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Kitano Construction Corp.
(1866)
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Rating:64Neutral
Price Target:
¥1,221.00
▼(-15.68% Downside)
Action:Reiterated
Date:09/28/26
The score is anchored by solid underlying profitability and an exceptionally conservative balance sheet, but is held back by materially negative and volatile operating/free cash flow in the last two years and mild multi-year revenue softness. Technical indicators are neutral-to-weak, while the low P/E and moderate dividend yield provide a meaningful valuation cushion.
Positive Factors
Conservative balance sheet
Extremely low leverage and a growing equity base provide financial resilience for a project-driven business. This structure reduces debt-service pressure, preserves borrowing capacity, and gives management greater flexibility to withstand execution volatility or fund future construction opportunities.
Negative Factors
Negative operating and free cash flow
Recent negative operating and free cash flow weakens the conversion of accounting profits into usable liquidity. Although construction working-capital swings can be volatile, persistence would reduce financial flexibility, complicate project funding, and increase execution risk despite the strong balance sheet.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Extremely low leverage and a growing equity base provide financial resilience for a project-driven business. This structure reduces debt-service pressure, preserves borrowing capacity, and gives management greater flexibility to withstand execution volatility or fund future construction opportunities.
Read all positive factors
Kitano Construction Corp. (1866) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥27.38B
Dividend Yield2.71%
Average Volume (3M)12.36K
Price to Earnings (P/E)6.6
Beta (1Y)0.68
Revenue Growth-3.56%
EPS Growth25.50%
CountryJP
Employees1,143
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)168.25
Shares Outstanding25,347,412
10 Day Avg. Volume11,410
30 Day Avg. Volume12,356
Financial Highlights & Ratios
PEG Ratio-0.11
Price to Book (P/B)0.57
Price to Sales (P/S)0.37
P/FCF Ratio-5.91
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Kitano Construction Corp. Business Overview & Revenue Model
Company Description
Headquartered in Tokyo, Japan, Kitano Construction Corp. is a general contractor founded in 1946. The company's core business involves the planning, design, management, and consultation for construction projects, operating both domestically in Jap...
How the Company Makes Money
Kitano Construction Corp. primarily makes money by earning contract revenue from construction projects. Key revenue streams generally include (1) building construction contracts (e.g., commercial, institutional, residential, and other structures) ...
Kitano Construction Corp. Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
88
Very Positive
Cash Flow
34
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 80.41B | 78.79B | 80.85B | 84.96B | 85.28B | 60.10B |
| Gross Profit | 12.23B | 11.69B | 9.90B | 10.49B | 9.53B | 6.67B |
| EBITDA | 5.52B | 5.51B | 5.17B | 5.99B | 4.23B | 3.23B |
| Net Income | 4.09B | 3.49B | 3.38B | 3.90B | 1.99B | 1.74B |
Balance Sheet | ||||||
| Total Assets | 86.00B | 80.33B | 75.59B | 77.83B | 74.76B | 65.50B |
| Cash, Cash Equivalents and Short-Term Investments | 17.94B | 13.24B | 18.77B | 26.33B | 26.16B | 14.91B |
| Total Debt | 0.00 | 506.00M | 5.00M | 12.00M | 29.00M | 4.04B |
| Total Liabilities | 32.32B | 28.18B | 28.36B | 34.14B | 35.90B | 28.00B |
| Stockholders Equity | 53.11B | 51.57B | 46.66B | 43.13B | 38.32B | 36.98B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -5.00B | -6.53B | 1.26B | 16.06B | 1.99B |
| Operating Cash Flow | 0.00 | -4.16B | -6.17B | 1.92B | 16.52B | 2.32B |
| Investing Cash Flow | 0.00 | -1.28B | -849.00M | -254.00M | -236.00M | -345.00M |
| Financing Cash Flow | 0.00 | -682.00M | -1.24B | -1.31B | -5.24B | -715.00M |
Kitano Construction Corp. Technical Analysis
Negative
1448.00
Price Trends
1154.42
Negative
1112.88
Negative
1232.86
Negative
Market Momentum
-11.92
Positive
40.70
Neutral
44.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1866, the sentiment is Negative. The current price of 1448 is above the 20-day moving average (MA) of 1146.50, above the 50-day MA of 1154.42, and above the 200-day MA of 1232.86, indicating a bearish trend. The MACD of -11.92 indicates Positive momentum. The RSI at 40.70 is Neutral, neither overbought nor oversold. The STOCH value of 44.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:1866.
Kitano Construction Corp. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥42.85B | 8.78 | ― | 6.20% | -6.31% | 34.94% | |
78 Outperform | ¥51.00B | 10.07 | ― | 2.56% | 35.61% | 99.85% | |
68 Neutral | ¥43.10B | 9.24 | ― | 4.64% | 2.71% | 9.63% | |
66 Neutral | ¥39.09B | 13.92 | ― | 3.45% | 3.16% | ― | |
64 Neutral | ¥27.38B | 6.59 | ― | 2.71% | -3.56% | 25.50% | |
64 Neutral | ¥54.86B | 21.70 | ― | 1.57% | -6.91% | -46.52% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
JP:1866
Kitano Construction Corp.
1,131.00
-59.28
-4.98%
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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.