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

• Market Cap: ¥17.15B
• Dividend Yield: 1.01%
• Average Volume (3M): 153.75K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.47
• Revenue Growth: 17.09%
• EPS Growth: 43.01%
• Country: JP
• Employees: 484
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 12.73
• Shares Outstanding: 28,835,730
• 10 Day Avg. Volume: 254,800
• 30 Day Avg. Volume: 153,750
• PEG Ratio: 0.10
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.17
• P/FCF Ratio: -1.47
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: ¥692.00 ▲(14.76% Upside)

Nankai Tatsumura Construction Co., Ltd. demonstrates strong technical momentum and attractive valuation, which are the primary drivers of its score. Financial performance is solid but requires attention to cash flow management and rising debt levels. The absence of recent earnings call data and corporate events does not impact the score.

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

Company Description

Nankai Tatsumura Construction Co., Ltd. operates as a construction company in Japan. The company undertakes civil engineering; construction; and pipe, electrical, and telecommunications construction works, as well as general construction works. It also owns and sells real estate properties. The company was founded in 1923 and is headquartered in Osaka, Japan. Nankai Tatsumura Construction Co., Ltd. operates as a subsidiary of Nankai Electric Railway Co., Ltd.

How the Company Makes Money

Nankai Tatsumura Construction Co., Ltd. generates revenue primarily through its construction projects, which include public works contracts, private developments, and large-scale infrastructure projects. The company wins contracts through competitive bidding processes, leveraging its reputation, expertise, and financial stability to secure projects. Key revenue streams include payments for construction services, project management fees, and long-term maintenance contracts. Additionally, the company may engage in partnerships with governmental bodies and private developers, which can lead to joint ventures or collaborative projects that enhance its revenue potential. Factors contributing to its earnings include the demand for construction services in urban development, government investment in infrastructure, and the company’s ability to adapt to market trends and technological advancements in construction methodologies.

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	53.82B	52.95B	43.63B	42.40B	37.19B	44.82B
Gross Profit	5.06B	4.82B	3.79B	4.02B	3.99B	3.88B
EBITDA	2.74B	2.52B	1.73B	2.28B	1.41B	1.26B
Net Income	1.90B	1.71B	1.10B	1.90B	1.31B	693.00M
Balance Sheet
Total Assets	34.44B	42.87B	30.34B	34.86B	32.45B	36.00B
Cash, Cash Equivalents and Short-Term Investments	4.25B	3.93B	6.27B	7.83B	5.42B	4.40B
Total Debt	1.66B	5.98B	1.93B	4.42B	4.46B	5.01B
Total Liabilities	16.90B	25.57B	14.56B	20.40B	19.77B	24.65B
Stockholders Equity	17.54B	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: 603.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 603 is above the 20-day moving average (MA) of 519.05, above the 50-day MA of 505.06, and above the 200-day MA of 364.61, indicating a bullish trend. The MACD of 23.92 indicates Negative momentum. The RSI at 60.90 is Neutral, neither overbought nor oversold. The STOCH value of 45.39 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
1798	82 Outperform	¥15.50B	5.62	―	1.56%	22.31%	101.45%
1850	77 Outperform	¥17.15B	8.31	―	1.01%	17.09%	43.01%
1807	71 Outperform	¥10.07B	9.79	―	4.73%	3.49%	9.50%
1853	68 Neutral	¥10.91B	10.32	―	4.20%	-4.01%	42.07%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1848	59 Neutral	¥9.10B	3.62	―	2.55%	12.27%	682.78%
1436	54 Neutral	¥9.03B	31.50	―	0.60%	28.12%	-3.09%