Kaneshita Construction Co., Ltd. (1897) AI Stock Analysis

• Market Cap: ¥5.97B
• Dividend Yield: 1.8%
• Average Volume (3M): 703.00
• Price to Earnings (P/E): 30.2
• Beta (1Y): 0.21
• Revenue Growth: -30.79%
• EPS Growth: -51.74%
• Country: JP
• Employees: 179
• Sector: Industrials
• Sector Strength: 87
• Industry: Engineering & Construction
• EPS (TTM): 55.08
• Shares Outstanding: 3,806,660
• 10 Day Avg. Volume: 520
• 30 Day Avg. Volume: 703
• PEG Ratio: 0.10
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.80
• 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: 66 Neutral
• Price Target: ¥2,919.00 ▲(5.38%Upside)

The overall score reflects a stable financial position due to strong balance sheet metrics, yet revenue and cash flow challenges hinder growth outlook. Technical indicators suggest neutral momentum without clear trends. High valuation limits attractiveness despite a moderate dividend yield.

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

Company Description

Kaneshita Construction Co., Ltd. (1897) is a Japanese construction firm specializing in civil engineering, building construction, and infrastructure development. The company offers a wide range of services including the planning, design, and execution of construction projects. It focuses on delivering high-quality construction solutions tailored to the needs of its clients, operating primarily within Japan and potentially engaging in international projects.

How the Company Makes Money

Kaneshita Construction Co., Ltd. generates revenue primarily through contracting services for construction projects. The company earns money by securing contracts for the design and construction of buildings and infrastructure such as roads, bridges, and facilities. Revenue streams include project-based contracts with government entities, private sector clients, and industrial customers. The company may also benefit from strategic partnerships and collaborations with other construction firms, suppliers, and technology providers to enhance project delivery and cost efficiency. Additionally, Kaneshita Construction may engage in maintenance and repair services, providing an ongoing revenue source beyond initial construction contracts.

Kaneshita Construction Co., Ltd. Financial Statement Overview

Summary

Kaneshita Construction Co., Ltd. exhibits financial stability with a strong equity position and low leverage, which is positive for long-term sustainability. However, declining revenue and cash flow present challenges that need addressing to enhance growth prospects. The company seems well-positioned financially, but strategic initiatives to improve revenue and cash generation are essential for improved performance.

Income Statement

The company has shown a stable gross profit margin around 12.5% to 14.5% over the years, indicating consistent cost control relative to revenue. The net profit margin improved in 2024 to 3.3% from 2.5% in 2023, reflecting operational efficiency. However, the revenue growth rate has been negative in recent years, indicating a decline in top-line performance.

Balance Sheet

The balance sheet is strong, with a very low debt-to-equity ratio due to minimal debt levels, and a high equity ratio of approximately 84.5% in 2024, reflecting financial stability and low leverage risk. Return on equity improved to 1.7% in 2024 from 1.5% in 2023, which suggests better utilization of equity.

Cash Flow

Free cash flow decreased significantly from 2023 to 2024, indicating potential challenges in cash generation. The operating cash flow to net income ratio is robust at around 2.0 in 2024, showing strong cash flow relative to profitability. However, the decline in free cash flow growth rate indicates a need for better cash management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.74B	10.66B	9.90B	7.63B	10.96B
Gross Profit	1.22B	1.19B	1.07B	833.00M	1.69B
EBITDA	350.00M	485.00M	216.00M	-25.00M	721.00M
Net Income	321.00M	270.00M	190.00M	45.00M	503.00M
Balance Sheet
Total Assets	21.84B	22.20B	19.99B	19.98B	19.99B
Cash, Cash Equivalents and Short-Term Investments	9.13B	8.64B	7.02B	9.33B	9.18B
Total Debt	8.00M	10.00M	12.00M	14.00M	0.00
Total Liabilities	3.03B	4.05B	2.74B	2.88B	2.79B
Stockholders Equity	18.46B	17.81B	16.92B	16.77B	16.86B
Cash Flow
Free Cash Flow	604.00M	1.43B	-1.29B	-816.00M	3.04B
Operating Cash Flow	650.00M	1.55B	-1.25B	-573.00M	3.11B
Investing Cash Flow	-252.00M	679.00M	-454.00M	434.00M	145.00M
Financing Cash Flow	-111.00M	-110.00M	-111.00M	-108.00M	-3.01B

Kaneshita Construction Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2770.00
• 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:1897, the sentiment is Positive. The current price of 2770 is above the 20-day moving average (MA) of 2718.70, above the 50-day MA of 2708.76, and above the 200-day MA of 2725.08, indicating a bullish trend. The MACD of 15.52 indicates Negative momentum. The RSI at 65.00 is Neutral, neither overbought nor oversold. The STOCH value of 70.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1897.

Kaneshita Construction Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1718	81 Outperform	¥7.23B	7.71		3.02%	-1.44%	40.85%
1841	79 Outperform	¥3.93B	7.41		3.65%	-9.83%	33.02%
1844	72 Outperform	¥7.37B	14.62		2.53%	7.06%	38.55%
1897	66 Neutral	¥5.97B	30.18		1.80%	-30.79%	-51.74%
1768	66 Neutral	¥6.83B	13.64		3.21%	-5.23%	96.32%
Sector *	65 Neutral	$10.56B	15.49	5.57%	1.96%	2.71%	-26.28%