Raito Kogyo Co., Ltd. (JP:1926)
:1926
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Raito Kogyo Co., Ltd.
(1926)
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Rating:82Outperform
Price Target:
¥5,017.00
▲(48.21% Upside)
Action:ReiteratedDate:02/07/26
The score is led by strong financial performance—especially a very low-leverage, high-equity balance sheet and improving profitability—tempered by a recent sharp decline in free cash flow. Technicals are supportive due to a strong uptrend, but the elevated RSI suggests near-term pullback risk. Valuation is reasonable with a modest dividend yield, adding support without being a major catalyst.
Positive Factors
Very low leverage / strong balance sheet
An exceptionally low debt-to-equity ratio and high equity ratio provide durable financial flexibility. This capital structure lets the company bid on projects, fund capex or absorb delays without material refinancing risk, supporting stability across infrastructure cycles.
Negative Factors
Sharp decline in free cash flow
A near-50% drop in free cash flow year-over-year signals material volatility in project cash timing, capex, or working capital. Persistent FCF deterioration would constrain reinvestment, limit dividend sustainability, and could force greater reliance on equity despite low leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage / strong balance sheet
An exceptionally low debt-to-equity ratio and high equity ratio provide durable financial flexibility. This capital structure lets the company bid on projects, fund capex or absorb delays without material refinancing risk, supporting stability across infrastructure cycles.
Read all positive factors
Raito Kogyo Co., Ltd. (1926) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥144.47B
Dividend Yield3.22%
Average Volume (3M)143.58K
Price to Earnings (P/E)9.1
Beta (1Y)0.44
Revenue Growth12.23%
EPS Growth43.29%
CountryJP
Employees1,374
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)93.36
Shares Outstanding42,970,450
10 Day Avg. Volume158,370
30 Day Avg. Volume143,580
Financial Highlights & Ratios
PEG Ratio0.42
Price to Book (P/B)1.30
Price to Sales (P/S)0.94
P/FCF Ratio20.22
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)247.7
Revenue Forecast (FY)¥133.90B
Raito Kogyo Co., Ltd. Business Overview & Revenue Model
Company Description
Raito Kogyo Co., Ltd. engages in the civil engineering works business in Japan, North America, and internationally. The company's civil engineering works include slope protection and stabilization, ground improvement, pile and diaphragm wall, sewa...
How the Company Makes Money
Raito Kogyo Co., Ltd. generates revenue primarily through the sale of construction materials, including ready-mixed concrete and asphalt, which are essential for various construction projects. The company also earns income from engineering service...
Raito Kogyo Co., Ltd. Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 126.56B | 121.46B | 117.32B | 114.97B | 109.50B | 108.21B |
| Gross Profit | 25.92B | 25.10B | 23.22B | 23.92B | 23.95B | 22.17B |
| EBITDA | 16.61B | 15.91B | 14.14B | 15.23B | 15.38B | 13.57B |
| Net Income | 10.36B | 9.92B | 8.18B | 9.49B | 8.93B | 8.64B |
Balance Sheet | ||||||
| Total Assets | 115.03B | 122.21B | 124.45B | 122.92B | 115.89B | 112.61B |
| Cash, Cash Equivalents and Short-Term Investments | 25.31B | 30.95B | 34.93B | 30.61B | 32.02B | 30.26B |
| Total Debt | 1.69B | 1.66B | 1.55B | 1.83B | 882.00M | 830.00M |
| Total Liabilities | 29.75B | 33.53B | 33.35B | 37.48B | 35.06B | 36.69B |
| Stockholders Equity | 84.47B | 87.83B | 90.19B | 84.50B | 80.74B | 75.82B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 5.63B | 10.59B | 1.81B | 5.63B | 12.01B |
| Operating Cash Flow | 0.00 | 10.35B | 14.59B | 4.76B | 8.60B | 15.21B |
| Investing Cash Flow | 0.00 | -1.90B | -4.25B | 487.00M | -2.35B | -7.23B |
| Financing Cash Flow | 0.00 | -12.40B | -5.33B | -5.76B | -4.69B | -2.50B |
Raito Kogyo Co., Ltd. Technical Analysis
Neutral
3385.00
Price Trends
3901.30
Positive
3627.20
Positive
3361.17
Positive
Market Momentum
18.19
Positive
49.20
Neutral
28.04
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1926, the sentiment is Neutral. The current price of 3385 is below the 20-day moving average (MA) of 4086.50, below the 50-day MA of 3901.30, and above the 200-day MA of 3361.17, indicating a neutral trend. The MACD of 18.19 indicates Positive momentum. The RSI at 49.20 is Neutral, neither overbought nor oversold. The STOCH value of 28.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1926.
