P.S. Mitsubishi Construction Co., Ltd. (1871) AI Stock Analysis

P.S. Mitsubishi Construction Co., Ltd.

(TSE/TYO:1871)

Select Model

Rating:72Outperform

Price Target:JPY 2,576.00▲(11.52% Upside)

Action:upgraded

Date:08/19/26

P.S. Mitsubishi Construction earns a solid overall score driven primarily by its highly attractive valuation, including a 5.17% dividend yield and low earnings multiple. Financial fundamentals are fundamentally bifurcated; robust profitability and a strong balance sheet are offset by significant cash flow volatility inherent to the construction sector. Short-term positive technical momentum provides additional support, though long-term moving averages suggest overhead resistance remains.

Positive Factors

Improving Revenue GrowthTwo consecutive years of accelerating revenue growth indicate improving demand and execution across the company’s project-based construction and infrastructure activities, supporting a stronger operating base over the next several quarters.

Negative Factors

Volatile Cash GenerationLarge swings in operating and free cash flow create funding uncertainty and may require additional borrowing or working-capital support. The FY2026 outflow was especially significant relative to earnings if this pattern continues.

P.S. Mitsubishi Construction Co., Ltd. (1871) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 108.15B
Dividend Yield: 5.65%
Average Volume (3M): 133.99K
Price to Earnings (P/E): 11.2
Beta (1Y): 0.65
Revenue Growth: 5.67%
EPS Growth: 19.34%
Country: Japan
Employees: 1,624
Sector: Industrials
Sector Strength: 63
Industry: Engineering & Construction

P.S. Mitsubishi Construction Co., Ltd. Business Overview & Revenue Model

Company Description

PS Construction Co., Ltd., a subsidiary of Taisei Corporation based in Minato, Japan, engages in extensive civil engineering and architectural projects both domestically and internationally. Founded in 1952 as P.S. Mitsubishi Construction Co., Ltd.,...

How the Company Makes Money

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P.S. Mitsubishi Construction Co., Ltd. Financial Statement Overview

Summary

P.S. Mitsubishi Construction displays solid revenue and net income growth alongside a well-capitalized balance sheet. However, severe cash flow volatility and recent negative operating and free cash flows significantly temper the overall financial strength.

Income Statement

85Very Positive

Balance Sheet

82Very Positive

Cash Flow

40Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	145.92B	149.37B	135.63B	129.29B	109.33B	109.64B
Gross Profit	25.59B	24.73B	23.01B	18.77B	15.51B	15.75B
EBITDA	14.79B	14.31B	13.59B	8.93B	6.82B	7.56B
Net Income	9.65B	9.33B	8.22B	5.05B	3.79B	4.54B
Balance Sheet
Total Assets	137.16B	142.46B	132.57B	123.98B	116.08B	93.10B
Cash, Cash Equivalents and Short-Term Investments	20.20B	9.34B	22.10B	11.16B	9.35B	9.95B
Total Debt	26.04B	28.30B	19.57B	21.09B	30.86B	10.62B
Total Liabilities	72.88B	76.97B	74.68B	71.81B	68.21B	47.56B
Stockholders Equity	64.28B	65.49B	57.88B	52.17B	47.87B	45.53B
Cash Flow
Free Cash Flow	0	-18.68B	14.95B	13.94B	-18.31B	1.31B
Operating Cash Flow	0	-17.47B	15.95B	15.94B	-16.71B	2.60B
Investing Cash Flow	0	-506.00M	-807.00M	-1.92B	-1.96B	-1.15B
Financing Cash Flow	0	5.24B	-4.21B	-12.22B	18.06B	-1.97B

P.S. Mitsubishi Construction Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price2310.00

Price Trends

50DMA2156.61Positive

100DMA2169.74Positive

200DMA2452.41Negative

Market Momentum

MACD40.13Negative

RSI64.10Neutral

STOCH76.88Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1871, the sentiment is Positive. The current price of 2310.00 is above the 20-day moving average (MA) of 2116.45, above the 50-day MA of 2156.61, and below the 200-day MA of 2452.41, indicating a neutral trend. The MACD of 40.13 indicates Negative momentum. The RSI at 64.10 is Neutral, neither overbought nor oversold. The STOCH value of 76.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1871.

P.S. Mitsubishi Construction Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

JP:1871 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:1879	86Outperform	JPY 125.05B	8.09	―	3.68%	7.30%	8.29%
JP:1870	79Outperform	JPY 89.60B	10.19	―	5.25%	2.98%	16.13%
JP:1871	72Outperform	JPY 107.95B	11.21	―	5.65%	5.67%	19.34%
JP:1835	67Neutral	JPY 137.19B	10.85	―	3.87%	0.23%	7.75%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
JP:1720	62Neutral	JPY 124.68B	9.13	―	3.51%	10.80%	70.25%
JP:1820	60Neutral	JPY 207.50B	7.75	―	4.52%	13.72%	69.55%

* Industrials Sector Average

Performance Comparison

JP:1871 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:1871	P.S. Mitsubishi Construction Co., Ltd.	2310.00	566.06	32.46%
JP:1720	Tokyu Construction Co., Ltd.	1197.00	164.25	15.90%
JP:1820	Nishimatsu Construction Co., Ltd.	5314.00	190.15	3.71%
JP:1835	Totetsu Kogyo Co., Ltd.	4030.00	-110.82	-2.68%
JP:1870	Yahagi Construction Co., Ltd.	2096.00	7.62	0.36%
JP:1879	Shinnihon Corporation	2121.00	396.46	22.99%

P.S. Mitsubishi Construction Co., Ltd. Corporate Events

PS Construction Lifts Quarterly Profit Despite Lower Sales, Keeps Full-Year Outlook

Aug 6, 2026

PS Construction Co. reported a 10.1% year-on-year decline in net sales to ¥30.7 billion for the quarter ended June 30, 2026, but improved profitability, with operating profit up 21.4% to ¥3.0 billion and profit attributable to owners rising...

PS Construction Details Relationship and Independence from Parent Taisei

Jun 26, 2026

PS Construction Co., Ltd., a TSE Prime-listed construction firm and consolidated subsidiary of Taisei Corporation, operates within the Taisei Group but states it is not heavily dependent on transactions with its parent. The company maintains loan arr...

PS Construction Corrects Cash Flow Classification with No Impact on Earnings

Jun 18, 2026

PS Construction Co., Ltd. announced it has partially corrected its summary of consolidated financial results for the fiscal year ended March 2026 under Japanese GAAP, originally released in mid-May. The company updated its XBRL numerical data after i...

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: Aug 19, 2026

P.S. Mitsubishi Construction Co., Ltd. AI Stock Analysis