Kaneshita Construction Co., Ltd. (JP:1897)
:1897
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Kaneshita Construction Co., Ltd.
(1897)
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Rating:63Neutral
Price Target:
¥3,539.00
▲(22.67% Upside)
Action:DowngradedDate:02/08/26
The score is driven primarily by mixed financial performance—excellent balance-sheet strength is offset by weaker recent margins, declining revenue, and volatile/weak 2025 cash generation. Technicals are supportive with a strong uptrend, but momentum is elevated. Valuation is a headwind due to a high P/E and only a modest dividend yield.
Positive Factors
Balance Sheet Strength
Extremely low leverage and a conservatively financed balance sheet provide durable financial flexibility. This reduces solvency risk, supports bidding on large projects, and allows the company to withstand construction cycle downturns without needing urgent external financing.
Negative Factors
Revenue Decline & Volatility
Sustained top-line declines and volatility reduce visibility into future backlog and utilization. For an engineering & construction firm, uneven revenue complicates planning, increases per-project fixed cost absorption risk, and weakens steady earnings power over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Extremely low leverage and a conservatively financed balance sheet provide durable financial flexibility. This reduces solvency risk, supports bidding on large projects, and allows the company to withstand construction cycle downturns without needing urgent external financing.
Read all positive factors
Kaneshita Construction Co., Ltd. (1897) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥7.19B
Dividend Yield1.72%
Average Volume (3M)1.69K
Price to Earnings (P/E)25.9
Beta (1Y)0.22
Revenue Growth-28.06%
EPS Growth-43.82%
CountryJP
Employees179
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)58.46
Shares Outstanding3,806,660
10 Day Avg. Volume3,050
30 Day Avg. Volume1,693
Financial Highlights & Ratios
PEG Ratio-1.04
Price to Book (P/B)0.31
Price to Sales (P/S)0.69
P/FCF Ratio339.84
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Kaneshita Construction Co., Ltd. Business Overview & Revenue Model
Company Description
Kaneshita Construction Co., Ltd., established in 1897, is a prominent player in the construction industry, specializing in civil engineering, building construction, and infrastructure development. The company operates across various sectors, inclu...
How the Company Makes Money
Kaneshita Construction Co., Ltd. generates revenue primarily through its construction projects, which include public works, private sector developments, and large-scale infrastructure projects. The company bids on government contracts as well as p...
Kaneshita Construction Co., Ltd. Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
86
Very Positive
Cash Flow
41
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.93B | 8.84B | 9.74B | 10.66B | 9.90B | 7.63B |
| Gross Profit | 941.00M | 1.05B | 1.22B | 1.19B | 1.07B | 833.00M |
| EBITDA | 289.00M | 420.00M | 350.00M | 485.00M | 216.00M | 134.00M |
| Net Income | 158.00M | 236.00M | 321.00M | 270.00M | 190.00M | 45.00M |
Balance Sheet | ||||||
| Total Assets | 22.49B | 23.65B | 21.88B | 22.24B | 20.04B | 20.05B |
| Cash, Cash Equivalents and Short-Term Investments | 11.40B | 9.53B | 9.13B | 8.64B | 7.02B | 9.33B |
| Total Debt | 7.00M | 5.00M | 8.00M | 10.00M | 12.00M | 14.00M |
| Total Liabilities | 3.52B | 3.83B | 3.06B | 4.09B | 2.79B | 2.95B |
| Stockholders Equity | 18.59B | 19.45B | 18.46B | 17.81B | 16.92B | 16.77B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 18.00M | 604.00M | 1.43B | -1.29B | -816.00M |
| Operating Cash Flow | 0.00 | 67.00M | 650.00M | 1.55B | -1.25B | -573.00M |
| Investing Cash Flow | 0.00 | 281.00M | -252.00M | 679.00M | -454.00M | 434.00M |
| Financing Cash Flow | 0.00 | -254.00M | -111.00M | -110.00M | -111.00M | -108.00M |
Kaneshita Construction Co., Ltd. Technical Analysis
Positive
2885.00
Price Trends
3304.30
Positive
3117.34
Positive
2955.95
Positive
Market Momentum
6.77
Positive
49.16
Neutral
22.22
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 2885 is below the 20-day moving average (MA) of 3325.25, below the 50-day MA of 3304.30, and below the 200-day MA of 2955.95, indicating a neutral trend. The MACD of 6.77 indicates Positive momentum. The RSI at 49.16 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | ¥11.65B | 8.32 | ― | 4.39% | 2.65% | 45.12% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | ¥7.19B | 25.92 | ― | 1.72% | -28.06% | -43.82% | |
62 Neutral | ¥10.67B | 11.79 | ― | 2.74% | 4.36% | 17.63% | |
60 Neutral | ¥10.48B | 9.54 | ― | 4.35% | -7.40% | 60.55% | |
53 Neutral | ¥13.35B | 34.60 | ― | 3.97% | 5.33% | -27.53% |
* Industrials Sector Average
JP:1897
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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.