Kyowanissei Co., Ltd. (1981) AI Stock Analysis

Kyowanissei Co., Ltd.

(TSE/TYO:1981)

Select Model

Rating:81Outperform

Price Target:JPY 1,537.00▲(13.43% Upside)

Action:reiterated

Date:08/19/26

The overall score is driven primarily by robust financial strength, including steady growth, very low leverage, and consistently positive free cash flow, which underpin the company’s resilience. A low-double-digit P/E and mid-single-digit dividend yield further support the rating by indicating a reasonably attractive valuation. Technical factors are only moderately favorable, with short-term price action improving but longer-term trends still subdued, keeping the score in the low 80s rather than at the top of the range.

Positive Factors

Very low leverageNear-zero leverage materially limits financial risk and interest burden, while preserving flexibility to fund operations, withstand cyclical pressure, or pursue opportunities without relying heavily on external financing.

Negative Factors

Thin operating marginsThin margins leave limited protection against input-cost inflation, pricing pressure, or execution setbacks. Without meaningful margin expansion, higher revenue may translate into only modest incremental profit and weaker operating leverage.

Kyowanissei Co., Ltd. (1981) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 13.19B
Dividend Yield: 3.66%
Average Volume (3M): 2,416
Price to Earnings (P/E): 10.9
Beta (1Y): 0.46
Revenue Growth: 3.29%
EPS Growth: 5.78%
Country: Japan
Employees: 1,046
Sector: Industrials
Sector Strength: 63
Industry: Construction Materials

Kyowanissei Co., Ltd. Business Overview & Revenue Model

Company Description

Kyowanissei Co.,Ltd. is a Japanese enterprise specializing in construction and civil engineering. The company organizes its operations into four principal divisions: Building Equipment, Gas Equipment, Gas Pipe, and Electrical Construction & Civil Eng...

Kyowanissei Co., Ltd. Financial Statement Overview

Summary

Steady revenue and profit growth, an exceptionally conservative balance sheet with very low debt, and consistently positive and improving free cash flow support a strong financial profile, offset by modest margins, mid-single-digit ROE, and some historical cash flow volatility.

Income Statement

80Positive

Balance Sheet

92Very Positive

Cash Flow

85Very Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	39.63B	39.38B	37.42B	35.89B	34.47B	34.24B
Gross Profit	3.59B	3.59B	3.63B	3.61B	3.44B	3.49B
EBITDA	1.80B	1.74B	1.76B	1.45B	1.35B	1.48B
Net Income	1.26B	1.19B	1.13B	1.06B	933.61M	1.08B
Balance Sheet
Total Assets	28.34B	29.69B	28.98B	29.21B	26.76B	26.68B
Cash, Cash Equivalents and Short-Term Investments	8.17B	7.48B	6.78B	7.93B	7.63B	8.16B
Total Debt	22.78M	26.68M	36.67M	39.89M	37.79M	146.13M
Total Liabilities	9.47B	9.91B	10.11B	10.41B	9.12B	9.06B
Stockholders Equity	18.87B	19.78B	18.87B	18.80B	17.64B	17.62B
Cash Flow
Free Cash Flow	2.64B	1.87B	944.45M	653.58M	602.56M	699.43M
Operating Cash Flow	2.72B	1.96B	1.11B	1.37B	1.11B	769.44M
Investing Cash Flow	-197.12M	-516.00M	-1.04B	-713.13M	-575.07M	-142.26M
Financing Cash Flow	-1.09B	-1.04B	-1.22B	-359.13M	-966.40M	-598.75M

Kyowanissei Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price1355.00

Price Trends

50DMA1342.68Positive

100DMA1329.85Positive

200DMA1396.54Negative

Market Momentum

MACD3.37Negative

RSI59.55Neutral

STOCH79.31Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1981, the sentiment is Positive. The current price of 1355.00 is above the 20-day moving average (MA) of 1353.10, above the 50-day MA of 1342.68, and below the 200-day MA of 1396.54, indicating a neutral trend. The MACD of 3.37 indicates Negative momentum. The RSI at 59.55 is Neutral, neither overbought nor oversold. The STOCH value of 79.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1981.

Kyowanissei Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

JP:1981 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:1981	81Outperform	JPY 13.72B	10.91	―	3.66%	3.29%	5.78%
JP:5288	75Outperform	JPY 54.96B	6.74	―	4.57%	11.13%	105.93%
JP:3157	73Outperform	JPY 18.28B	7.24	―	3.56%	12.10%	41.74%
JP:5268	70Outperform	JPY 10.43B	16.64	―	1.77%	7.46%	72.19%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
JP:5269	59Neutral	JPY 19.30B	21.18	―	2.62%	0.13%	―
JP:5271	47Neutral	JPY 2.87B	-10.73	―	3.84%	-26.96%	-210.10%

* Industrials Sector Average

Performance Comparison

JP:1981 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:1981	Kyowanissei Co., Ltd.	1365.00	-169.59	-11.05%
JP:3157	GEOLIVE Group Corporation	1377.00	79.76	6.15%
JP:5268	Asahi Concrete Works Co., Ltd.	793.00	-23.63	-2.89%
JP:5269	Nippon Concrete Industries Co., Ltd.	344.00	24.50	7.67%
JP:5271	Toyo Asano Foundation Co., Ltd.	2216.00	16.53	0.75%
JP:5288	ASIA PILE HOLDINGS Corporation	1443.00	267.87	22.80%

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 10, 2026

Kyowanissei Co., Ltd. AI Stock Analysis