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Shimizu Corporation (JP:1803)
:1803
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Shimizu (1803) AI Stock Analysis

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JP:1803

Shimizu

(1803)

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Neutral 61 (OpenAI - 5.2)
Rating:61Neutral
Price Target:
¥2,548.00
▲(6.45% Upside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by improved profitability and reasonable balance-sheet leverage, but it is held back by weak and volatile cash flow (negative free cash flow in the latest year). Technical indicators are also soft (below key moving averages with negative MACD), while valuation is a clear positive due to the low P/E and supportive dividend yield.
Positive Factors
Strong Revenue and Profitability Growth
The latest annual results show materially improved scale, margins, and earnings. If project execution and cost discipline are maintained, the stronger operating base can support better profitability over the next several quarters.
Negative Factors
Weak and Volatile Cash Conversion
Cash generation is materially weaker than reported earnings, creating a risk that profits do not translate into liquidity. Persistent working-capital needs or elevated spending could constrain investment capacity and financial flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue and Profitability Growth
The latest annual results show materially improved scale, margins, and earnings. If project execution and cost discipline are maintained, the stronger operating base can support better profitability over the next several quarters.
Read all positive factors

Shimizu (1803) vs. iShares MSCI Japan ETF (EWJ)

Shimizu Business Overview & Revenue Model

Company Description
Shimizu Corporation, a venerable Japanese company established in 1804 and headquartered in Tokyo, is a diverse enterprise primarily known for its extensive operations in construction and civil engineering across Japan. This includes general buildi...
How the Company Makes Money
Shimizu primarily makes money by contracting and executing construction and engineering projects for customers in the private and public sectors. Its core revenue stream is construction contract revenue recognized as work progresses on building co...

Shimizu Financial Statement Overview

Summary
Income statement trends are strong in the latest year (sharp revenue growth and improved margins), and leverage improved modestly. However, cash flow quality is a major weakness: operating cash flow was low relative to net income and free cash flow turned negative, pointing to volatile cash conversion.
Income Statement
72
Positive
Balance Sheet
68
Positive
Cash Flow
41
Neutral
BreakdownMar 2026Mar 2026Mar 2025Mar 2024Mar 2023
Income Statement
Total Revenue2.06T1.94T2.01T1.93T1.48T
Gross Profit258.09B200.56B94.98B166.07B144.87B
EBITDA234.42B147.85B69.45B105.14B87.57B
Net Income126.62B66.02B17.16B49.06B47.76B
Balance Sheet
Total Assets2.65T2.52T2.54T2.45T2.13T
Cash, Cash Equivalents and Short-Term Investments355.99B438.16B339.26B386.78B287.13B
Total Debt567.41B592.54B584.64B578.19B495.72B
Total Liabilities1.65T1.60T1.59T1.54T1.25T
Stockholders Equity977.98B860.08B888.54B852.56B824.50B
Cash Flow
Free Cash Flow-57.02B125.02B-78.95B15.27B-31.99B
Operating Cash Flow41.64B159.09B-21.25B83.84B77.77B
Investing Cash Flow-6.86B7.81B-5.36B-48.43B-89.31B
Financing Cash Flow-120.59B-71.10B-23.97B61.63B19.63B

Shimizu Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
¥346.65B9.7715.87%4.26%3.73%12.75%
67
Neutral
¥224.30B10.8910.92%3.44%-3.78%95.71%
67
Neutral
¥2.06T10.6314.65%2.68%4.54%45.54%
64
Neutral
¥2.07T12.0719.37%2.27%1.52%43.29%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
61
Neutral
¥1.59T9.4913.92%2.85%5.73%132.70%
61
Neutral
¥2.35T12.4013.44%2.58%3.72%36.12%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:1803
Shimizu
2,388.00
439.53
22.56%
JP:1719
Hazama Ando
1,921.00
273.00
16.57%
JP:1812
Kajima
4,838.00
510.67
11.80%
JP:1861
Kumagai Gumi Co
1,292.00
136.85
11.85%
JP:1802
Obayashi
2,992.50
643.05
27.37%
JP:1801
TAISEI
12,570.00
2,819.74
28.92%

Shimizu Corporate Events

Shimizu to Use Treasury Shares for New Performance-Linked Executive Compensation Plan
Jul 30, 2026
Shimizu Corporation, a leading Japanese general contractor listed on the Tokyo and Nagoya exchanges, operates in construction and engineering with a focus on large-scale projects and sustainable corporate growth. The company is strengthening its g...
Shimizu Launches ¥10 Billion Share Buyback to Boost Capital Efficiency
Jul 30, 2026
Shimizu Corporation’s board has approved a share buyback program aimed at improving capital efficiency and enhancing corporate value. The move reflects the company’s ongoing focus on disciplined balance sheet management and shareholder...
Shimizu Raises Profit Outlook on Negative Goodwill From Seiwa Building Deal
Jul 30, 2026
Shimizu Corporation has boosted its earnings outlook after acquiring additional shares in Seiwa Building Co., Ltd., turning it into an equity-method affiliate and booking 35.5 billion yen in negative goodwill as non-operating income in the first q...
Shimizu Posts Surging Quarterly Profit and Lifts Full‑Year Outlook
Jul 30, 2026
Shimizu reported a strong start to fiscal 2026, with three‑month net sales to June 30 rising 9.3% year on year to ¥482.8 billion and operating income up 11.8% to ¥19.3 billion. Ordinary income surged 201.0% and net income attributa...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 17, 2026