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Wakachiku Construction Co., Ltd. (JP:1888)
:1888
Japanese Market

Wakachiku Construction Co., Ltd. (1888) AI Stock Analysis

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JP:1888

Wakachiku Construction Co., Ltd.

(1888)

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Neutral 65 (OpenAI - 5.2)
Rating:65Neutral
Price Target:
¥4,510.00
▼(-5.45% Downside)
Action:ReiteratedDate:02/14/26
The score is driven primarily by mixed financial performance: a strong equity base and stable gross margins are tempered by recent revenue weakness and negative free cash flow. Technicals add modest support (price above key longer-term averages with positive MACD), while valuation is reasonable with a moderate dividend yield.
Positive Factors
Strong equity base
A consistently high equity ratio (>50%) gives Wakachiku durable financial stability and greater resilience to construction-cycle volatility. This strengthens its ability to absorb project delays, access credit on better terms, and support working capital needs without immediate reliance on external financing.
Negative Factors
Volatile revenue growth
Unpredictable and recently declining revenue undermines visibility for backlog, capacity planning and long-term investment. For a project-driven construction firm, persistent top-line volatility can compress utilization, reduce scale benefits, and complicate multi-quarter planning for cash needs and hires.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong equity base
A consistently high equity ratio (>50%) gives Wakachiku durable financial stability and greater resilience to construction-cycle volatility. This strengthens its ability to absorb project delays, access credit on better terms, and support working capital needs without immediate reliance on external financing.
Read all positive factors

Wakachiku Construction Co., Ltd. (1888) vs. iShares MSCI Japan ETF (EWJ)

Wakachiku Construction Co., Ltd. Business Overview & Revenue Model

Company Description
Wakachiku Construction Co., Ltd. engages in the construction, construction consulting, management, and real estate businesses in Japan and internationally. It is also involved in the marine development, regional and urban development, and environm...
How the Company Makes Money
null...

Wakachiku Construction Co., Ltd. Financial Statement Overview

Summary
Financials are mixed: profitability is relatively stable (gross margin ~14–15%) and the balance sheet shows a strong equity ratio (above 50%). Offsetting this, revenue growth has been volatile with recent declines, net margin fell in the latest year, and recent negative free cash flow plus inconsistent cash conversion raise execution and liquidity risk.
Income Statement
65
Positive
Balance Sheet
70
Positive
Cash Flow
55
Neutral
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue90.00B86.46B94.92B84.00B89.16B89.82B
Gross Profit12.92B12.73B14.10B12.72B12.97B8.59B
EBITDA6.20B6.06B7.79B6.96B7.51B3.55B
Net Income3.76B3.69B5.09B5.44B4.74B1.81B
Balance Sheet
Total Assets83.00B92.41B91.09B88.58B81.64B91.59B
Cash, Cash Equivalents and Short-Term Investments14.01B13.22B18.89B27.32B16.40B14.38B
Total Debt3.31B12.70B4.43B4.43B6.28B18.21B
Total Liabilities34.53B42.54B43.70B45.88B43.28B57.74B
Stockholders Equity46.93B48.32B45.93B41.32B37.09B32.69B
Cash Flow
Free Cash Flow0.00-11.35B-5.50B14.17B14.67B-6.00B
Operating Cash Flow0.00-10.26B-4.03B15.07B15.95B-5.45B
Investing Cash Flow0.00-1.85B-3.61B-1.33B-1.48B-651.00M
Financing Cash Flow0.006.45B-1.31B-2.90B-12.66B5.13B

Wakachiku Construction Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price4770.00
Price Trends
50DMA
4717.90
Negative
100DMA
4655.50
Negative
200DMA
4818.60
Negative
Market Momentum
MACD
-125.07
Positive
RSI
44.60
Neutral
STOCH
16.51
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1888, the sentiment is Neutral. The current price of 4770 is above the 20-day moving average (MA) of 4479.25, above the 50-day MA of 4717.90, and below the 200-day MA of 4818.60, indicating a bearish trend. The MACD of -125.07 indicates Positive momentum. The RSI at 44.60 is Neutral, neither overbought nor oversold. The STOCH value of 16.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1888.

