Nishimatsu Construction Co., Ltd. (1820) AI Stock Analysis

0 Followers

Nishimatsu Construction Co., Ltd.

(TSE/TYO:1820)

Select Model

Rating:67Neutral

Price Target:JPY 5,969.00▲(4.83% Upside)

Action:reiterated

Date:08/17/26

The overall score of 67 reflects a moderately favorable outlook. The stock's strong valuation (P/E 8.0, yield 4.2%) and improving profitability and balance sheet are key positives. However, weak cash flow generation and overbought technical indicators temper the optimism. Investors should monitor cash flow trends and potential resistance at longer-term moving averages.

Positive Factors

Improving revenue and marginsRecent revenue growth and margin expansion indicate stronger project economics and execution. If sustained, improved profitability can strengthen internal funding capacity and provide a more durable earnings base across the company’s civil engineering and building activities.

Negative Factors

Severely weak cash conversionDeeply negative free cash flow despite positive earnings signals a material gap between accounting profits and cash generation. Persistent working-capital needs or investment outflows could increase funding dependence and limit flexibility if operating cash flow does not recover.

Nishimatsu Construction Co., Ltd. (1820) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 228.98B
Dividend Yield: 4.21%
Average Volume (3M): 144.84K
Price to Earnings (P/E): 7.8
Beta (1Y): 0.67
Revenue Growth: 18.25%
EPS Growth: 60.99%
Country: Japan
Employees: 3,442
Sector: Industrials
Sector Strength: 63
Industry: Engineering & Construction

Nishimatsu Construction Co., Ltd. Business Overview & Revenue Model

Company Description

Nishimatsu Construction Co., Ltd., headquartered in Tokyo, Japan, is an established firm with operations extending both domestically and internationally. Founded in 1874 as Nishimatsu Gumi Co., Ltd. and adopting its current name in July 1948, the com...

How the Company Makes Money

Nishimatsu Construction primarily makes money through contract revenue earned from undertaking construction projects for public-sector and private-sector customers. Its core revenue model is project-based: it bids for or negotiates construction contr...

Nishimatsu Construction Co., Ltd. Financial Statement Overview

Summary

Nishimatsu Construction shows robust revenue growth and margin expansion, with gross margin reaching 13.7% and net margin 6.1%. Balance sheet strengthened with increased equity and reduced debt (D/E 1.04). However, cash flow weakened significantly, with operating cash flow covering only a small portion of net income and negative free cash flow. This mixed profile results in a moderate score.

Income Statement

78Positive

Balance Sheet

70Positive

Cash Flow

40Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	437.82B	396.03B	366.81B	401.63B	339.76B	323.75B
Gross Profit	64.02B	54.28B	44.11B	40.79B	33.72B	43.77B
EBITDA	49.29B	41.52B	30.69B	23.94B	18.39B	27.80B
Net Income	28.97B	24.07B	17.54B	12.39B	9.65B	15.10B
Balance Sheet
Total Assets	681.44B	686.01B	592.05B	579.62B	513.62B	477.61B
Cash, Cash Equivalents and Short-Term Investments	53.24B	48.27B	43.42B	56.53B	53.73B	47.12B
Total Debt	233.05B	202.83B	214.28B	187.16B	169.41B	161.08B
Total Liabilities	474.29B	481.59B	410.85B	402.76B	357.47B	319.89B
Stockholders Equity	198.19B	194.90B	172.14B	168.82B	148.84B	151.33B
Cash Flow
Free Cash Flow	0	-20.30B	-18.17B	17.30B	8.70B	11.41B
Operating Cash Flow	0	3.04B	5.89B	32.04B	34.75B	41.24B
Investing Cash Flow	0	-7.46B	-36.21B	-41.82B	-27.40B	-17.73B
Financing Cash Flow	0	7.98B	16.09B	11.08B	-2.42B	-20.87B

Nishimatsu Construction Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price5694.00

Price Trends

50DMA5372.06Positive

100DMA5320.71Positive

200DMA5508.70Positive

Market Momentum

MACD34.92Negative

RSI64.51Neutral

STOCH88.47Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1820, the sentiment is Positive. The current price of 5694.00 is above the 20-day moving average (MA) of 5318.05, above the 50-day MA of 5372.06, and above the 200-day MA of 5508.70, indicating a bullish trend. The MACD of 34.92 indicates Negative momentum. The RSI at 64.51 is Neutral, neither overbought nor oversold. The STOCH value of 88.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1820.

Nishimatsu Construction Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

JP:1820 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:1860	79Outperform	JPY 435.10B	9.72	―	4.62%	10.48%	81.54%
JP:1719	74Outperform	JPY 312.50B	9.27	15.52%	4.50%	6.21%	31.18%
JP:1861	67Neutral	JPY 219.46B	10.97	10.95%	4.00%	-4.10%	61.07%
JP:1820	67Neutral	JPY 214.92B	7.76	―	4.21%	18.25%	60.99%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
JP:1893	61Neutral	JPY 406.95B	10.73	19.28%	3.86%	4.48%	94.59%
JP:1801	53Neutral	JPY 1.94T	11.86	19.03%	3.20%	6.98%	41.06%

* Industrials Sector Average

Performance Comparison

JP:1820 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:1820	Nishimatsu Construction Co., Ltd.	5694.00	537.54	10.42%
JP:1719	Hazama Ando Corp	1822.50	118.98	6.98%
JP:1861	Kumagai Gumi Co	1301.00	-107.70	-7.65%
JP:1893	Penta-Ocean Construction Co	1478.00	-43.25	-2.84%
JP:1801	TAISEI CORP	12355.00	115.21	0.94%
JP:1860	Toda Corporation	1472.00	403.45	37.76%

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

Nishimatsu Construction Co., Ltd. AI Stock Analysis