Raito Kogyo Co., Ltd. (1926) AI Stock Analysis

• Market Cap: ¥112.93B
• Dividend Yield: 5.85%
• Average Volume (3M): 138.37K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.38
• Revenue Growth: 3.52%
• EPS Growth: 28.02%
• Country: JP
• Employees: 1,374
• Sector: Industrials
• Sector Strength: 87
• Industry: Engineering & Construction
• EPS (TTM): 72.39
• Shares Outstanding: 45,467,550
• 10 Day Avg. Volume: 113,440
• 30 Day Avg. Volume: 138,370
• PEG Ratio: 1.07
• Price to Book (P/B): 1.47
• 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: ¥3,200.00
• Price Target Upside: 10.19% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 79 Outperform
• Price Target: ¥3,202.00 ▲(10.26%Upside)

Raito Kogyo Co., Ltd. demonstrates robust financial performance with consistent growth and stability, which significantly contributes to the overall score. The technical analysis reflects strong bullish momentum, although overbought signals suggest caution. The valuation is favorable with a reasonable P/E ratio and attractive dividend yield. These factors collectively support a high overall stock score, despite some concerns about cash flow volatility.

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

Company Description

Raito Kogyo Co., Ltd., established in 1926, operates primarily in the construction and engineering sectors. The company specializes in ground improvement and soil stabilization, offering a range of services and technologies to enhance the integrity and safety of construction projects. Their core services include foundation construction, slope stabilization, and ground reinforcement, catering to both public infrastructure and private sector needs.

How the Company Makes Money

Raito Kogyo Co., Ltd. generates revenue through its specialized services in ground improvement and soil stabilization. The company provides construction solutions that are critical for ensuring the safety and stability of various infrastructure projects. Revenue streams primarily come from contracts with government entities for public infrastructure projects, as well as agreements with private construction firms. Additionally, Raito Kogyo may engage in partnerships or joint ventures to expand its service offerings and technological capabilities, further contributing to its financial performance.

Raito Kogyo Co., Ltd. Financial Statement Overview

Summary

Raito Kogyo Co., Ltd. exhibits strong financial performance with consistent revenue and profit growth and a sound balance sheet with low leverage. However, fluctuations in free cash flow present a potential area of concern, suggesting a need for improved cash flow management. Overall, the company stands on solid financial ground with effective profitability and stability.

Income Statement

Raito Kogyo Co., Ltd. has demonstrated consistent revenue growth with a CAGR of approximately 2.7% over the past five years. The Gross Profit Margin has been stable around 20.7%, and the Net Profit Margin improved to 8.2% in 2025 from 6.7% in 2020, indicating enhanced profitability. The EBIT and EBITDA margins also show strengthening operational efficiency. Overall, the financials suggest a robust upward trend in profitability, although gross profit margins have slightly fluctuated.

Balance Sheet

The company's Balance Sheet reflects strong financial health with a low Debt-to-Equity ratio of 0.018, indicating minimal leverage. The Return on Equity (ROE) stood at 11.3% in 2025, demonstrating effective use of equity. The Equity Ratio remains high at 71.9%, underscoring financial stability and low financial risk. Overall, the company maintains a solid capital structure with substantial equity backing its assets.

Cash Flow

Free Cash Flow has shown volatility, peaking in some years but declining recently, with a Free Cash Flow Growth Rate of -46.2% from 2024 to 2025. Despite this, the Operating Cash Flow to Net Income Ratio of 1.04 indicates strong cash conversion from earnings. However, recent declines in free cash flow highlight potential challenges in managing capital expenditures and operating activities effectively.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	121.46B	117.32B	114.97B	109.50B	108.21B
Gross Profit	25.10B	23.22B	23.92B	23.95B	22.17B
EBITDA	17.17B	14.14B	15.86B	15.45B	14.12B
Net Income	9.92B	8.18B	9.49B	8.93B	8.64B
Balance Sheet
Total Assets	122.21B	124.45B	122.92B	115.89B	112.61B
Cash, Cash Equivalents and Short-Term Investments	30.95B	34.93B	30.61B	32.02B	30.26B
Total Debt	1.56B	1.55B	1.83B	882.00M	830.00M
Total Liabilities	33.53B	33.35B	37.49B	35.07B	36.69B
Stockholders Equity	87.83B	90.19B	84.50B	80.74B	75.82B
Cash Flow
Free Cash Flow	5.63B	10.48B	1.73B	5.58B	11.96B
Operating Cash Flow	10.35B	14.59B	4.76B	8.60B	15.21B
Investing Cash Flow	-1.90B	-4.25B	487.00M	-2.35B	-7.23B
Financing Cash Flow	-12.40B	-5.33B	-5.76B	-4.69B	-2.50B

Raito Kogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2904.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1926, the sentiment is Positive. The current price of 2904 is above the 20-day moving average (MA) of 2891.30, above the 50-day MA of 2841.20, and above the 200-day MA of 2429.69, indicating a bullish trend. The MACD of 17.15 indicates Positive momentum. The RSI at 58.09 is Neutral, neither overbought nor oversold. The STOCH value of 82.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1926.

