Nankai Tatsumura Construction Co., Ltd. (1850) AI Stock Analysis

• Market Cap: ¥14.27B
• Dividend Yield: 1.21%
• Average Volume (3M): 114.20K
• Price to Earnings (P/E): 7.5
• Beta (1Y): 0.47
• Revenue Growth: 23.15%
• EPS Growth: 46.68%
• Country: JP
• Employees: 484
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 14.43
• Shares Outstanding: 28,835,730
• 10 Day Avg. Volume: 81,190
• 30 Day Avg. Volume: 114,200
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥417.00
• Price Target Upside: -15.76% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 80 Outperform
• Price Target: ¥417.00 ▼(-15.76% Downside)

The overall score is driven by strong technical indicators and a favorable valuation, suggesting potential for price appreciation. Financial performance is solid, with growth in revenue and stable margins, but there are concerns about rising debt and cash flow management. The lack of earnings call data or notable corporate events limits further insight.

Nankai Tatsumura Construction Co., Ltd. Business Overview & Revenue Model

Company Description

Nankai Tatsumura Construction Co., Ltd., established in 1850, is a Japan-based company primarily engaged in the construction sector. The company specializes in civil engineering and building construction projects, offering services ranging from planning and design to execution and maintenance. It caters to both public and private sector clients, providing comprehensive solutions for infrastructure development and urban planning.

How the Company Makes Money

Nankai Tatsumura Construction Co., Ltd. generates revenue through various streams associated with its core operations in the construction industry. Primarily, the company earns money by undertaking construction contracts for public infrastructure projects such as roads, bridges, and utilities, as well as private sector developments including commercial and residential buildings. The company may also be involved in design-build projects, which offer a vertically integrated service combining both design and construction under a single contract. Additionally, maintenance and renovation services provide recurring income. By maintaining strategic partnerships with government agencies and private developers, Nankai Tatsumura ensures a steady pipeline of projects. The company's financial performance is influenced by factors such as project scale, duration, cost management, and economic conditions impacting the construction industry.

Nankai Tatsumura Construction Co., Ltd. Financial Statement Overview

Summary

The company exhibits strong revenue growth and stable profitability margins, indicating effective operational management. The balance sheet reflects a strong equity base, but rising debt levels need monitoring. Cash flow management presents challenges with recent negative trends, though there is potential for improvement through strategic financial planning.

Income Statement

The company has shown consistent revenue growth over the years with a significant jump from the previous year, indicating strong demand and effective management. The gross profit margin has been stable, reflecting efficient cost management. However, the net profit margin hovers around a moderate level, suggesting room for improvement in controlling operational costs or enhancing revenue efficiency.

Balance Sheet

The balance sheet is robust with a healthy equity ratio, indicating a strong position in terms of asset financing through equity rather than debt. However, the increasing debt-to-equity ratio poses a potential risk, especially with the recent increase in total debt. Return on equity is satisfactory, illustrating decent profitability relative to shareholder equity.

Cash Flow

The company faces challenges in cash flow management, highlighted by fluctuations in free cash flow and a recent negative operating cash flow. The operating cash flow to net income ratio reflects inconsistencies, suggesting volatility in cash earnings. Nevertheless, there are signs of recovery in cash flow with strategic management of capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	52.95B	52.95B	43.63B	42.40B	37.19B	44.82B
Gross Profit	4.82B	4.82B	3.79B	4.02B	3.99B	3.88B
EBITDA	2.46B	2.52B	1.73B	2.28B	1.41B	1.26B
Net Income	1.71B	1.71B	1.10B	1.90B	1.31B	693.00M
Balance Sheet
Total Assets	42.87B	42.87B	30.34B	34.86B	32.45B	36.00B
Cash, Cash Equivalents and Short-Term Investments	3.93B	3.93B	6.27B	7.83B	5.42B	4.40B
Total Debt	5.98B	5.98B	1.93B	4.42B	4.46B	5.01B
Total Liabilities	25.57B	25.57B	14.56B	20.40B	19.77B	24.65B
Stockholders Equity	17.29B	17.29B	15.77B	14.45B	12.67B	11.35B
Cash Flow
Free Cash Flow	0.00	-6.29B	1.51B	1.80B	1.57B	2.26B
Operating Cash Flow	0.00	-6.13B	1.52B	1.82B	1.60B	2.28B
Investing Cash Flow	0.00	-137.00M	-507.00M	711.00M	-33.00M	-26.00M
Financing Cash Flow	0.00	3.93B	-2.57B	-125.00M	-551.00M	-1.51B

Nankai Tatsumura Construction Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 495.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1850, the sentiment is Positive. The current price of 495 is above the 20-day moving average (MA) of 494.30, above the 50-day MA of 420.32, and above the 200-day MA of 332.77, indicating a neutral trend. The MACD of 21.96 indicates Positive momentum. The RSI at 58.99 is Neutral, neither overbought nor oversold. The STOCH value of 31.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1850.

Nankai Tatsumura Construction Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1850	80 Outperform	¥14.27B	7.51		1.21%	23.15%	46.68%
1798	80 Outperform	11.94B	5.53	10.36%	1.84%	24.64%	35.00%
1807	75 Outperform	10.42B	10.13	4.18%	4.56%	3.49%	9.50%
1853	72 Outperform	10.64B	10.07	6.18%	4.31%	-4.01%	42.07%
1436	69 Neutral	9.98B	34.80	5.20%	0.55%	28.12%	-3.09%
1848	63 Neutral	10.24B	4.07	17.77%	2.25%	12.27%	682.78%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%