DAISUE CONSTRUCTION CO., LTD. (1814) AI Stock Analysis

• Market Cap: ¥27.72B
• Dividend Yield: 4.06%
• Average Volume (3M): 49.66K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.60
• Revenue Growth: 12.73%
• EPS Growth: 52.94%
• Country: JP
• Employees: 668
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): 47.54
• Shares Outstanding: 10,614,225
• 10 Day Avg. Volume: 59,230
• 30 Day Avg. Volume: 49,663
• PEG Ratio: 0.14
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.22
• P/FCF Ratio: -5.21
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ¥2,946.00 ▲(9.11% Upside)

The stock is rated positively due to strong technical indicators and reasonable valuation. Financial performance is solid, but negative cash flows are a concern. The absence of earnings call insights and corporate events does not impact the score.

DAISUE CONSTRUCTION CO., LTD. Business Overview & Revenue Model

Company Description

Daisue Construction Co., Ltd. operates as a construction company in Japan. It is involved in the construction of condominiums, offices, logistics warehouses, factories, medical facilities, and wedding and funeral buildings. The company also engages in the repair, extension, and renovation of existing buildings. Daisue Construction Co., Ltd. was founded in 1937 and is headquartered in Osaka, Japan.

How the Company Makes Money

DAISUE CONSTRUCTION CO., LTD. generates revenue primarily through its construction projects, which include contracts for public infrastructure, residential buildings, and commercial developments. The company's revenue model is based on fixed-price contracts, cost-plus contracts, and time and materials contracts, allowing for flexibility depending on the project scope. Key revenue streams include project management fees, construction services, and consultancy fees for planning and design. Additionally, partnerships with government agencies and private developers play a significant role in securing contracts, and the company benefits from repeat business and referrals through its established reputation for reliability and quality in the construction industry.

DAISUE CONSTRUCTION CO., LTD. Financial Statement Overview

Summary

DAISUE CONSTRUCTION CO., LTD. shows strong revenue growth and improved profitability, indicating effective market expansion. The balance sheet indicates financial stability with low leverage, reducing financial risks. However, the persistent negative operating cash flows highlight a need for improved cash generation efficiency.

Income Statement

The company shows a strong revenue growth trend, increasing from ¥56.5 billion in 2021 to ¥89 billion in 2025, indicating effective market expansion. Gross profit margins have improved over the years, with a notable margin of 9.15% in 2025. Net profit margin has also increased, reaching 2.31% in 2025, up from 2.84% in 2021. However, the EBIT and EBITDA margins, while positive, indicate room for improvement, as they stand at 4.15% and 4.75% respectively in 2025. The overall profitability is growing, but efficiency gains could further enhance margins.

Balance Sheet

The balance sheet reflects a stable financial position with a healthy equity ratio of 41.34% in 2025, suggesting strong asset backing by equity. The debt-to-equity ratio is low at 0.14, indicating conservative leverage use, which reduces financial risk. Return on equity has improved, reaching 8.96% in 2025, which is an encouraging sign of efficient use of equity. However, the total assets have decreased slightly over the years, which could impact future growth potential.

Cash Flow

Cash flow analysis reveals challenges with operating cash flows consistently negative over recent years, reaching ¥-3.06 billion in 2025. Free cash flow has also been negative, highlighting issues in cash generation from operations. However, the company has maintained a strategy of reducing net debt over time, shown by a net debt position of ¥-1.255 billion in 2025. Improving operational efficiency to convert revenue growth into positive cash flows remains a key priority.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	90.59B	89.03B	77.81B	71.83B	69.64B	56.49B
Gross Profit	8.52B	8.28B	5.65B	5.38B	6.05B	5.46B
EBITDA	4.31B	4.23B	2.23B	2.06B	2.83B	2.52B
Net Income	2.18B	2.06B	1.24B	1.32B	1.82B	1.60B
Balance Sheet
Total Assets	56.68B	55.59B	59.11B	45.63B	48.66B	40.53B
Cash, Cash Equivalents and Short-Term Investments	4.52B	4.46B	8.78B	10.19B	7.52B	6.22B
Total Debt	10.12B	3.20B	4.67B	202.00M	378.00M	490.00M
Total Liabilities	33.76B	32.60B	36.56B	24.09B	28.03B	21.42B
Stockholders Equity	22.92B	22.99B	22.55B	21.54B	20.63B	19.11B
Cash Flow
Free Cash Flow	0.00	-3.71B	-2.65B	3.53B	1.85B	-3.23B
Operating Cash Flow	0.00	-3.06B	-1.92B	4.19B	1.96B	-3.09B
Investing Cash Flow	0.00	808.00M	-2.99B	-516.00M	-122.00M	7.00M
Financing Cash Flow	0.00	-2.07B	3.70B	-1.01B	-535.00M	-706.00M

DAISUE CONSTRUCTION CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2700.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1814, the sentiment is Positive. The current price of 2700 is above the 20-day moving average (MA) of 2567.55, above the 50-day MA of 2528.31, and above the 200-day MA of 2070.28, indicating a bullish trend. The MACD of 99.24 indicates Negative momentum. The RSI at 83.46 is Negative, neither overbought nor oversold. The STOCH value of 96.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1814.

DAISUE CONSTRUCTION CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1847	81 Outperform	¥26.35B	5.76	―	3.59%	-5.96%	24.96%
146A	75 Outperform	¥26.32B	11.10	―	1.47%	―	―
3299	75 Outperform	¥49.32B	7.56	―	5.44%	11.83%	33.96%
1814	74 Outperform	¥27.72B	12.69	―	4.06%	12.73%	52.94%
8897	69 Neutral	¥52.81B	7.53	9.70%	7.18%	-6.09%	-36.16%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

DAISUE CONSTRUCTION CO., LTD. Corporate Events

DAISUE CONSTRUCTION Completes Treasury Share Disposal for Executive Compensation Plan

DAISUE CONSTRUCTION CO., LTD. has completed the payment for the disposal of 96,388 treasury shares under its performance-linked stock remuneration plan, as resolved by its Board of Directors. This move is part of the company’s strategy to align executive compensation with performance, potentially impacting its financial structure and stakeholder interests.

The most recent analyst rating on (JP:1814) stock is a Buy with a Yen2461.00 price target. To see the full list of analyst forecasts on DAISUE CONSTRUCTION CO., LTD. stock, see the JP:1814 Stock Forecast page.

DAISUE CONSTRUCTION Reports Strong Q1 2025 Financial Results

DAISUE CONSTRUCTION CO., LTD. reported a notable increase in its consolidated financial results for the three months ended June 30, 2025, with net sales rising by 7.9% and operating profit increasing by 52.2% year-on-year. Despite a slight decrease in the equity ratio, the company forecasts continued growth in net sales and profit for the fiscal year ending March 31, 2026, indicating a positive outlook for stakeholders.

DAISUE Construction Announces Treasury Share Disposal to Align Executive Remuneration

DAISUE CONSTRUCTION CO., LTD. has announced the disposal of treasury shares under its Performance-Linked Stock Remuneration Plan. This move aims to align director and executive officer remuneration with company performance and shareholder value, enhancing long-term corporate value. The disposal involves 96,388 ordinary shares at a disposal amount of 225,933,472 yen, benefiting directors and executive officers based on performance evaluation goals.