Daito Construction (JP:1878)
:1878
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Daito Construction
(1878)
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Rating:74Outperform
Price Target:
¥3,866.00
▲(27.38% Upside)
Action:ReiteratedDate:02/01/26
The score is driven most by mixed financial performance: strong revenue growth and steady profitability are tempered by weakened TTM cash generation (slightly negative free cash flow) and higher leverage. Technicals add support with a price above major moving averages and positive MACD, while valuation further improves the profile due to a moderate P/E and high dividend yield.
Positive Factors
Revenue Growth
Sustained TTM revenue growth indicates expanding project wins or pricing power in Daito's core construction business. Over a 2-6 month horizon this durable top-line momentum supports backlog replenishment, economies of scale and continued operating leverage into future periods.
Negative Factors
Weakened Cash Generation
A shift to slightly negative free cash flow and poor cash conversion is a structural risk for capital-intensive construction. Persisting negative FCF limits debt paydown, capex funding and dividend capacity, and heightens reliance on external financing if working-capital pressure continues.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained TTM revenue growth indicates expanding project wins or pricing power in Daito's core construction business. Over a 2-6 month horizon this durable top-line momentum supports backlog replenishment, economies of scale and continued operating leverage into future periods.
Read all positive factors
Daito Construction (1878) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.23T
Dividend Yield5.16%
Average Volume (3M)1.10M
Price to Earnings (P/E)9.4
Beta (1Y)0.40
Revenue Growth5.16%
EPS Growth6.00%
CountryJP
Employees18,814
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 Ratio0.38
Price to Book (P/B)2.16
Price to Sales (P/S)0.55
P/FCF Ratio14.79
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)N/A
Revenue Forecast (FY)N/A
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
83
Very Positive
Balance Sheet
72
Positive
Cash Flow
48
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.92T | 1.84T | 1.73T | 1.66T | 1.58T | 1.49T |
| Gross Profit | 329.99B | 315.86B | 284.78B | 258.45B | 260.14B | 238.87B |
| EBITDA | 148.49B | 149.00B | 128.99B | 119.68B | 120.72B | 107.22B |
| Net Income | 93.18B | 93.86B | 74.69B | 70.36B | 69.58B | 62.28B |
Balance Sheet | ||||||
| Total Assets | 1.30T | 1.22T | 1.08T | 1.06T | 1.01T | 919.45B |
| Cash, Cash Equivalents and Short-Term Investments | 205.52B | 238.90B | 249.56B | 271.13B | 262.24B | 200.50B |
| Total Debt | 238.28B | 124.47B | 80.02B | 91.87B | 95.28B | 97.30B |
| Total Liabilities | 806.49B | 755.35B | 674.27B | 656.98B | 640.09B | 611.25B |
| Stockholders Equity | 491.61B | 466.44B | 402.67B | 401.53B | 361.78B | 304.12B |
Cash Flow | ||||||
| Free Cash Flow | -389.00M | 68.16B | 76.30B | 59.39B | 101.09B | 90.90B |
| Operating Cash Flow | 19.49B | 85.61B | 90.88B | 82.10B | 112.48B | 98.46B |
| Investing Cash Flow | -52.37B | -46.51B | -13.11B | -58.09B | -20.51B | -25.24B |
| Financing Cash Flow | 65.05B | -45.84B | -96.79B | -40.06B | -34.09B | -34.31B |
Daito Construction Technical Analysis
Neutral
3035.00
Price Trends
3400.12
Positive
3178.34
Positive
3138.94
Positive
Market Momentum
36.23
Positive
46.21
Neutral
8.09
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1878, the sentiment is Neutral. The current price of 3035 is below the 20-day moving average (MA) of 3602.25, below the 50-day MA of 3400.12, and below the 200-day MA of 3138.94, indicating a neutral trend. The MACD of 36.23 indicates Positive momentum. The RSI at 46.21 is Neutral, neither overbought nor oversold. The STOCH value of 8.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥990.50B | 25.41 | 11.06% | 2.88% | 11.00% | 88.70% | |
78 Outperform | ¥4.82T | 18.13 | 10.15% | 1.86% | 18.31% | 71.89% | |
74 Outperform | ¥1.23T | 9.43 | 19.43% | 5.16% | 5.16% | 6.00% | |
72 Outperform | ¥1.19T | 9.44 | 19.60% | 1.94% | 3.13% | 11.87% | |
71 Outperform | ¥5.45T | 11.76 | 7.67% | 1.18% | 7.97% | 13.59% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
63 Neutral | ¥158.35B | 20.44 | 8.95% | 3.39% | 28.94% | 109.35% |
* Real Estate Sector Average
JP:1878
Daito Construction
3,576.00
549.82
18.17%
JP:8802
Mitsubishi Estate Company
4,559.00
2,030.53
80.31%
JP:8801
Mitsui Fudosan Co
1,753.00
367.95
26.57%
JP:3288
Open House Co
10,215.00
4,550.52
80.33%
JP:3289
Tokyu Fudosan Holdings
1,377.00
358.02
35.14%
JP:8803
Heiwa Real Estate Co., Ltd.
2,390.00
40.08
1.71%
Daito Construction Corporate Events
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...
Daito Trust Construction Launches ¥25 Billion Share Buyback to Boost Shareholder Returns
Jan 30, 2026
Daito Trust Construction has resolved to implement a new share buyback program under Japan’s Companies Act and its Articles of Incorporation, authorizing the repurchase of up to 9 million shares of common stock, equivalent to about 2.7% of i...
Daito Trust Construction Lifts FY2025 Earnings and Dividend Forecasts on Strong Leasing and Cost Gains
Jan 30, 2026
Daito Trust Construction has raised its consolidated earnings forecast for the fiscal year ending March 31, 2026, citing sustained high occupancy in its real estate leasing business and steady progress in development projects. Net sales are now pr...
Daito Trust Construction Lifts Full-Year Outlook as Nine-Month Sales Rise 6%
Jan 30, 2026
Daito Trust Construction reported consolidated net sales of ¥1.44 trillion for the nine months to December 31, 2025, up 6.0% year on year, with operating profit rising 3.7% to ¥106.6 billion and ordinary profit edging up 0.4% to ¥10...
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.