Nittoc Construction Co., Ltd. (1929) AI Stock Analysis

• Market Cap: ¥61.12B
• Dividend Yield: 3.78%
• Average Volume (3M): 85.33K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.55
• Revenue Growth: 11.81%
• EPS Growth: 52.35%
• Country: JP
• Employees: 1,097
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 44.43
• Shares Outstanding: 41,774,900
• 10 Day Avg. Volume: 59,870
• 30 Day Avg. Volume: 85,326
• PEG Ratio: -0.83
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 0.64
• P/FCF Ratio: 13.55
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 80.2
• Revenue Forecast (FY): ¥80.00B

• Rating: 75 Outperform
• Price Target: ¥1,646.00 ▲(26.03% Upside)
• Action: Upgraded Date: 12/30/25
• Date: Action: Upgraded 12/30/25

The score is driven primarily by strong financial stability (very low leverage) and generally positive cash generation, partially offset by recent margin and ROE compression. Technicals are constructive with price above major moving averages and a positive MACD, while valuation is reasonable with a solid dividend yield.

Positive Factors

Conservative Balance Sheet

Extremely low leverage and steady equity growth provide durable financial flexibility. This capital conservatism cushions cyclical construction downturns, supports bidding on large projects, funds capex or dividends from internal resources, and reduces refinancing risk over time.

Consistent Cash Generation

Consistent positive operating and free cash flow demonstrates the core business reliably generates cash across cycles. Strong FCF conversion (about 70%–96% in key years) supports reinvestment in projects, steady dividend capacity and balance-sheet resilience despite episodic swings.

Revenue Recovery / Contract Wins

A 67% revenue increase in 2025 indicates the company can capture large contracts or recover demand quickly. This scale-up capability points to competitive project-winning and execution strength, providing a potential multi-month to multi-quarter revenue runway if supported by backlog and disciplined project delivery.

Negative Factors

Margin Compression

Gradual compression of operating and net margins to roughly 3.6% reduces profitability resilience. Lower margins mean less cash per revenue dollar, heighten sensitivity to input-cost inflation and competition, and if persistent will undermine earnings quality and long-term return generation.

Declining ROE

ROE declining to ~7% signals weaker conversion of shareholder capital into earnings. This reduces attractive returns for investors, may reflect margin or efficiency issues, and could pressure management to pursue higher-risk projects or change capital allocation to restore returns.

Volatile Free Cash Flow

Material year-to-year swings in free cash flow point to working-capital and project-timing variability. Such volatility complicates budgeting and capex planning, can force temporary external financing in troughs, and increases uncertainty around sustainable dividends and investment cadence.

Nittoc Construction Co., Ltd. Business Overview & Revenue Model

Company Description

Nittoc Construction Co., Ltd. engages in specialized construction works in Japan. The company undertakes disaster prevention and environmental conservation works, such as re-vegetation, temporary anchor, river and shore embankment protection, slope protection, landslide protection, rock slope failure prevention, anchoring, retaining wall, and structure diagnosis works. It also provides urban regeneration services, including ground improvement, piling, reinforcement and foundation, industrial waste recycling, liquification prevention measuring, and anchoring services, as well as foundation treatment of waste disposal site; and maintenance and renovation services comprising slope reinforcement, concrete structures diagnosis and investigation, concrete structure upgradation, rock slope diagnosis, existing structures reinforcement, and repairing and structural improvement services. In addition, the company offers civil engineering, construction consultancy, grouting, applied engineering, and shield and pipe jacking services, as well as survey, geological survey, and design services. Nittoc Construction Co., Ltd. was incorporated in 1947 and is headquartered in Tokyo, Japan. Nittoc Construction Co., Ltd. is a subsidiary of AN Holdings Corp.

How the Company Makes Money

Nittoc Construction Co., Ltd. generates revenue primarily through its construction services. The company's key revenue streams include contracts for civil engineering projects, such as infrastructure development, and building construction projects, which encompass residential, commercial, and industrial buildings. The company also earns income from its real estate development activities, which involve the acquisition, development, and sale or leasing of properties. Additionally, partnerships with governmental bodies and private sector clients play a significant role in securing projects and sustaining its revenue flow. The company's focus on innovation and adherence to regulatory standards further contribute to its financial performance.

Nittoc Construction Co., Ltd. Financial Statement Overview

Summary

Strong overall fundamentals supported by a very conservative balance sheet (near-zero leverage) and consistently positive free cash flow. The key offset is weakening profitability/efficiency in 2025 (compressed net/operating margins and lower ROE) despite a sharp revenue rebound, which raises earnings-quality risk if margin pressure persists.

Income Statement

Revenue has been volatile, with a sharp jump in 2025 (annual revenue growth of 67%) after modest declines in 2024 and 2022. Profitability is solid but trending down: net margin eased from ~5.2% (2021) / ~5.0% (2022) to ~3.6% (2025), and operating margin similarly compressed versus the 2021–2023 range. Overall, the business remains profitable with decent gross margins (~17.7%–18.9%), but recent margin pressure is a key watch item.

Balance Sheet

The balance sheet looks very conservative, with extremely low leverage (debt-to-equity near zero in most years and ~0.02 in 2025). Equity has steadily grown over time, supporting a stronger capital base. Returns on equity are healthy for the sector but have moderated recently (from ~11%–12% in 2020–2023 to ~7% in 2025), suggesting profitability is not converting into shareholder returns as efficiently as before.

