Kawasaki Geological Engineering Co., Ltd. (4673) AI Stock Analysis

Kawasaki Geological Engineering Co., Ltd.

(TSE/TYO:4673)

Select Model

Rating:65Neutral

Price Target:JPY 4,698.00▲(20.93% Upside)

Action:downgraded

Date:10/15/26

The overall score is driven by a highly attractive valuation (P/E 3.57, yield 3.32%) and solid long-term financial performance, including strong revenue growth and a healthy balance sheet. However, the score is significantly weighed down by extremely weak technical momentum, with the stock in a clear downtrend and oversold territory. Recent negative cash flow also presents a notable risk, despite the company's overall financial health.

Positive Factors

2025 Revenue and Earnings ReboundThe sharp 2025 improvement shows renewed demand for the company’s investigation and consulting services, while higher net income indicates stronger earnings capacity. If project activity remains healthy, this rebound can support reinvestment and reinforce the company’s position in infrastructure-related work over coming quarters.

Negative Factors

Severe Operating and Free-Cash-Flow OutflowsThe move from positive cash generation in 2024 to large operating and free-cash outflows raises concern about cash conversion and project-related working-capital demands. Persistent volatility could restrict internally funded investment and increase reliance on financing if earnings do not convert into cash.

Kawasaki Geological Engineering Co., Ltd. (4673) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 3.43B
Dividend Yield: 3.73%
Average Volume (3M): 3,633
Price to Earnings (P/E): 4.8
Beta (1Y): 1.26
Revenue Growth: -10.48%
EPS Growth: -7.65%
Country: Japan
Employees: 373
Sector: General
Sector Strength: 55
Industry: Engineering & Construction

Kawasaki Geological Engineering Co., Ltd. Business Overview & Revenue Model

Company Description

Kawasaki Geological Engineering Co., Ltd., established in 1943 and headquartered in Tokyo, Japan, conducts geological surveying operations across Japan and worldwide. The company's expertise extends to sectors such as marine environments, natural res...

How the Company Makes Money

Kawasaki Geological Engineering Co., Ltd. primarily makes money by undertaking commissioned projects and service contracts tied to infrastructure and construction-related needs. Its key revenue streams are fees earned from (1) geotechnical and geolog...

Kawasaki Geological Engineering Co., Ltd. Financial Statement Overview

Summary

Strong revenue growth (+23.7%) and improved profitability (ROE 11.8%) are offset by negative operating cash flow (-¥1.46B) in the latest year, indicating working capital strain. The balance sheet is healthy (D/E 0.69), but cash flow weakness limits the score.

Income Statement

78Positive

Balance Sheet

80Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Nov 2025	Nov 2024	Nov 2023	Nov 2022	Nov 2021
Income Statement
Total Revenue	13.38B	12.71B	9.56B	9.29B	9.38B	8.76B
Gross Profit	3.82B	3.18B	2.66B	2.34B	2.75B	2.61B
EBITDA	1.46B	853.46M	628.64M	311.89M	716.93M	674.16M
Net Income	1.04B	620.50M	353.84M	157.79M	330.14M	344.03M
Balance Sheet
Total Assets	11.90B	12.14B	9.92B	9.77B	8.74B	8.28B
Cash, Cash Equivalents and Short-Term Investments	1.48B	1.10B	1.83B	1.77B	761.80M	1.03B
Total Debt	4.18B	3.61B	2.90B	3.40B	2.55B	2.39B
Total Liabilities	6.28B	6.89B	5.39B	5.56B	4.73B	4.60B
Stockholders Equity	5.62B	5.25B	4.53B	4.21B	4.01B	3.69B
Cash Flow
Free Cash Flow	0	-1.58B	725.74M	321.49M	-333.91M	338.94M
Operating Cash Flow	0	-1.46B	766.83M	419.75M	-75.84M	456.04M
Investing Cash Flow	0	53.80M	-8.34M	-114.26M	-266.00M	-88.85M
Financing Cash Flow	0	660.19M	-691.96M	678.12M	78.13M	-420.29M

Kawasaki Geological Engineering Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price3885.00

Price Trends

50DMA4641.50Negative

100DMA4631.55Negative

200DMA4770.39Negative

Market Momentum

MACD-232.66Positive

RSI28.29Positive

STOCH50.47Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4673, the sentiment is Negative. The current price of 3885.00 is below the 20-day moving average (MA) of 4320.00, below the 50-day MA of 4641.50, and below the 200-day MA of 4770.39, indicating a bearish trend. The MACD of -232.66 indicates Positive momentum. The RSI at 28.29 is Positive, neither overbought nor oversold. The STOCH value of 50.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4673.

Kawasaki Geological Engineering Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:4673 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:9768	78Outperform	JPY 26.13B	10.34	―	3.22%	4.52%	33.33%
JP:4642	71Outperform	JPY 7.72B	13.74	―	2.47%	23.05%	8.64%
JP:1914	68Neutral	JPY 18.67B	7.77	―	3.50%	-7.50%	122.97%
JP:9621	68Neutral	JPY 101.73B	14.84	―	2.10%	7.70%	18.20%
JP:9233	67Neutral	JPY 20.12B	12.19	―	4.02%	1.71%	20.61%
JP:4673	65Neutral	JPY 3.39B	4.79	―	3.73%	-10.48%	-7.65%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:4673 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4673	Kawasaki Geological Engineering Co., Ltd.	3885.00	-673.77	-14.78%
JP:1914	Japan Foundation Engineering Co., Ltd.	858.00	253.29	41.89%
JP:4642	Original Engineering Consultants Co., Ltd.	1400.00	-392.61	-21.90%
JP:9233	Asia Air Survey Co., Ltd.	1095.00	-18.08	-1.62%
JP:9621	CTI Engineering Co., Ltd.	3565.00	831.84	30.44%
JP:9768	Idea Consultants,inc.	3605.00	115.62	3.31%

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: Oct 15, 2026

Kawasaki Geological Engineering Co., Ltd. AI Stock Analysis