Wakachiku Construction Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥51.37B6.413.97%2.85%317.62%
75
Outperform
¥52.34B7.303.78%11.81%52.35%
67
Neutral
¥70.48B11.222.56%1.71%14.20%
65
Neutral
¥55.09B9.112.84%15.45%43.95%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
63
Neutral
¥72.17B7.463.84%-8.79%
60
Neutral
¥63.74B19.351.57%11.01%231.83%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:1888
Wakachiku Construction Co., Ltd.
4,320.00
461.00
11.95%
JP:1810
Matsui Construction Co., Ltd.
1,683.00
787.16
87.87%
JP:1811
Zenitaka Corporation
8,900.00
5,010.00
128.79%
JP:1822
Daiho Corporation
811.00
106.40
15.10%
JP:1899
Fukuda Corporation
8,270.00
2,982.57
56.41%
JP:1929
Nittoc Construction Co., Ltd.
1,253.00
216.98
20.94%

Wakachiku Construction Co., Ltd. Corporate Events

Wakachiku Construction Secures ¥13 Billion Commitment Line to Refinance Debt
Mar 18, 2026
Wakachiku Construction Co., Ltd. has arranged new financing under a syndication-type commitment line with 10 financial institutions, including trust, city and regional banks, to optimize procurement of working capital. The company will use the fac...
Wakachiku Construction Reshapes Top Management With New President and Representative Directors
Mar 17, 2026
Wakachiku Construction has overhauled its top management structure, appointing current Director and Managing Executive Officer Mikihiko Nagasako as President and Representative Director, effective April 1, 2026. Nagasako, who has built his career ...
Wakachiku Construction Lifts Full-Year Forecasts and Raises Dividend Outlook
Mar 17, 2026
Wakachiku Construction has raised its full-year earnings forecasts for the fiscal year ending March 2026, citing sustained high construction progress and stronger profitability on existing projects. Consolidated net sales are now projected at &#16...
Wakachiku Construction to Become Subsidiary of Aso Corporation After Tender Offer
Mar 16, 2026
Wakachiku Construction announced the outcome of a tender offer for its common shares by ACVE Holdings, GK, which ran from February 13 to March 13, 2026, resulting in 1,071,300 shares being acquired out of 1,191,063 tendered. Following settlement o...
Wakachiku Seals Capital Alliance With Aso Group, Backs Tender Offer While Keeping Listing
Feb 12, 2026
Wakachiku Construction has entered into a capital and business alliance with Aso Corporation and ACVE Holdings to support sustainable growth and enhance corporate value, while its board has also backed a tender offer by ACVE Holdings for Wakachiku...
Wakachiku Backs Aso-Linked Tender Offer While Keeping TSE Listing
Feb 12, 2026
Wakachiku Construction Co., Ltd. said its board has endorsed a tender offer for its common shares to be launched by ACVE Holdings GK, an investment vehicle wholly owned by major shareholder Aso Corporation. The company will support the offer but l...
Aso Group Unit Launches Tender Offer and Alliance Deal for Wakachiku Construction
Feb 12, 2026
Wakachiku Construction announced that ACVE Holdings, a wholly owned investment vehicle of Aso Corporation, will launch a tender offer to acquire common shares of Wakachiku and enter into a capital and business alliance with Aso and the company. AC...
Wakachiku Construction Backs Tender Offer and Alliance With Aso and ACVE Holdings
Feb 12, 2026
Wakachiku Construction has agreed to a tender offer for its shares by ACVE Holdings GK and to enter into a capital and business alliance with Aso Corporation and ACVE Holdings. Aso, which has been increasing its stake since 2019, signaled in Septe...
Wakachiku Construction Lifts Earnings and Keeps Outlook Intact
Feb 12, 2026
Wakachiku Construction reported a strong rebound for the nine months ended December 31, 2025, with net sales rising 24.2% year on year to ¥75.06 billion and operating profit jumping 41.9% to ¥4.08 billion. Profit attributable to owners o...
Wakachiku Construction Secures ¥8.5 Billion in New Funding Under Commitment Line
Feb 3, 2026
Wakachiku Construction Co., Ltd. has arranged new financing under existing commitment line agreements with a syndicate of 10 financial institutions, including trust, city and regional banks, to optimize its working capital structure. The company w...
Wakachiku Construction Taps ¥13 Billion Syndicated Credit Line for Working Capital
Jan 20, 2026
Wakachiku Construction Co., Ltd. has decided to draw down funds under existing commitment line agreements with a syndicate of 10 financial institutions to efficiently secure working capital. The company will borrow 13 billion yen in total, using 1...
Wakachiku Construction Taps Syndicated Commitment Line for Working Capital
Jan 6, 2026
Wakachiku Construction Co., Ltd. has arranged new borrowings under existing commitment line agreements with a syndicate of 10 trust, city and regional banks to secure working capital. The company will repay 13 billion yen of existing loans and dra...
Wakachiku Construction Details Parent’s Interim Results and Shareholder Structure
Dec 25, 2025
Wakachiku Construction has disclosed that its unlisted parent company, ASO CORPORATION, has finalized its semi-annual financial results for the fiscal year ending March 31, 2026, and outlined the parent’s basic profile, including its healthc...
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.Date of analysis: Feb 14, 2026