Kawagishi Bridge Works Co (5921) AI Stock Analysis

Kawagishi Bridge Works Co

(TSE/TYO:5921)

Select Model

Rating:72Outperform

Price Target:JPY 4,656.00▲(6.91% Upside)

Action:upgraded

Date:08/05/26

Kawagishi Bridge Works scores well driven primarily by its exceptional balance sheet strength with virtually zero debt, a dramatic cash flow turnaround in 2025, and attractive valuation metrics including a P/E of 9.75x and a 3.88% dividend yield. The low beta of 0.43 adds defensive appeal. These strengths are partially offset by mixed technical signals—while short-term momentum is positive, the overbought Stochastic reading and price below the 200-day moving average introduce near-term risk. Revenue growth remains a challenge in the cyclical steel/construction market, though improving margins and robust free cash flow demonstrate effective management execution.

Positive Factors

Low financial leverageMinimal leverage reduces financial risk and leaves the company less exposed to interest burdens or refinancing pressure. A strong equity base should provide resilience through project-cycle fluctuations while preserving flexibility to support operations and pursue future bridge-construction opportunities.

Negative Factors

Recent revenue contractionThe latest revenue decline signals that project awards, execution timing, or completed contract volume did not expand in the most recent period. If this weakness persists, it could reduce operating scale and make it harder to sustain current margins over the next several quarters.

Kawagishi Bridge Works Co (5921) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 12.59B
Dividend Yield: 3.90%
Average Volume (3M): 1,321
Price to Earnings (P/E): 10.3
Beta (1Y): 0.22
Revenue Growth: 6.53%
EPS Growth: -24.56%
Country: Japan
Employees: 273
Sector: General
Sector Strength: 55
Industry: Engineering & Construction

Kawagishi Bridge Works Co Business Overview & Revenue Model

Company Description

Kawagishi Bridge Works Co., Ltd. is a Japanese enterprise primarily focused on the manufacturing and erection of steel structures. The company further diversifies its operations by producing and marketing precast concrete elements. Their offerings ar...

How the Company Makes Money

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Kawagishi Bridge Works Co Financial Statement Overview

Summary

Kawagishi Bridge Works exhibits strong financial fundamentals. The fortress balance sheet (score 85) with virtually no debt and 82.7% equity ratio is a standout strength. Cash flow dramatically improved in 2025 with ¥3.2B operating cash flow (score 78), and profitability remains solid with expanding EBITDA margins despite a modest 1.7% revenue decline (income score 72). The combination of conservative leverage, improving margins, and high-quality cash generation supports a strong financial profile.

Income Statement

72Positive

Balance Sheet

85Very Positive

Cash Flow

78Positive

Financial statement breakdown
Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	25.25B	24.13B	27.57B	26.00B	22.05B	18.87B
Gross Profit	2.44B	2.78B	2.59B	2.23B	2.10B	2.64B
EBITDA	1.98B	2.40B	2.19B	1.90B	1.70B	2.35B
Net Income	1.13B	1.45B	1.47B	1.25B	951.87M	1.35B
Balance Sheet
Total Assets	36.03B	35.27B	34.36B	32.67B	30.90B	29.35B
Cash, Cash Equivalents and Short-Term Investments	2.95B	3.28B	1.47B	3.91B	6.79B	6.28B
Total Debt	573.73M	1.66M	4.16M	6.92M	9.68M	12.44M
Total Liabilities	6.53B	6.31B	6.16B	5.41B	5.19B	4.39B
Stockholders Equity	29.51B	28.96B	28.20B	27.26B	25.72B	24.96B
Cash Flow
Free Cash Flow	2.79B	2.79B	-1.89B	-3.00B	1.26B	1.27B
Operating Cash Flow	3.24B	3.24B	-1.42B	-2.58B	1.46B	1.76B
Investing Cash Flow	-206.28M	-206.28M	-213.62M	-643.15M	-710.34M	-506.39M
Financing Cash Flow	-1.13B	-1.13B	-700.09M	-40.56M	-234.00M	-233.75M

Kawagishi Bridge Works Co Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:5921 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:8046	80Outperform	JPY 18.60B	7.01	―	4.21%	8.53%	37.96%
JP:5408	73Outperform	JPY 38.30B	9.24	―	3.39%	-8.00%	-35.22%
JP:5921	72Outperform	JPY 12.59B	10.31	3.97%	3.90%	6.53%	-24.56%
JP:7305	68Neutral	JPY 24.36B	14.58	―	6.07%	-2.96%	-9.61%
JP:5440	63Neutral	JPY 77.66B	9.84	―	5.17%	6.83%	-31.05%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:5449	41Neutral	JPY 69.74B	-5.25	―	―	-16.39%	-2377.63%

* General Sector Average

Performance Comparison

JP:5921 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:5921	Kawagishi Bridge Works Co	4355.00	85.00	1.99%
JP:5408	Nakayama Steel Works,Ltd.	561.00	13.74	2.51%
JP:5440	Kyoei Steel Ltd.	1741.00	-379.73	-17.91%
JP:5449	OSAKA STEEL CO., LTD.	2334.00	-231.00	-9.01%
JP:7305	Araya Industrial Co., Ltd.	2636.00	297.75	12.73%
JP:8046	Marufuji Sheet Piling Co., Ltd.	932.00	237.80	34.26%

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 04, 2026

Kawagishi Bridge Works Co AI Stock Analysis