P.S. Mitsubishi Construction Co., Ltd. (1871) AI Stock Analysis

• Market Cap: ¥85.80B
• Dividend Yield: 4.88%
• Average Volume (3M): 80.54K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.46
• Revenue Growth: 3.55%
• EPS Growth: 36.89%
• Country: JP
• Employees: 1,687
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 30.67
• Shares Outstanding: 47,486,027
• 10 Day Avg. Volume: 86,440
• 30 Day Avg. Volume: 80,536
• PEG Ratio: 0.13
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 0.51
• P/FCF Ratio: 4.60
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥2,010.00 ▲(8.18% Upside)

P.S. Mitsubishi Construction Co., Ltd. has a solid financial foundation with strong revenue and profit growth, supported by a stable balance sheet and robust cash flow. The stock's valuation is attractive with a low P/E ratio and high dividend yield. Technical indicators show stable price trends without significant momentum. The absence of earnings call data and corporate events does not impact the overall score.

P.S. Mitsubishi Construction Co., Ltd. Business Overview & Revenue Model

Company Description

P.S. Mitsubishi Construction Co., Ltd., established in 1871, is a leading construction firm based in Japan, specializing in a wide range of sectors including civil engineering, building construction, and infrastructure development. The company is known for its commitment to quality and innovation, providing core services that encompass project management, design and build solutions, and sustainable construction practices. P.S. Mitsubishi Construction plays a pivotal role in large-scale projects, contributing to the development of urban landscapes and essential public works.

How the Company Makes Money

P.S. Mitsubishi Construction Co., Ltd. generates revenue through various channels primarily centered around its construction and engineering services. The company's revenue model is largely project-based, with income derived from contracts for civil engineering and infrastructure projects, commercial and residential building construction, and public sector contracts. Key revenue streams include bidding for government and private sector contracts, partnerships with other construction firms for large-scale projects, and providing specialized services such as project management and consulting. Additionally, the company may benefit from long-term maintenance contracts and service agreements following the completion of construction projects, further diversifying its income sources.

P.S. Mitsubishi Construction Co., Ltd. Financial Statement Overview

Summary

P.S. Mitsubishi Construction Co., Ltd. shows strong financial performance with robust revenue and profit growth. The company maintains a solid balance sheet with moderate leverage and strong cash flow, supporting business sustainability. Continued focus on cost control and cash management is crucial for maintaining its competitive edge.

Income Statement

The company demonstrates strong revenue growth with a 4.9% increase from the previous year and a significant improvement in profitability metrics. Gross profit and net profit margins have increased, indicating better cost management. EBIT and EBITDA margins also show positive trends, highlighting operational efficiency. Despite the positive growth trajectory, potential risks could include maintaining these margins in a competitive industry.

Balance Sheet

The balance sheet reflects a solid equity base with an equity ratio of 44.2%, indicating financial stability. The debt-to-equity ratio shows moderate leverage at 0.32, which is reasonable for the industry. ROE improved to 14.2%, demonstrating efficient use of equity to generate profits. However, the company should monitor its debt levels to avoid potential risks from economic fluctuations.

Cash Flow

Cash flow performance is strong, with a robust free cash flow and positive cash flow ratios. The operating cash flow to net income ratio is favorable, indicating good cash conversion efficiency. The free cash flow growth rate is positive, reflecting effective capital management. Nonetheless, the company needs to ensure continued cash flow generation to support future growth initiatives and debt obligations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	138.08B	135.63B	129.29B	109.33B	109.64B	117.22B
Gross Profit	23.22B	23.01B	18.79B	15.53B	15.77B	17.63B
EBITDA	13.43B	13.59B	8.96B	6.75B	7.56B	9.09B
Net Income	8.07B	8.22B	5.05B	3.79B	4.54B	5.59B
Balance Sheet
Total Assets	117.17B	130.84B	122.12B	116.08B	93.10B	95.42B
Cash, Cash Equivalents and Short-Term Investments	13.33B	22.10B	11.16B	9.35B	9.95B	10.46B
Total Debt	9.47B	18.56B	20.24B	29.89B	10.01B	10.62B
Total Liabilities	60.02B	72.95B	69.95B	68.21B	47.57B	53.21B
Stockholders Equity	57.14B	57.88B	52.17B	47.87B	45.53B	42.21B
Cash Flow
Free Cash Flow	0.00	14.95B	13.83B	-18.31B	1.31B	-4.41B
Operating Cash Flow	0.00	15.95B	15.94B	-16.71B	2.60B	-3.68B
Investing Cash Flow	0.00	-807.00M	-1.92B	-1.96B	-1.15B	-675.00M
Financing Cash Flow	0.00	-4.21B	-12.22B	18.06B	-1.97B	-664.00M

P.S. Mitsubishi Construction Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1858.00
• 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:1871, the sentiment is Positive. The current price of 1858 is above the 20-day moving average (MA) of 1813.35, above the 50-day MA of 1810.74, and above the 200-day MA of 1605.90, indicating a bullish trend. The MACD of 9.25 indicates Negative momentum. The RSI at 56.25 is Neutral, neither overbought nor oversold. The STOCH value of 56.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1871.

P.S. Mitsubishi Construction Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1870	77 Outperform	¥94.73B	12.42	―	3.66%	35.73%	62.37%
1890	75 Outperform	¥163.43B	18.30	―	5.06%	0.57%	26.93%
1871	72 Outperform	¥85.80B	10.63	―	4.88%	3.55%	36.89%
1762	70 Outperform	¥103.65B	16.55	―	2.52%	6.90%	-25.24%
1720	63 Neutral	¥111.60B	13.85	―	3.47%	20.38%	128.85%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1822	63 Neutral	¥70.93B	20.38	―	3.71%	-10.85%	―