New Constructor's Network Co., Ltd. (7057) AI Stock Analysis

• Market Cap: ¥3.06B
• Dividend Yield: 3.06%
• Average Volume (3M): 4.38K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.46
• Revenue Growth: 1.57%
• EPS Growth: 47250.04%
• Country: JP
• Employees: 138
• Sector: Industrials
• Sector Strength: 87
• Industry: Engineering & Construction
• EPS (TTM): 34.16
• Shares Outstanding: 3,221,500
• 10 Day Avg. Volume: 3,710
• 30 Day Avg. Volume: 4,383
• PEG Ratio: 0.33
• Price to Book (P/B): 1.44
• 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: ¥1,070.00
• Price Target Upside: 12.75% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ¥1,066.00 ▲(12.33%Upside)

The stock score is primarily driven by strong financial performance with robust cash flow and a conservative balance sheet. The valuation is appealing with a reasonable P/E ratio and attractive dividend yield. However, technical indicators suggest potential bearish trends, which could affect short-term performance. Overall, the company is well-positioned for future growth, but market momentum should be monitored closely.

New Constructor's Network Co., Ltd. Business Overview & Revenue Model

Company Description

New Constructor's Network Co., Ltd. (7057) is a company engaged in the construction industry, focusing on providing high-quality construction services and solutions. The company operates primarily within the Japanese market and specializes in a range of construction projects, including residential, commercial, and infrastructure development. Its core services include project management, architectural design, and construction engineering, aimed at delivering comprehensive solutions to meet the diverse needs of its clients.

How the Company Makes Money

New Constructor's Network Co., Ltd. generates revenue through various streams within the construction sector. The primary source of income comes from contracting and executing construction projects for residential, commercial, and infrastructure purposes. The company undertakes projects from planning and design to execution and completion, charging clients for the comprehensive services offered. Additionally, the company may engage in partnerships or joint ventures to expand its market reach and leverage additional resources, further contributing to its revenue. These collaborations can lead to increased project opportunities and shared financial benefits. The company's earnings are significantly influenced by its ability to secure contracts, manage projects efficiently, and maintain strong relationships with clients and partners.

New Constructor's Network Co., Ltd. Financial Statement Overview

Summary

New Constructor's Network Co., Ltd. presents a strong financial performance with consistent revenue growth and improved profitability margins. The balance sheet is conservative with low leverage, enhancing financial stability. The cash flow position is particularly robust, suggesting good liquidity and operational efficiency. While revenue has not yet reached previous highs, the overall financial health appears solid, positioning the company well for future growth.

Income Statement

The company has demonstrated a positive revenue growth rate of 1.57% from 2024 to 2025, coupled with a consistent gross profit margin of approximately 26.63%. The net profit margin improved significantly to 2.38% in 2025, up from near breakeven in 2024, highlighting enhanced profitability. The EBIT and EBITDA margins also showed improvement, indicating better operational efficiency. However, the revenue in 2025 has not yet surpassed the peak of 2023, suggesting some volatility in sales performance.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.08 in 2025, indicating minimal leverage and financial risk. The return on equity increased to 9.41% in 2025, marking significant profitability improvements. The equity ratio stands at 35.6%, reflecting a solid equity base. The low level of debt and strong equity position suggest financial stability and resilience, although the decline in total assets since 2023 warrants monitoring.

Cash Flow

The company has shown impressive cash flow performance with a substantial free cash flow growth from negative in 2024 to positive in 2025. The operating cash flow to net income ratio is robust at 3.54, indicating strong cash generation relative to profits. The free cash flow to net income ratio is also strong at 3.46, demonstrating effective cash conversion and liquidity. Overall, the cash flow profile is healthy and supports further growth and investment opportunities.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	8.12B	8.00B	9.24B	8.57B	6.43B
Gross Profit	2.16B	2.20B	2.36B	2.05B	1.61B
EBITDA	502.81M	281.00M	582.18M	514.25M	367.28M
Net Income	193.69M	409.00K	302.44M	305.11M	225.27M
Balance Sheet
Total Assets	5.78B	5.72B	6.85B	6.82B	5.10B
Cash, Cash Equivalents and Short-Term Investments	2.67B	2.30B	2.95B	3.64B	3.01B
Total Debt	164.79M	270.60M	343.09M	9.80M	0.00
Total Liabilities	3.46B	3.58B	4.59B	4.63B	3.11B
Stockholders Equity	2.06B	1.92B	2.04B	2.16B	1.95B
Cash Flow
Free Cash Flow	669.86M	-324.72M	-115.44M	754.66M	383.28M
Operating Cash Flow	685.65M	-144.33M	61.19M	997.02M	471.03M
Investing Cash Flow	-155.86M	-277.79M	-188.75M	-285.00M	-90.02M
Financing Cash Flow	-157.38M	-233.59M	-558.85M	-80.32M	-82.31M

New Constructor's Network Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 949.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7057, the sentiment is Negative. The current price of 949 is above the 20-day moving average (MA) of 947.40, below the 50-day MA of 986.38, and below the 200-day MA of 1074.73, indicating a bearish trend. The MACD of -7.21 indicates Negative momentum. The RSI at 42.66 is Neutral, neither overbought nor oversold. The STOCH value of 26.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7057.

New Constructor's Network Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1743	80 Outperform	¥3.70B	5.63		2.16%	22.30%	19.46%
1841	76 Outperform	¥3.90B	7.34		2.76%	-9.83%	33.02%
7057	74 Outperform	¥3.06B	14.56		3.06%	1.57%	47250.04%
1764	74 Outperform	¥3.03B	8.03		3.76%	9.34%	174.40%
1758	72 Outperform	¥4.32B	16.07		2.69%	-7.48%	9.38%
1795	66 Neutral	¥3.53B	12.71		3.07%	8.39%	-35.48%
Sector *	65 Neutral	$10.91B	15.53	5.25%	2.19%	3.15%	-27.00%