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

• Market Cap: ¥13.38B
• Dividend Yield: 2.72%
• Average Volume (3M): 17.49K
• Price to Earnings (P/E): 78.0
• Beta (1Y): 0.32
• 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: 9,830
• 30 Day Avg. Volume: 17,493
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,475.00
• Price Target Upside: 0.34% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 51 Neutral
• Price Target: ¥1,475.00 ▲(0.34% Upside)

The overall stock score of 51 reflects significant financial challenges, including declining revenue and profitability margins, and weak cash flow performance. Technical indicators suggest bearish momentum, and a high P/E ratio indicates potential overvaluation. The dividend yield offers some compensation, but the overall outlook remains cautious.

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

Company Description

Sumiken Mitsui Road Co.,Ltd. primarily engages in construction business in Japan. The company is involved in the design, construction, and supervision of pavements and roads, airports, ports, and living and community facilities, as well as landscaping, civil works, building, and electricity and plumbing works. It also manufactures, sells, and leases machinery; and offers consulting services, security guard outsourcing, and buildings and equipment maintenance and management services. In addition, the company engages in the collection, transportation, and treatment of general and industrial waste; manufacture and sale of asphalt mixture, aggregates, and other construction materials; and acquisition, management, use, disposal, leasing, and sale of real estate properties. Further, it is involved in the soil and groundwater pollution restoration and purification activities; and generation, supply, and sale of solar power. The company was founded in 1948 and is headquartered in Tokyo, Japan. Sumiken Mitsui Road Co.,Ltd. is a subsidiary of Sumitomo Mitsui Construction Co. Ltd.

How the Company Makes Money

Sumiken Mitsui Road Co., Ltd. generates revenue through its comprehensive road construction and maintenance services. The company secures contracts for infrastructure projects from governmental bodies, municipal agencies, and private sector clients. Revenue is primarily derived from project-based contracts where the company is compensated for services rendered, including design, construction, and ongoing maintenance of roads and related infrastructure. Additionally, the company may engage in partnerships or joint ventures to undertake large-scale projects that require combined expertise and resources. These collaborations can enhance its revenue streams by leveraging synergies with other firms in 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	30.16B	30.16B	30.91B	31.91B	31.54B	33.80B
Gross Profit	2.46B	2.46B	3.17B	3.25B	3.21B	3.78B
EBITDA	825.00M	825.00M	1.45B	1.42B	1.47B	2.46B
Net Income	167.00M	167.00M	587.00M	630.00M	627.00M	1.19B
Balance Sheet
Total Assets	24.55B	24.55B	27.69B	28.16B	27.55B	27.11B
Cash, Cash Equivalents and Short-Term Investments	7.03B	7.03B	11.18B	10.71B	9.66B	10.68B
Total Debt	34.00M	34.00M	33.00M	25.00M	7.00M	25.00M
Total Liabilities	10.99B	10.99B	14.04B	14.81B	15.01B	15.45B
Stockholders Equity	13.56B	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: 1470.00
• 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 1470 is below the 20-day moving average (MA) of 1474.50, below the 50-day MA of 1507.58, and above the 200-day MA of 1333.83, indicating a neutral trend. The MACD of -10.54 indicates Negative momentum. The RSI at 44.76 is Neutral, neither overbought nor oversold. The STOCH value of 23.53 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	107.78B	14.92	6.05%	2.39%	4.84%	62.58%
1882	77 Outperform	80.20B	16.76	7.45%	5.62%	6.09%	21.09%
1890	75 Outperform	162.40B	18.40	10.78%	5.09%	0.57%	26.93%
1898	73 Outperform	55.67B	13.53	9.32%	5.81%	9.19%	45.78%
1899	71 Outperform	57.61B	10.06	6.27%	2.96%	0.18%	14.61%
1776	51 Neutral	¥13.38B	78.02		2.72%	0.66%	-65.05%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%