Seikitokyu Kogyo Co., Ltd. (1898) AI Stock Analysis

0 Followers

Seikitokyu Kogyo Co., Ltd.

(TSE/TYO:1898)

Select Model

Rating:76Outperform

Price Target:JPY 1,627.00▲(11.90% Upside)

Action:reiterated

Date:11/12/26

The overall score of 76 is primarily supported by the company's excellent financial health, characterized by a virtually debt-free balance sheet and strong cash flows. An attractive valuation with a low P/E ratio and high dividend yield further bolsters the score. The main detractor is weak technical momentum, with the stock trading below key moving averages, which introduces near-term price risk despite the solid fundamentals.

Positive Factors

Conservative Balance SheetSeikitokyu Kogyo has materially reduced financial leverage, leaving a sizable equity base and minimal debt burden. This strengthens resilience through construction cycles, lowers financing pressure, and preserves flexibility to fund projects, dividends, or investment without relying heavily on borrowing.

Negative Factors

Uneven Revenue TrendThe reversal from stronger FY2025 growth to a FY2026 revenue decline points to an uneven top-line trajectory. In construction, inconsistent project volumes can limit operating leverage, reduce visibility into future earnings, and make sustained profitability gains harder to maintain.

Seikitokyu Kogyo Co., Ltd. (1898) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 53.59B
Dividend Yield: 5.02%
Average Volume (3M): 174.90K
Price to Earnings (P/E): 11.7
Beta (1Y): 0.52
Revenue Growth: -1.14%
EPS Growth: 1.81%
Country: Japan
Employees: 1,169
Sector: Industrials
Sector Strength: 63
Industry: Engineering & Construction

Seikitokyu Kogyo Co., Ltd. Business Overview & Revenue Model

Company Description

Seikitokyu Kogyo Co., Ltd. engages in the construction, manufactures and sells paving materials in Japan. The company provides paving, civil engineering and other general construction work; and sells asphalt mixtures and other construction materials....

Seikitokyu Kogyo Co., Ltd. Financial Statement Overview

Summary

Financial health is robust, driven by an exceptionally strong, nearly debt-free balance sheet (Score 95) and high-quality cash flow generation (Score 85). Profitability is improving with expanding margins, though inconsistent revenue growth tempers the overall financial performance score.

Income Statement

78Positive

Balance Sheet

95Very Positive

Cash Flow

85Very Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	96.55B	95.26B	99.36B	88.04B	92.41B	85.13B
Gross Profit	12.89B	12.84B	12.03B	9.95B	8.80B	10.23B
EBITDA	8.22B	8.38B	7.54B	6.20B	4.82B	6.36B
Net Income	4.54B	4.67B	3.89B	2.74B	1.13B	3.30B
Balance Sheet
Total Assets	80.47B	84.53B	83.72B	76.04B	78.77B	78.30B
Cash, Cash Equivalents and Short-Term Investments	16.92B	14.44B	7.75B	13.44B	8.17B	12.81B
Total Debt	6.65B	6.61B	6.71B	6.81B	6.91B	7.01B
Total Liabilities	36.21B	40.31B	42.02B	35.51B	39.11B	37.80B
Stockholders Equity	44.25B	44.22B	41.69B	40.53B	39.66B	40.50B
Cash Flow
Free Cash Flow	0	9.61B	-2.31B	8.02B	-2.67B	945.00M
Operating Cash Flow	0	11.42B	-971.00M	10.95B	2.38B	4.65B
Investing Cash Flow	0	-1.71B	-1.34B	-2.87B	-5.03B	-3.67B
Financing Cash Flow	0	-3.02B	-3.38B	-2.82B	-2.02B	-2.23B

Seikitokyu Kogyo Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price1454.00

Price Trends

50DMA1441.48Positive

100DMA1436.26Positive

200DMA1466.36Negative

Market Momentum

MACD-2.71Negative

RSI57.12Neutral

STOCH94.83Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1898, the sentiment is Positive. The current price of 1454.00 is above the 20-day moving average (MA) of 1433.80, above the 50-day MA of 1441.48, and below the 200-day MA of 1466.36, indicating a neutral trend. The MACD of -2.71 indicates Negative momentum. The RSI at 57.12 is Neutral, neither overbought nor oversold. The STOCH value of 94.83 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1898.

Seikitokyu Kogyo Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

JP:1898 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:1813	79Outperform	JPY 40.29B	8.07	―	5.48%	11.46%	66.15%
JP:1899	77Outperform	JPY 80.25B	14.56	―	2.70%	8.48%	33.35%
JP:1929	77Outperform	JPY 47.27B	10.73	―	4.24%	14.74%	34.06%
JP:1898	76Outperform	JPY 51.79B	11.72	―	5.02%	-1.14%	1.81%
JP:1888	74Outperform	JPY 45.84B	7.43	―	3.67%	19.72%	43.25%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
JP:1811	60Neutral	JPY 48.42B	9.82	―	1.73%	-10.79%	-17.42%

* Industrials Sector Average

Performance Comparison

JP:1898 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:1898	Seikitokyu Kogyo Co., Ltd.	1454.00	-35.23	-2.37%
JP:1811	Zenitaka Corporation	6930.00	-1194.12	-14.70%
JP:1813	Fudo Tetra Corporation	2677.00	362.27	15.65%
JP:1888	Wakachiku Construction Co., Ltd.	3680.00	-667.64	-15.36%
JP:1899	Fukuda Corporation	4820.00	1309.32	37.30%
JP:1929	Nittoc Construction Co., Ltd.	1156.00	-7.96	-0.68%

Seikitokyu Kogyo Co., Ltd. Corporate Events

Seikitokyu Kogyo Reports Higher Sales but Lower Interim Profit

Nov 5, 2026

Seikitokyu Kogyo reported six-month net sales of ¥44.272 billion, up 3.0% year on year, while operating profit fell 0.6% to ¥2.210 billion and ordinary profit declined 0.9% to ¥2.189 billion. Profit attributable to owners of the parent dropped 8.1% t...

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: Nov 12, 2026

Seikitokyu Kogyo Co., Ltd. AI Stock Analysis