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

• Market Cap: ¥125.80B
• Dividend Yield: 3.4%
• Average Volume (3M): 143.58K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 0.37
• Revenue Growth: 12.23%
• EPS Growth: 43.29%
• Country: JP
• Employees: 1,374
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 70.19
• Shares Outstanding: 45,467,550
• 10 Day Avg. Volume: 158,370
• 30 Day Avg. Volume: 143,580
• PEG Ratio: 0.42
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 0.94
• P/FCF Ratio: 20.22
• 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: ¥3,075.00
• Price Target Upside: -7.38% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: ¥3,631.00 ▲(9.37% Upside)

Raito Kogyo Co., Ltd. demonstrates strong financial health with consistent growth and low leverage, which are significant strengths. The technical analysis presents a mixed picture, with no strong momentum signals. The valuation is reasonable, supported by a solid dividend yield. Overall, the stock is fundamentally sound but faces some short-term technical uncertainties.

Positive Factors

Financial Health

Raito Kogyo's low leverage and high equity ratio underscore its financial stability, reducing risk and enhancing its ability to invest in growth opportunities.

Profitability

Improving net profit margins indicate enhanced profitability and operational efficiency, supporting long-term financial sustainability and shareholder value.

Revenue Growth

Consistent revenue growth reflects the company's strong market position and ability to capture demand in the construction and civil engineering sectors.

Negative Factors

Cash Flow Volatility

Volatile free cash flow can challenge the company's ability to fund operations and investments, potentially impacting long-term growth and financial flexibility.

Gross Margin Fluctuations

Fluctuating gross margins may indicate challenges in cost management or pricing power, which could pressure profitability if not addressed.

Free Cash Flow Management

Effective cash flow management is crucial for sustaining operations and funding growth; current challenges may hinder strategic initiatives.

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, sewage main installation, environmental investigation and remediation, and repair and reinforcement of structures. It is involved in the design, supervision, management, and contracting related to construction works. The company also trades in construction material and equipment, as well as office equipment; and leases vehicles, and office, construction, and homecare equipment. In addition, it operates care houses; and provides temporary staffing, elderly care, and life and non-life insurance agency services. The company was formerly known as Raito Bosui Kogyosho Co., Ltd. and changed its name to Raito Kogyo Co., Ltd. in 1951. Raito Kogyo Co., Ltd. was founded in 1943 and is headquartered in Tokyo, Japan.

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 services related to infrastructure development, as well as from public contracts for civil engineering projects. Key revenue streams include direct sales to construction companies, government contracts, and partnerships with other firms in the construction sector. Additionally, Raito Kogyo may benefit from strategic partnerships that enhance its service offerings and expand its market reach, further contributing to its overall earnings.

Raito Kogyo Co., Ltd. Financial Statement Overview

Summary

Raito Kogyo Co., Ltd. exhibits strong financial performance with consistent revenue and profit growth, robust margins, 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.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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	16.67B	17.17B	14.67B	15.86B	15.45B	14.12B
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	1.56B	1.55B	1.83B	882.00M	830.00M
Total Liabilities	29.75B	33.53B	33.35B	37.49B	35.07B	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	10.48B	1.73B	5.58B	11.96B
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

• Technical Analysis Sentiment: Positive
• Last Price: 3320.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 3320 is above the 20-day moving average (MA) of 3276.25, above the 50-day MA of 3247.13, and above the 200-day MA of 2892.01, indicating a bullish trend. The MACD of 29.05 indicates Negative momentum. The RSI at 54.33 is Neutral, neither overbought nor oversold. The STOCH value of 70.05 is Neutral, 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
1884	79 Outperform	―	―	―	―	4.84%	62.58%
1926	78 Outperform	¥125.80B	14.16	―	3.40%	12.23%	43.29%
1946	77 Outperform	¥162.26B	10.38	―	3.07%	3.75%	87.00%
1890	75 Outperform	¥163.43B	18.30	―	5.05%	12.80%	34.19%
1835	73 Outperform	¥146.65B	12.36	―	3.76%	11.25%	36.92%
1934	68 Neutral	¥171.40B	14.09	―	2.50%	6.66%	46.38%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Raito Kogyo Co., Ltd. Corporate Events

Raito Kogyo Co., Ltd. Advances Share Buyback Program

Raito Kogyo Co., Ltd. announced the acquisition of 274,300 of its own shares in September 2025, as part of a larger plan approved by the Board of Directors to acquire up to 3,300,000 shares by the end of December 2025. This move is aimed at consolidating the company’s market position and optimizing its capital structure, potentially impacting shareholder value and market perception.

The most recent analyst rating on (JP:1926) stock is a Hold with a Yen3700.00 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 Announces Share Buyback Progress

Raito Kogyo Co., Ltd. announced the acquisition of 149,000 of its own common shares during August 2025, totaling approximately ¥479.9 million. This move is part of a broader share buyback program approved by the Board of Directors, which allows for the acquisition of up to 3.3 million shares by the end of 2025, aiming to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:1926) stock is a Buy with a Yen3529.00 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. Reports Strong Financial Growth in Q1 2025

Raito Kogyo Co., Ltd. reported a significant increase in its financial performance for the three months ended June 30, 2025, with net sales rising by 20.1% and operating profit increasing by 32.7% compared to the previous year. The company anticipates continued growth, as reflected in its forecast for the year ending March 31, 2026, projecting a 5% increase in net sales and a 6.9% rise in operating profit, indicating a positive outlook for stakeholders.

The most recent analyst rating on (JP:1926) stock is a Buy with a Yen3529.00 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 Q1 2025 Financial Results

Raito Kogyo Co., Ltd. reported a significant increase in its financial performance for the three months ended June 30, 2025, with net sales rising by 20.1% and operating profit increasing by 32.7% compared to the previous year. This growth reflects the company’s strong market positioning and operational efficiency, although comprehensive income saw a decline. The company maintains a stable financial position with a high equity-to-asset ratio, and it has announced a forecasted increase in annual dividends, indicating confidence in its future earnings.

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. Advances Share Buyback Program

Raito Kogyo Co., Ltd. announced the acquisition of 175,600 of its own shares in July 2025, totaling approximately ¥511.7 million, as part of a broader share buyback program authorized by the Board of Directors in February 2025. This strategic move is part of a larger plan to acquire up to 3.3 million shares by the end of December 2025, reflecting the company’s commitment to enhancing shareholder value and optimizing its capital structure.

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.