Japanese (NIKKEI) Construction Industry Analysis

Industry Valuation and Performance

Has the Japanese Construction Industry valuation changed over the past few years?

Date	Market Cap	Revenue	Earnings	PE	Absolute PE	PS
Wed, 17 Jun 2026	JP¥24.4t	JP¥28.8t	JP¥1.8t	11.4x	13.4x	0.8x
Fri, 15 May 2026	JP¥25.6t	JP¥28.8t	JP¥1.8t	11.9x	14.6x	0.9x
Sun, 12 Apr 2026	JP¥25.9t	JP¥28.5t	JP¥1.7t	12.8x	15.4x	0.9x
Tue, 10 Mar 2026	JP¥25.7t	JP¥28.6t	JP¥1.7t	13.3x	15.3x	0.9x
Thu, 05 Feb 2026	JP¥26.4t	JP¥28.4t	JP¥1.5t	13.3x	17.1x	0.9x
Sat, 03 Jan 2026	JP¥23.7t	JP¥28.4t	JP¥1.5t	12.8x	15.6x	0.8x
Mon, 01 Dec 2025	JP¥23.3t	JP¥28.5t	JP¥1.5t	12.3x	15.3x	0.8x
Wed, 29 Oct 2025	JP¥20.0t	JP¥28.3t	JP¥1.3t	12.5x	14.9x	0.7x
Fri, 26 Sep 2025	JP¥19.3t	JP¥28.7t	JP¥1.3t	12.4x	14.4x	0.7x
Sun, 24 Aug 2025	JP¥19.1t	JP¥28.7t	JP¥1.3t	12.3x	14.3x	0.7x
Tue, 22 Jul 2025	JP¥16.9t	JP¥28.5t	JP¥1.3t	11.2x	13.1x	0.6x
Thu, 19 Jun 2025	JP¥16.3t	JP¥28.6t	JP¥1.3t	11x	12.6x	0.6x
Sat, 17 May 2025	JP¥15.6t	JP¥28.2t	JP¥1.3t	11.1x	12.5x	0.6x
Mon, 14 Apr 2025	JP¥14.1t	JP¥27.9t	JP¥1.1t	10.4x	12.5x	0.5x
Wed, 12 Mar 2025	JP¥14.2t	JP¥27.9t	JP¥1.1t	10.7x	12.5x	0.5x
Fri, 07 Feb 2025	JP¥14.3t	JP¥27.5t	JP¥1.0t	11.2x	13.8x	0.5x
Sun, 05 Jan 2025	JP¥14.5t	JP¥27.6t	JP¥949.2b	11.8x	15.3x	0.5x
Tue, 03 Dec 2024	JP¥14.2t	JP¥27.5t	JP¥950.2b	11.4x	14.9x	0.5x
Thu, 31 Oct 2024	JP¥13.7t	JP¥27.4t	JP¥936.4b	11.1x	14.6x	0.5x
Sat, 28 Sep 2024	JP¥14.0t	JP¥27.2t	JP¥929.2b	11.6x	15x	0.5x
Mon, 26 Aug 2024	JP¥13.7t	JP¥27.3t	JP¥928.0b	11.7x	14.8x	0.5x
Wed, 24 Jul 2024	JP¥14.1t	JP¥26.9t	JP¥885.4b	12.4x	15.9x	0.5x
Fri, 21 Jun 2024	JP¥13.5t	JP¥26.9t	JP¥915.7b	12.4x	14.8x	0.5x
Sun, 19 May 2024	JP¥13.4t	JP¥26.8t	JP¥899.6b	12.5x	14.9x	0.5x
Tue, 16 Apr 2024	JP¥14.0t	JP¥26.5t	JP¥840.0b	13.5x	16.6x	0.5x
Thu, 14 Mar 2024	JP¥13.6t	JP¥26.5t	JP¥842.2b	12.8x	16.1x	0.5x
Sat, 10 Feb 2024	JP¥12.9t	JP¥26.1t	JP¥831.0b	12.7x	15.5x	0.5x
Mon, 08 Jan 2024	JP¥12.4t	JP¥25.8t	JP¥862.1b	12.4x	14.4x	0.5x
Wed, 06 Dec 2023	JP¥12.0t	JP¥25.8t	JP¥862.3b	11.6x	13.9x	0.5x
Fri, 03 Nov 2023	JP¥12.4t	JP¥25.2t	JP¥857.3b	12.2x	14.5x	0.5x
Sun, 01 Oct 2023	JP¥12.3t	JP¥25.1t	JP¥844.3b	12.3x	14.6x	0.5x
Tue, 29 Aug 2023	JP¥11.9t	JP¥25.1t	JP¥845.6b	12x	14.1x	0.5x
Thu, 27 Jul 2023	JP¥11.7t	JP¥24.4t	JP¥833.0b	11.9x	14x	0.5x
Sat, 24 Jun 2023	JP¥11.1t	JP¥24.3t	JP¥831.6b	11.3x	13.4x	0.5x

