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

• Market Cap: ¥52.16B
• Dividend Yield: 3.08%
• Average Volume (3M): 9.80K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.46
• Revenue Growth: -8.91%
• EPS Growth: -27.30%
• Country: JP
• Employees: 873
• Sector: Industrials
• Sector Strength: 91
• Industry: Engineering & Construction
• EPS (TTM): 122.08
• Shares Outstanding: 12,964,993
• 10 Day Avg. Volume: 9,560
• 30 Day Avg. Volume: 9,800
• PEG Ratio: 0.81
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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 ▲(5.38%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 is financially stable with strong profitability and a robust balance sheet, evidenced by a healthy gross profit margin and low debt-to-equity ratio. However, the cash flow management needs improvement to mitigate potential risks.

Income Statement

Wakachiku Construction shows strong profitability with a healthy gross profit margin and a stable EBIT margin. However, the net income has fluctuated over the years. The revenue growth is slightly inconsistent but has shown recovery from previous periods.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio, indicating financial stability. The equity ratio is strong, and return on equity is satisfactory. However, the slight decrease in cash reserves might indicate potential liquidity concerns.

Cash Flow

Cash flow performance is mixed, with periods of negative operating cash flow, though free cash flow has shown improvement in recent years. The company needs to manage its operating cash flow more effectively to ensure sustainable growth.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
83.66B	94.92B	84.00B	89.16B	89.82B	107.83B
	Gross Profit
12.46B	14.10B	12.73B	12.97B	8.59B	10.95B
	EBIT
4.88B	6.98B	6.24B	6.83B	2.92B	5.04B
	EBITDA
6.06B	8.74B	6.96B	7.51B	3.55B	5.59B
	Net Income Common Stockholders
3.60B	5.09B	5.44B	4.74B	1.81B	2.96B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.77B	18.89B	27.32B	16.40B	14.38B	15.45B
	Total Assets
85.37B	90.78B	88.33B	81.48B	91.47B	85.87B
	Total Debt
4.22B	4.43B	4.43B	6.28B	18.21B	12.25B
	Net Debt
-6.54B	-14.46B	-22.89B	-10.12B	3.84B	-3.19B
	Total Liabilities
37.37B	43.39B	45.63B	43.13B	57.63B	54.43B
	Stockholders Equity
46.52B	45.93B	41.32B	37.09B	32.69B	30.39B
Cash Flow		Free Cash Flow
0.00	-5.43B	14.24B	14.75B	-5.87B	-4.25B
	Operating Cash Flow
0.00	-3.96B	15.14B	16.03B	-5.31B	-2.52B
	Investing Cash Flow
0.00	-3.61B	-1.33B	-1.48B	-651.00M	-2.34B
	Financing Cash Flow
0.00	-1.38B	-2.97B	-12.75B	4.99B	5.95B

Wakachiku Construction Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4090.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 4090 is above the 20-day moving average (MA) of 3971.50, above the 50-day MA of 3902.39, and above the 200-day MA of 3594.27, indicating a bullish trend. The MACD of 46.40 indicates Negative momentum. The RSI at 58.00 is Neutral, neither overbought nor oversold. The STOCH value of 61.82 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	¥55.17B	3.83		1.72%	3.98%	425.50%
1888	69 Neutral	¥52.16B	14.11		3.08%	-8.91%	-27.30%
1786	68 Neutral	¥47.96B	12.90		4.00%	-4.20%	-20.90%
1929	68 Neutral	¥43.63B	17.97		4.59%	-9.64%	-31.42%
Sector *	66 Neutral	$4.51B	12.29	5.40%	248.53%	4.14%	-12.41%
1898	64 Neutral	¥51.36B	13.42		6.30%	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.