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

• Market Cap: ¥131.97B
• Dividend Yield: 3.13%
• Average Volume (3M): 80.54K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.62
• Revenue Growth: 5.39%
• EPS Growth: 33.02%
• Country: JP
• Employees: 1,687
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 85.26
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥3,177.00 ▲(10.97% Upside)
• Action: Reiterated Date: 01/16/26
• Date: Action: Reiterated 01/16/26

The score is driven primarily by solid financial performance (improving profitability, stable leverage, and strong cash flow). Technicals support the uptrend but overbought readings temper the outlook, while valuation is reasonable with a moderate P/E and a ~2.9% dividend yield.

Positive Factors

Improving Profitability

Income statement shows rising gross, EBIT and net margins alongside a 4.9% revenue gain, indicating sustained operating improvements. Durable margin expansion enhances recurring earnings power and supports reinvestment, dividends and resilience against short-term shocks over coming quarters.

Strong Cash Generation

Robust free cash flow and favorable operating cash flow to net income demonstrate high cash conversion efficiency. Persistent FCF provides long-term flexibility to fund capex, service debt and sustain shareholder returns, reducing financing risk during cyclical slowdowns.

Solid Balance Sheet

A solid equity base and moderate leverage (D/E ~0.32) give financial stability and headroom to finance projects without heavy borrowing. ROE near 14% indicates efficient capital use, supporting durable ability to invest in growth while maintaining balance sheet resilience.

Negative Factors

Modest Revenue Growth

Revenue growth around 3–5% is modest and may limit structural expansion. Slower top-line momentum increases reliance on margin gains for earnings growth, reducing optionality and making performance more sensitive to competitive pricing and project volumes over the medium term.

Industry Cyclicality Exposure

As an engineering and construction firm, the company is structurally exposed to public/private investment cycles, interest-rate sensitivity and project timing. Even with healthy finances, project ramp-ups or slowdowns can cause revenue and cash flow variability across several quarters.

Margin Maintenance Risk

Management has improved margins, but the company flags the risk of sustaining them amid competitive bidding and input cost volatility. In construction, margin gains can be fragile without durable pricing power or cost advantages, threatening earnings durability.

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

Company Description

PS Construction Co., Ltd. engages in the civil engineering and architecture businesses in Japan and internationally. It undertakes works of precast segment, composite, corrugated steel web, composite truss, and long span arch bridges, as well as marine structures, as well as PC confined pier, and H-shaped PC pile works; and architectural section provides prestressed, precast, and precast prestressed Concrete. It also offers JIS girders and PC deck slab; and architectural members, such as beams, columns, and floors. In addition, it engages in the design, manufacture, sales, and leasing of machines, equipment, and apparatuses for prestressed concrete construction and other construction works; mineral mining and contracts; purchase, sales, leasing, brokerage, ownership, and management of real estate; freight and storage business; and agency of liability insurance, life insurance, and auto insurance. The company formerly known as P.S. Mitsubishi Construction Co., Ltd. and changed its name to PS Construction Co., Ltd. in June 2024. P.S. Mitsubishi Construction Co., Ltd. was incorporated in 1952 and is headquartered in Minato, Japan. P.S. Mitsubishi Construction Co., Ltd. is a subsidiary of Taisei Corporation.

How the Company Makes Money

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

Summary

Overall financial statements indicate solid fundamentals: strong income statement performance (82) with improving margins, a stable balance sheet (75) with moderate leverage, and strong cash flow generation (78) supporting sustainability.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	138.08B	135.63B	129.29B	109.33B	109.64B	117.22B
Gross Profit	23.24B	23.01B	18.77B	15.51B	15.75B	17.61B
EBITDA	13.38B	13.49B	8.96B	6.75B	7.43B	9.16B
Net Income	8.07B	8.22B	5.05B	3.79B	4.54B	5.59B
Balance Sheet
Total Assets	117.17B	132.57B	123.98B	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	19.57B	21.09B	30.86B	10.62B	10.92B
Total Liabilities	60.02B	74.68B	71.81B	68.21B	47.56B	53.20B
Stockholders Equity	57.14B	57.88B	52.17B	47.87B	45.53B	42.22B
Cash Flow
Free Cash Flow	0.00	14.95B	13.94B	-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: Negative
• Last Price: 2863.00
• 50DMA: Negative
• 100DMA: Positive
• 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:1871, the sentiment is Negative. The current price of 2863 is below the 20-day moving average (MA) of 3134.55, below the 50-day MA of 3163.64, and above the 200-day MA of 2293.04, indicating a neutral trend. The MACD of -100.21 indicates Positive momentum. The RSI at 37.61 is Neutral, neither overbought nor oversold. The STOCH value of 40.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
1879	80 Outperform	¥115.40B	11.04	―	2.81%	-3.99%	13.29%
1870	79 Outperform	¥91.93B	15.89	―	3.63%	35.73%	62.37%
1835	76 Outperform	¥185.90B	10.32	―	3.44%	11.25%	36.92%
1871	75 Outperform	¥131.97B	8.40	―	3.13%	5.39%	33.02%
1820	75 Outperform	¥236.15B	8.46	―	3.82%	-3.72%	59.02%
1720	68 Neutral	¥152.95B	9.00	―	2.89%	20.38%	128.85%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%