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

• Market Cap: ¥55.85B
• Dividend Yield: 3.78%
• Average Volume (3M): 85.33K
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.48
• Revenue Growth: 11.81%
• EPS Growth: 52.35%
• Country: JP
• Employees: 1,097
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 19.64
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥1,469.00 ▲(12.48% Upside)

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

Financial Stability

Nittoc's conservative balance sheet with minimal leverage enhances its financial stability, providing resilience against economic fluctuations and enabling strategic investments.

Revenue Growth

The substantial increase in net sales indicates strong market demand and effective business strategies, supporting long-term growth and competitive positioning.

Cash Generation

Consistent positive cash flow ensures operational flexibility and the ability to fund growth initiatives, dividends, and debt reduction, strengthening financial health.

Negative Factors

Margin Compression

The decline in net margins suggests rising costs or pricing pressures, which could impact profitability if not addressed, potentially affecting shareholder returns.

ROE Decline

The decline in ROE indicates reduced efficiency in generating profits from equity, which may signal challenges in maintaining shareholder value and investment attractiveness.

Profitability Concerns

Downward trends in profitability metrics highlight potential operational inefficiencies or market pressures, which could hinder long-term financial performance if persistent.

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

Nittoc Construction Co., Ltd. demonstrates solid financial health with a strong balance sheet characterized by zero debt and a good equity position. The income statement reflects solid profitability, although there's a noted decline in net profit margin. The lack of recent cash flow data presents a potential risk.

Income Statement

The company's TTM gross profit margin is 17.72%, indicating solid profitability. However, net profit margin has decreased to 3.25% from 4.27% in the previous fiscal year, reflecting a decline in net income relative to revenue. Revenue growth shows a mixed trend, with a decrease in the TTM period compared to the previous year. The EBIT and EBITDA margins remain stable at 4.68% and 5.61%, respectively, pointing to consistent operating efficiency.

Balance Sheet

The balance sheet is robust with a debt-to-equity ratio of 0, indicating no financial leverage. The return on equity (ROE) is 6.45% in the TTM period, suggesting reasonable profitability for shareholders. The equity ratio is 62.67%, reflecting a strong equity position relative to total assets, implying financial stability and low risk.

Cash Flow

Cash flow analysis is challenging due to missing TTM data. Historically, the company has shown positive free cash flow and operating cash flow. However, the absence of current data makes it difficult to assess recent cash flow performance, which could pose a risk if cash generation has weakened.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Negative

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 above the 20-day moving average (MA) of 1288.10, above the 50-day MA of 1252.32, and above the 200-day MA of 1155.87, indicating a bullish trend. The MACD of 24.14 indicates Negative momentum. The RSI at 71.35 is Negative, neither overbought nor oversold. The STOCH value of 81.56 is Negative, 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
1899	79 Outperform	¥67.92B	11.35	―	2.56%	1.71%	14.20%
1929	75 Outperform	¥55.85B	16.64	―	3.78%	11.81%	52.35%
1898	73 Outperform	¥60.31B	13.77	―	4.90%	4.91%	57.89%
1786	70 Outperform	¥55.24B	15.07	―	3.53%	-2.95%	-35.66%
1815	69 Neutral	¥72.31B	16.20	―	2.73%	-3.59%	49.34%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1888	59 Neutral	¥60.76B	13.78	―	2.84%	15.45%	43.95%

Nittoc Construction Co., Ltd. Corporate Events

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.

Nittoc Construction Reports Strong Financial Growth for 2025

Nittoc Construction Co., Ltd. reported significant growth in its financial performance for the six months ended September 30, 2025, with a 25.4% increase in net sales and a substantial rise in profits. The company’s strong financial results indicate a positive trajectory, potentially enhancing its market position and benefiting its stakeholders.