Kitac Corporation (4707) AI Stock Analysis

Kitac Corporation

(TSE/TYO:4707)

Select Model

Rating:51Neutral

Price Target:JPY 345.00▲(5.83% Upside)

Action:reiterated

Date:10/20/26

The overall score of 51 is constrained by significant financial headwinds. The primary risk is the sharp decline in revenue and the shift to negative free cash flow, which signals poor earnings quality. A stable balance sheet and reasonable valuation provide some defense, but the weak technical trend, with the stock trading below its short-term moving average, reinforces a cautious outlook.

Positive Factors

Improving leverageThe reduction in debt-to-equity indicates improving balance-sheet flexibility and lowers the burden of financial obligations relative to shareholder capital. This gives Kitac greater capacity to withstand operating volatility and fund necessary investment over the next several quarters.

Negative Factors

Sharp revenue contractionThe sharp 2025 revenue decline signals weakened demand, project activity, or business momentum and reverses the modest growth achieved in prior years. If sustained, lower revenue would reduce operating leverage and make it harder for Kitac to rebuild earnings without renewed top-line growth.

Kitac Corporation (4707) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 1.87B
Dividend Yield: 2.10%
Average Volume (3M): 31.36K
Price to Earnings (P/E): 13.8
Beta (1Y): 0.69
Revenue Growth: -6.21%
EPS Growth: -54.85%
Country: Japan
Employees: 197
Sector: General
Sector Strength: 55
Industry: Engineering & Construction

Kitac Corporation Business Overview & Revenue Model

Company Description

Kitac Corp. is engaged in the construction consulting business. It operates through three segments: Construction Consulting, Web Solutions, and Real Estate Rental & Other Businesses. The Construction Consulting segment provides geological surveys and...

Kitac Corporation Financial Statement Overview

Summary

Financial performance is under pressure. The Income Statement score of 45 reflects an 18.5% revenue decline and contracting margins. The Cash Flow score of 30 is a major concern, with negative free cash flow and weak cash conversion. The Balance Sheet score of 65 provides some stability with improved leverage, but overall financial health is dragged down by poor earnings and cash generation.

Income Statement

45Neutral

Balance Sheet

65Positive

Cash Flow

30Negative

Financial statement breakdown
Breakdown	TTM	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	3.49B	3.47B	3.34B	2.88B	2.70B	2.55B
Gross Profit	1.05B	991.60M	1.08B	880.50M	758.54M	692.19M
EBITDA	337.40M	299.86M	484.63M	276.16M	193.22M	118.11M
Net Income	146.93M	207.98M	279.54M	173.34M	90.58M	31.13M
Balance Sheet
Total Assets	6.78B	6.35B	6.08B	5.99B	5.77B	5.46B
Cash, Cash Equivalents and Short-Term Investments	688.93M	155.78M	213.96M	137.13M	172.29M	277.10M
Total Debt	2.25B	1.94B	1.91B	2.11B	2.04B	1.83B
Total Liabilities	3.07B	2.82B	2.79B	2.96B	2.92B	2.80B
Stockholders Equity	3.71B	3.53B	3.29B	3.03B	2.86B	2.66B
Cash Flow
Free Cash Flow	-170.03M	-170.03M	300.58M	-15.23M	-280.49M	219.21M
Operating Cash Flow	106.86M	106.86M	338.99M	56.14M	-53.03M	311.41M
Investing Cash Flow	-141.24M	-141.24M	-16.32M	-68.84M	-232.02M	-154.30M
Financing Cash Flow	-23.81M	-23.81M	-245.83M	-22.47M	180.23M	-43.40M

Kitac Corporation Technical Analysis

Technical Analysis SentimentNegative

Last Price326.00

Price Trends

50DMA346.78Negative

100DMA334.41Negative

200DMA330.87Positive

Market Momentum

MACD-6.13Positive

RSI40.33Neutral

STOCH26.49Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4707, the sentiment is Negative. The current price of 326.00 is below the 20-day moving average (MA) of 360.19, below the 50-day MA of 346.78, and below the 200-day MA of 330.87, indicating a neutral trend. The MACD of -6.13 indicates Positive momentum. The RSI at 40.33 is Neutral, neither overbought nor oversold. The STOCH value of 26.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4707.

Kitac Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:4707 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:1960	80Outperform	JPY 25.64B	7.62	―	3.89%	-7.45%	106.09%
JP:1828	77Outperform	JPY 24.69B	6.66	―	4.33%	6.41%	38.90%
JP:1443	72Outperform	JPY 4.12B	6.43	―	0.43%	-0.36%	18.76%
JP:4642	71Outperform	JPY 7.72B	13.93	―	2.47%	23.05%	8.64%
JP:4673	70Neutral	JPY 3.39B	4.84	―	3.69%	-10.48%	-7.65%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:4707	51Neutral	JPY 1.87B	13.76	―	2.10%	-6.21%	-54.85%

* General Sector Average

Performance Comparison

JP:4707 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4707	Kitac Corporation	334.00	-2.86	-0.85%
JP:1443	Giken Holdings Co., Ltd.	254.00	11.92	4.92%
JP:1828	Tanabe Engineering Corporation	2307.00	21.40	0.94%
JP:1960	Sanyo Engineering & Construction Inc.	1673.00	318.83	23.54%
JP:4642	Original Engineering Consultants Co., Ltd.	1419.00	-373.61	-20.84%
JP:4673	Kawasaki Geological Engineering Co., Ltd.	3925.00	-706.43	-15.25%

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 20, 2026

Kitac Corporation AI Stock Analysis