Kitac Corporation (4707) AI Stock Analysis

• Market Cap: ¥1.78B
• Dividend Yield: 2.11%
• Average Volume (3M): 18.75K
• Price to Earnings (P/E): 15.5
• Beta (1Y): 0.74
• Revenue Growth: 3.73%
• EPS Growth: -25.60%
• Country: JP
• Employees: 191
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 5.53
• Shares Outstanding: 5,969,024
• 10 Day Avg. Volume: 21,960
• 30 Day Avg. Volume: 18,753
• PEG Ratio: -0.36
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.55
• P/FCF Ratio: -11.30
• 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: 68 Neutral
• Price Target: ¥346.00 ▲(0.29% Upside)
• Action: Reiterated Date: 01/17/26
• Date: Action: Reiterated 01/17/26

The score reflects stable leverage but pressured operating performance and weak cash conversion/negative free cash flow as the main risks. These are partially offset by strong technical uptrend signals and a relatively low P/E with a modest dividend yield.

Positive Factors

Improving leverage

A declining debt-to-equity ratio signals steadily reduced leverage and improved balance sheet flexibility. Over 2-6 months this supports lower interest exposure, greater ability to fund capex or restructure financing, and a stronger buffer to absorb industry cyclicality.

Stable operating margins

Meaningful EBIT and EBITDA margins indicate underlying operational efficiency despite top-line pressure. Sustained margins support internal cash generation capacity for reinvestment and help preserve competitiveness across medium-term cycles of the construction/engineering market.

Healthy capital structure

A healthy equity ratio provides a capital buffer that lowers default risk and preserves access to debt markets. This structural strength improves resilience to project delays or cost overruns and supports consistent funding for strategic investments over coming months.

Negative Factors

Poor cash conversion

Very weak cash conversion and negative free cash flow constrain the firm's ability to self-fund growth, service capital needs, or sustain distributions. Persisting this pattern forces reliance on external financing and increases vulnerability to funding cost rises over the medium term.

Revenue and margin erosion

Sharply declining revenue and compressing gross/net margins point to demand weakness or pricing and cost pressure. If sustained, this reduces scale economies, limits reinvestment capacity and undermines long-term profitability and competitive positioning in the sector.

Weaker shareholder returns

Falling ROE signals lower efficiency in using shareholder capital to generate profits. Over a multi-month horizon this can impair investor confidence, make capital raising more costly, and indicate structural challenges in restoring profitable growth absent strategic changes.

Kitac Corporation Business Overview & Revenue Model

Company Description

KITAC Corporation engages in the construction consultancy business in Japan. It offers construction and geological survey, disaster prevention, maintenance, and environment protection services, as well as civil engineering services. The company was incorporated in 1973 and is headquartered in Niigata, Japan.

How the Company Makes Money

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Kitac Corporation Financial Statement Overview

Summary

Mixed fundamentals: profitability and revenue are weakening (revenue -18.54%, gross margin down to 28.60%, net margin down to 6.00%). Balance sheet is relatively stable with moderate and improving leverage (debt-to-equity 0.55), but cash generation is a key concern (operating cash flow to net income 0.05 and negative free cash flow with FCF/net income -1.59).

Income Statement

Kitac Corporation's income statement shows mixed performance. The gross profit margin has decreased from 33.07% in 2024 to 28.60% in 2025, indicating a decline in profitability. The net profit margin also fell from 8.36% to 6.00% over the same period. Revenue growth rate is negative at -18.54% in 2025, reflecting a significant drop in sales. However, the company maintains a positive EBIT margin of 9.01% and EBITDA margin of 13.44%, suggesting operational efficiency.

Balance Sheet

The balance sheet of Kitac Corporation reveals a stable financial position with a debt-to-equity ratio of 0.55 in 2025, down from 0.58 in 2024, indicating reduced leverage. The return on equity has decreased to 5.89% from 8.49%, showing a decline in profitability for shareholders. The equity ratio remains healthy, reflecting a strong capital structure.

Cash Flow

Kitac Corporation's cash flow statement highlights challenges in cash generation. The operating cash flow to net income ratio is low at 0.05 in 2025, indicating limited cash conversion from earnings. Free cash flow is negative, with a free cash flow to net income ratio of -1.59, suggesting cash flow issues despite positive net income.

Breakdown	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	3.47B	3.34B	2.88B	2.70B	2.55B
Gross Profit	991.60M	1.08B	880.50M	758.54M	692.19M
EBITDA	299.86M	484.63M	276.16M	193.22M	118.11M
Net Income	207.98M	279.54M	173.34M	90.58M	31.13M
Balance Sheet
Total Assets	6.35B	6.08B	5.99B	5.77B	5.46B
Cash, Cash Equivalents and Short-Term Investments	155.78M	213.96M	137.13M	172.29M	277.10M
Total Debt	1.94B	1.91B	2.11B	2.04B	1.83B
Total Liabilities	2.82B	2.79B	2.96B	2.92B	2.80B
Stockholders Equity	3.53B	3.29B	3.03B	2.86B	2.66B
Cash Flow
Free Cash Flow	-170.03M	300.58M	-15.23M	-280.49M	219.21M
Operating Cash Flow	106.86M	338.99M	56.14M	-53.03M	311.41M
Investing Cash Flow	-141.24M	-16.32M	-68.84M	-232.02M	-154.30M
Financing Cash Flow	-23.81M	-245.83M	-22.47M	180.23M	-43.40M

Kitac Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 345.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4707, the sentiment is Negative. The current price of 345 is above the 20-day moving average (MA) of 335.20, above the 50-day MA of 344.70, and below the 200-day MA of 349.29, indicating a bearish trend. The MACD of -8.60 indicates Positive momentum. The RSI at 35.81 is Neutral, neither overbought nor oversold. The STOCH value of 14.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4707.

Kitac Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1443	74 Outperform	¥4.97B	5.08	―	0.46%	0.58%	25.48%
1960	73 Outperform	¥22.12B	8.25	―	2.97%	22.32%	5024.88%
4673	73 Outperform	¥3.61B	6.39	―	1.16%	29.12%	428.78%
1828	73 Outperform	¥28.67B	9.70	―	3.44%	-5.43%	34.48%
4642	70 Outperform	¥8.19B	16.79	―	2.03%	16.10%	-10.63%
4707	68 Neutral	¥1.78B	15.47	―	2.11%	3.73%	-25.60%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%