Raito Kogyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1926	79 Outperform	¥112.93B	13.55		5.85%	3.52%	28.02%
1884	79 Outperform	¥107.87B	17.44		2.39%	2.35%	25.15%
1934	78 Outperform	¥159.97B	13.75		2.91%	5.77%	63.30%
1890	74 Outperform	¥143.98B	17.31		10.57%	-7.59%	18.77%
1835	74 Outperform	¥140.46B	12.15		2.44%	12.83%	39.37%
1946	71 Outperform	¥123.08B	11.08		3.90%	7.16%	15.86%
Sector *	58 Neutral	HK$14.75B	4.74	-3.01%	5.52%	3.67%	-54.16%

Raito Kogyo Co., Ltd. Corporate Events

Raito Kogyo Co., Ltd. Advances Share Buyback Strategy

Raito Kogyo Co., Ltd. announced the acquisition of 171,900 of its own shares in June 2025, amounting to ¥490,718,900, as part of a broader plan to acquire up to 3,300,000 shares by the end of December 2025. This strategic move is aimed at enhancing shareholder value and optimizing capital structure, reflecting the company’s commitment to strengthening its market position.

The most recent analyst rating on (JP:1926) stock is a Hold with a Yen2830.00 price target. To see the full list of analyst forecasts on Raito Kogyo Co., Ltd. stock, see the JP:1926 Stock Forecast page.

Raito Kogyo Co., Ltd. Announces Share Acquisition Progress

Raito Kogyo Co., Ltd. has announced the acquisition of 148,800 of its own shares in May 2025, amounting to approximately ¥401.6 million. This move is part of a larger plan approved by the Board of Directors to acquire up to 3.3 million shares by the end of 2025, reflecting the company’s strategic focus on managing its share capital effectively.

The most recent analyst rating on (JP:1926) stock is a Hold with a Yen2830.00 price target. To see the full list of analyst forecasts on Raito Kogyo Co., Ltd. stock, see the JP:1926 Stock Forecast page.

Raito Kogyo Reports Strong Financial Growth and Increased Dividends

Raito Kogyo Co., Ltd. reported a positive financial performance for the year ended March 31, 2025, with net sales increasing by 3.5% and profit attributable to owners of the parent rising by 21.2%. The company also announced an increase in annual dividends per share, reflecting a strong commitment to returning value to shareholders. The forecast for the next fiscal year indicates continued growth in net sales and profits, although a slight decline in profit attributable to owners is expected.

The most recent analyst rating on (JP:1926) stock is a Hold with a Yen2830.00 price target. To see the full list of analyst forecasts on Raito Kogyo Co., Ltd. stock, see the JP:1926 Stock Forecast page.

Raito Kogyo Unveils ‘Raito 2027’ Management Plan for Sustainable Growth

Raito Kogyo Co., Ltd. has announced a new three-year medium-term management plan, ‘Raito 2027,’ aimed at enhancing its core construction business and expanding its market presence. The plan focuses on strengthening brand power in disaster prevention, expanding civil engineering capabilities, and investing in growth areas and human resources, with targets for increased net sales and operating profit by 2027.

The most recent analyst rating on (JP:1926) stock is a Hold with a Yen2830.00 price target. To see the full list of analyst forecasts on Raito Kogyo Co., Ltd. stock, see the JP:1926 Stock Forecast page.

Raito Kogyo Increases Year-End Dividend Amid Strong Performance

Raito Kogyo Co., Ltd. announced an increase in its year-end dividend for the fiscal year ended March 31, 2025, raising it to 70 yen per share, which is 25 yen higher than the previous forecast. This decision aligns with the company’s policy of providing progressive dividends and reflects its strong financial performance and strategic objectives outlined in its medium-term management plan.

The most recent analyst rating on (JP:1926) stock is a Hold with a Yen2830.00 price target. To see the full list of analyst forecasts on Raito Kogyo Co., Ltd. stock, see the JP:1926 Stock Forecast page.

Raito Kogyo Reports Strong Financial Performance for FY 2025

Raito Kogyo Co., Ltd. reported a positive financial performance for the fiscal year ended March 31, 2025, with a notable increase in net sales and profits compared to the previous year. The company’s strategic focus on enhancing operational efficiency and expanding its market presence has resulted in improved financial metrics, including a significant rise in profit attributable to owners of the parent. This performance underscores Raito Kogyo’s strong positioning in the construction industry and its commitment to delivering value to shareholders.

The most recent analyst rating on (JP:1926) stock is a Sell with a Yen1900.00 price target. To see the full list of analyst forecasts on Raito Kogyo Co., Ltd. stock, see the JP:1926 Stock Forecast page.