Wakachiku Construction Co., Ltd. (JP:1888)
:1888
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Wakachiku Construction Co., Ltd.
(1888)
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Rating:54Neutral
Price Target:
¥3,432.00
▼(-28.05% Downside)
Action:Reiterated
Date:05/19/26
The score is held back primarily by weak and inconsistent cash generation (negative free cash flow in 2024–2026) alongside rising leverage, despite a strong 2026 revenue rebound and still-solid margins. Technicals are also bearish, with the stock below key moving averages and negative MACD. Valuation is a relative positive, supported by a moderate P/E and ~4% dividend yield.
Positive Factors
Revenue rebound (2026)
A 16.4% YoY revenue rebound in 2026 signals regained top-line momentum and stronger project intake/recognition. This durable improvement improves utilization and backlog conversion prospects, supporting multi-month revenue visibility and underpinning operational planning and contract wins.
Negative Factors
Negative free cash flow (2024–2026)
Sustained negative free cash flow over three years means reported profits are not converting into distributable or reinvestable cash. That undermines self-funding of projects, constrains capex/dividends, and increases reliance on external financing, raising medium-term financial risk if trends persist.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue rebound (2026)
A 16.4% YoY revenue rebound in 2026 signals regained top-line momentum and stronger project intake/recognition. This durable improvement improves utilization and backlog conversion prospects, supporting multi-month revenue visibility and underpinning operational planning and contract wins.
Read all positive factors
Wakachiku Construction Co., Ltd. (1888) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥41.83B
Dividend Yield2.84%
Average Volume (3M)16.94K
Price to Earnings (P/E)9.8
Beta (1Y)0.65
Revenue Growth21.15%
EPS Growth18.25%
CountryJP
Employees873
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)296.01
Shares Outstanding12,964,993
10 Day Avg. Volume13,890
30 Day Avg. Volume16,936
Financial Highlights & Ratios
PEG Ratio0.65
Price to Book (P/B)0.97
Price to Sales (P/S)0.50
P/FCF Ratio-200.56
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
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
Income Statement
72
Positive
Balance Sheet
63
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 90.00B | 104.75B | 86.46B | 94.92B | 84.00B | 89.16B |
| Gross Profit | 12.92B | 14.60B | 12.73B | 14.10B | 12.72B | 12.97B |
| EBITDA | 6.20B | 7.49B | 6.06B | 7.79B | 6.96B | 7.51B |
| Net Income | 3.76B | 4.37B | 3.69B | 5.09B | 5.44B | 4.74B |
Balance Sheet | ||||||
| Total Assets | 83.00B | 122.42B | 92.41B | 91.09B | 88.58B | 81.64B |
| Cash, Cash Equivalents and Short-Term Investments | 14.01B | 19.64B | 13.22B | 18.89B | 27.32B | 16.40B |
| Total Debt | 3.31B | 21.59B | 12.70B | 4.43B | 4.43B | 6.28B |
| Total Liabilities | 34.53B | 67.66B | 42.54B | 43.70B | 45.88B | 43.28B |
| Stockholders Equity | 46.93B | 54.00B | 48.32B | 45.93B | 41.32B | 37.09B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -260.00M | -11.35B | -5.50B | 14.17B | 14.67B |
| Operating Cash Flow | 0.00 | 311.00M | -10.26B | -4.03B | 15.07B | 15.95B |
| Investing Cash Flow | 0.00 | -1.16B | -1.85B | -3.61B | -1.33B | -1.48B |
| Financing Cash Flow | 0.00 | 7.25B | 6.45B | -1.31B | -2.90B | -12.66B |
Wakachiku Construction Co., Ltd. Technical Analysis
Negative
4770.00
Price Trends
3782.95
Negative
4193.74
Negative
4545.12
Negative
Market Momentum
-131.16
Negative
32.97
Neutral
22.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1888, the sentiment is Negative. The current price of 4770 is above the 20-day moving average (MA) of 3497.25, above the 50-day MA of 3782.95, and above the 200-day MA of 4545.12, indicating a bearish trend. The MACD of -131.16 indicates Negative momentum. The RSI at 32.97 is Neutral, neither overbought nor oversold. The STOCH value of 22.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:1888.
Wakachiku Construction Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥40.13B | 8.67 | ― | 3.97% | -3.24% | 60.95% | |
70 Outperform | ¥45.78B | 11.08 | ― | 3.78% | 24.67% | 72.89% | |
67 Neutral | ¥61.19B | 9.90 | ― | 2.56% | 2.50% | 21.22% | |
66 Neutral | ¥64.07B | 14.10 | ― | 3.84% | -2.49% | 23.25% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | ¥54.86B | 12.88 | ― | 1.57% | 4.01% | 21.41% | |
54 Neutral | ¥41.83B | 9.80 | ― | 2.84% | 21.15% | 18.25% |
* Industrials Sector Average
JP:1888
Wakachiku Construction Co., Ltd.
3,290.00
-674.74
-17.02%
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Wakachiku Construction Co., Ltd. Corporate Events
Wakachiku Construction Posts Strong Profit Rebound and Lifts Outlook
May 14, 2026
Wakachiku Construction reported a strong rebound for the year ended March 31, 2026, with consolidated net sales rising 21.1% to ¥104.7 billion and profit attributable to owners of parent up 18.4% to ¥4.37 billion, boosting earnings per s...
Wakachiku Construction Lifts FY2026 Dividend Forecast on Solid Results
May 14, 2026
Wakachiku Construction has revised upward its dividend forecast for the fiscal year ending March 2026, raising the planned year-end ordinary dividend from 132 yen to 135 yen per share. The move follows the announcement of financial results for the...
Wakachiku Construction Secures ¥13 Billion Syndicated Credit Line to Refinance Debt
Mar 27, 2026
Wakachiku Construction Co., Ltd. has arranged a new syndicated commitment line with 10 financial institutions totaling ¥13 billion to optimize its working capital structure. Under this framework, the company will refinance ¥8 billion of ...
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 ...
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...
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.