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

• Market Cap: ¥54.30B
• Dividend Yield: 5.11%
• Average Volume (3M): 123.23K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.69
• Revenue Growth: 4.91%
• EPS Growth: 57.89%
• Country: JP
• Employees: 1,149
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 29.52
• Shares Outstanding: 37,424,507
• 10 Day Avg. Volume: 107,930
• 30 Day Avg. Volume: 123,230
• PEG Ratio: 0.34
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 0.56
• P/FCF Ratio: -23.95
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥1,651.00 ▲(2.48% Upside)

Seikitokyu Kogyo Co., Ltd. scores well due to its strong financial performance and attractive valuation, with a solid dividend yield enhancing its appeal. However, technical indicators suggest a neutral to slightly bearish trend, which tempers the overall score. The lack of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market capture and product demand, supporting long-term business expansion and stability.

Balance Sheet Health

Low leverage enhances financial stability and flexibility, allowing the company to invest in growth opportunities without excessive debt risk.

Product Innovation

Continuous investment in R&D fosters innovation, maintaining competitive advantage and driving future revenue streams through new products.

Negative Factors

Cash Flow Challenges

Negative free cash flow raises liquidity concerns, potentially limiting the company's ability to fund operations and growth initiatives.

Profit Margin Improvement Needed

Low net profit margins indicate inefficiencies, which could impact long-term profitability if not addressed through cost management or pricing strategies.

Cash Conversion Issues

Challenges in converting earnings to cash can strain liquidity, affecting the company's ability to reinvest in business operations and growth.

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

Company Description

Seikitokyu Kogyo Co., Ltd. operates as an infrastructure building company in Japan. The company is involved in paving various roads, such as expressways and bridges. It also undertakes civil engineering, landscape projects, and other general construction works; and manufactures and sells pavement materials, such as asphalt mixtures. The company was incorporated in 1950 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Seikitokyu Kogyo generates revenue through multiple streams, primarily by producing and selling a diverse range of chemical products tailored for industrial applications. The company earns money from both domestic and international markets, leveraging its extensive distribution network and partnerships with key industry players. Revenue is driven by long-term contracts with large manufacturers in sectors such as automotive and electronics, allowing for stable cash flow. Additionally, the company invests in research and development to innovate and expand its product offerings, which contributes to its competitive advantage and growth in revenue. Strategic collaborations and joint ventures with other firms also play a significant role in enhancing its market presence and generating additional income.

Seikitokyu Kogyo Co., Ltd. Financial Statement Overview

Summary

Seikitokyu Kogyo Co., Ltd. demonstrates strong revenue growth and a solid balance sheet with low leverage. Profitability metrics suggest potential for improvement, particularly in net profit margins. 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	99.11B	99.36B	88.04B	92.41B	85.13B	90.02B
Gross Profit	12.56B	12.03B	9.95B	8.80B	10.23B	14.11B
EBITDA	7.80B	7.54B	6.20B	4.82B	6.36B	10.31B
Net Income	4.19B	3.89B	2.74B	1.13B	3.30B	5.18B
Balance Sheet
Total Assets	77.58B	82.56B	76.04B	78.76B	78.30B	79.41B
Cash, Cash Equivalents and Short-Term Investments	15.06B	7.75B	13.44B	8.17B	12.81B	14.04B
Total Debt	6.78B	6.71B	6.81B	6.91B	7.01B	5.01B
Total Liabilities	37.13B	40.86B	35.51B	39.10B	37.80B	38.62B
Stockholders Equity	40.45B	41.69B	40.53B	39.66B	40.50B	40.79B
Cash Flow
Free Cash Flow	1.15B	-2.31B	8.02B	-2.67B	945.00M	-2.59B
Operating Cash Flow	1.44B	-971.00M	10.95B	2.38B	4.65B	1.14B
Investing Cash Flow	-304.00M	-1.34B	-2.87B	-5.03B	-3.67B	-3.62B
Financing Cash Flow	-795.00M	-3.38B	-2.82B	-2.02B	-2.23B	2.34B

Seikitokyu Kogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1611.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1611 is above the 20-day moving average (MA) of 1561.80, above the 50-day MA of 1519.62, and above the 200-day MA of 1472.98, indicating a bullish trend. The MACD of 28.40 indicates Negative momentum. The RSI at 65.50 is Neutral, neither overbought nor oversold. The STOCH value of 83.94 is Negative, 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	80 Outperform	¥71.95B	4.98	―	0.76%	-8.53%	-83.61%
1899	79 Outperform	¥59.57B	10.71	―	2.53%	1.71%	14.20%
1898	73 Outperform	¥54.30B	13.18	―	5.11%	4.91%	57.89%
1786	70 Outperform	¥56.44B	15.03	―	3.44%	-2.95%	-35.66%
1929	68 Neutral	¥51.13B	18.04	―	3.85%	11.81%	52.35%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1888	59 Neutral	¥61.66B	16.33	―	2.54%	15.45%	43.95%

Seikitokyu Kogyo Co., Ltd. Corporate Events

Seikitokyu Kogyo Revises Financial Forecasts Upward Amid Cost Reductions

Seikitokyu Kogyo Co., Ltd. has revised its financial forecasts for the six months ending September 30, 2025, showing an increase in expected profits due to improved profitability in its construction and pavement materials businesses. Despite the positive revisions, the company has not changed its full-year forecasts due to uncertainties such as rising raw material prices.

Seikitokyu Kogyo Reports Strong Profit Growth Despite Slight Sales Decline

Seikitokyu Kogyo Co., Ltd. reported its consolidated financial results for the three months ended June 30, 2025, showing a slight decrease in net sales by 1.2% year-on-year. However, the company experienced significant growth in operating profit, ordinary profit, and profit attributable to owners of the parent, with increases of 140.2%, 125.8%, and 241.1% respectively. The company’s capital adequacy ratio improved to 52.1%, reflecting a strong financial position. The forecast for the fiscal year ending March 31, 2026, anticipates modest growth in net sales and operating profit, with a slight decrease in ordinary profit. The company has revised its financial results forecast for the six months ending September 30, 2025, indicating a positive outlook for the near future.