Daito Construction (JP:1878)
:1878
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Daito Construction
(1878)
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Rating:62Neutral
Price Target:
¥3,726.00
▲(22.77% Upside)
Action:Downgraded
Date:05/02/26
The score is anchored by mixed financial performance: steady revenue and solid margins are offset by a significant 2026 deterioration in cash-flow generation and a notable increase in leverage. Technicals are soft (below key moving averages with negative MACD), while valuation is a relative positive with a moderate P/E and a high dividend yield.
Positive Factors
Revenue growth trend
Multi-year top-line expansion with acceleration in 2026 indicates durable demand and backlog conversion across projects. Sustained revenue growth supports scale, resource allocation and long-term contract visibility, underpinning organic cash generation and strategic reinvestment over the medium term.
Negative Factors
Sharp cash-flow deterioration
A large year-over-year decline in operating and free cash flow materially weakens internal funding for capex, dividends and working capital. Persistently lower cash conversion raises reliance on external finance, narrows operational flexibility and heightens vulnerability to future cash shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth trend
Multi-year top-line expansion with acceleration in 2026 indicates durable demand and backlog conversion across projects. Sustained revenue growth supports scale, resource allocation and long-term contract visibility, underpinning organic cash generation and strategic reinvestment over the medium term.
Read all positive factors
Daito Construction (1878) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.09T
Dividend Yield5.16%
Average Volume (3M)1.10M
Price to Earnings (P/E)10.5
Beta (1Y)0.39
Revenue Growth7.73%
EPS Growth4.60%
CountryJP
Employees18,814
SectorReal Estate
Sector Strength53
IndustryReal Estate - Diversified
Share Statistics
EPS (TTM)299.01
Shares Outstanding344,594,900
10 Day Avg. Volume922,440
30 Day Avg. Volume1,101,263
Financial Highlights & Ratios
PEG Ratio2.63
Price to Book (P/B)2.45
Price to Sales (P/S)0.61
P/FCF Ratio72.89
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)332.4
Revenue Forecast (FY)¥2.05T
Daito Construction Business Overview & Revenue Model
Company Description
Daito Trust Construction Co.,Ltd. designs and constructs apartments, condominiums, rental office buildings, factories, and warehouses in Japan. It operates through Construction, Real Estate, and Other segments. The company also constructs mid- to ...
How the Company Makes Money
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Daito Construction Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
67
Positive
Cash Flow
45
Neutral
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.98T | 1.84T | 1.73T | 1.66T | 1.58T |
| Gross Profit | 347.05B | 315.86B | 284.78B | 258.45B | 260.14B |
| EBITDA | 155.92B | 149.00B | 128.99B | 119.68B | 120.72B |
| Net Income | 99.03B | 93.86B | 74.69B | 70.36B | 69.58B |
Balance Sheet | |||||
| Total Assets | 1.37T | 1.22T | 1.08T | 1.06T | 1.01T |
| Cash, Cash Equivalents and Short-Term Investments | 276.33B | 238.90B | 249.56B | 271.13B | 262.24B |
| Total Debt | 234.17B | 124.47B | 80.02B | 91.87B | 95.28B |
| Total Liabilities | 870.90B | 755.35B | 674.27B | 656.98B | 640.09B |
| Stockholders Equity | 496.35B | 466.44B | 402.67B | 401.53B | 361.78B |
Cash Flow | |||||
| Free Cash Flow | 16.71B | 68.16B | 76.30B | 59.39B | 101.09B |
| Operating Cash Flow | 40.37B | 85.61B | 90.88B | 82.10B | 112.48B |
| Investing Cash Flow | -41.70B | -46.51B | -13.11B | -58.09B | -20.51B |
| Financing Cash Flow | 37.22B | -45.84B | -96.79B | -40.06B | -34.09B |
Daito Construction Technical Analysis
Negative
3035.00
Price Trends
3518.46
Negative
3372.78
Negative
3181.33
Negative
Market Momentum
-93.54
Positive
22.39
Positive
12.22
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1878, the sentiment is Negative. The current price of 3035 is below the 20-day moving average (MA) of 3413.70, below the 50-day MA of 3518.46, and below the 200-day MA of 3181.33, indicating a bearish trend. The MACD of -93.54 indicates Positive momentum. The RSI at 22.39 is Positive, neither overbought nor oversold. The STOCH value of 12.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:1878.
