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Kaneshita Construction Co., Ltd.
(1897)
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Rating:59Neutral
Price Target:
¥4,034.00
▲(39.83% Upside)
Action:Reiterated
Date:08/11/26
The score is primarily driven by mixed financial performance: strong balance sheet strength offsets weakening revenue/margins and volatile cash generation. Technicals add support from strong trend/momentum, but overbought signals temper the outlook. Valuation detracts due to a high P/E and only modest dividend yield.
Positive Factors
Extremely low leverage
The near-zero debt burden materially reduces solvency and refinancing risk, while preserving flexibility to fund operations or investment through weaker construction cycles. This conservative financing structure provides a durable buffer even though current returns on capital remain modest.
Negative Factors
Inconsistent cash generation
Weak cash conversion makes reported profits less dependable as a source of internally funded growth. The sharp 2025 decline, following negative operating and free cash flow in 2021–2022, indicates recurring project or working-capital volatility that can constrain financial planning.
Read all positive and negative factors
Positive Factors
Negative Factors
Extremely low leverage
The near-zero debt burden materially reduces solvency and refinancing risk, while preserving flexibility to fund operations or investment through weaker construction cycles. This conservative financing structure provides a durable buffer even though current returns on capital remain modest.
Read all positive factors
Kaneshita Construction Co., Ltd. (1897) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥7.81B
Dividend Yield1.38%
Average Volume (3M)623.00
Price to Earnings (P/E)18.8
Beta (1Y)0.25
Revenue Growth24.12%
EPS Growth160.51%
CountryJP
Employees171
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)192.76
Shares Outstanding3,806,660
10 Day Avg. Volume980
30 Day Avg. Volume623
Financial Highlights & Ratios
PEG Ratio-1.04
Price to Book (P/B)0.31
Price to Sales (P/S)0.69
P/FCF Ratio339.84
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
Kaneshita Construction Co., Ltd. Business Overview & Revenue Model
Company Description
Kaneshita Construction Co., Ltd., established in 1935 and headquartered in Miyazu, Japan, delivers a comprehensive suite of services nationwide, including project planning, site surveys, oversight, design, and execution. The company is actively in...
Kaneshita Construction Co., Ltd. Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
86
Very Positive
Cash Flow
41
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.84B | 8.84B | 9.74B | 10.66B | 9.90B | 7.63B |
| Gross Profit | 1.20B | 1.05B | 1.22B | 1.19B | 1.07B | 833.00M |
| EBITDA | 462.00M | 420.00M | 350.00M | 485.00M | 216.00M | 134.00M |
| Net Income | 406.00M | 236.00M | 321.00M | 270.00M | 190.00M | 45.00M |
Balance Sheet | ||||||
| Total Assets | 24.97B | 23.65B | 21.88B | 22.24B | 20.04B | 20.05B |
| Cash, Cash Equivalents and Short-Term Investments | 10.54B | 9.53B | 9.13B | 8.64B | 7.02B | 9.33B |
| Total Debt | 4.00M | 5.00M | 8.00M | 10.00M | 12.00M | 14.00M |
| Total Liabilities | 4.12B | 3.83B | 3.06B | 4.09B | 2.79B | 2.95B |
| Stockholders Equity | 20.47B | 19.45B | 18.46B | 17.81B | 16.92B | 16.77B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 18.00M | 604.00M | 1.43B | -1.29B | -816.00M |
| Operating Cash Flow | 0.00 | 67.00M | 650.00M | 1.55B | -1.25B | -573.00M |
| Investing Cash Flow | 0.00 | 281.00M | -252.00M | 679.00M | -454.00M | 434.00M |
| Financing Cash Flow | 0.00 | -254.00M | -111.00M | -110.00M | -111.00M | -108.00M |
Kaneshita Construction Co., Ltd. Technical Analysis
Positive
2885.00
Price Trends
3307.80
Positive
3242.98
Positive
3213.95
Positive
Market Momentum
130.51
Negative
58.96
Neutral
61.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1897, the sentiment is Positive. The current price of 2885 is below the 20-day moving average (MA) of 3471.00, below the 50-day MA of 3307.80, and below the 200-day MA of 3213.95, indicating a bullish trend. The MACD of 130.51 indicates Negative momentum. The RSI at 58.96 is Neutral, neither overbought nor oversold. The STOCH value of 61.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1897.
Kaneshita Construction Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥11.59B | 15.40 | ― | 4.19% | -20.56% | -28.40% | |
74 Outperform | ¥10.64B | 10.86 | ― | 4.29% | -5.96% | -7.00% | |
65 Neutral | ¥8.20B | 12.25 | ― | 2.71% | 25.32% | 30.07% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | ¥12.72B | 8.15 | ― | 4.02% | -0.13% | -22.25% | |
59 Neutral | ¥7.81B | 18.78 | ― | 1.38% | 24.12% | 160.51% |
* Industrials Sector Average
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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.