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Daito Construction
(1878)
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Rating:66Neutral
Price Target:
¥3,639.00
▲(10.91% Upside)
Action:Reiterated
Date:08/01/26
The score is primarily held back by weak recent cash flow quality (negative TTM free cash flow and low operating cash flow versus earnings) and higher leverage, despite solid revenue/margin trends and strong ROE. Support comes from attractive valuation (low P/E and ~4.29% dividend yield) and a constructive short-term price trend above key moving averages.
Positive Factors
Revenue growth & margin expansion
Consistent top-line growth (~9.4% TTM) coupled with multi-year margin expansion (gross ~17.8%, operating ~7.3% TTM) indicates durable demand and improving project profitability. These trends support long-term cash-earning capacity and provide a cushion for returns across cycles.
Negative Factors
Weak cash flow quality
A clear disconnect between reported profits and operating cash (24.4B OCF vs ~98.6B net income) with slightly negative FCF reduces financial flexibility. Persistent weak cash flow can constrain capex, dividends or debt paydown, and may force reliance on external financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth & margin expansion
Consistent top-line growth (~9.4% TTM) coupled with multi-year margin expansion (gross ~17.8%, operating ~7.3% TTM) indicates durable demand and improving project profitability. These trends support long-term cash-earning capacity and provide a cushion for returns across cycles.
Read all positive factors
Daito Construction (1878) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.16T
Dividend Yield4.46%
Average Volume (3M)1.10M
Price to Earnings (P/E)11.3
Beta (1Y)0.34
Revenue Growth5.93%
EPS Growth5.17%
CountryJP
Employees19,326
SectorReal Estate
Sector Strength53
IndustryReal Estate - Diversified
Share Statistics
EPS (TTM)N/A
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 Target
¥3,200.00Price Target Upside-2.47% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Daito Construction Business Overview & Revenue Model
Company Description
Daito Trust Construction Co., Ltd., established in 1974 and headquartered in Tokyo, Japan, operates as a diversified enterprise primarily engaged in construction, real estate, and various related services. The company is a key player in the design...
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
39
Negative
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.99T | 1.98T | 1.84T | 1.73T | 1.66T | 1.58T |
| Gross Profit | 354.31B | 347.05B | 315.86B | 284.78B | 258.45B | 260.14B |
| EBITDA | 166.07B | 155.92B | 149.00B | 128.99B | 119.68B | 120.72B |
| Net Income | 98.61B | 99.03B | 93.86B | 74.69B | 70.36B | 69.58B |
Balance Sheet | ||||||
| Total Assets | 1.39T | 1.37T | 1.22T | 1.08T | 1.06T | 1.01T |
| Cash, Cash Equivalents and Short-Term Investments | 251.28B | 276.33B | 238.90B | 249.56B | 271.13B | 262.24B |
| Total Debt | 300.82B | 234.17B | 124.47B | 80.02B | 91.87B | 95.28B |
| Total Liabilities | 891.92B | 870.90B | 755.35B | 674.27B | 656.98B | 640.09B |
| Stockholders Equity | 494.83B | 496.35B | 466.44B | 402.67B | 401.53B | 361.78B |
Cash Flow | ||||||
| Free Cash Flow | -1.36B | 16.71B | 68.16B | 76.30B | 59.39B | 101.09B |
| Operating Cash Flow | 24.38B | 40.37B | 85.61B | 90.88B | 82.10B | 112.48B |
| Investing Cash Flow | -59.60B | -41.70B | -46.51B | -13.11B | -58.09B | -20.51B |
| Financing Cash Flow | 48.49B | 37.22B | -45.84B | -96.79B | -40.06B | -34.09B |
Daito Construction Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | ¥1.16T | 11.27 | 20.50% | 4.58% | 5.93% | 5.17% | |
66 Neutral | ¥993.27B | 8.69 | 20.25% | 2.32% | 3.42% | 30.95% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
61 Neutral | ¥961.37B | 9.87 | 11.33% | 3.42% | 8.32% | 24.67% | |
58 Neutral | ¥156.03B | 15.07 | 8.95% | 3.39% | 9.27% | 7.27% | |
56 Neutral | ¥4.63T | 21.32 | 8.71% | 1.15% | 10.53% | 20.72% | |
54 Neutral | ¥4.23T | 15.44 | 8.63% | 2.26% | 3.21% | 13.04% |
* Real Estate Sector Average
JP:1878
Daito Construction
3,214.00
108.19
3.48%
JP:8802
Mitsubishi Estate Company
3,833.00
808.40
26.73%
JP:8801
Mitsui Fudosan Co
1,525.00
-2.43
-0.16%
JP:3288
Open House Co
8,506.00
1,432.82
20.26%
JP:3289
Tokyu Fudosan Holdings
1,312.50
187.56
16.67%
JP:8803
Heiwa Real Estate Co., Ltd.
2,314.00
58.68
2.60%
Daito Construction Corporate Events
Daito Trust Construction Posts Higher Q1 Operating Profit, Affirms Dividend and Earnings Outlook
Jul 31, 2026
Daito Trust Construction reported consolidated net sales of ¥480.1 billion for the three months ended June 30, 2026, up 0.4% year-on-year, with operating profit rising 15.5% to ¥39.4 billion and ordinary profit up 13.4% to ¥39.8 bil...
Daito Trust Construction Makes THE Global a Wholly Owned Subsidiary
Jul 31, 2026
Daito Trust Construction has completed a multi-step transaction to turn Tokyo-based developer THE Global Co., Ltd. into its wholly owned subsidiary. THE Global operates condominium development, income-producing property, sales agency, building man...
Daito Trust Construction Revises FY2026 Financial Results and Dividend Schedule
May 26, 2026
Daito Trust Construction has announced corrections to its consolidated financial results for the fiscal year ended March 31, 2026, originally released on April 30. The revisions affect the scheduled start date for dividend payments, which has been...
Daito Trust Construction to Make THE Global Co. an Affiliate After Successful Tender Offer
May 22, 2026
Daito Trust Construction has successfully completed a tender offer for common shares of THE Global Co., Ltd., acquiring 12,715,775 shares at 1,280 yen per share during the April 7 to May 22 offer period. As the number of tendered shares far exceed...
Daito Trust Finalizes Share Count in Fully Committed Buyback Adjustment
May 19, 2026
Daito Trust Construction has finalized the number of shares acquired in its fully committed share repurchase program, clarifying the outcome of a major capital initiative first announced in February. The company completed the ex post facto adjustm...
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.