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

• Market Cap: ¥5.86B
• Dividend Yield: 1.85%
• Average Volume (3M): 1.33K
• Price to Earnings (P/E): 29.6
• Beta (1Y): 0.19
• Revenue Growth: -30.79%
• EPS Growth: -51.74%
• Country: JP
• Employees: 179
• Sector: Industrials
• Sector Strength: 92
• Industry: Engineering & Construction
• EPS (TTM): 55.08
• Shares Outstanding: 3,806,660
• 10 Day Avg. Volume: 710
• 30 Day Avg. Volume: 1,330
• PEG Ratio: -4.13
• Price to Book (P/B): 0.32
• 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: 61 Neutral
• Price Target: ¥2,828.00 ▲(4.32%Upside)

Kaneshita Construction Co., Ltd.'s financial stability is a strong point, supported by a robust balance sheet and low leverage. However, the declining revenue and cash flow, combined with weak technical indicators, present challenges. The valuation appears high with a P/E ratio of 29.96, which could limit upside potential in the near term. Strategic initiatives to boost revenue and cash flow are critical for future growth.

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
	EBIT
273.00M	238.00M	146.00M	-99.00M	649.00M
	EBITDA
350.00M	485.00M	216.00M	-25.00M	721.00M
	Net Income Common Stockholders
321.00M	270.00M	190.00M	45.00M	503.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.13B	8.64B	7.02B	9.33B	9.18B
	Total Assets
21.84B	22.20B	19.99B	19.98B	19.99B
	Total Debt
8.00M	10.00M	12.00M	14.00M	0.00
	Net Debt
-8.82B	-8.53B	-6.41B	-8.22B	-8.48B
	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: Negative
• Last Price: 2711.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1897, the sentiment is Negative. The current price of 2711 is above the 20-day moving average (MA) of 2701.30, above the 50-day MA of 2710.58, and below the 200-day MA of 2726.50, indicating a neutral trend. The MACD of -3.12 indicates Negative momentum. The RSI at 49.83 is Neutral, neither overbought nor oversold. The STOCH value of 88.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
1844	77 Outperform	¥6.51B	14.12		2.87%	4.07%	28.04%
1718	77 Outperform	¥6.76B	7.21		3.24%	-1.44%	40.85%
1841	69 Neutral	¥3.85B	7.26		2.79%	-9.83%	33.02%
1768	66 Neutral	¥6.59B	13.16		3.33%	-5.23%	96.32%
Sector *	66 Neutral	$4.50B	12.28	5.32%	248.52%	4.13%	-12.36%
1897	61 Neutral	¥5.86B	29.63		1.85%	-30.79%	-51.74%