Cash Flow

Cash generation is generally positive, with operating cash flow and free cash flow consistently above zero across the period. Free cash flow conversion versus net income is reasonably strong (~70%–96% in 2020, 2022, 2024, and 2025), though it weakened in 2021 and 2023. Free cash flow growth has been choppy (large swings year to year), indicating variability in project timing and working-capital needs.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	70.52B	67.22B	71.88B	72.92B	66.08B	67.95B
Gross Profit	13.35B	12.56B	12.71B	13.69B	12.13B	12.85B
EBITDA	5.19B	4.62B	5.30B	6.04B	5.50B	5.63B
Net Income	2.85B	2.41B	3.07B	3.53B	3.33B	3.50B
Balance Sheet
Total Assets	57.16B	56.95B	54.42B	52.81B	51.71B	51.97B
Cash, Cash Equivalents and Short-Term Investments	18.79B	18.15B	19.64B	19.46B	20.72B	17.72B
Total Debt	653.00M	707.00M	0.00	0.00	4.00M	286.00M
Total Liabilities	23.28B	22.20B	20.39B	20.68B	21.10B	23.17B
Stockholders Equity	33.68B	34.39B	33.86B	31.85B	30.42B	28.62B
Cash Flow
Free Cash Flow	0.00	3.17B	3.34B	1.47B	3.85B	695.00M
Operating Cash Flow	0.00	4.51B	4.42B	2.66B	4.75B	1.43B
Investing Cash Flow	0.00	-4.00B	-2.29B	-1.79B	-23.00M	-705.00M
Financing Cash Flow	0.00	-1.96B	-1.97B	-2.17B	-1.78B	-1.78B

Nittoc Construction Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1306.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1929, the sentiment is Positive. The current price of 1306 is below the 20-day moving average (MA) of 1390.15, below the 50-day MA of 1350.72, and above the 200-day MA of 1219.07, indicating a bullish trend. The MACD of 24.74 indicates Negative momentum. The RSI at 73.18 is Negative, neither overbought nor oversold. The STOCH value of 79.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1929.

Nittoc Construction Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1948	76 Outperform	¥61.83B	21.61	―	2.01%	14.48%	122.79%
1929	75 Outperform	¥61.12B	15.67	―	3.78%	11.81%	52.35%
1786	70 Outperform	¥57.63B	16.87	―	3.53%	-2.95%	-35.66%
1813	68 Neutral	¥60.63B	15.72	―	2.26%	12.93%	98.16%
3431	68 Neutral	¥53.53B	14.45	―	5.38%	-9.27%	-6.86%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1811	60 Neutral	¥69.90B	16.41	―	1.57%	11.01%	231.83%

Nittoc Construction Co., Ltd. Corporate Events

Nittoc Construction Nearly Doubles Nine-Month Profit and Confirms Full-Year Outlook

Nittoc Construction reported a strong rebound for the nine months ended December 31, 2025, with net sales up 23.0% year on year to ¥61.2 billion and profit attributable to owners of parent nearly doubling to ¥3.04 billion. Earnings per share rose to ¥72.75, while total assets and net assets also increased, keeping the equity ratio above 60% and signaling a solid balance sheet.

The company kept its full-year forecast unchanged, targeting net sales of ¥76.0 billion and a 39.1% rise in full-year profit to ¥3.35 billion, implying continued profit growth into the March 2026 year-end. Dividend guidance was maintained with a planned annual payout of ¥49 per share, suggesting management’s confidence in earnings sustainability and providing income visibility for shareholders.

The most recent analyst rating on (JP:1929) stock is a Buy with a Yen1565.00 price target. To see the full list of analyst forecasts on Nittoc Construction Co., Ltd. stock, see the JP:1929 Stock Forecast page.

Nittoc Construction Revamps Top Management to Strengthen Governance and Operations

Nittoc Construction Co., Ltd. has announced a major leadership reshuffle and governance-focused reorganization, appointing long-time executive Naoto Kami as President & Representative Director and CEO, effective April 1, 2026. Current President & Representative Director Yasuo Wada will become Chairperson of the Board, while senior executives Fumihiko Kajita and Atsushi Yamazaki will be promoted to Representative Director, Executive Vice President roles as COO and CMO respectively, each continuing to oversee key operational and corporate strategy divisions. The company positions these moves as a response to an increasingly complex business environment and an effort to strengthen its governance structure, signaling a shift to a more distributed top management team that could enhance strategic execution, operational agility, and oversight across its domestic and overseas construction operations.

The most recent analyst rating on (JP:1929) stock is a Buy with a Yen1565.00 price target. To see the full list of analyst forecasts on Nittoc Construction Co., Ltd. stock, see the JP:1929 Stock Forecast page.

Nittoc Construction Discloses Ownership Structure and Interim Status of Parent Aso Corporation

Nittoc Construction has disclosed that its unlisted parent company, Aso Corporation, has finalized its interim financial results for the second quarter of the fiscal year ending March 31, 2026, and provided an outline of Aso’s corporate profile and governance. The notice details Aso’s core businesses in medical-related services and real estate, its capital structure, and its controlling 58.05% stake in Nittoc, as well as the composition of Aso’s shareholder base, which is dominated by the Aso family, affiliated educational and corporate entities, and regional financial institutions; this transparency underscores the concentrated ownership and family influence within the group, providing investors in Nittoc with clearer visibility into the parent company’s control and potential strategic influence over the listed subsidiary.