tiprankstipranks
Trending News
More News >
Yahagi Construction Co., Ltd. (JP:1870)
:1870
Japanese Market

Yahagi Construction Co., Ltd. (1870) AI Stock Analysis

Compare
0 Followers

Top Page

JP

Yahagi Construction Co., Ltd.

(1870)

Rating:78Outperform
Price Target:
¥1,885.00
▲(11.54%Upside)
Yahagi Construction's stock is rated as favorable due to its strong technical momentum and fair valuation, complemented by a high dividend yield. However, financial performance poses risks due to declining net profit margins and negative cash flow trends.

Yahagi Construction Co., Ltd. (1870) vs. iShares MSCI Japan ETF (EWJ)

Yahagi Construction Co., Ltd. Business Overview & Revenue Model

Company DescriptionYahagi Construction Co., Ltd. (1870) is a prominent Japanese construction company involved in various sectors including civil engineering, building construction, and environmental projects. The company is known for its expertise in infrastructure development, providing comprehensive services from planning and design to execution and maintenance. Yahagi Construction is committed to delivering innovative and sustainable solutions in the construction industry.
How the Company Makes MoneyYahagi Construction Co., Ltd. generates revenue primarily through its construction services, which include civil engineering and building construction projects. The company undertakes a wide range of projects such as roads, bridges, tunnels, commercial buildings, and residential complexes. Revenue is earned through contracts awarded by government entities, private sector clients, and public-private partnerships. Additionally, Yahagi Construction may engage in environmental projects and other related services that contribute to its income. Key factors contributing to its earnings include its reputation for quality, strategic partnerships, and its ability to secure large-scale infrastructure projects.

Yahagi Construction Co., Ltd. Financial Statement Overview

Summary
Yahagi Construction shows strong revenue growth and stable gross profitability, indicating a robust business model. However, declining net profit margins and increased leverage highlight potential risks in operational efficiency and financial stability. Negative cash flow trends are concerning and may impact future investments and financial flexibility.
Income Statement
78
Positive
Yahagi Construction has demonstrated solid revenue growth, increasing from ¥93 billion in 2022 to ¥141 billion in 2025, reflecting a positive growth trajectory. Gross profit margin has remained stable, averaging around 14% over the years, indicating effective cost management. However, the decline in net profit margin from 5.5% in 2022 to 4.0% in 2025 suggests rising operational or interest costs. The EBIT and EBITDA margins have slightly decreased, pointing to potential efficiency issues in operating expenses.
Balance Sheet
72
Positive
The company maintains a balanced debt-to-equity ratio, which has increased to 0.56 in 2025, reflecting a moderate leverage level. The equity ratio of around 48% indicates a stable capital structure. However, the increase in total debt to ¥38.6 billion in 2025 signals potential risk if revenue growth does not keep pace. The return on equity (ROE) has been steady, suggesting effective use of shareholder funds, albeit with a slight decrease in recent years.
Cash Flow
65
Positive
Yahagi Construction's cash flow performance has been volatile, with negative free cash flow in recent years due to significant capital expenditures and reduced operating cash flow. The free cash flow to net income ratio turned negative in 2025, indicating challenges in converting profits into cash. The operating cash flow to net income ratio has also declined, suggesting potential inefficiencies in cash-generating activities.
Breakdown
TTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
126.11B140.70B119.82B111.11B93.09B106.61B
Gross Profit
13.89B19.42B19.80B16.59B14.94B15.70B
EBIT
3.79B8.65B9.51B7.21B6.17B7.36B
EBITDA
4.42B9.50B10.57B8.16B7.03B8.19B
Net Income Common Stockholders
2.52B5.64B6.46B4.51B4.84B3.29B
Balance SheetCash, Cash Equivalents and Short-Term Investments
16.71B15.67B19.99B22.82B22.01B22.09B
Total Assets
138.68B144.22B126.00B129.99B116.42B129.84B
Total Debt
40.60B38.60B22.40B31.90B30.40B42.94B
Net Debt
23.89B22.93B2.41B9.08B8.39B20.85B
Total Liabilities
72.89B75.38B59.46B69.56B58.89B75.20B
Stockholders Equity
65.78B68.83B66.53B60.43B57.53B54.64B
Cash FlowFree Cash Flow
0.00-18.04B7.83B1.47B13.24B-7.50B
Operating Cash Flow
0.00-17.19B10.23B4.15B15.84B-6.76B
Investing Cash Flow
0.00-255.00M-1.18B-3.07B-1.55B-220.00M
Financing Cash Flow
0.0013.15B-11.86B-253.00M-14.35B15.36B

