Sumiken Mitsui Road Co., Ltd. (1776) AI Stock Analysis

• Market Cap: ¥13.57B
• Dividend Yield: 2.69%
• Average Volume (3M): 9.88K
• Price to Earnings (P/E): 78.9
• Beta (1Y): 0.33
• Revenue Growth: 0.66%
• EPS Growth: -65.05%
• Country: JP
• Employees: 429
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -22.04
• Shares Outstanding: 9,277,500
• 10 Day Avg. Volume: 10,120
• 30 Day Avg. Volume: 9,883
• PEG Ratio: -1.02
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 0.41
• P/FCF Ratio: -3.44
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ¥1,498.00 ▲(0.81% Upside)

The overall stock score of 54 reflects significant financial challenges, including declining revenue and profitability, and weak cash flow performance. The technical analysis shows mixed signals with short-term bullish momentum but potential bearish pressure. Valuation concerns are high due to an elevated P/E ratio, despite a reasonable dividend yield.

Sumiken Mitsui Road Co., Ltd. Business Overview & Revenue Model

Company Description

Sumiken Mitsui Road Co., Ltd. (1776) is a Japanese company primarily engaged in the production and sale of road construction materials and products. Operating within the construction and civil engineering sectors, the company specializes in asphalt and concrete products, as well as offering related services for road maintenance and infrastructure development. With a strong emphasis on quality and innovation, Sumiken Mitsui Road Co., Ltd. contributes to the enhancement of transportation networks in Japan and beyond.

How the Company Makes Money

The company generates revenue through multiple streams including the sale of asphalt and concrete products used in road construction and maintenance. Additionally, it offers specialized services related to infrastructure development, which further contribute to its earnings. Sumiken Mitsui Road Co., Ltd. may also engage in partnerships with government agencies and private sector companies for large-scale construction projects, thereby securing contracts that provide significant income. The company’s revenue model is bolstered by its commitment to quality and durability of its products, ensuring repeat business and long-term contracts within the industry.

Sumiken Mitsui Road Co., Ltd. Financial Statement Overview

Summary

Sumiken Mitsui Road Co., Ltd. faces several financial challenges, including declining revenue and profitability margins, alongside weakening cash flow. While the balance sheet remains strong with low leverage, the company needs to address operational inefficiencies and improve cash generation to enhance financial health and shareholder value.

Income Statement

The company's revenue has shown a declining trend over the past few years, with a revenue decrease of 2.4% from 2024 to 2025. Gross profit margin decreased to 8.15% in 2025 from 10.3% in 2024, indicating pressure on cost management. Net profit margin fell significantly to 0.55% in 2025 from 1.9% in 2024, reflecting challenges in sustaining profitability. The EBIT and EBITDA margins also decreased, suggesting operational inefficiencies.

Balance Sheet

The company maintains a strong equity position, with an equity ratio of 55.2% in 2025, indicating financial stability. The debt-to-equity ratio remains low at 0.0025, reflecting conservative leverage. However, return on equity decreased to 1.23% in 2025 from 4.3% in 2024, showing a decline in shareholder returns.

Cash Flow

Cash flow performance weakened significantly, with a negative free cash flow of -3.55 billion in 2025 compared to a positive 831 million in 2024. The operating cash flow to net income ratio indicates challenges in generating cash from operations. The free cash flow to net income ratio is negative, highlighting cash generation issues relative to reported earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	30.52B	30.16B	30.91B	31.91B	31.54B	33.80B
Gross Profit	2.57B	2.46B	3.17B	3.25B	3.21B	4.06B
EBITDA	853.00M	825.00M	1.45B	1.42B	1.47B	2.44B
Net Income	173.00M	167.00M	587.00M	630.00M	627.00M	1.19B
Balance Sheet
Total Assets	22.35B	24.55B	27.69B	28.16B	26.69B	27.55B
Cash, Cash Equivalents and Short-Term Investments	6.33B	7.03B	11.18B	10.71B	9.66B	10.68B
Total Debt	347.00M	34.00M	33.00M	25.00M	7.00M	25.00M
Total Liabilities	9.35B	10.99B	14.04B	14.81B	13.72B	15.01B
Stockholders Equity	13.00B	13.56B	13.65B	13.36B	12.54B	12.54B
Cash Flow
Free Cash Flow	0.00	-3.55B	831.00M	1.35B	1.70B	561.00M
Operating Cash Flow	0.00	-3.15B	1.82B	2.14B	2.43B	1.10B
Investing Cash Flow	0.00	-600.00M	-1.00B	-793.00M	-752.00M	-520.00M
Financing Cash Flow	0.00	-402.00M	-351.00M	-297.00M	-267.00M	-250.00M

Sumiken Mitsui Road Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1486.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1776, the sentiment is Negative. The current price of 1486 is above the 20-day moving average (MA) of 1454.45, above the 50-day MA of 1462.68, and above the 200-day MA of 1395.00, indicating a neutral trend. The MACD of 0.78 indicates Negative momentum. The RSI at 47.09 is Neutral, neither overbought nor oversold. The STOCH value of 69.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:1776.

Sumiken Mitsui Road Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1884	79 Outperform	―	―	―	―	4.84%	62.58%
1899	78 Outperform	¥59.57B	10.71	―	2.88%	0.18%	14.61%
1890	75 Outperform	¥163.43B	18.30	―	5.05%	0.57%	26.93%
1898	73 Outperform	¥54.30B	13.18	―	5.29%	9.19%	45.78%
1882	70 Outperform	¥78.65B	16.32	―	8.59%	6.09%	21.09%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1776	54 Neutral	¥13.57B	78.87	―	2.69%	0.66%	-65.05%