Raito Kogyo Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | ¥144.47B | 9.06 | ― | 3.22% | 12.23% | 43.29% | |
76 Outperform | ¥191.41B | 10.32 | ― | 3.44% | 11.25% | 36.92% | |
75 Outperform | ¥131.78B | 8.40 | ― | 3.13% | 5.39% | 33.02% | |
71 Outperform | ¥183.39B | 9.99 | ― | 2.87% | 6.66% | 46.38% | |
70 Outperform | ¥124.89B | 9.59 | ― | 1.55% | 20.44% | 106.45% | |
68 Neutral | ¥154.73B | 9.00 | ― | 2.89% | 20.38% | 128.85% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
JP:1926
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Raito Kogyo Co., Ltd. Corporate Events
Raito Kogyo Reports Initial Progress on ¥7 Billion Share Buyback Program
Mar 3, 2026
Raito Kogyo Co., Ltd. has disclosed the progress of its share buyback program authorized by its board on February 5, 2026, under provisions of the Companies Act allowing acquisition of its own common shares. Between February 6 and February 28, 202...
Raito Kogyo Lifts Full-Year Earnings and Dividend Forecasts on Strong Construction Progress
Feb 26, 2026
Raito Kogyo has raised its full-year earnings outlook for the fiscal year ending March 2026, citing stronger-than-expected progress on on-hand construction projects in Japan and at overseas subsidiaries. The company now projects consolidated net s...
Raito Kogyo Lifts Nine-Month Profit 36% and Confirms Higher Dividend Payout
Feb 18, 2026
Raito Kogyo Co., Ltd., a Tokyo-listed construction and civil engineering specialist, reported solid growth in the nine months to December 31, 2025, with net sales rising 16.2% year on year to ¥103.5 billion and profit attributable to owners o...
Raito Kogyo Launches ¥7 Billion Share Buyback and Plans Full Cancellation of Acquired Shares
Feb 5, 2026
Raito Kogyo Co., Ltd. has resolved to implement a share buyback of up to 2.3 million common shares, representing 5.37% of its outstanding shares (excluding treasury stock), with a total acquisition cost capped at 7 billion yen through market purch...
Raito Kogyo Sharpens Capital-Efficiency Focus With Higher Payouts and Balance Sheet Overhaul
Feb 5, 2026
Raito Kogyo has updated its capital cost- and share price-conscious management measures under its Raito 2027 medium-term plan, emphasizing stronger communication with investors on its growth strategy and capital policy as its price-to-book ratio c...
Raito Kogyo Posts Strong Nine-Month Earnings and Lifts Dividend Outlook
Feb 5, 2026
Raito Kogyo reported strong consolidated results for the nine months ended December 31, 2025, with net sales rising 16.2% year on year to ¥103.5 billion and profit attributable to owners of parent surging 36.5% to ¥9.0 billion, driven by...
Raito Kogyo Announces Treasury Share Cancellation
Dec 17, 2025
Raito Kogyo Co., Ltd. has announced the completion of its treasury share purchases and the subsequent cancellation of 2,497,100 common shares, which represents 5.49% of its total shares outstanding. This move, scheduled for January 30, 2026, is pa...
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.