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Shimizu
(1803)
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Rating:61Neutral
Price Target:
¥2,141.00
▼(-10.55% Downside)
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
Revenue and profit growth
The latest annual period shows a substantial step-up in scale and profitability, with revenue up 58.9% and net income nearly doubling. If sustained, this stronger earnings base can support reinvestment and improve resilience across the construction cycle, although execution remains important.
Negative Factors
Weak cash conversion
Cash generation is materially weaker than reported earnings, with operating cash flow covering only about 3% of net income and free cash flow becoming negative. Persistent volatility would constrain internally funded investment, increase reliance on financing, and reduce the quality of earnings.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and profit growth
The latest annual period shows a substantial step-up in scale and profitability, with revenue up 58.9% and net income nearly doubling. If sustained, this stronger earnings base can support reinvestment and improve resilience across the construction cycle, although execution remains important.
Read all positive factors
Shimizu (1803) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.36T
Dividend Yield4.36%
Average Volume (3M)3.84M
Price to Earnings (P/E)8.1
Beta (1Y)0.91
Revenue Growth5.73%
EPS Growth132.70%
CountryJP
Employees22,278
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)186.73
Shares Outstanding716,689,400
10 Day Avg. Volume3,376,010
30 Day Avg. Volume3,844,513
Financial Highlights & Ratios
PEG Ratio0.15
Price to Book (P/B)1.92
Price to Sales (P/S)0.91
P/FCF Ratio-32.98
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥2,900.00Price Target Upside21.16% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)252.94
Revenue Forecast (FY)¥2.29T
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 earning contract revenue from construction projects. Its main revenue stream is payments received under construction contracts for building and civil engineering works, typically tied to project milestones or progr...
Shimizu Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
68
Positive
Cash Flow
41
Neutral
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.06T | 1.94T | 2.01T | 1.93T | 1.48T |
| Gross Profit | 258.09B | 200.56B | 94.98B | 166.07B | 144.87B |
| EBITDA | 234.42B | 147.85B | 69.45B | 105.14B | 87.57B |
| Net Income | 126.62B | 66.02B | 17.16B | 49.06B | 47.76B |
Balance Sheet | |||||
| Total Assets | 2.65T | 2.52T | 2.54T | 2.45T | 2.13T |
| Cash, Cash Equivalents and Short-Term Investments | 355.99B | 438.16B | 339.26B | 386.78B | 287.13B |
| Total Debt | 567.41B | 592.54B | 584.64B | 578.19B | 495.72B |
| Total Liabilities | 1.65T | 1.60T | 1.59T | 1.54T | 1.25T |
| Stockholders Equity | 977.98B | 860.08B | 888.54B | 852.56B | 824.50B |
Cash Flow | |||||
| Free Cash Flow | -57.02B | 125.02B | -78.95B | 15.27B | -31.99B |
| Operating Cash Flow | 41.64B | 159.09B | -21.25B | 83.84B | 77.77B |
| Investing Cash Flow | -6.86B | 7.81B | -5.36B | -48.43B | -89.31B |
| Financing Cash Flow | -120.59B | -71.10B | -23.97B | 61.63B | 19.63B |
Shimizu Technical Analysis
Negative
2393.50
Price Trends
2233.79
Negative
2344.26
Negative
2615.02
Negative
Market Momentum
-70.16
Negative
39.87
Neutral
60.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1803, the sentiment is Negative. The current price of 2393.5 is above the 20-day moving average (MA) of 2063.74, above the 50-day MA of 2233.79, and below the 200-day MA of 2615.02, indicating a bearish trend. The MACD of -70.16 indicates Negative momentum. The RSI at 39.87 is Neutral, neither overbought nor oversold. The STOCH value of 60.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:1803.
Shimizu Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥317.28B | 8.95 | 15.52% | 4.66% | 3.73% | 12.75% | |
73 Outperform | ¥2.09T | 12.16 | 13.44% | 3.44% | 3.72% | 36.12% | |
67 Neutral | ¥209.43B | 10.21 | 10.95% | 4.29% | -3.78% | 95.71% | |
67 Neutral | ¥2.01T | 10.37 | 15.99% | 3.22% | 4.54% | 45.54% | |
64 Neutral | ¥1.83T | 10.78 | 19.03% | 3.34% | 1.52% | 43.29% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | ¥1.36T | 8.06 | 18.03% | 4.36% | 5.73% | 132.70% |
* Industrials Sector Average
JP:1803
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Shimizu Corporate Events
Shimizu Advances ¥20 Billion Share Buyback, Acquires Over 5.6 Million Shares
Oct 5, 2026
Shimizu Corporation has reported the progress of its ongoing share buyback program, disclosing that it repurchased 5,164,600 common shares for a total of ¥12.18 billion between September 1 and September 30, 2026 through market transactions on...
Shimizu launches bond-related share buyback to boost capital efficiency
Sep 25, 2026
Shimizu Corporation has repurchased 4,254,400 shares of its common stock for about ¥10 billion via an off-auction ToSTNeT-3 transaction on the Tokyo Stock Exchange. The buyback is designed to offset supply-demand effects from recently issued ...
Shimizu Sets Premium-Priced Terms for 2031 and 2033 Zero Coupon Convertible Bonds
Sep 24, 2026
Shimizu Corporation has set the key terms for two new zero coupon convertible bond issues, maturing in 2031 and 2033, both structured as bonds with stock acquisition rights. The conversion prices have been fixed at ¥2,845 for the 2031 bonds a...
Shimizu Taps Overseas Markets With ¥100 Billion Convertible Bond Issue to Fund M&A and Share Buybacks
Sep 24, 2026
Shimizu Corporation is a major Japanese construction and engineering firm with global operations, particularly in Europe and Asia, and a strategic focus on expanding its specialized engineering portfolio. The company is increasingly using internat...
Shimizu Sets ToSTNeT-3 Route for New Share Buyback
Sep 24, 2026
Shimizu Corporation has approved a new share buyback program and set the specific method for purchasing its own shares on the Tokyo Stock Exchange. The company will acquire common stock as treasury shares via an off-auction ToSTNeT-3 transaction, ...
Shimizu Doubles Share Buyback Limit to Support Convertible Bond Issuance
Sep 24, 2026
Shimizu Corporation has approved a significant expansion of its ongoing share buyback program to counteract potential short-term supply and demand distortions arising from the issuance of zero coupon convertible bonds maturing in 2031 and 2033. Th...
Shimizu to Raise ¥100 Billion via Zero Coupon Convertible Bonds for M&A and Share Buybacks
Sep 24, 2026
Shimizu Corporation’s board has approved the issuance of two tranches of zero coupon convertible bonds, due 2031 and 2033, with a combined principal amount of ¥100 billion. The instruments, issued slightly above par and redeemable at 10...
Shimizu Reports Progress on ¥10 Billion Share Buyback Program
Sep 3, 2026
Shimizu Corporation, a leading Japanese construction and engineering firm listed on the Tokyo and Nagoya exchanges, specializes in large-scale building, civil engineering, and infrastructure projects for both public and private clients in domestic...
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.