Shimizu Corporation (1803.T) stock analysis

In our weekly check, Shimizu Corporation is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 12 pass, warnings: 7, red flags: 6.

About Shimizu Corporation

Shimizu Corporation is an Industrials company (Engineering & Construction) based in Japan, listed on JPX as 1803.T.

What our checks show for 1803.T

Red flags

• Operating profit does not cover the interest bill (0.1x): interest is paid from cash or new debt.
• Operating cash flow is only 0.33x net profit: part of the reported profit does not arrive as cash.
• Free cash flow is negative (-2.8% of revenue): the business spends more cash than it brings in.
• The dividend takes 3592% of profit: little cushion if profit falls.
• The stock has fallen as much as 72% from a peak. Would you have held through that?
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Analysts expect only about 4.3% a year of growth in revenue.
• Analysts expect the net margin to shrink by 0.2 points from today's 6.2%.
• Revenue grew only 2.1% a year over the last 3 years.
• The net margin is only 6.2%: little room if costs rise.
• The price swings a lot: 43.4% annual volatility. Expect large ups and downs.
• Recovering from its deepest fall took about 1.7 years.
• Return on capital (ROCE) is only 8.4%.

Strengths

• The net margin rose by 2.9 points over 5 years, to 6.2%.
• The gross margin is 12.5% and has risen by 2.8 points: pricing power is holding.
• Earnings per share grew 41.2% a year over the last 3 years.
• Net profit grew 37.2% a year over the last 3 years.
• The price is 8.2 times earnings (P/E), reasonable for its growth.
• The share count fell by 6.8% in 2 years: the company buys back its own shares.

Next earnings report: 2026-11-09

Similar companies

1801.T · 1802.T · 1812.T · LT.NS · 000720.KS · 2404.TW

Questions

What grade does Shimizu Corporation (1803.T) have?

In our weekly check, Shimizu Corporation is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 12 pass, warnings: 7, red flags: 6. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 1803.T stock?

This week's biggest flags for Shimizu Corporation: Weak interest cover, Profits not backed by cash, Weak free cash flow. In total 13 of 25 checks show a warning or a red flag.

What does Shimizu Corporation do?

Shimizu Corporation is an Industrials company (Engineering & Construction) based in Japan, listed on JPX as 1803.T.

When does Shimizu Corporation report earnings next?

The next earnings report is expected on 2026-11-09. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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