliver complex and high-value projects efficiently is a key factor contributing to its financial success.

Kitano Construction Corp. Financial Statement Overview

Summary

Kitano Construction Corp. demonstrates a stable financial position with strong equity and low debt, but faces challenges in maintaining revenue growth and positive cash flow. Recent declines in revenue and net income, along with negative cash flows, highlight areas for improvement.

Income Statement

Kitano Construction Corp. has shown a mixed performance on its income statement. The gross profit margin has been stable, but there was a decline in total revenue and net income over the past year, indicating potential challenges in sustaining growth. The EBIT and EBITDA margins remain moderate, reflecting operational efficiency but room for improvement in cost management. Overall, while the company maintains reasonable profitability, recent decreases in revenue and net income suggest challenges in growth.

Balance Sheet

The company's balance sheet is robust with a strong equity base and low debt levels, resulting in a favorable debt-to-equity ratio. Return on Equity (ROE) has been satisfactory, though there is scope for enhancement. The equity ratio is healthy, indicating a good balance between equity and total assets. Kitano Construction Corp. displays financial stability with minimal leverage risk, though improving asset efficiency could boost returns further.

Cash Flow

Cash flow management presents a challenge for Kitano Construction Corp. The operating cash flow has turned negative, impacting the free cash flow and indicating potential liquidity concerns. While previous periods showed positive free cash flow, the current downturn suggests a need to improve cash management strategies. The ratios of operating and free cash flow to net income highlight a disconnect that the company needs to address to enhance liquidity and financial flexibility.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	82.86B	80.85B	84.96B	85.28B	60.10B	75.27B
Gross Profit	10.08B	9.90B	10.49B	9.53B	6.67B	7.26B
EBITDA	4.58B	5.17B	5.99B	4.23B	3.23B	3.71B
Net Income	3.45B	3.38B	3.90B	1.99B	1.74B	1.80B
Balance Sheet
Total Assets	74.04B	75.59B	77.83B	74.76B	65.50B	69.65B
Cash, Cash Equivalents and Short-Term Investments	20.34B	18.77B	26.33B	26.16B	14.91B	13.01B
Total Debt	0.00	276.00M	12.00M	29.00M	4.00B	4.00B
Total Liabilities	28.11B	28.36B	34.14B	35.90B	28.00B	33.25B
Stockholders Equity	45.37B	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: Neutral
• Last Price: 4155.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Neutral. The current price of 4155 is below the 20-day moving average (MA) of 4168.25, above the 50-day MA of 4106.80, and above the 200-day MA of 4010.27, indicating a neutral trend. The MACD of 37.01 indicates Negative momentum. The RSI at 50.60 is Neutral, neither overbought nor oversold. The STOCH value of 57.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1866.

Kitano Construction Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1780	80 Outperform	¥24.04B	8.01		1.18%	-14.89%	-28.68%
1828	76 Outperform	¥23.73B	8.96		3.92%	-1.95%	37.71%
1811	72 Outperform	¥30.12B	8.59		2.85%	-0.26%	28.01%
1827	72 Outperform	¥24.81B	8.54		3.05%	2.91%	9.79%
1866	71 Outperform	¥23.70B	7.39		2.65%	-4.84%	-16.53%
Sector *	66 Neutral	€9.87B	16.58	3.59%	3.46%	3.75%	-21.04%
1826	58 Neutral	¥17.36B	28.09		5.36%	23.70%	714.01%