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Wakachiku Construction Co., Ltd.
(1888)
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Rating:70Outperform
Price Target:
¥4,186.00
▼(-12.24% Downside)
Action:Upgraded
Date:08/19/26
The score is supported by attractive valuation (low P/E and ~3.55% dividend yield) and constructive technical momentum (price above key moving averages and positive MACD). Offsetting these positives, financial performance is constrained by weak and volatile cash generation (negative free cash flow in 2024–2026) alongside rising leverage and some margin compression versus 2023–2024.
Positive Factors
Strong 2026 Revenue Rebound
The 2026 revenue rebound indicates renewed business activity after a choppy 2023–2025 period. Sustained top-line recovery would improve operating scale and support earnings, although future durability depends on maintaining project wins and execution quality.
Negative Factors
Weak Cash Conversion
Persistent negative free cash flow means reported profits are not consistently becoming cash, reducing financial flexibility. Construction working-capital swings can explain some volatility, but continued weakness could constrain investment, dividends, and debt repayment capacity.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong 2026 Revenue Rebound
The 2026 revenue rebound indicates renewed business activity after a choppy 2023–2025 period. Sustained top-line recovery would improve operating scale and support earnings, although future durability depends on maintaining project wins and execution quality.
Read all positive factors
Wakachiku Construction Co., Ltd. (1888) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥49.54B
Dividend Yield3.49%
Average Volume (3M)16.94K
Price to Earnings (P/E)9.0
Beta (1Y)0.85
Revenue Growth24.08%
EPS Growth44.92%
CountryJP
Employees900
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)429.03
Shares Outstanding12,964,993
10 Day Avg. Volume13,890
30 Day Avg. Volume16,936
Financial Highlights & Ratios
PEG Ratio0.65
Price to Book (P/B)0.97
Price to Sales (P/S)0.50
P/FCF Ratio-200.56
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
Wakachiku Construction Co., Ltd. Business Overview & Revenue Model
Company Description
Wakachiku Construction Co., Ltd. is an international and domestic Japanese company with diverse operations spanning general construction, construction advisory, project management, and real estate. Its portfolio also includes marine infrastructure...
How the Company Makes Money
null...
Wakachiku Construction Co., Ltd. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
63
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 111.68B | 104.75B | 86.46B | 94.92B | 84.00B | 89.16B |
| Gross Profit | 16.41B | 14.60B | 12.73B | 14.10B | 12.72B | 12.97B |
| EBITDA | 9.12B | 7.75B | 6.27B | 8.74B | 7.49B | 7.66B |
| Net Income | 5.46B | 4.37B | 3.69B | 5.09B | 5.44B | 4.74B |
Balance Sheet | ||||||
| Total Assets | 113.48B | 122.42B | 92.41B | 91.09B | 88.58B | 81.64B |
| Cash, Cash Equivalents and Short-Term Investments | 15.38B | 19.64B | 13.22B | 18.89B | 27.32B | 16.40B |
| Total Debt | 12.93B | 21.59B | 12.70B | 4.43B | 4.43B | 6.28B |
| Total Liabilities | 59.60B | 67.66B | 42.54B | 43.70B | 45.88B | 43.28B |
| Stockholders Equity | 53.09B | 54.00B | 48.32B | 45.93B | 41.32B | 37.09B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -260.00M | -11.35B | -5.50B | 14.17B | 14.67B |
| Operating Cash Flow | 0.00 | 311.00M | -10.26B | -4.03B | 15.07B | 15.95B |
| Investing Cash Flow | 0.00 | -1.16B | -1.85B | -3.61B | -1.33B | -1.48B |
| Financing Cash Flow | 0.00 | 7.25B | 6.45B | -1.31B | -2.90B | -12.66B |
Wakachiku Construction Co., Ltd. Technical Analysis
Positive
4770.00
Price Trends
3512.30
Positive
3567.35
Positive
4027.89
Negative
Market Momentum
100.74
Positive
62.91
Neutral
68.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1888, the sentiment is Positive. The current price of 4770 is above the 20-day moving average (MA) of 3760.00, above the 50-day MA of 3512.30, and above the 200-day MA of 4027.89, indicating a neutral trend. The MACD of 100.74 indicates Positive momentum. The RSI at 62.91 is Neutral, neither overbought nor oversold. The STOCH value of 68.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1888.
Wakachiku Construction Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ¥70.04B | 14.48 | ― | 3.84% | 0.75% | 46.28% | |
78 Outperform | ¥45.93B | 9.35 | ― | 3.95% | -6.31% | 34.94% | |
77 Outperform | ¥82.98B | 11.29 | ― | 2.56% | 6.50% | 36.50% | |
77 Outperform | ¥49.57B | 11.55 | ― | 3.78% | 20.57% | 50.62% | |
70 Outperform | ¥49.54B | 9.02 | ― | 2.84% | 24.08% | 44.92% | |
64 Neutral | ¥56.72B | 22.41 | ― | 1.57% | -6.91% | -46.52% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
JP:1888
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Wakachiku Construction Co., Ltd. Corporate Events
Wakachiku Construction Posts Profit Surge and Maintains Upbeat Full-Year Outlook
Aug 6, 2026
Wakachiku Construction reported strong first-quarter results for the period ended June 30, 2026, with consolidated net sales rising 34.2% year-on-year to ¥27.17 billion and operating profit surging to ¥1.77 billion, reflecting a sharp im...
Wakachiku Construction Taps 13 Billion Yen Commitment Line for Working Capital
Jul 21, 2026
Wakachiku Construction Co., Ltd. has arranged new borrowings under a syndication-type commitment line totaling 13 billion yen with ten financial institutions to secure efficient working capital. The company will refinance 5 billion yen of existing...
Wakachiku Construction Secures ¥13 Billion Commitment Line to Refinance Debt and Bolster Liquidity
Jun 29, 2026
Wakachiku Construction Co., Ltd. has arranged new financing under a syndication-type commitment line agreement totaling 13 billion yen with a consortium of 10 trust, city, and regional banks. The company will use these borrowings to refinance 7 bi...
Wakachiku Highlights Aso Corporation Results and Concentrated Ownership Structure
Jun 29, 2026
Wakachiku Construction has disclosed that its unlisted parent, Aso Corporation, has finalized financial results for the fiscal year ended March 31, 2026, underscoring the parent’s significant influence with a 50.67% voting stake. Aso Corpora...
Wakachiku Construction Taps Syndicated Credit Line for Working Capital Refinance
Jun 19, 2026
Wakachiku Construction Co., Ltd. has decided to draw on existing syndicated commitment line agreements with 10 financial institutions to optimize its working capital position. The move underscores the company’s proactive liquidity management...
Wakachiku Outlines ASO’s Control and Safeguards for Minority Shareholders
May 26, 2026
Wakachiku Construction Co., Ltd., a TSE Prime Market-listed construction company, disclosed that ASO Corporation is its parent company, holding a total of 50.67% of its voting rights, partly through wholly owned subsidiary ACVE Holdings, GK. Despi...
Wakachiku Construction Raises Year-End Dividend, Affirms Shareholder Return Policy
May 26, 2026
Wakachiku Construction Co., Ltd. has resolved to pay a year-end dividend of ¥135 per share for the fiscal year ended March 31, 2026, matching its earlier forecast and up from ¥126 in the prior year. The total payout will be ¥1,732 m...
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.