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

• Market Cap: ¥3.66B
• Dividend Yield: 2.71%
• Average Volume (3M): 6.38K
• Price to Earnings (P/E): 34.5
• Beta (1Y): 0.51
• Revenue Growth: 5.85%
• EPS Growth: N/A
• Country: JP
• Employees: 138
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 11.13
• Shares Outstanding: 3,221,500
• 10 Day Avg. Volume: 5,360
• 30 Day Avg. Volume: 6,383
• PEG Ratio: <0.01
• Price to Book (P/B): 1.80
• Price to Sales (P/S): 0.46
• P/FCF Ratio: 5.55
• 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: 73 Outperform
• Price Target: ¥1,266.00 ▲(17.44% Upside)

The overall stock score of 73 reflects strong financial performance and a reasonable valuation, supported by a solid dividend yield. Technical analysis presents mixed signals, with some short-term weakness but underlying bullish momentum. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Low Financial Leverage

A debt-to-equity of 0.08 indicates minimal leverage, giving durable financial flexibility for capital spending, bid competitiveness on large projects, and resilience through downturns. Low leverage reduces refinancing risk and supports longer-term strategic initiatives.

Robust Cash Generation

Conversion of earnings into cash improved markedly, with operating cash flow and FCF well above net income. Strong cash generation supports reinvestment, debt reduction, and shareholder returns without reliance on external financing, strengthening the firm's durable funding profile.

Improving Profitability Margins

Across-the-board margin improvement indicates better operational efficiency and cost control, which are structural advantages in construction where project execution and procurement drive profitability. Sustained margin gains improve cash flow and competitive positioning long-term.

Negative Factors

Top-Line Recovery Lagging

Modest revenue growth and failure to regain the 2023 peak suggest limited scale expansion. In a sector where scale drives bidding power and fixed-cost absorption, prolonged top-line stagnation can constrain margin upside and long-term competitiveness.

Declining Total Assets

A shrinking asset base may reflect asset sales, reduced backlog, or underinvestment. Over months this can curtail capacity to take on large or concurrent projects, weaken revenue potential, and signal strategic retrenchment that impacts long-term growth prospects.

Thin Net Profit Margin

Despite improvement, a mid-single-digit net margin leaves limited buffer against project overruns, input cost inflation, or cyclical revenue dips common in construction. Persistently thin net margins raise the risk that earnings and cash flow could quickly reverse under stress.

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

Company Description

New Constructor's Network Co., Ltd. constructs earthquake-resistant wooden buildings in Japan. It also develops residential housing network. In addition, the company offers construction method for wooden buildings; thermal energy calculation and agency services; housing loan; and BIM solutions. New Constructor's Network Co., Ltd. was incorporated in 1996 and is based in Tokyo, Japan.

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. exhibits strong financial performance with improved profitability margins and a robust cash flow position. The balance sheet is conservative with low leverage, enhancing financial stability. Despite revenue not reaching previous highs, the overall financial health is 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.20B	8.12B	8.00B	9.24B	8.57B	6.43B
Gross Profit	2.17B	2.16B	2.20B	2.36B	2.05B	1.61B
EBITDA	466.31M	502.81M	226.85M	582.18M	514.25M	367.28M
Net Income	186.31M	193.69M	409.00K	302.44M	305.11M	225.27M
Balance Sheet
Total Assets	5.66B	5.78B	5.72B	6.85B	6.82B	5.10B
Cash, Cash Equivalents and Short-Term Investments	2.58B	2.67B	2.30B	2.95B	3.64B	3.01B
Total Debt	168.21M	164.79M	270.60M	343.09M	9.80M	0.00
Total Liabilities	3.49B	3.46B	3.58B	4.59B	4.63B	3.11B
Stockholders Equity	1.91B	2.06B	1.92B	2.04B	2.16B	1.95B
Cash Flow
Free Cash Flow	0.00	669.86M	-324.72M	-115.44M	754.66M	383.28M
Operating Cash Flow	0.00	685.65M	-144.33M	61.19M	997.02M	471.03M
Investing Cash Flow	0.00	-155.86M	-277.79M	-188.75M	-285.00M	-90.02M
Financing Cash Flow	0.00	-157.38M	-233.59M	-558.85M	-80.32M	-82.31M

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

• Technical Analysis Sentiment: Positive
• Last Price: 1078.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 1078 is below the 20-day moving average (MA) of 1127.30, above the 50-day MA of 1075.46, and above the 200-day MA of 1023.74, indicating a bullish trend. The MACD of 16.92 indicates Positive momentum. The RSI at 54.61 is Neutral, neither overbought nor oversold. The STOCH value of 28.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
1841	82 Outperform	¥5.68B	10.32	―	1.88%	-16.60%	-19.91%
1795	81 Outperform	¥4.11B	10.33	―	3.63%	19.00%	46.05%
1758	75 Outperform	¥5.93B	10.28	―	2.03%	14.17%	―
7057	73 Outperform	¥3.66B	34.54	―	2.71%	5.85%	―
1764	66 Neutral	¥3.38B	7.35	―	4.09%	14.64%	48.31%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%