Yahagi Construction Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1690.00
Price Trends
50DMA
1533.46
Positive
100DMA
1438.62
Positive
200DMA
1463.57
Positive
Market Momentum
MACD
40.22
Positive
RSI
60.17
Neutral
STOCH
19.23
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1870, the sentiment is Positive. The current price of 1690 is above the 20-day moving average (MA) of 1682.05, above the 50-day MA of 1533.46, and above the 200-day MA of 1463.57, indicating a neutral trend. The MACD of 40.22 indicates Positive momentum. The RSI at 60.17 is Neutral, neither overbought nor oversold. The STOCH value of 19.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1870.

Yahagi Construction Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
84
Outperform
¥85.10B10.35
5.49%4.90%62.07%
78
Outperform
¥72.76B12.88
1.18%17.42%-12.68%
77
Outperform
¥75.19B16.83
5.99%7.21%11.23%
75
Outperform
¥70.21B3.77
0.58%-12.15%
69
Neutral
¥50.56B13.68
3.18%-8.91%-27.30%
67
Neutral
¥93.01B7.26
0.38%10.43%-0.74%
66
Neutral
$4.51B12.225.40%3.63%4.14%-12.01%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:1870
Yahagi Construction Co., Ltd.
1,678.00
191.25
12.86%
JP:1822
Daiho Corporation
797.00
147.81
22.77%
JP:1871
P.S. Mitsubishi Construction Co., Ltd.
1,774.00
835.89
89.10%
JP:1879
Shinnihon Corporation
1,586.00
15.55
0.99%
JP:1882
Toa Road Corporation
1,497.00
381.23
34.17%
JP:1888
Wakachiku Construction Co., Ltd.
3,975.00
498.51
14.34%

Yahagi Construction Co., Ltd. Corporate Events

Yahagi Construction Reports Increased Sales but Declining Profits
May 7, 2025

Yahagi Construction Co., Ltd. reported a significant 20.2% increase in net sales for the fiscal year ending March 31, 2025, driven by progress in constructing large-scale logistics facilities. However, profits declined across all levels due to the absence of the previous year’s gains from the sale of internally developed industrial land, impacting the company’s financial performance.

Yahagi Construction Reports Increased Sales but Declining Profits; Announces Dividend Hike
May 7, 2025

Yahagi Construction Co., Ltd. reported a significant increase in net sales for the fiscal year ending March 31, 2025, with a 17.4% rise compared to the previous year. However, the company experienced declines in operating profit, ordinary profit, and profit attributable to owners of the parent, with decreases of 9.0%, 10.1%, and 12.7% respectively. The company also announced an increase in annual dividends per share from 60 yen to 80 yen, indicating a commitment to returning value to shareholders despite the profit declines. The financial forecast for the fiscal year ending March 31, 2026, shows expected growth in net sales and profits, suggesting a positive outlook for the company’s future performance.

Yahagi Construction Co., Ltd. Revises Dividend Policy to Enhance Shareholder Returns
May 7, 2025

Yahagi Construction Co., Ltd. has announced a change in its dividend policy to enhance shareholder returns, transitioning to a dividend on equity (DOE) ratio of 5% or more and adopting a progressive dividend approach. This shift aims to provide stable returns to long-term shareholders and improve the company’s stock market rating by focusing on capital efficiency, with the new policy taking effect from the fiscal year ending March 31, 2026.

Yahagi Construction’s Strategic Role within Nagoya Railroad Group
May 7, 2025

Yahagi Construction Co., Ltd. has a significant relationship with Nagoya Railroad Co., Ltd., which holds a 19.3% voting rights stake. The construction company is a key player within the Nagoya Railroad Group, performing essential railway track maintenance and other construction projects. The company’s operations are closely tied to the Nagoya Railroad Group, yet it maintains contractual independence, ensuring standard terms and conditions. This relationship is crucial for Yahagi’s business, as it accounts for a substantial portion of its sales.

Yahagi Construction Announces Year-End Dividend Distribution
May 7, 2025

Yahagi Construction Co., Ltd. announced a resolution for the distribution of dividends from retained earnings, with a record date of March 31, 2025. The company will distribute a year-end dividend of 40.00 yen per share, which includes an ordinary dividend of 30.00 yen and a commemorative dividend of 10.00 yen, reflecting its commitment to consistent shareholder returns and enhancing corporate value.

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.