Daiichi Kensetsu Corporation (1799) AI Stock Analysis

• Market Cap: ¥65.50B
• Dividend Yield: 4.01%
• Average Volume (3M): 11.89K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.58
• Revenue Growth: 6.27%
• EPS Growth: 65.71%
• Country: JP
• Employees: 903
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 75.87
• Shares Outstanding: 20,858,492
• 10 Day Avg. Volume: 18,960
• 30 Day Avg. Volume: 11,893
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: ―

Daiichi Kensetsu Corporation shows strong financial performance with robust revenue growth and a healthy balance sheet. However, technical indicators suggest a downward trend, which could be a short-term concern. The stock's valuation is appealing with a reasonable P/E ratio and a solid dividend yield, which supports its attractiveness to investors seeking income.

Daiichi Kensetsu Corporation Business Overview & Revenue Model

Company Description

Daiichi Kensetsu Corporation provides contract work services for civil engineering, architecture, and railway construction in Japan. The company also offers planning, design, surveying, supervision, inspection, and consulting services for civil engineering, architecture, and railway construction. In addition, it manufactures and sells materials for civil engineering, architecture, and railway construction; and buys and sells, exchanges, leases, mediates, and manages real estate properties, as well as provides non-life insurance agency services. Daiichi Kensetsu Corporation was founded in 1942 and is headquartered in Niigata, Japan.

How the Company Makes Money

Daiichi Kensetsu Corporation generates revenue through multiple streams primarily related to its construction and engineering operations. The company earns income by undertaking construction contracts for both public infrastructure projects and private sector developments. These contracts often involve the design, planning, and execution of large-scale projects such as roads, bridges, and commercial buildings. Additionally, the company may engage in real estate development activities, where it acquires land, develops properties, and sells or leases them for a profit. Partnerships with government entities and private companies play a significant role in securing contracts and projects, which are key drivers of the company's revenue. Furthermore, maintenance and renovation services for existing structures add to the revenue streams by providing ongoing income beyond initial construction phases.

Daiichi Kensetsu Corporation Financial Statement Overview

Summary

Daiichi Kensetsu Corporation displays strong financial health with consistent revenue growth and effective cost management. The balance sheet is robust, characterized by a high equity ratio and ample liquidity. While cash flow has improved significantly, historical volatility poses a potential risk. Overall, the company is well-positioned for future growth but should focus on enhancing profitability and reducing cash flow fluctuations.

Income Statement

Daiichi Kensetsu Corporation shows a positive trend in revenue growth with a 13.98% increase from the previous year. The gross profit margin has remained stable around 13%, and there is a notable improvement in the EBIT margin to 6.99% in 2024 from 7.53% in 2023, indicating effective cost management. However, the net profit margin is relatively modest at 5.17%, suggesting room for enhancing profitability.

Balance Sheet

The company maintains a strong financial position with a debt-free balance sheet and a high equity ratio of 85.67%, reflecting financial stability. The return on equity is healthy at 4.03%, though there is potential for improvement. The high cash reserves also contribute to a robust financial structure.

Cash Flow

There is a significant improvement in free cash flow from a negative in 2023 to a positive $3.21 billion in 2024, illustrating effective cash management. The operating cash flow to net income ratio is strong at 1.92, indicating efficient conversion of income to cash. However, the volatility in past cash flows suggests some instability that needs monitoring.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	53.30B	58.01B	53.99B	47.37B	42.75B	54.95B
Gross Profit	7.49B	10.90B	7.05B	6.75B	5.83B	8.45B
EBITDA	6.06B	9.55B	6.01B	5.93B	5.85B	7.17B
Net Income	3.08B	5.24B	2.79B	2.64B	2.60B	3.72B
Balance Sheet
Total Assets	78.00B	83.94B	80.94B	75.55B	73.10B	76.21B
Cash, Cash Equivalents and Short-Term Investments	14.74B	17.66B	18.02B	16.48B	24.85B	17.76B
Total Debt	454.42M	0.00	0.00	1.06M	3.59M	6.12M
Total Liabilities	9.86B	12.28B	13.26B	9.04B	7.69B	12.03B
Stockholders Equity	68.14B	71.66B	69.34B	66.51B	65.40B	64.18B
Cash Flow
Free Cash Flow	4.56B	2.42B	3.21B	-4.72B	7.78B	-1.30B
Operating Cash Flow	4.56B	5.98B	5.37B	-400.29M	10.46B	2.95B
Investing Cash Flow	0.00	-3.80B	-2.27B	-6.12B	-2.32B	-3.86B
Financing Cash Flow	0.00	-2.84B	-1.17B	-1.95B	-954.68M	-799.75M

Daiichi Kensetsu Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3245.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1799, the sentiment is Positive. The current price of 3245 is above the 20-day moving average (MA) of 3213.00, above the 50-day MA of 3200.40, and above the 200-day MA of 2691.66, indicating a bullish trend. The MACD of -3.13 indicates Positive momentum. The RSI at 55.57 is Neutral, neither overbought nor oversold. The STOCH value of 86.99 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1799.

Daiichi Kensetsu Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1802	80 Outperform	¥1.70T	12.53	12.61%	3.33%	6.50%	47.04%
1812	77 Outperform	¥2.11T	15.11	10.00%	2.66%	9.40%	21.78%
1801	77 Outperform	¥1.86T	13.93	14.30%	2.16%	12.91%	105.21%
1860	75 Outperform	¥314.06B	12.28	7.36%	3.38%	16.62%	42.69%
1820	71 Outperform	¥204.58B	12.82	10.19%	4.20%	-8.97%	9.14%
1799	66 Neutral	¥65.50B	11.06	―	4.01%	6.27%	65.71%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%