tiprankstipranks
Trending News
More News >
Wakachiku Construction Co., Ltd. (JP:1888)
:1888
Japanese Market

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

Compare
0 Followers

Top Page

JP

Wakachiku Construction Co., Ltd.

(1888)

Rating:69Neutral
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. (1888) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionWakachiku 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 MoneyWakachiku 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
65
Positive
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
70
Positive
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
55
Neutral
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
TTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
83.66B86.46B94.92B84.00B89.16B89.82B
Gross Profit
12.46B12.73B14.10B12.73B12.97B8.59B
EBIT
4.88B5.22B6.98B6.24B6.83B2.92B
EBITDA
6.06B6.27B8.74B6.96B7.51B3.55B
Net Income Common Stockholders
3.60B3.69B5.09B5.44B4.74B1.81B
Balance SheetCash, Cash Equivalents and Short-Term Investments
10.77B13.22B18.89B27.32B16.40B14.38B
Total Assets
85.37B91.89B90.78B88.33B81.48B91.47B
Total Debt
4.22B12.70B4.43B4.43B6.28B18.21B
Net Debt
-6.54B-518.00M-14.46B-22.89B-10.12B3.84B
Total Liabilities
37.37B42.03B43.39B45.63B43.13B57.63B
Stockholders Equity
46.52B48.32B45.93B41.32B37.09B32.69B
Cash FlowFree Cash Flow
0.00-11.35B-5.43B14.24B14.75B-5.87B
Operating Cash Flow
0.00-10.26B-3.96B15.14B16.03B-5.31B
Investing Cash Flow
0.00-1.85B-3.61B-1.33B-1.48B-651.00M
Financing Cash Flow
0.006.45B-1.38B-2.97B-12.75B4.99B

Wakachiku Construction Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4020.00
Price Trends
50DMA
3913.90
Positive
100DMA
3738.33
Positive
200DMA
3604.70
Positive
Market Momentum
MACD
34.83
Positive
RSI
48.99
Neutral
STOCH
28.47
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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥108.08B17.48
2.38%2.35%25.15%
73
Outperform
¥54.54B3.78
1.16%3.98%425.50%
69
Neutral
¥51.26B13.87
3.13%-8.91%-27.30%
68
Neutral
¥47.96B12.90
4.14%-4.20%-20.90%
68
Neutral
¥43.30B17.84
5.01%-9.64%-31.42%
66
Neutral
$4.51B12.295.40%3.67%4.15%-12.21%
64
Neutral
¥51.50B13.45
6.28%12.86%41.67%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:1888
Wakachiku Construction Co., Ltd.
3,965.00
565.98
16.65%
JP:1786
Oriental Shiraishi Corporation
366.00
39.49
12.09%
JP:1884
NIPPON ROAD CO., LTD.
2,516.00
857.77
51.73%
JP:1898
Seikitokyu Kogyo Co., Ltd.
1,430.00
-160.09
-10.07%
JP:1921
Tomoe Corporation
1,375.00
562.51
69.23%
JP:1929
Nittoc Construction Co., Ltd.
1,044.00
3.59
0.35%

Wakachiku Construction Co., Ltd. Corporate Events

Wakachiku Construction Affirms Independence Amid ASO Corporation’s Shareholding
May 26, 2025

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
May 26, 2025

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
May 14, 2025

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.

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.