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Daito Construction
(1878)
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Rating:62Neutral
Price Target:
¥3,229.00
▲(6.39% Upside)
Action:Downgraded
Date:05/02/26
The score is anchored by mixed financial performance: steady revenue and solid margins are offset by a significant 2026 deterioration in cash-flow generation and a notable increase in leverage. Technicals are soft (below key moving averages with negative MACD), while valuation is a relative positive with a moderate P/E and a high dividend yield.
Positive Factors
Steady revenue growth
Consistent multi-year revenue growth indicates durable market demand and successful project delivery. Over 2021–2026 the company expanded sales, which supports scale benefits, production planning and reinvestment capacity, reducing reliance on one-off projects and improving resilience over a 2–6 month horizon and beyond.
Negative Factors
Sharp cash-flow deterioration
A pronounced drop in operating and free cash flow reduces internal funding for capex, dividends and debt service, and indicates weaker cash conversion. If working-capital demands or project timing remain elevated, the company faces constrained liquidity and less cushion against downturns, raising medium-term execution risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady revenue growth
Consistent multi-year revenue growth indicates durable market demand and successful project delivery. Over 2021–2026 the company expanded sales, which supports scale benefits, production planning and reinvestment capacity, reducing reliance on one-off projects and improving resilience over a 2–6 month horizon and beyond.
Read all positive factors
Daito Construction (1878) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.07T
Dividend Yield5.16%
Average Volume (3M)1.10M
Price to Earnings (P/E)10.4
Beta (1Y)0.35
Revenue Growth7.73%
EPS Growth4.60%
CountryJP
Employees18,814
SectorReal Estate
Sector Strength53
IndustryReal Estate - Diversified
Share Statistics
EPS (TTM)299.01
Shares Outstanding344,594,900
10 Day Avg. Volume922,440
30 Day Avg. Volume1,101,263
Financial Highlights & Ratios
PEG Ratio2.63
Price to Book (P/B)2.45
Price to Sales (P/S)0.61
P/FCF Ratio72.89
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥3,200.00Price Target Upside5.44% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)331.91
Revenue Forecast (FY)¥2.06T
Daito Construction Business Overview & Revenue Model
Company Description
Daito Trust Construction Co., Ltd., established in 1974 and headquartered in Tokyo, Japan, operates as a diversified enterprise primarily engaged in construction, real estate, and various related services. The company is a key player in the design...
How the Company Makes Money
null...
Daito Construction Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
67
Positive
Cash Flow
45
Neutral
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.98T | 1.84T | 1.73T | 1.66T | 1.58T |
| Gross Profit | 347.05B | 315.86B | 284.78B | 258.45B | 260.14B |
| EBITDA | 155.92B | 149.00B | 128.99B | 119.68B | 120.72B |
| Net Income | 99.03B | 93.86B | 74.69B | 70.36B | 69.58B |
Balance Sheet | |||||
| Total Assets | 1.37T | 1.22T | 1.08T | 1.06T | 1.01T |
| Cash, Cash Equivalents and Short-Term Investments | 276.33B | 238.90B | 249.56B | 271.13B | 262.24B |
| Total Debt | 234.17B | 124.47B | 80.02B | 91.87B | 95.28B |
| Total Liabilities | 870.90B | 755.35B | 674.27B | 656.98B | 640.09B |
| Stockholders Equity | 496.35B | 466.44B | 402.67B | 401.53B | 361.78B |
Cash Flow | |||||
| Free Cash Flow | 16.71B | 68.16B | 76.30B | 59.39B | 101.09B |
| Operating Cash Flow | 40.37B | 85.61B | 90.88B | 82.10B | 112.48B |
| Investing Cash Flow | -41.70B | -46.51B | -13.11B | -58.09B | -20.51B |
| Financing Cash Flow | 37.22B | -45.84B | -96.79B | -40.06B | -34.09B |
Daito Construction Technical Analysis
Neutral
3035.00
Price Trends
3278.87
Negative
3383.55
Negative
3177.52
Negative
Market Momentum
-72.46
Negative
41.20
Neutral
38.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1878, the sentiment is Neutral. The current price of 3035 is above the 20-day moving average (MA) of 3023.87, below the 50-day MA of 3278.87, and below the 200-day MA of 3177.52, indicating a neutral trend. The MACD of -72.46 indicates Negative momentum. The RSI at 41.20 is Neutral, neither overbought nor oversold. The STOCH value of 38.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1878.
