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

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P.S. Mitsubishi Construction Co., Ltd.

(TSE/TYO:1871)

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Rating:68Neutral

Price Target:JPY 2,530.00▲(5.42% Upside)

Action:reiterated

Date:08/19/26

The score is driven by solid profitability trends and an attractive valuation (low P/E and high dividend yield), partially offset by a major risk: highly volatile cash conversion with a large FY2026 cash outflow. Technicals are moderately positive in the near term but remain weaker versus longer-term moving averages.

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 116.95B
Dividend Yield: 5.44%
Average Volume (3M): 149.82K
Price to Earnings (P/E): 11.9
Beta (1Y): 0.64
Revenue Growth: -1.86%
EPS Growth: 5.09%
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

Income statement strength (score 78) shows improving revenue growth and materially higher net income into FY2026, and the balance sheet is generally manageable (score 71) despite higher FY2026 debt. The major offset is weak and highly volatile cash generation (cash flow score 42), including a large FY2026 operating and free cash outflow that could pressure liquidity if it persists.

Income Statement

78Positive

Balance Sheet

71Positive

Cash Flow

42Neutral

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 Price2400.00

Price Trends

50DMA2162.83Positive

100DMA2183.93Positive

200DMA2436.20Negative

Market Momentum

MACD68.06Negative

RSI61.53Neutral

STOCH73.48Neutral

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 2400.00 is above the 20-day moving average (MA) of 2202.45, above the 50-day MA of 2162.83, and below the 200-day MA of 2436.20, indicating a neutral trend. The MACD of 68.06 indicates Negative momentum. The RSI at 61.53 is Neutral, neither overbought nor oversold. The STOCH value of 73.48 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 122.59B	8.05	―	3.73%	7.30%	8.29%
JP:1870	79Outperform	JPY 88.83B	12.22	―	5.25%	-13.05%	-27.53%
JP:1871	68Neutral	JPY 113.27B	11.86	―	5.44%	-1.86%	5.09%
JP:1835	67Neutral	JPY 137.87B	10.95	―	3.90%	0.23%	7.75%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
JP:1720	62Neutral	JPY 127.51B	9.83	―	3.48%	3.92%	21.56%
JP:1820	60Neutral	JPY 215.23B	8.18	―	4.41%	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.	2400.00	375.85	18.57%
JP:1720	Tokyu Construction Co., Ltd.	1207.00	144.22	13.57%
JP:1820	Nishimatsu Construction Co., Ltd.	5445.00	284.70	5.52%
JP:1835	Totetsu Kogyo Co., Ltd.	4000.00	13.80	0.35%
JP:1870	Yahagi Construction Co., Ltd.	2094.00	114.83	5.80%
JP:1879	Shinnihon Corporation	2093.00	339.54	19.36%

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 22.2% to...

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