Daito Construction Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ¥1.01T | 8.70 | 19.60% | 1.94% | 3.42% | 30.95% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
62 Neutral | ¥1.09T | 10.53 | 19.43% | 5.16% | 7.73% | 4.60% | |
61 Neutral | ¥948.78B | 9.73 | 11.06% | 2.88% | 8.32% | 24.62% | |
58 Neutral | ¥154.24B | 14.03 | 8.95% | 3.39% | 20.87% | 16.79% | |
56 Neutral | ¥4.85T | 22.13 | 7.67% | 1.18% | 10.53% | 20.50% | |
54 Neutral | ¥4.20T | 14.95 | 10.15% | 1.86% | 3.21% | 13.04% |
* Real Estate Sector Average
JP:1878
Daito Construction
3,172.00
14.38
0.46%
JP:8802
Mitsubishi Estate Company
4,056.00
1,418.74
53.80%
JP:8801
Mitsui Fudosan Co
1,530.50
173.05
12.75%
JP:3288
Open House Co
8,646.00
2,414.17
38.74%
JP:3289
Tokyu Fudosan Holdings
1,319.00
292.64
28.51%
JP:8803
Heiwa Real Estate Co., Ltd.
2,328.00
190.52
8.91%
Daito Construction Corporate Events
Daito Trust Construction Reintroduces ESOP Trust to Align Employees With Long-Term Growth
Apr 30, 2026
Daito Trust Construction has resolved to reintroduce an employee stock ownership plan (ESOP) trust as part of its medium- to long-term strategy to enhance corporate value. The scheme is designed to strengthen employee benefits and align staff ince...
Daito Trust Construction to Use Treasury Shares for Reintroduced ESOP Trust
Apr 30, 2026
Daito Trust Construction will dispose of 3,819,800 treasury shares through a third-party allotment to an employee stock ownership plan trust managed by The Master Trust Bank of Japan, with Mitsubishi UFJ Trust and Banking as trustee, to support th...
Daito Trust Construction Raises Annual Dividend, Targets 50% Payout Ratio
Apr 30, 2026
Daito Trust Construction has approved a year-end dividend of ¥82 per share for the fiscal year ended March 31, 2026, up from its latest forecast of ¥74.60 but slightly below the prior year’s ¥85.40. The payout, totaling about ...
Daito Trust Construction Posts Higher FY2026 Profit and Steady Dividends Amid Modest Growth Outlook
Apr 30, 2026
Daito Trust Construction reported consolidated net sales of ¥1.98 trillion for the fiscal year ended March 31, 2026, up 7.7% year on year, with operating profit rising 13.8% to ¥135.3 billion and profit attributable to owners of parent i...
Daito Trust Construction Amends Tender Offer Filing After Antitrust Clearance
Apr 16, 2026
Daito Trust Construction has filed an amended tender offer registration for its ongoing bid to acquire common shares of THE Global Co., Ltd., which is listed on the Tokyo Stock Exchange Standard Market. The amendment follows receipt of a Japan Fai...
Daito Trust Construction to Fully Acquire THE Global via Tender Offer
Apr 6, 2026
Daito Trust Construction has resolved to launch a tender offer for all common shares of THE Global Co., Ltd. listed on the Tokyo Stock Exchange Standard Market, excluding treasury shares, with the aim of making THE Global a wholly owned subsidiary...
Daito Trust to Exit Solasto Stake and Redirect Funds to Core Growth
Mar 24, 2026
Daito Trust Construction has signed a transaction agreement with MB-2605 K.K., a vehicle of MBK Partners, regarding shares in its equity-method affiliate Solasto Corporation. Under the deal, Daito will not tender its Solasto stake into MB-2605R...
Daito Trust Construction Corrects Cash Flow Data and Details Treasury Share Moves
Feb 13, 2026
Daito Trust Construction has completed the interim review by certified public accountants of its consolidated financial results for the nine months ended December 31, 2025, and disclosed corrections to previously announced figures. The company rev...
Daito Trust Sets Terms for 10th Stock Acquisition Rights Issue Tied to ¥24.6 Billion Buyback
Feb 10, 2026
Daito Trust Construction has finalized the terms for the 10th issuance of stock acquisition rights via a third-party allotment, linked to a fully committed share repurchase program conducted through the Tokyo Stock Exchange’s ToSTNeT-3 off-a...
Daito Trust Construction Completes ¥25 Billion Treasury Share Buyback via ToSTNeT-3
Feb 10, 2026
Daito Trust Construction Co., Ltd. has completed a share repurchase via the Tokyo Stock Exchange’s off-auction own share repurchase trading system, ToSTNeT-3, as part of its capital policy. The company bought 7,256,800 common shares, represe...
Daito Trust Construction Launches ¥25 Billion Accelerated Share Buyback via ToSTNeT-3
Feb 9, 2026
Daito Trust Construction has approved a specific method for a previously announced share buyback, opting to repurchase its own common stock via the Tokyo Stock Exchange’s off-auction ToSTNeT-3 system on February 10, 2026. The move is aimed a...
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.