Daito Construction Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ¥989.54B | 8.65 | 19.60% | 1.94% | 3.42% | 30.95% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
62 Neutral | ¥1.07T | 10.38 | 19.43% | 5.16% | 7.73% | 4.60% | |
61 Neutral | ¥932.60B | 9.58 | 11.06% | 2.88% | 8.32% | 24.67% | |
58 Neutral | ¥159.54B | 14.54 | 8.95% | 3.39% | 20.87% | 16.80% | |
56 Neutral | ¥4.93T | 22.70 | 7.67% | 1.18% | 10.53% | 20.72% | |
54 Neutral | ¥4.12T | 14.84 | 10.15% | 1.86% | 3.21% | 13.04% |
* Real Estate Sector Average
JP:1878
Daito Construction
3,104.00
137.32
4.63%
JP:8802
Mitsubishi Estate Company
4,145.00
1,464.26
54.62%
JP:8801
Mitsui Fudosan Co
1,499.00
128.33
9.36%
JP:3288
Open House Co
8,477.00
2,098.42
32.90%
JP:3289
Tokyu Fudosan Holdings
1,296.50
312.66
31.78%
JP:8803
Heiwa Real Estate Co., Ltd.
2,408.00
317.75
15.20%
Daito Construction Corporate Events
Daito Trust Construction Revises FY2026 Financial Results and Dividend Schedule
May 26, 2026
Daito Trust Construction has announced corrections to its consolidated financial results for the fiscal year ended March 31, 2026, originally released on April 30. The revisions affect the scheduled start date for dividend payments, which has been...
Daito Trust Construction to Make THE Global Co. an Affiliate After Successful Tender Offer
May 22, 2026
Daito Trust Construction has successfully completed a tender offer for common shares of THE Global Co., Ltd., acquiring 12,715,775 shares at 1,280 yen per share during the April 7 to May 22 offer period. As the number of tendered shares far exceed...
Daito Trust Finalizes Share Count in Fully Committed Buyback Adjustment
May 19, 2026
Daito Trust Construction has finalized the number of shares acquired in its fully committed share repurchase program, clarifying the outcome of a major capital initiative first announced in February. The company completed the ex post facto adjustm...
Daito Trust Construction Reintroduces ESOP Trust to Align Employees With Long-Term Growth
Apr 30, 2026
Daito Trust Construction has resolved to reintroduce an employee stock ownership plan (ESOP) trust as part of its medium- to long-term strategy to enhance corporate value. The scheme is designed to strengthen employee benefits and align staff ince...
Daito Trust Construction to Use Treasury Shares for Reintroduced ESOP Trust
Apr 30, 2026
Daito Trust Construction will dispose of 3,819,800 treasury shares through a third-party allotment to an employee stock ownership plan trust managed by The Master Trust Bank of Japan, with Mitsubishi UFJ Trust and Banking as trustee, to support th...
Daito Trust Construction Raises Annual Dividend, Targets 50% Payout Ratio
Apr 30, 2026
Daito Trust Construction has approved a year-end dividend of ¥82 per share for the fiscal year ended March 31, 2026, up from its latest forecast of ¥74.60 but slightly below the prior year’s ¥85.40. The payout, totaling about ...
Daito Trust Construction Posts Higher FY2026 Profit and Steady Dividends Amid Modest Growth Outlook
Apr 30, 2026
Daito Trust Construction reported consolidated net sales of ¥1.98 trillion for the fiscal year ended March 31, 2026, up 7.7% year on year, with operating profit rising 13.8% to ¥135.3 billion and profit attributable to owners of parent i...
Daito Trust Construction Amends Tender Offer Filing After Antitrust Clearance
Apr 16, 2026
Daito Trust Construction has filed an amended tender offer registration for its ongoing bid to acquire common shares of THE Global Co., Ltd., which is listed on the Tokyo Stock Exchange Standard Market. The amendment follows receipt of a Japan Fai...
Daito Trust Construction to Fully Acquire THE Global via Tender Offer
Apr 6, 2026
Daito Trust Construction has resolved to launch a tender offer for all common shares of THE Global Co., Ltd. listed on the Tokyo Stock Exchange Standard Market, excluding treasury shares, with the aim of making THE Global a wholly owned subsidiary...
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.