Ichiken Co., Ltd. (1847) AI Stock Analysis

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Ichiken Co., Ltd.

(TSE/TYO:1847)

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Rating:66Neutral

Price Target:JPY 3,521.00▲(10.55% Upside)

Action:downgraded

Date:11/12/26

The overall score is driven by a strong valuation and solid long-term financial health, which are offset by significant short-term cash flow concerns and bearish technical momentum. The low P/E ratio and high dividend yield are the most compelling positives, while the recent negative free cash flow and price trading below key moving averages present the primary risks.

Positive Factors

Revenue and profit growthThe sustained expansion in revenue and net income indicates improved business scale and earnings power over the reported period. If maintained, this growth can strengthen Ichiken’s ability to fund operations, support investments, and withstand normal construction-market fluctuations.

Negative Factors

Inconsistent cash generationThe sharp reversal from strong positive cash generation to negative operating and free cash flow highlights significant working-capital and project-timing volatility. Even with accounting profits, uneven cash conversion can constrain funding flexibility and make capital allocation less predictable.

Ichiken Co., Ltd. (1847) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 47.11B
Dividend Yield: 4.52%
Average Volume (3M): 28.61K
Price to Earnings (P/E): 6.5
Beta (1Y): 0.85
Revenue Growth: 14.95%
EPS Growth: 58.56%
Country: Japan
Employees: 722
Sector: Real Estate
Sector Strength: 65
Industry: Engineering & Construction

Ichiken Co., Ltd. Business Overview & Revenue Model

Company Description

Ichiken Co., Ltd. is a Japanese construction firm based in Tokyo. The company's operations encompass various areas, including urban infrastructure maintenance, property leasing, and the development of both commercial and residential facilities. Furth...

Ichiken Co., Ltd. Financial Statement Overview

Summary

Strong profitability and a robust balance sheet with low leverage support a high score, but the recent negative operating cash flow significantly detracts, indicating potential short-term liquidity pressure.

Income Statement

85Very Positive

Balance Sheet

90Very Positive

Cash Flow

40Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	108.32B	106.18B	99.00B	96.37B	88.06B	83.78B
Gross Profit	14.41B	13.10B	10.51B	6.91B	5.39B	7.39B
EBITDA	10.70B	9.41B	7.29B	4.32B	2.82B	4.50B
Net Income	7.25B	6.41B	4.70B	2.94B	1.71B	2.98B
Balance Sheet
Total Assets	73.02B	74.44B	67.60B	63.92B	55.71B	57.62B
Cash, Cash Equivalents and Short-Term Investments	13.40B	14.68B	19.96B	13.02B	11.65B	11.66B
Total Debt	7.68B	6.13B	6.79B	5.72B	5.79B	5.90B
Total Liabilities	32.02B	34.41B	33.51B	33.84B	28.19B	30.82B
Stockholders Equity	41.00B	40.02B	34.09B	30.08B	27.53B	26.80B
Cash Flow
Free Cash Flow	-606.00M	-3.76B	8.11B	1.80B	1.23B	650.00M
Operating Cash Flow	-483.50M	-3.23B	8.14B	1.88B	1.28B	757.00M
Investing Cash Flow	-127.50M	-271.00M	-1.35B	417.00M	-116.00M	-136.00M
Financing Cash Flow	-475.50M	-1.72B	75.00M	-929.00M	-1.16B	-799.00M

Ichiken Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price3185.00

Price Trends

50DMA3324.48Negative

100DMA3064.23Positive

200DMA2849.69Positive

Market Momentum

MACD-43.89Positive

RSI49.70Neutral

STOCH54.88Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1847, the sentiment is Positive. The current price of 3185.00 is below the 20-day moving average (MA) of 3281.50, below the 50-day MA of 3324.48, and above the 200-day MA of 2849.69, indicating a neutral trend. The MACD of -43.89 indicates Positive momentum. The RSI at 49.70 is Neutral, neither overbought nor oversold. The STOCH value of 54.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1847.

Ichiken Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

JP:1847 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:1814	77Outperform	JPY 40.21B	7.77	―	5.44%	18.94%	78.10%
JP:1847	66Neutral	JPY 46.54B	6.51	―	4.52%	14.95%	58.56%
Sector *	65Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
JP:1925	63Neutral	JPY 2.99T	8.17	12.78%	6.01%	8.23%	19.10%
JP:8871	58Neutral	JPY 82.43B	9.79	6.08%	5.34%	14.17%	37.02%
JP:3299	55Neutral	JPY 35.39B	7.39	―	8.22%	-2.46%	-26.95%
JP:8897	54Neutral	JPY 53.22B	5.82	11.27%	6.72%	51.16%	79.58%

* Real Estate Sector Average

Performance Comparison

JP:1847 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:1847	Ichiken Co., Ltd.	3185.00	1140.95	55.82%
JP:8871	GOLDCREST Co	2512.00	-672.57	-21.12%
JP:1925	Daiwa House Industry Co	2392.50	-126.18	-5.01%
JP:8897	Takara Leben Co., Ltd.	404.00	42.11	11.64%
JP:1814	DAISUE CONSTRUCTION CO., LTD.	3925.00	596.33	17.91%
JP:3299	Mugen Estate Co., Ltd.	1477.00	-335.23	-18.50%

Ichiken Co., Ltd. Corporate Events

Ichiken Reports Higher Six-Month Sales and Profits

Nov 12, 2026

Ichiken Co., Ltd., listed on the Tokyo Stock Exchange under code 1847, reported consolidated results for the six months ended September 30, 2026.Net sales rose 18.3% year on year to ¥58,200 million, while operating profit increased 103.8% to ¥7,598 m...

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: Nov 12, 2026

Ichiken Co., Ltd. AI Stock Analysis