Yahagi Construction Co., Ltd. (1870) AI Stock Analysis

• Market Cap: ¥71.04B
• Dividend Yield: 4.85%
• Average Volume (3M): 393.60K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.77
• Revenue Growth: -2.14%
• EPS Growth: -70.16%
• Country: JP
• Employees: 1,324
• Sector: Industrials
• Sector Strength: 83
• Industry: Engineering & Construction
• EPS (TTM): 77.27
• Shares Outstanding: 44,607,456
• 10 Day Avg. Volume: 503,640
• 30 Day Avg. Volume: 393,603
• PEG Ratio: -0.46
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: N/A
• Number of Analyst Covering: 0

Yahagi Construction Co., Ltd. shows a solid financial foundation with strong revenue growth and a stable balance sheet. However, the stock's technical indicators suggest a bearish trend, and the company's valuation appears high. While the high dividend yield is appealing, potential investors should be cautious of the company's operational efficiency and cash flow management challenges, as well as the bearish technical indicators.

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

Company Description

Yahagi Construction Co.,Ltd. engages in the construction of buildings in Japan. Its works include condominiums, logistics centers, commercial facilities, office buildings, airport terminal buildings, residential site development, roadways, railways, aseismic reinforcement, and slope face reinforcement. The company is involved in planning, surveying, designing, supervising, executing, and consulting for civil engineering, architecture, and other construction projects. It also engages in the maintenance and management of buildings and structures, diagnosis, and assessment of seismic resistance, etc. In addition, the company is involved in the planning, designing, supervising, and consulting related to inspection and removal of environmental pollutants; and planning, construction, and maintenance of public facilities, such as roads, railroads, buildings, educational/cultural facilities, etc. Further, it purchases, sells, leases, mediates, and manages real estate, as well as provides management and consulting related to real estate investment. The company was incorporated in 1949 and is headquartered in Nagoya, Japan.

How the Company Makes Money

Yahagi Construction Co., Ltd. generates revenue primarily through its construction services, which include civil engineering and building construction projects. The company undertakes a wide range of projects such as roads, bridges, tunnels, commercial buildings, and residential complexes. Revenue is earned through contracts awarded by government entities, private sector clients, and public-private partnerships. Additionally, Yahagi Construction may engage in environmental projects and other related services that contribute to its income. Key factors contributing to its earnings include its reputation for quality, strategic partnerships, and its ability to secure large-scale infrastructure projects.

Yahagi Construction Co., Ltd. Financial Statement Overview

Summary

Yahagi Construction Co., Ltd. displays strong revenue growth and a stable balance sheet, yet faces challenges in operational efficiency and cash flow management. The company's increasing leverage and inconsistent cash flow generation highlight areas for improvement. Overall, the financial health is solid but requires strategic focus on enhancing operational efficiency and cash flow stability.

Income Statement

Yahagi Construction shows strong revenue growth with a 7.1% increase year-over-year and a consistent upward trajectory in net income. The TTM data reflects a healthy gross profit margin of 11% and net profit margin of 2%. However, EBIT and EBITDA margins have seen a decline, indicating potential cost pressures. Overall, the revenue growth and profitability are commendable, but attention is needed on operational efficiency.

Balance Sheet

The company maintains a solid equity base, with an equity ratio of 47.4%, indicating financial stability. However, the debt-to-equity ratio has increased to 0.62 from the previous year, suggesting increased leverage. Return on equity stands at 3.8%, reflecting modest profitability on shareholders' capital. While the balance sheet is generally stable, rising debt levels warrant monitoring.

Cash Flow

Cash flow analysis shows potential concerns, with a lack of reported free cash flow and operating cash flow for the TTM period. Historically, the company has demonstrated variability in free cash flow generation, with a noticeable drop in operating cash flow compared to previous years. This inconsistency suggests potential liquidity risks that need addressing.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
126.11B	119.82B	111.11B	93.09B	106.61B	90.13B
	Gross Profit
13.89B	19.80B	16.59B	14.94B	15.70B	16.30B
	EBIT
3.79B	9.51B	7.21B	6.17B	7.36B	7.76B
	EBITDA
4.42B	10.57B	8.16B	7.03B	8.19B	8.56B
	Net Income Common Stockholders
2.52B	6.46B	4.51B	4.84B	3.29B	5.16B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
16.71B	19.99B	22.82B	22.01B	22.09B	13.78B
	Total Assets
138.68B	126.00B	129.99B	116.42B	129.84B	107.19B
	Total Debt
40.60B	22.40B	31.90B	30.40B	42.94B	26.06B
	Net Debt
23.89B	2.41B	9.08B	8.39B	20.85B	12.28B
	Total Liabilities
72.89B	59.46B	69.56B	58.89B	75.20B	55.14B
	Stockholders Equity
65.78B	66.53B	60.43B	57.53B	54.64B	52.04B
Cash Flow		Free Cash Flow
0.00	7.83B	1.47B	13.24B	-7.50B	-1.14B
	Operating Cash Flow
0.00	10.23B	4.15B	15.84B	-6.76B	631.00M
	Investing Cash Flow
0.00	-1.18B	-3.07B	-1.55B	-220.00M	-1.64B
	Financing Cash Flow
0.00	-11.86B	-253.00M	-14.35B	15.36B	918.00M

Yahagi Construction Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1649.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1870, the sentiment is Positive. The current price of 1649 is above the 20-day moving average (MA) of 1444.20, above the 50-day MA of 1337.40, and above the 200-day MA of 1443.63, indicating a bullish trend. The MACD of 81.86 indicates Negative momentum. The RSI at 80.65 is Negative, neither overbought nor oversold. The STOCH value of 92.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1870.

Yahagi Construction Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$4.36B	12.05	5.23%	249.94%	4.13%	-10.23%
1870	61 Neutral	¥71.04B	12.57		4.85%	-2.14%	-70.16%

Yahagi Construction Co., Ltd. Corporate Events

Yahagi Construction Co. Sees Sales Growth Amid Profit Decline

Yahagi Construction Co., Ltd. reported a 6.9% increase in net sales for the nine months ended December 31, 2024, but experienced significant declines in operating and ordinary profits by over 60% compared to the previous year. The company’s financial position displayed a slight decrease in net assets and equity ratio, reflecting challenges that may affect its market positioning and stakeholder confidence.