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

• Market Cap: ¥51.26B
• Dividend Yield: 3.13%
• Average Volume (3M): 9.84K
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.46
• Revenue Growth: -8.91%
• EPS Growth: -27.30%
• Country: JP
• Employees: 873
• Sector: Industrials
• Sector Strength: 88
• Industry: Engineering & Construction
• EPS (TTM): 122.08
• Shares Outstanding: 12,964,993
• 10 Day Avg. Volume: 9,780
• 30 Day Avg. Volume: 9,836
• PEG Ratio: 0.43
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 188.98
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: ¥4,310.00 ▲(7.21%Upside)

Wakachiku Construction Co., Ltd.'s stock score reflects a mix of stable financial performance and technical neutrality. The stock's fair valuation and attractive dividend yield support its score, but concerns over revenue growth and cash flow management weigh down its potential. The absence of recent earnings call data limits insights into future guidance.

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

Company Description

Wakachiku Construction Co., Ltd. is a prominent Japanese construction company specializing in civil engineering and building construction. Founded in 1890, the company has established itself in various sectors, including marine and harbor construction, urban development, and infrastructure projects. With a strong focus on delivering high-quality and innovative construction solutions, Wakachiku Construction serves both domestic and international markets.

How the Company Makes Money

Wakachiku Construction Co., Ltd. generates revenue primarily through its construction and engineering services. The company undertakes large-scale infrastructure projects, including ports, bridges, and urban development initiatives, which form the core of its revenue model. Additionally, it engages in marine and harbor construction, offering specialized expertise in these areas. The company may enter into partnerships with governmental bodies and private sector clients for various projects, contributing significantly to its earnings. Wakachiku Construction also potentially derives income from maintenance and renovation services for existing structures, providing a steady stream of revenue outside of new construction projects.

Wakachiku Construction Co., Ltd. Financial Statement Overview

Summary

Wakachiku Construction Co., Ltd. shows stable gross profit margins and a strong equity position, but faces challenges in revenue growth and cash flow management. The fluctuating net profit margin and recent negative free cash flow are concerns that need addressing.

Income Statement

Wakachiku Construction Co., Ltd. demonstrates a stable gross profit margin around 14-15% over the years, indicating consistent cost management. However, the net profit margin has been fluctuating due to variable net income, with a notable decline in the latest year. The revenue growth rate is volatile, with recent declines, highlighting a challenge in maintaining sales momentum. EBITDA margin has shown resilience despite revenue challenges.

Balance Sheet

The company shows a strong equity position with an equity ratio consistently above 50%, indicating financial stability. However, the debt-to-equity ratio has increased recently due to higher debt levels, which may pose a risk if not managed well. Return on Equity (ROE) has been moderate, reflecting steady but not exceptional profitability.

Cash Flow

Cash flow analysis reveals some concerns, particularly with negative free cash flow in recent years, indicating potential liquidity issues. The operating cash flow to net income ratio shows inconsistency, suggesting challenges in converting profits into cash. However, the company has had periods of strong free cash flow, hinting at potential for recovery.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
83.66B	86.46B	94.92B	84.00B	89.16B	89.82B
	Gross Profit
12.46B	12.73B	14.10B	12.73B	12.97B	8.59B
	EBIT
4.88B	5.22B	6.98B	6.24B	6.83B	2.92B
	EBITDA
6.06B	6.27B	8.74B	6.96B	7.51B	3.55B
	Net Income Common Stockholders
3.60B	3.69B	5.09B	5.44B	4.74B	1.81B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.77B	13.22B	18.89B	27.32B	16.40B	14.38B
	Total Assets
85.37B	91.89B	90.78B	88.33B	81.48B	91.47B
	Total Debt
4.22B	12.70B	4.43B	4.43B	6.28B	18.21B
	Net Debt
-6.54B	-518.00M	-14.46B	-22.89B	-10.12B	3.84B
	Total Liabilities
37.37B	42.03B	43.39B	45.63B	43.13B	57.63B
	Stockholders Equity
46.52B	48.32B	45.93B	41.32B	37.09B	32.69B
Cash Flow		Free Cash Flow
0.00	-11.35B	-5.43B	14.24B	14.75B	-5.87B
	Operating Cash Flow
0.00	-10.26B	-3.96B	15.14B	16.03B	-5.31B
	Investing Cash Flow
0.00	-1.85B	-3.61B	-1.33B	-1.48B	-651.00M
	Financing Cash Flow
0.00	6.45B	-1.38B	-2.97B	-12.75B	4.99B

Wakachiku Construction Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4020.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1888, the sentiment is Positive. The current price of 4020 is above the 20-day moving average (MA) of 3968.00, above the 50-day MA of 3913.90, and above the 200-day MA of 3604.70, indicating a neutral trend. The MACD of 34.83 indicates Positive momentum. The RSI at 48.99 is Neutral, neither overbought nor oversold. The STOCH value of 28.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1888.

Wakachiku Construction Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1884	79 Outperform	¥108.08B	17.48		2.38%	2.35%	25.15%
1921	73 Outperform	¥54.54B	3.78		1.16%	3.98%	425.50%
1888	69 Neutral	¥51.26B	13.87		3.13%	-8.91%	-27.30%
1786	68 Neutral	¥47.96B	12.90		4.14%	-4.20%	-20.90%
1929	68 Neutral	¥43.30B	17.84		5.01%	-9.64%	-31.42%
Sector *	66 Neutral	$4.51B	12.29	5.40%	3.67%	4.15%	-12.21%
1898	64 Neutral	¥51.50B	13.45		6.28%	12.86%	41.67%

Wakachiku Construction Co., Ltd. Corporate Events

Wakachiku Construction Affirms Independence Amid ASO Corporation’s Shareholding

Wakachiku Construction Co., Ltd. has announced that ASO Corporation, an affiliated company, holds 38.78% of its voting rights and intends to maintain its position as a stable, long-term shareholder. Despite this significant shareholding, Wakachiku Construction maintains its operational independence with minimal business ties to ASO Corporation, ensuring no restrictions on its business activities.

Wakachiku Construction Announces Dividend Payout Aligned with Strategic Plan

Wakachiku Construction Co., Ltd. has announced a dividend payout of ¥126 per share, effective June 6, 2025, based on a record date of March 31, 2025. This decision aligns with the company’s medium-term management plan, which aims for a non-consolidated dividend payout ratio of 40% or more, achieving a 45% payout ratio and a dividend-on-equity ratio of 3.6%. This move reflects the company’s strategic focus on maintaining robust shareholder returns amidst evaluating its business performance and future environment.

Wakachiku Construction Reports Financial Decline, Anticipates Recovery

Wakachiku Construction Co., Ltd. reported a decline in financial performance for the fiscal year ended March 31, 2025, with net sales and profits decreasing compared to the previous year. Despite the downturn, the company plans to increase its dividend payout and forecasts a recovery in sales and profits for the next fiscal year, indicating a positive outlook for stakeholders.