Daito Construction (1878) AI Stock Analysis

• Market Cap: $1.11T
• Dividend Yield: 4.42%
• Average Volume (3M): 199.98K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.37
• Revenue Growth: 6.04%
• EPS Growth: 17.46%
• Country: JP
• Employees: 18,814
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Diversified
• EPS (TTM): 72.72
• Shares Outstanding: 344,594,900
• 10 Day Avg. Volume: 223,210
• 30 Day Avg. Volume: 199,980
• PEG Ratio: 0.38
• Price to Book (P/B): 2.16
• Price to Sales (P/S): 0.55
• P/FCF Ratio: 16.45
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 0.53
• Enterprise Value/Gross Profit: 3.08
• Enterprise Value/Ebitda: 7.08
• 1Y Price Target: $17,500.74
• Price Target Upside: 441.82% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ¥17,798.00 ▲(451.02% Upside)

Daito Construction's overall stock score is driven by its strong financial performance and attractive valuation. The company's consistent revenue growth and solid profitability are significant strengths. While technical analysis shows mixed signals, the stock's valuation is appealing with a reasonable P/E ratio and high dividend yield. The absence of earnings call data and corporate events does not impact the score.

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 high-rise rental condominiums in metropolitan area; produces and constructs steel frames and sells exterior products; manages rental buildings and provides customer services; and offers rental building brokerage and tenant recruitment services. In addition, it offers agency guarantee and rental building real estate agency services; constructs LP gas plants and supplies LP gas to rental buildings; supplies and sells energy, such as electric power to rental buildings; and operates elderly day care centers and nurseries. Further, the company provides home care, in-home support planning, home visit nursing care, support for people with disabilities, housekeeper referrals, and nursing care personnel introduction services; operates hotels in Malaysia; and handles financing, such as construction funds. Additionally, it sells insurance to rental housing owners and tenants; offers payment services for credit card settlements and other payment methods; provides consulting services for trust businesses centered on real estate management trusts, as well as asset succession and asset management; and offers document shipping and shredding, printing, and clerical work services. The company also engages in flexible workspace business; and management of facility reservation portal sites. The company was incorporated in 1974 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Daito Construction primarily generates revenue through its construction and real estate development projects. The company earns money by constructing residential apartments, commercial buildings, and industrial facilities, often on a contractual basis. In addition to construction projects, Daito also profits from property management and leasing services, providing maintenance and operational support for the properties they develop. Significant partnerships with real estate investors, government bodies, and corporate clients further bolster their earnings, allowing them access to large-scale projects and a steady stream of contracts.

Daito Construction Financial Statement Overview

Summary

Daito Construction shows a strong financial profile with consistent revenue growth, solid profitability, and a stable balance sheet. The income statement is robust, with healthy profit margins and operational efficiency. The balance sheet is well-managed with a low debt-to-equity ratio and high return on equity. However, cash flow analysis indicates challenges, particularly in free cash flow growth, though cash conversion ratios remain healthy.

Income Statement

Daito Construction demonstrates a strong income statement with consistent revenue growth and healthy profit margins. The TTM data shows a gross profit margin of 17.14% and a net profit margin of 5.09%, indicating effective cost management and profitability. Revenue growth is steady, with a 1.80% increase in the latest TTM period. The EBIT and EBITDA margins are also solid, reflecting operational efficiency.

Balance Sheet

The balance sheet is robust, with a manageable debt-to-equity ratio of 0.27, indicating a balanced approach to leveraging. The return on equity is impressive at 21.19%, showcasing effective use of shareholder funds. The equity ratio stands at 37.47%, suggesting a stable financial structure with a good proportion of assets financed by equity.

Cash Flow

Cash flow analysis reveals some challenges, with a decline in free cash flow growth by 19.45% in the TTM period. However, the operating cash flow to net income ratio is 0.79, indicating that the company generates sufficient cash from operations to cover its net income. The free cash flow to net income ratio is also strong at 0.80, reflecting good cash conversion.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.88T	1.84T	1.73T	1.66T	1.58T	1.49T
Gross Profit	319.81B	315.86B	284.78B	258.45B	260.14B	238.87B
EBITDA	139.24B	149.00B	128.99B	119.68B	120.72B	107.22B
Net Income	93.68B	93.86B	74.69B	70.36B	69.58B	62.28B
Balance Sheet
Total Assets	1.23T	1.22T	1.08T	1.06T	1.01T	919.45B
Cash, Cash Equivalents and Short-Term Investments	235.46B	238.90B	249.56B	271.13B	262.24B	200.50B
Total Debt	182.31B	124.47B	80.02B	91.87B	95.28B	97.30B
Total Liabilities	767.57B	755.35B	674.27B	656.98B	640.09B	611.25B
Stockholders Equity	459.41B	466.44B	402.67B	401.53B	361.78B	304.12B
Cash Flow
Free Cash Flow	54.91B	61.29B	71.27B	54.18B	95.13B	85.01B
Operating Cash Flow	74.16B	85.61B	90.88B	82.10B	112.48B	98.46B
Investing Cash Flow	-34.59B	-46.51B	-13.11B	-57.09B	-19.51B	-24.74B
Financing Cash Flow	5.62B	-45.84B	-96.79B	-40.06B	-34.09B	-34.31B