Current Industry PE

Investors are relatively neutral on the Japanese Construction industry at the moment, indicating that they anticipate long term growth rates to remain steady.

The industry is trading close to its 3-year average PE ratio of 14.6x.

The industry is trading close to its 3-year average PS ratio of 0.60x.

Past Earnings Growth

The earnings for companies in the Construction industry have grown 30% per year over the last three years.
Revenues for these companies have grown 5.8% per year.
This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the Japanese Industrials industry?


JP Market	2.89%
Industrials	1.24%
Construction	4.55%
Construction and Engineering	4.55%

Industry PEThere are no additional sub-industries under this industry.

Forecasted GrowthThere are no additional sub-industries under this industry.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

Company	Last Price	7D	1Y	Valuation
1801 Taisei	JP¥14.73k	8.8% +JP¥194.8b	74.9%	PE14.1x
1944 Kinden	JP¥7.78k	12.5% +JP¥171.7b	93.0%	PE22.2x
1812 Kajima	JP¥5.92k	6.3% +JP¥164.3b	56.3%	PE15.6x
1942 KandenkoLtd	JP¥6.45k	8.7% +JP¥102.7b	103.6%	PE20.2x
1803 Shimizu	JP¥2.57k	4.3% +JP¥71.7b	60.9%	PE13.8x

New major risk - Dividend sustainability

The dividend is not well covered by earnings and cash flows. Payout ratio: 108% The company is paying a dividend despite having no free cash flows. Dividend yield: 4.9% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 108% Paying a dividend despite having no free cash flows. High level of non-cash earnings (50% accrual ratio). Minor Risks Less than 3 years of financial data is available. Market cap is less than US$100m (JP¥12.5b market cap, or US$78.2m).

Japanese (NIKKEI) Construction Industry Analysis

Industry Valuation and Performance

Industry Trends

Top Stock Gainers and Losers

Latest News

Price target increased by 11% to JP¥8,325

Obayashi Corporation to Report Q1, 2027 Results on Aug 07, 2026

New major risk - Dividend sustainability

Now 21% undervalued after recent price drop

Now 23% overvalued after recent price rise

Investor sentiment improves as stock rises 15%

Now 21% overvalued

Now 20% overvalued after recent price rise

First quarter 2027 earnings released: EPS: JP¥83.30 (vs JP¥95.07 in 1Q 2026)

Kajima Launches ¥40 Billion Buyback With Over 2 Million Shares Repurchased

Nichireki Group Co., Ltd. to Report Q1, 2027 Results on Aug 07, 2026

Shimizu's (TSE:1803) Solid Profits Have Weak Fundamentals

Less than half of directors are independent

Third quarter 2026 earnings released: EPS: JP¥28.09 (vs JP¥17.03 in 3Q 2025)

First quarter 2026 earnings released: JP¥5.22 loss per share (vs JP¥23.44 profit in 1Q 2025)

Yamato's (TSE:1967) Promising Earnings May Rest On Soft Foundations