Seikitokyu Kogyo Co., Ltd. (1898) AI Stock Analysis

• Market Cap: ¥51.79B
• Dividend Yield: 6.25%
• Average Volume (3M): 108.43K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.72
• Revenue Growth: 12.86%
• EPS Growth: 41.64%
• Country: JP
• Employees: 1,149
• Sector: Industrials
• Sector Strength: 94
• Industry: Engineering & Construction
• EPS (TTM): 31.73
• Shares Outstanding: 37,424,507
• 10 Day Avg. Volume: 96,580
• 30 Day Avg. Volume: 108,426
• PEG Ratio: 1.04
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 45.99
• 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: ¥1,632.00
• Price Target Upside: 14.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥1,602.00 ▲(11.95%Upside)

Seikitokyu Kogyo Co., Ltd. is financially strong with excellent valuation metrics, particularly its high dividend yield, which appeals to income investors. However, technical indicators suggest a lack of strong momentum, and cash flow challenges need addressing to sustain growth.

Seikitokyu Kogyo Co., Ltd. Business Overview & Revenue Model

Company Description

Seikitokyu Kogyo Co., Ltd. is a Japan-based company primarily engaged in the construction industry. The company focuses on the development and maintenance of infrastructure projects, including road paving, civil engineering, and building construction. It also provides related services such as repair and maintenance of pavements and other structures, contributing to urban development and public works projects across Japan.

How the Company Makes Money

Seikitokyu Kogyo Co., Ltd. generates revenue through its various construction and engineering services. The company's primary revenue streams include large-scale infrastructure projects such as road construction and maintenance, civil engineering works, and building construction. The company often secures contracts from government agencies and private sector clients, which are significant contributors to its earnings. Additionally, Seikitokyu Kogyo engages in partnerships and collaborations with other construction firms and stakeholders to undertake complex projects, further bolstering its income. The company's expertise in delivering quality infrastructure solutions also helps maintain a steady flow of projects, ensuring a consistent revenue base.

Seikitokyu Kogyo Co., Ltd. Financial Statement Overview

Summary

Seikitokyu Kogyo Co., Ltd. demonstrates strong revenue growth and a solid balance sheet with low leverage. However, profitability metrics, particularly net profit margins, suggest room for improvement. Cash flow management appears to be a challenge, necessitating a focus on liquidity and cash generation strategies. Overall, the company is positioned well financially but must address cash flow concerns to sustain growth.

Income Statement

Seikitokyu Kogyo Co., Ltd. has shown strong revenue growth of 12.85% in the most recent year, reflecting its ability to capture market opportunities. The gross profit margin improved to 12.12%, indicating effective cost management. However, the net profit margin of 3.91% suggests room for enhancing profitability. The EBIT margin of 5.88% shows operational efficiency but also highlights potential for improvement. EBITDA margin at 7.59% is decent, reflecting healthy operating cash flow generation.

Balance Sheet

The company maintains a solid balance sheet with a debt-to-equity ratio of 0.16, indicating low leverage and financial stability. The return on equity (ROE) of 9.32% is moderate, showing effective use of equity. An equity ratio of 50.50% confirms a healthy capital structure, supporting long-term solvency.

Cash Flow

Operating cash flow has declined, resulting in negative free cash flow, raising concerns about liquidity. The operating cash flow to net income ratio has turned negative, highlighting challenges in converting earnings to cash. However, historical free cash flow trends indicate potential for recovery.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	99.36B	88.04B	92.41B	85.13B	90.02B
Gross Profit	12.03B	9.95B	8.80B	10.23B	14.11B
EBITDA	7.54B	6.20B	4.03B	6.36B	9.05B
Net Income	3.89B	2.74B	1.13B	3.30B	5.18B
Balance Sheet
Total Assets	82.56B	76.04B	78.76B	78.30B	79.41B
Cash, Cash Equivalents and Short-Term Investments	7.75B	13.44B	8.17B	12.81B	14.04B
Total Debt	6.71B	6.81B	6.91B	7.01B	5.01B
Total Liabilities	40.86B	35.51B	39.10B	37.80B	38.62B
Stockholders Equity	41.69B	40.53B	39.66B	40.50B	40.79B
Cash Flow
Free Cash Flow	-2.31B	8.02B	-2.67B	945.00M	-2.59B
Operating Cash Flow	-971.00M	10.95B	2.38B	4.65B	1.14B
Investing Cash Flow	-1.34B	-2.87B	-5.03B	-3.67B	-3.62B
Financing Cash Flow	-3.38B	-2.82B	-2.02B	-2.23B	2.34B

Seikitokyu Kogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1431.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1898, the sentiment is Positive. The current price of 1431 is below the 20-day moving average (MA) of 1442.30, below the 50-day MA of 1439.56, and below the 200-day MA of 1473.02, indicating a neutral trend. The MACD of -5.42 indicates Positive momentum. The RSI at 48.83 is Neutral, neither overbought nor oversold. The STOCH value of 37.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1898.

Seikitokyu Kogyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1921	81 Outperform	¥60.32B	4.06		1.05%	3.98%	430.60%
1786	76 Outperform	¥50.34B	13.47		3.82%	-4.20%	-20.99%
1898	73 Outperform	¥51.79B	13.44		6.25%	12.86%	41.64%
1899	71 Outperform	¥43.97B	8.61		3.85%	-1.39%	16.32%
1888	69 Neutral	¥59.04B	15.68		2.72%	-8.91%	-27.27%
1929	68 Neutral	¥47.83B	19.67		4.19%	-9.64%	-31.42%
Sector *	65 Neutral	$11.06B	15.73	5.16%	1.93%	3.12%	-25.59%

Seikitokyu Kogyo Co., Ltd. Corporate Events

Seikitokyu Kogyo Completes Treasury Shares Disposal

Seikitokyu Kogyo Co., Ltd. has completed the payment process for the disposal of 23,400 treasury shares as restricted stock, a decision made during a Board of Directors meeting on June 24, 2025. This move, involving a total value of 34,374,600 yen, is aimed at aligning the interests of directors and executive officers with the company’s performance, potentially impacting its governance and stakeholder relations.

Seikitokyu Kogyo Announces Disposal of Treasury Shares for Incentive Plan

Seikitokyu Kogyo Co., Ltd. has announced a resolution to dispose of 23,400 treasury shares as part of a restricted stock compensation plan aimed at providing medium- to long-term incentives for its directors and executive officers. This move is designed to align the interests of management with shareholders, enhancing the company’s corporate value over time.

Seikitokyu Kogyo Clarifies Relationship with Controlling Shareholders

Seikitokyu Kogyo Co., Ltd. announced its relationship with its controlling shareholders, highlighting its position within the Tokyu Group. The company maintains a complementary business relationship with Tokyu Construction Co., Ltd., ensuring independence despite shared board members, and conducts transactions under standard terms, contributing a limited percentage to its net sales.

Seikitokyu Kogyo Reports Strong Financial Performance with Cautious Future Outlook

Seikitokyu Kogyo Co., Ltd. reported a significant increase in its financial performance for the fiscal year ended March 31, 2025, with net sales rising by 12.9% and operating profit increasing by 42.8%. Despite strong results, the company forecasts a modest growth for the next fiscal year, indicating a cautious outlook amidst potential market challenges.