Daito Construction Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3230.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1878, the sentiment is Positive. The current price of 3230 is above the 20-day moving average (MA) of 3185.34, above the 50-day MA of 3129.04, and above the 200-day MA of 3114.97, indicating a bullish trend. The MACD of 25.11 indicates Positive momentum. The RSI at 59.05 is Neutral, neither overbought nor oversold. The STOCH value of -25.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1878.

Daito Construction Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3288	81 Outperform	¥937.61B	9.49	20.00%	2.29%	6.54%	-1.16%
8850	78 Outperform	¥259.70B	11.91	12.19%	2.53%	1.02%	-13.26%
8923	76 Outperform	¥168.51B	11.92	14.26%	2.10%	7.63%	13.95%
1878	74 Outperform	$1.11T	11.36	21.89%	4.42%	6.04%	17.46%
3289	74 Outperform	¥913.53B	10.17	9.43%	2.87%	4.83%	42.96%
8803	70 Outperform	¥180.61B	16.39	8.11%	2.97%	11.59%	86.58%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Daito Construction Corporate Events

Daito Trust Construction Reports Q1 2025 Financial Results with Planned Stock Split

Daito Trust Construction reported a modest increase in net sales by 7.4% for the three months ended June 30, 2025, compared to the previous year. Despite the rise in sales, the company experienced a slight decline in ordinary profit and profit attributable to owners, indicating challenges in maintaining profitability. The company is also planning a 5-for-1 stock split effective October 1, 2025, which may impact shareholder value and market perception.

The most recent analyst rating on (JP:1878) stock is a Hold with a Yen17700.00 price target. To see the full list of analyst forecasts on Daito Construction stock, see the JP:1878 Stock Forecast page.

Daito Trust Construction Announces Corrections to Financial Results

Daito Trust Construction Co., Ltd. has announced partial corrections to its consolidated financial results for the fiscal year ended March 31, 2025. The corrections were made due to calculation errors discovered in the preparation of the Annual Securities Report, specifically affecting the segment information in the financial statements. This announcement may impact stakeholders’ perception of the company’s financial accuracy and reliability.

The most recent analyst rating on (JP:1878) stock is a Buy with a Yen19600.00 price target. To see the full list of analyst forecasts on Daito Construction stock, see the JP:1878 Stock Forecast page.

Daito Trust Construction Announces Corrections to Financial Results

Daito Trust Construction Co., Ltd. announced corrections to its previously disclosed consolidated financial results for the fiscal year ended March 31, 2025. The corrections involve adjustments to capital expenditure figures, which were initially reported incorrectly. These changes may impact stakeholders’ understanding of the company’s financial performance and future projections.

The most recent analyst rating on (JP:1878) stock is a Buy with a Yen19600.00 price target. To see the full list of analyst forecasts on Daito Construction stock, see the JP:1878 Stock Forecast page.

Daito Trust Construction Announces Director Appointments

Daito Trust Construction Co., Ltd has announced the appointment of director candidates to be presented at its upcoming 51st Ordinary General Meeting of Shareholders. The board has resolved to reappoint several internal directors and introduce new candidates, including outside directors, to strengthen its leadership team. This move is likely to impact the company’s strategic direction and enhance its governance, potentially influencing its market position and stakeholder relations.

The most recent analyst rating on (JP:1878) stock is a Buy with a Yen19600.00 price target. To see the full list of analyst forecasts on Daito Construction stock, see the JP:1878 Stock Forecast page.

Daito Trust Construction Revises Stock Compensation Plan to Align with Business Performance

Daito Trust Construction Co., Ltd. announced a revision to its stock compensation plan for directors and executives, aiming to enhance alignment with business performance and shareholder value. The revisions include increasing the stock-based compensation ratio and adjusting the maximum contribution to the trust, reflecting a strategic move to boost corporate value and stakeholder interests.

The most recent analyst rating on (JP:1878) stock is a Buy with a Yen19600.00 price target. To see the full list of analyst forecasts on Daito Construction stock, see the JP:1878 Stock Forecast page.